• FNSACC301A - Process financial transactions and extract interim reports

FNSACC301A
Process financial transactions and extract interim reports

This unit describes the functions involved in preparation and processing of routine financial documents, preparing journal entries, posting journals to ledgers, preparing, banking and reconciling financial receipts, and extracting a trial balance and interim reports.This unit may apply to job roles subject to licensing, legislative, regulatory or certification requirements so the varying Commonwealth, State or Territory requirements should be confirmed with the relevant body.

Application

The unit can be applied to all sectors of the financial services sector and to job roles such as account clerks and bookkeepers.


Elements and Performance Criteria

ELEMENT

PERFORMANCE CRITERIA

1. Check and verify supporting documentation

1.1. Information from documents is identified, checked and recorded

1.2. Supporting documentation is examined to establish accuracy and completeness and to ensure authorisation by appropriate personnel

2. Prepare and process banking and petty cash documents

2.1. Deposits and withdrawals are accurately entered and balanced according to organisational procedures

2.2. Cheques and card vouchers are checked for validity before processing

2.3. Banking documentation is reconciled with organisation's financial records

2.4. Petty cash claims and vouchers are checked, processed and recorded and the petty cash book is balanced according to organisational procedures

3. Prepare and process invoices for payment to creditors and for debtors

3.1. Invoices are prepared in accordance with organisational procedures

3.2. Invoices are checked against source documents for accuracy and any errors corrected

3.3. All invoices and related documents are filed for auditing purposes

4. Prepare journals and batch monetary items

4.1. Journals are prepared accurately and completely and items batched within organisational timelines

4.2. Batch items are precisely matched to initial receipt records

4.3. Journals are authorised in accordance with organisational policy and procedures

5. Post journals to ledger

5.1. Journals are posted to ledger accurately and in accordance with organisation input standards with transactions correctly allocated to system and accounts

6. Enter data into system

6.1. Data is entered into system accurately and in accordance with organisation input standards with transactions correctly allocated to system and accounts

6.2. Related systems are updated to maintain the integrity of relationships between financial systems

7. Prepare deposit facility and lodge flows

7.1. A deposit facility is selected appropriate to the banking method to be used

7.2. Batch is balanced with deposit facility without error

7.3. Securityand safety precautions are taken appropriate to the method of banking in accordance with organisational policy and industry and legislative requirements

7.4. Proof of lodgement is obtained and filed so that it is easily accessible and traceable

8. Extract a trial balance and interim reports

8.1. Any special transactions are processed accurately

8.2. Cash and credit journals are completed and posted to general ledger

8.3. A trial balance is extracted and checked and other required reports prepared

8.4. Any errors are found and corrected

Required Skills

Required skills

communication skills to:

determine and confirm work requirements, using questioning and active listening as required

share information, listen and understand

read and interpret documentation from a variety of sources

use language and concepts appropriate to cultural differences

numeracy skills to make financial calculations

information technology skills for accessing and using spreadsheets and databases

literacy skills for data analysis and interpretation

evaluative and general analytical skills

organisational skills, including the ability to plan and sequence work

Required knowledge

accounting conventions, processes and procedures

banking procedures and guidelines

industry codes of practice

legislative and regulatory requirements relevant to the work

organisational policy and procedures

relevant Acts and regulations

security procedures for handling cheques, vouchers and cash

Evidence Required

The Evidence Guide provides advice on assessment and must be read in conjunction with the performance criteria, required skills and knowledge, range statement and the Assessment Guidelines for the Training Package.

Overview of assessment

Critical aspects for assessment and evidence required to demonstrate competency in this unit

Evidence of the ability to:

accurately enter and balance deposits and withdrawals

process and balance petty cash transactions

check and verify supporting documentation

apply relevant security measures for preparing and banking receipts

batch monetary items and prepare deposit facilities

use knowledge of organisational policies and procedures and legislative requirements to accurately enter data into accounting systems and process journal entries

prepare and authorise journals and check journal processing reports

extract and check/correct a trial balance

file documentation to meet all organisational and regulatory requirements.

Context of and specific resources for assessment

Assessment must ensure:

competency is demonstrated in the context of the financial services work environment and conditions specified in the range statement either in a relevant workplace or a closely simulated work environment

access to and the use of a range of common office equipment, technology, software and consumables.

Method of assessment

A range of assessment methods should be used to assess practical skills and knowledge. The following examples, in combination, are appropriate for this unit:

evaluating an integrated activity which combines the elements of competency for the unit or a cluster of related units of competency

verbal or written questioning on underpinning knowledge and skills which may include formal examinations

setting and reviewing workplace projects and business simulations/scenarios

evaluating samples of work

accessing and validating third party reports.

Guidance information for assessment


Range Statement

The range statement relates to the unit of competency as a whole. It allows for different work environments and situations that may affect performance. Bold italicised wording, if used in the performance criteria, is detailed below. Essential operating conditions that may be present with training and assessment (depending on the work situation, needs of the candidate, accessibility of the item, and local industry and regional contexts) may also be included.

Information includes:

account numbers

addresses

amounts of money, figures

card numbers

cheque numbers

dates

names.

Documents may include:

application forms

claim forms

petty cash vouchers

invoices

purchase orders

receipts

credit notes

statements

deposit books

delivery dockets

remittance advice.

Supporting documentation may include information that supports the transaction such as:

suspense reports

reconciliations.

Validity may include:

signature

dates

amounts.

Journals may include:

general

cash receipts

cash payments

sales

purchases

returns and allowances.

Preparing journals accurately and completely means:

meaningful notation

effective date specified

correct allocation

balanced transaction.

Batch items are:

grouped receipts treated as a separate transaction entity.

Organisational policy and procedures may include:

operations manual

internal control guidelines

computer system documentation.

Deposit facilities may include:

bank deposit slips

direct debit transaction reports.

Banking methods include:

personal

through a third party security company

by pick-up.

Security and safety precautions may include:

banking of all negotiable instruments on day received

all batches posted on day of receipt

cash management processes.

Industry and legislative requirements may cover:

Anti-Money Laundering and Counter Terrorism Financing Acts

Australian Accounting Standards

Australian Securities and Investments Commission (ASIC) Code

consumer credit legislation

industry codes of practice

occupational health and safety (OHS) Acts and guidelines

Privacy Act

relevant Insurance Act

Stamp Duties Act

Taxation Act

Trade Practices Act.

Proof of lodgement may include:

bank stamped deposit facility

verified transaction listing.

Special transactions may include:

introduction of additional capital

drawings of cash and goods

purchase and sale of non-current assets at book value

interest payable and receivable on overdue accounts

dishonour of cheques including write-back of discount

bad debts written off or recovered.

Reports may include:

balance sheet

trial balance

unadjusted income statement.

Errors may include:

a transaction not being recorded in a journal or recorded incorrectly

a journal entry not posted to the ledger or posted twice

an entry being made in an incorrect ledger account but on the correct side

entries being made on the wrong side of two ledger accounts

offsetting errors (compensating errors) where two independent errors for the same amount are made.


Sectors

Unit sector

Accounting


Employability Skills

This unit contains employability skills.


Licensing Information

Not applicable.