FNSACC302 Administer subsidiary accounts and ledgers

Central College Assessment

assessment
Qualification:	FNS30315 Certificate III in Accounts Administration
Unit of Competency:	FNSACC302 Administer subsidiary accounts and ledgers
Student Name:
Student ID:
Assessment Due Date:

FNSACC302 Administer subsidiary accounts and ledgers

This unit describes the skills and knowledge required to reconcile and monitor financial accounts receivable systems, identify bad and doubtful debts and plan a recovery action, and remit payments to sundry creditors.

Elements	Performance Criteria
1.     Review accounts receivable process	1.1 Check receipts entered into accounts receivable system for accuracy, consistency and thoroughness
	1.2 Identify and accurately record incorrect entries according to type and source of receipt
	1.3 Identify and investigate discrepancies between monies owed and monies paid according to organisational policy, procedures and guidelines
	1.4 Amend receipts entered into accounts receivable system according to established procedures
2.     Identify bad and doubtful debts	2.1 Regularly review debtor ledger in accordance with organisational policy and guidelines to identify outstanding monies and seek further information, if required, from relevant sources
	2.2 Verify bad or doubtful debt status through liaison with debtors
	2.3 Complete reporting procedures and appropriate documentation for bad and doubtful debts in accordance with organisational policy and guidelines
3.     Review compliance with terms and conditions and plan recovery action	3.1 Correctly identify clients in default of trading terms according to organisational operating procedures, and promptly and courteously contact to make satisfactory arrangements to pay outstanding monies
	3.2 Action organisational policy and procedures for monies owing that constitute breaches of organisational credit policy
	3.3 Thoroughly review previous activities and communication with clients to establish adequacy of follow-up procedures and determine whether all usual organisational recovery avenues have been exhausted
	3.4 Develop plans to pursue debt recovery or to initiate legal action with measures to collect monies completed in accordance with organisational policy, guidelines and timelines
4.     Prepare reports and file documentation	4.1 Prepare reports which document accounts receivable, debt recovery type, cause and recovery plan, and distribute to supervisors, managers and other relevant parties
	4.2 Promptly file documentation in accordance with organisational policy and procedures
5.     Distribute creditor invoices for authorisation	5.1 Identify, investigate and rectify invoice discrepancies and encode and record invoices correctly
	5.2 Request authorisation for payment from appropriate personnel
6.     Remit payments to creditors	6.1 Correctly draw up and ensure authorisation of cheque requisition and identify correct general ledger to draw against
	6.2 Debit correct account in timely manner and in accordance with legislative and compliance requirements
	6.3 Prepare creditor payments in accurate manner
7.     Prepare accounts paid report and reconcile balances outstanding	7.1 Collect data and enter onto spreadsheet, giving details of creditors and amounts paid, and prepare report for ratification by appropriate management
	7.2 Obtain statements of outstanding balances from suppliers where required and reconcile balances outstanding to invoices received
Performance Evidence
Evidence of the ability to: ·          monitor accounts, following organisational policy and procedures and industry compliance requirements ·          identify bad and doubtful debts in a timely manner ·          plan effective recovery actions ·          follow bank account reconciliation processes ·          use relevant data entry systems accurately
Knowledge Evidence
To complete the unit requirements safely and effectively, the individual must: ·          identify and describe the key features of: o    accounting principles and practices o    accounting systems o    bank account reconciliation processes ·          describe how bad or doubtful debts are identified ·          describe the key requirements of: o    legal systems and procedures o    relevant legislation or regulations o    industry codes of practice o    industry compliance requirements ·          outline the key requirements of organisational policy and procedures relating to reconciling and monitoring financial accounts ·          describe measures to collect monies and features of recovery plans ·          explain the features and uses of financial spreadsheets
Foundation Skills
Reading		·          Interprets and carefully checks financial information for accuracy, consistency and thoroughness ·          Analyses discrepancies and errors to determine actions required
Writing		·          Records information accurately using correct spelling, grammar and terminology ·          Prepares reports of consolidated information and correspondence using logical structure and organisational formats
Oral Communication		·          Participates in verbal exchanges with a range of personnel and uses questioning and active listening to convey and clarify information and instructions
Numeracy		·          Performs mathematical calculations to check accuracy and completeness of numerical and financial data with a focus on identifying errors and discrepancies
Navigate the world of work		·          Follows legislative requirements, organisational protocols, policy and procedures relevant to own role
Interact with others		·          Follows accepted communication practices and protocols to liaise with others, elicit and share information and gain required authorisations
Get the work done		·          Plans, organises and implements tasks, aiming to complete them according to organisational and legislative requirements ·          Responds to predictable problems about payment status or discrepancies by implementing standard or logical solutions ·          Uses the main features and functions of digital tools to complete work tasks and to access information

 

 

 

 

 

 

 

 

 

 

 

Assessment Information:

To be deemed competent for this unit of competency, you are required to satisfactorily complete two (2) assessments:

• Assessment 1: Written Questions


• Assessment 2: Skills Assessment

Assessment Instructions

Your assessment will be required to be typed in Arial font size 12 only. You will provide your completed assessment for all of questions in one document and MUST be uploaded into MOODLE (No other method of submission will be accepted).

You are required to professionally format your document including spell-check and indicating each Task answer [e.g. Task 1 (a.) then the answer, Task 1 (b.) then the answer etc.] according to this Assignment requirement. You may lose marks if you have not spell-checked your document (as this is a professional formatting requirement, a business skill).

This assessment can be completed in one of several ways. Assessment candidates may identify unit requirement within their own work environment or organisation, or with reference to a scenario provided by the trainer/assessor.

Be sure to properly reference your sources of information using the Harvard referencing system. For more information go to:-

• Student Handbook - latest version


• Ask your Trainer/Assessor to provide you with this information

In order to determine if you are addressing this assignment adequately in terms of competency/comprehension (prior to due date) a draft copy of your assessment should be discussed during class time in consultation with your Trainer/Assessor. For this feedback/ support from your Trainer/Assessor, you will need to bring to class your “draft copy” with any evidence of the research you have conducted to produce the assessment.

If, as a student you feel you have special needs that require your Trainer/Assessor to apply a reasonable adjustment – please discuss this with your Trainer/Assessor at the beginning of the subject studies.

Your Assignment must:

1. Be of a professional standard (spelling, grammar, punctuation)


2. Size 12, Arial Font


3. 1.5 Spacing


4. All pages must have a Header/Footer with the following details:
   
   • Name
   
   
   • Student ID
   
   
   • The course & unit of competency
   
   
   • Date
   
   
   • Page numbering
   
   


5. Title page


6. Index page


7. Body of work


8. Referencing

 

How to upload your answered assessment into MOODLE

To upload your assignment into Moodle, follow these steps.

1. Log-in to Moodle and access the subject that you will be submitting the assignment in.


2. Locate the assessment you will be uploading into by scrolling down to the week that the assessment is due in and then click on the assessment submission link.


3. Click on the name of the assignment.


4. Click the Browse button.


5. Select the file and click Open.


6. Click the Upload this file button.


7. If you have more than one file, repeat the process (steps 4-6) to attach additional files up to the assignment's limit.


8. Once happy with your submission click the Send for marking button. The files are locked and the student can no longer delete, or upload more, files.

Note: The date and time of the submission is recorded when the files are sent for marking, not when they are first uploaded.



 

assessment 1: written questions

QUESTIONS

 

1. What is the first step in ensuring data accuracy?

 

















 

2. How might errors occur with receivable entries?

 

















 



 

3. Why should your accounts receivable reporting be accurate?

 

















 

4. What is the purpose of the debtor’s ledger?

 

















 



 

5. What would you need to do if you could not reach an agreement with a customer about a bad debt?

 









 

6. What might be included in a report on accounts receivable?

 

















 

7. How does a bank statement assist you to identify discrepancies?

 

























 

8. Who might authorise a creditor’s invoice?

 









 

9. What is a bad debt?

 



 

10. How do you account for a bad debt?

 



 

11. How can payment incentives help you collect debts?

 



 

12. What should you include in your payment and credit policy?

 



 

13. How would you go about pursuing overdue payments?

 

14. How can you use a debt collector?

 

15. What is a Remittance Advice?

 

 

 



 

assessment 2: SKILLS ASSESSMENT

Task 1 – Subsidiary Accounts and Ledgers

Your company, Excel International, issued the following invoices:

Date	Invoice Number	Invoiced	Amount	Paid	Paid Date
1/2/xx	A101	Orion Pty Ltd	$1,560.00	$1,560.00	3/2/xx
1/2/xx	A102	Charlie Smith	$1,478.00	$1,100.00	5/2/xx
1/2/xx	A103	Tripod	$985.00
1/3/xx	A104	Luna Consulting	$432.00
2/4/xx	A105	Jennifer Feather	$2,847.00	$2,847.00	12/4/xx
6/4/xx	A106	Midnight	$221.00	$221.00	8/4/xx
6/4/xx	A107	Evolution	$1,460.00
8/4/xx	A108	Orion Pty Ltd	$254.00	$254.00	1/5/xx
10/4/xx	A109	Orion Pty Ltd	$451.00	$451.00	12/4/xx
10/4/xx	A110	Charlie Smith	$3,214.00
13/4/xx	A111	Harry James	$1,156.00
15/4/xx	A112	Syed Hamil	$1,200.00	$1,300.00	20/4/xx
20/4/xx	A113	Orion Pty Ltd	$645.00
21/4/xx	A114	Luna Consulting	$850.00	$850.00	1/5/xx
25/4/xx	A115	Midnight	$300.00
28/4/xx	A116	John Zhou	$1,642.00

 

Note: xx represents the current year. Assume the date now is 25/5/xx.

All invoices are on 14 day terms.

1. Enter all the invoices into a spreadsheet and calculate the days overdue for each unpaid invoice. Mark those that are 60 days or more overdue.  These are considered to be bad debts. Print and attach the spreadsheet.


2. Enter the transactions into an electronic accounting system such as MYOB, QuickBooks or Xero. Produce reports to show bad or doubtful debts. Produce ledger reports showing the transactions. Print and attach the reports.


3. List the recovery actions you will undertake to collect the debts (outline your plan in detail):

 

 

4. Role play a telephone call to the Debtor of invoice A104.

Correct the overpayment for invoice A113.  Print the corrected ledger.

 

5. Charlie Smith made an additional payment of $378 on 3/5/xx. Enter this correction and reproduce the reports.

 

6. Enter the following payments made:

Date	Account	Supplier	Amount	Paid	Paid Date
3/2/xx	Business Insurance	CGU	$2,300.00	2300	1/3/xx
6/4/xx	Office Supplies	Officeworks	$232.00
8/4/xx	Electricity	Origin	$678.00
10/4/xx	Office Supplies	Officeworks	$187.00

 

7. Obtain cheque authorizations for the 3 unpaid bills.

 

8. Reprint the ledgers.

 

 

CHEQUE REQUISITION FORM   Authorisation from:  ………………………………………………………………………………..… (eg minutes, authorised event form (with budget); signature above])   Requested by: ……………………………………………………………………………………….... (It is this person's responsibility to provide PROOF of this expenditure in a timely manner)   I, ………..…………………………………………..acknowledge receipt of Cheque detailed below.                         (PRINT name)   Signature and Date: …………………………………………………………………....   …../…../…..   OR   Your address:  ………………………………………………………………………………………….                                                 ………………………………………………………………………………………….   Posted by:       ………………………………………………………………………  on  …../…../…..   Purpose of cheque: …………………………………………………………………………………… (Give as much detail as possible for audit purposes) …………………………………………………………………………...   Cheque Details   Cheque Number:          …………………………………………………………………………………   Cheque made out to:    …………………………………………………………………………………   Amount of cheque:       $………………………..   Date cheque to be drawn by:  …../…../….. (If NOT drawn by this date then cheque may be cancelled without notice)   Reconciliation Use Only PROOF OF EXPENDITURE MUST BE RECEIVED. Date proof received:  …../…../…..   Form of proof: ………………………………………………………………………………………...   ………………………………………………………………………………………………………… (Give details of proof provided. Eg Receipt/Stat Dec)   Date Cheque Drawn:  …../…../…..                                                         Bank Statement No: …………...

 

CHEQUE REQUISITION FORM   Authorisation from:  ………………………………………………………………………………..… (eg minutes, authorised event form (with budget); signature above])   Requested by: ……………………………………………………………………………………….... (It is this person's responsibility to provide PROOF of this expenditure in a timely manner)   I, ………..…………………………………………..acknowledge receipt of Cheque detailed below.                         (PRINT name)   Signature and Date: …………………………………………………………………....   …../…../…..   OR   Your address:  ………………………………………………………………………………………….                                                 ………………………………………………………………………………………….   Posted by:       ………………………………………………………………………  on  …../…../…..   Purpose of cheque: …………………………………………………………………………………… (Give as much detail as possible for audit purposes) …………………………………………………………………………...   Cheque Details   Cheque Number:          …………………………………………………………………………………   Cheque made out to:    …………………………………………………………………………………   Amount of cheque:       $………………………..   Date cheque to be drawn by:  …../…../….. (If NOT drawn by this date then cheque may be cancelled without notice)   Reconciliation Use Only PROOF OF EXPENDITURE MUST BE RECEIVED. Date proof received:  …../…../…..   Form of proof: ………………………………………………………………………………………...   ………………………………………………………………………………………………………… (Give details of proof provided. Eg Receipt/Stat Dec)   Date Cheque Drawn:  …../…../…..                                                         Bank Statement No: …………...

 

CHEQUE REQUISITION FORM   Authorisation from:  ………………………………………………………………………………..… (eg minutes, authorised event form (with budget); signature above])   Requested by: ……………………………………………………………………………………….... (It is this person's responsibility to provide PROOF of this expenditure in a timely manner)   I, ………..…………………………………………..acknowledge receipt of Cheque detailed below.                         (PRINT name)   Signature and Date: …………………………………………………………………....   …../…../…..   OR   Your address:  ………………………………………………………………………………………….                                                 ………………………………………………………………………………………….   Posted by:       ………………………………………………………………………  on  …../…../…..   Purpose of cheque: …………………………………………………………………………………… (Give as much detail as possible for audit purposes) …………………………………………………………………………...   Cheque Details   Cheque Number:          …………………………………………………………………………………   Cheque made out to:    …………………………………………………………………………………   Amount of cheque:       $………………………..   Date cheque to be drawn by:  …../…../….. (If NOT drawn by this date then cheque may be cancelled without notice)   Reconciliation Use Only PROOF OF EXPENDITURE MUST BE RECEIVED. Date proof received:  …../…../…..   Form of proof: ………………………………………………………………………………………...   ………………………………………………………………………………………………………… (Give details of proof provided. Eg Receipt/Stat Dec)   Date Cheque Drawn:  …../…../…..                                                         Bank Statement No: …………...

Overall Assessment Record

Student Name:
Student Number:
Unit of Competency:	FNSACC302 Administer subsidiary accounts and ledgers
Assessor Name:
Assessment Date
Assessment 1: Did student satisfactorily answer the following questions? (tick if yes; cross if no) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15           Assessment 1 Outcome:  Satisfactory  Not Satisfactory
Assessment 2: Task 1 Observation Criteria S NS Checked receipts entered into accounts receivable system for accuracy, consistency and thoroughness     Identified and accurately recorded incorrect entries according to type and source of receipt     Identified and investigate discrepancies between monies owed and monies paid according to organisational policy, procedures and guidelines     Amended receipts entered into accounts receivable system according to established procedures     Regularly reviewed debtor ledger in accordance with organisational policy and guidelines to identify outstanding monies and seek further information, if required, from relevant sources     Verified bad or doubtful debt status through liaison with debtors     Completed reporting procedures and appropriate documentation for bad and doubtful debts in accordance with organisational policy and guidelines     Correctly identified clients in default of trading terms according to organisational operating procedures, and promptly and courteously contacted to make satisfactory arrangements to pay outstanding monies     Actioned organisational policy and procedures for monies owing that constitute breaches of organisational credit policy     Thoroughly reviewed previous activities and communication with clients to establish adequacy of follow-up procedures and determine whether all usual organisational recovery avenues have been exhausted     Developed plans to pursue debt recovery or to initiate legal action with measures to collect monies completed in accordance with organisational policy, guidelines and timelines     Prepared reports which document accounts receivable, debt recovery type, cause and recovery plan, and distribute to supervisors, managers and other relevant parties     Promptly filed documentation in accordance with organisational policy and procedures     Identified, investigated and rectified invoice discrepancies and encoded and record invoices correctly     Requested authorisation for payment from appropriate personnel     Correctly drew up and ensured authorisation of cheque requisition and identify correct general ledger to draw against     Debited correct account in timely manner and in accordance with legislative and compliance requirements     Prepared creditor payments in accurate manner     Collect data and entered onto spreadsheet, giving details of creditors and amounts paid, and prepare report for ratification by appropriate management     Obtained statements of outstanding balances from suppliers where required and reconcile balances outstanding to invoices received       Assessment 2 Outcome:  Satisfactory  Not Satisfactory