Destop 1

8/9/2019 Destop 1

http://slidepdf.com/reader/full/destop-1 1/14

8/9/2019 Destop 1


ompany A

3ank 4econciliation

December (, )*((

3alance as per 3ank, Dec ( +),-./)

Add: Deposit in Transit **.**

+),./)

5ess: 6utstanding hecks:

#o. 10 issued on #ov ) +)*.**

#o. 1/- issued on Dec )0 .)(

#o. 1/1 issued on Dec ) )/-.**

#o. 11( issued on Dec ( (10.-*

1*./(

Ad7usted 3ank 3alance +),(0.*(

3alance as per 3ooks, Dec ( +),(0./

Add:

"nterest "ncome from 3ank +(,)/.))

#ote 4eceivable ollected by 3ank -**.**

"nterest "ncome from #ote 4eceivable -*.**

Deposit 8nderstated *.**

(,1//.))

+)-,*/.*(

5ess:

#!F heck 1-*.**

3ank !ervice Fee -*.**

3ank ollection Fee (*.**

(*.**

Ad7usted 3ook 3alance +),(0.*(

Bank Reconciliation Procedure

The following bank reconciliation procedure assumes that you are creating the bank

reconciliation in an accounting software package, which makes the reconciliation

process easier:

Enter the bank reconciliation software module. A listing of uncleared checks and

uncleared deposits will appear.

heck o! in the bank reconciliation module all checks that are listed on the bank

statement as ha"ing cleared the bank.

8/9/2019 Destop 1


8/9/2019 Destop 1


be fulfilled in less than a year. When accounts payable are paid off, it represents a negative cash flow for

the company.

"ead more# http#www.investorwords.com$%accounts&payable.html'ix(()"*%+-fv

Overview of Accounting Process

for Purchase Orders

The following is a brief overview of the 2urchase 6rder process from an accounting perspective:

2urchase 4e9uisition 24;What is it?

A re9uest for approval to proceed with an order for goods and services

What happens in FIS?

•

A reservation commitment; is made against the departmental budget recorded in theFunds <anagement F<; accounts F or F=Fund combination;

• #o $actuals$ are recorded against these accounts at this time

2urchase 6rder 26;

What is it? A contract between a customer and a vendor regarding the purchase of goods and=or services

stipulating some terms and conditions concerning the purchase

8/9/2019 Destop 1



• "f a purchase re9uisition has already been created in F"!, there is no financial impact on

the amount of budget reserved for this transaction> the reservation commitment;against the departmental F< accounts already e&ists. The actual commitment is moved

from the purchase re9uisition to the purchase order.

• "f a purchase re9uisition is not already created, the purchase order transaction is created

and a reservation is made against the budget in the departmental F< accounts.

• #o $actuals$ are recorded against these accounts at this time

?oods 4eceipt ?4;What is it?

An acknowledgement of the $receipt$ e.g. acceptance; of goods and=or services. This implies

that the payment can proceed because the conditions of the 2urchase ontract e.g. 2.6.; have

been met.


• "n the departmental F< accounts:

o The commitment reservation; against the budget in the departmental F<

accounts remains unchanged.

o #o $actuals$ are recorded against these accounts at this time.

• "n the departmental ontrolling 6; accounts ost enter or "nternal 6rder;

o An entry is made as follows:

D4: %&pense against the departmental cost center or internal order only;

4: Accrued 5iability account ?=5 -/***;

The posting of the GR document represents the acceptance of the goods and/or services asdelivered, and records this as an "accrued" Universit lia!ilit #n "accrued" lia!ilit is one $here

$e %UofT& ac'no$ledge that a pament is o$ed to an e(ternal part, !ut no formal re)uest %eg

invoice& for pament has !een received

8/9/2019 Destop 1


"nvoice 4eceipt "4;What is it?

Formal re9uest for payment by a vendor for goods and=or services delivered.


• "n the departmental F< accounts two events occur:

o The 26 commitment reservation; is reduced by the amount re9uested in the

invoice and a corresponding amount of budget is made available for payment

o An $actual$ e&pense transaction is recorded at this time Note: The same !udget

dollars that had !een reserved ! the *+ transaction are no$ !eing used to issue

pament to the vendor the *+ commitment transaction is replaced $ith an

"actual" e(pense transaction

• "n the departmental ontrolling 6; accounts ost enter or "nternal 6rder;:

o There is no activity as a result of this transaction> the 6 accounts are only

updated at the point that the ?4 document is posted.

• !ince a re9uest for formal payment has now been made, the "4 document results in the

following posting to the 8ofT accrual and vendor accounts

D4: Accrued 5iability account ?=5 -/***;

4: @endor account

This entr moves the lia!ilit record from the "general lia!ilit" account %G/- .0111& to theappropriate vendor account for pament

hat to do when corrections are re9uired

to a 2urchase 6rder document

*urchase order no longer re)uired2

!ee the 9uick reference guide: Finai!e and Cance Purchase Order"

http://www.finance.utoronto.ca/Assets/Finance+Digital+Assets/qrg/purchasing/pofinalizecancl.pdf


8/9/2019 Destop 1


Goods Receipt document recorded, !ut pament to the

vendor $as not processed using the Invoice Receipt

process %eg entered as a "certified invoice"&

Two steps are re9uired:

(. 4everse the ?oods 4eceipt document> see the 9uick reference guide: #oods $eceipt

$everse

). ancel 2urchase 6rder> !ee the 9uick reference guide: Finai!e and Cance PurchaseOrder

"f you have any further 9uestions, please contact your FAST Team Facut% $epresentative

Flow of Processing Purchase !rder

!verview

The Flow of Processing section helps you learn how to operate the Purchase !rder

Processing module for the first time and provides guidelines for operation after it is

installed.

The "ddon#oftware +urchase rder +rocessing module is used for automatic

replenishment processing and entering, maintaining, and displaying vendor purchase

orders for all items ordered, whether they are inventory or non$stoc% items. &t is

designed to integrate with the "ddon#oftware Accounts +ayable and Inventory

-ontrol modules, and can interface to the "ddon#oftware /hop 0loor -ontrol module

as well.

Flow of aily Processing

aily processing refers to the procedures performed each day while using the Purchase

!rder Processing module, such as creating re(uisitions and purchase orders orentering receipts and invoices. epending on the volume of business your company

handles, re(uisitions and purchase orders are created during most daily operations. )ou

can process these records either singularly or in groups.

http://www.finance.utoronto.ca/Assets/Finance+Digital+Assets/qrg/purchasing/grcreatereverse.pdf





http://www.finance.utoronto.ca/Page8132.aspx





http://www.finance.utoronto.ca/Page8132.aspx

8/9/2019 Destop 1


To audit the flow of daily processing, registers are printed for purchase re(uisitions,

purchase order receipts, and purchase invoices before an update ta%es place.

*reate +e(uisitions and Purchase !rders

enerally, before purchase orders are issued, re(uisitions are created in the Purchase

Requisition Entry tas% to re(uest a purchase. The same information re(uired for

purchase order entry is re(uired for re(uisition entry. When approval of a re(uisition is

granted, you can enter the re(uisition number in the Purchase Order Entry tas% to

automatically convert the re(uisition to a purchase order.

"t other times, you may be using the Purchase Order Entry tas% to enter a purchase

order without a re(uisition. Whether using the Purchase Requisition Entry or Purchase

Order Entry tas%s, general information such as the vendor name and address is

re(uested, as well as dates, shipping instructions, terms code, freight terms, and so

forth. "s line items are entered, they are assigned codes which tell the system how to

process the line.

There are five different types of detail lines available for the items entered on

re(uisitions and purchase orders- standard, non$stoc%, vendor part number, message,

and other. #ee thepen +urchase rder -onversion forms at the end ofthe Installation section for the type of information re(uested for the different detail

lines.

Print +e(uisitions and Purchase !rders

se the Print Purchase Requisitions task to print re(uisitions before issuing purchase

orders. +e(uisitions are printed by re(uisition number, vendor number, alternate

se(uence, or warehouse. " message can be printed on the re(uisition if desired.

/erify that the re(uisitions were entered correctly. se the Purchase Requisition

Entry tas% to ma%e any necessary changes, and reprint the re(uisitions. When the

printed re(uisitions are correct, update the print file. pdated re(uisitions will not print

again except with the reprint option.

8/9/2019 Destop 1


0ust as you printed re(uisitions, use the Print Purchase Orders tas% to print current

purchase orders. The same print options and processes for re(uisitions are used.

"lways verify that purchase orders were entered correctly. &f necessary, use

the Purchase Order Entry tas% to ma%e any changes before updating the print file.

&f desired, print reports from the Purchase !rder +eports Menu. ifferent reports on that

menu can show the current status of all or selected open re(uisitions and purchase

orders, and the cash re(uirements, by re(uired date, of all outstanding purchase orders.

*onvert +e(uisitions

"lthough you can convert individual re(uisitions into purchase orders by entering the

re(uisition number in the Purchase !rder 1ntry tas%, you can also convert an entire

group of re(uisitions by updating the Purchase +e(uisition +egister. The register may

include entries for several days and should be printed and reviewed before converting

re(uisitions to purchase orders. "ny re(uisition with the Hold For Manual

Release chec%box mar%ed is not printed on the register and is not converted in the

process. The re(uisitions are assigned the next available purchase order numbers.

Process Purchase !rder +eceipts

"s purchase order receipts 2generally called pac%ing lists, shipping documents, or

receivers3 come in, stamp and date them. se the Purchase !rder +eceipt 1ntry tas% to

enter purchase order receipts. Purchase order receipts can be entered singularly or in

groups.

+un the Purchase !rder +eceipt +egister to obtain a list of all purchase order receiptsentered since the last register was printed. /erify that the receipts were entered

correctly. se the Purchase !rder +eceipt 1ntry tas% to ma%e any necessary changes,

and reprint the register. When the register is correct, update the register. File the

updated register for later use. When invoices are received, they will be matched to the

receivers on this register.

8/9/2019 Destop 1


The day4s purchase order receipts for bac%ordered products are listed on the #uggested

5ac%order Fill +eport, which automatically prints at the end of the Purchase !rder

+eceipt +egister whenever bac%ordered products are received. The report is used to

determine whether any customer bac%orders can be filled by recent purchase order

receipts.

&f desired, print the P! +eceipt 6istory 5y /endor and the P! +eceipt 6istory 5y &tem

reports to obtain a list of all or selected receiving transactions.

Purchase !rder &nvoices

/endor invoices are entered using Purchase !rder &nvoice 1ntry and paid through the

"ddon#oftware "ccounts Payable module. Match the invoices received to the Purchase

!rder +eceivers and verify (uantities, dollar amounts on the items received. 1ach

detail line item is reviewed and edited to reflect any differences found between the

invoiced (uantity7amounts and the Purchase !rder +eceipt (uantity7amounts.

"dditional detail lines for other costs 2i.e., pac%ing and service charges, etc3 may be

entered so that the total of all lines matches the total on the vendor4s invoice. &nvoices

not relating to inventory can be entered through Purchase !rder &nvoices, or through

"ddon#oftware "ccounts Payable &nvoice 1ntry.

+un the Purchase !rder &nvoice +egister to obtain a list of all invoices entered since the

last register was printed. /erify that the invoices were entered correctly. se the

Purchase !rder &nvoice 1ntry tas% to ma%e any necessary changes, and reprint the

register. When the register is correct, update the register.

eneral 8edger postings depend on the type of costing entered in &nventory Parameter

Maintenance. Please see 8 Postings for Purchase !rders for details on these

postings. &tems received into inventory are credited to a 9Purchases4 account anddebited to &nventory. uring the update of Purchase !rder &nvoices, this 9Purchases4

account is debited and "ccounts Payable "ccount is credited.

+eplenishment Processing

8/9/2019 Destop 1


+eplenishment processing enables your purchasing department to buy more efficiently,

improve margins, decrease paper, and reduce inventory levels. 5y analy:ing current

inventory data and user$defined buying parameters, you can determine what items to

purchase, from which vendors, and in what purchase (uantities. epending on the

nature and volume of your business, this process might be performed on a daily basis.

"naly:ing +eplenishment ata

#pecify the buyer7vendor7review date in the +eplenishment #election tas%. )ou can

designate a series of buyer7vendor7review date combinations by repeatedly accessing

the tas%. !nce the parameters for the review cycle are entered, print the +eplenishment

+eport. &t shows recommended purchase (uantities based on minimum purchase

amount, maximum stoc%ing levels, line point, 1!;, average usage, and safety stoc%.

Periodic Processing

Periodic processing are those tas%s you perform semi$regularly to maintain the files

within the Purchase !rder Processing module.

+eporting Purchase !rder Processes

The following reports can aid you in processing and trac%ing your purchase re(uisitions

and purchase orders. These reports should be run as needed.

!pen Purchase +e(uisition +eport

#hows the current status of all or selected re(uisitions on file.

+e(uisitions 5y &tem +eport

This report prints your re(uisitions by item. se it to determine which vendors are

supplying particular items re(uired by your re(uisitions. " total by item is displayed.

8/9/2019 Destop 1


8/9/2019 Destop 1


P! +eceipt /ariance +eport

This report lists receipts and shows the variance between the scheduled and actual

receipt date.

P! +eceipt *ost /ariance +eport

This report lists receipts and shows the variance between receipt amount and actual

cost.

P! +eceipt 6istory by /endor

8ists purchase order receipts history for a range of vendors within an input range of

receiving dates and in summary or detail.

P! +eceipt 6istory by &tem

Prints purchase order receipts history for range of warehouses, product codes, and

items.

What are prepaid expenses?

Prepaid e#penses are future e#penses that ha"e been paid in ad"ance.

Prepaid e#penses represent payments made for e#penses which are not yet

incurred.

Prepaid e#penses may need to be ad-usted at the end of the accounting period. The

ad-usting entry for prepaid e#pense depends upon the -ournal entry made when it

was initially recorded.

Asset Method

nder the asset method, a prepaid e#pense account /an asset account0 is recorded when

the amount is paid. Prepaid e#pense accounts include: )ce +upplies, Prepaid Rent, Prepaid

%nsurance, and others.

8/9/2019 Destop 1


Expense Method

nder the e#pense method, the accountant initially records the entire payment as e#pense.

%f the e#pense method was used,

Documents

Destop 1