...AxcIdentify the documents used to record business transactions. When coming to draw up the accounts a business needs documents to extract the figures from and also to evidence those figures, they can be collected from source documents, there are many documents for many transactions and they all have their own purposes and uses. It is also important to understand the difference between a Credit and a Debit entry to fully interpret the source documents. The basic rule of double entry bookkeeping is that for every debit there must always be an equal and corresponding credit. A Credit entry is any money that is entering the account. A Debit entry is any money that is leaving the account. Invoices: The seller of goods or services provides and invoice for the buyer, the invoice will contain the following information: * Addresses – the suppliers, the customers and the delivery address if it is different. * Dates – the order and the delivery date. * Reference – a unique invoice number will be present, together with the customer’s order number. * Description of the goods or services sold. * Value – the total amount that is owed by the customer. * Terms – when the invoice is due for payment and any discount that is available to the customer. The invoice informs the buyer how much is being paid for the goods or services. Credit Notes: Credit notes are sent from the supplier to the customer when an adjustment to the amount is required. This may for example...
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...Rushmore Follow exercise 131 Message: Customer number 0000000774 Procure Xpen * Procure 3000 units of Xpen @ 0.7 per piece from premier pens (PO no. 4500001710) S3 Procure XPen Send purchase order Message: Standard PO created under the number 4500003189 Receive goods MIGO: Message: Material Document 5000003205 posted Create invoice MIRO: Document Number 5105603314 created Make payment F-53 – Document 1500000032 was posted in company code C089 2. Normal sales order Normal Sales Order (VA01, exercise 144) * 5 days ago: sales order from Writewell for 10 doens of Xpen @ 12 per Dozen * 3 days ago: you deliver the goods * 2 days ago: u send the bill * Today: u receive pymt. S1: Create sales order (ex 144) Message: Standard Order Number 534 has been saved S2: Create delivery note (ex146) Message: Outbound Delivery 80000549 has been saved Picking material on delivery note (ex 148) Message: Outbound Delivery 80000549 has been saved Post goods (ex 149) Message: Outbound Delivery 80000549 has been saved S3: Bill Customer (ex 151) VF01 – Message 90000433 has been saved S4: Post Receipt of customer payment (ex 152) Document 1400000001 was posted in company code C089 Part Delivery 1 * 5 days ago: sales order form Writewell for 10 dozens of...
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... |TOC: Examine evidence of approved purchase | | | | |and services orders. | |2. |Completeness |All purchases of inventory for the period are |Suppliers’ invoices are numbered using an | | | |recorded. |invoice register or pre numbered vouchers | | | | |and the sequences accounted for. | | | | |TOC: Review the evidence of the accounting | | | | |for numerical sequence of invoices. | |3. |Accuracy |Purchases of inventory are recorded correctly as|Established procedures for review of | | | |to...
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...classifications are the full name of each item, part numbers how it appears on the purchase order, also if the item is raw material, the material grade, class and dimensions must also be documented. The listed information is not only important for the invoice process but to the customer. This provides the customer with an accuracy to their purchase and shipment (Boeing Suppliers, 2014). There are critical elements that must be clearly identified on the packing slip and invoices. Packing slips must include: 1. A Packing slip number and date, 2. Boeing Purchase contract number will also be noted on the packing slip. 3. Boeing and suppliers Part Number(s) that is shown on the purchase contract. In addition, on each contract line item shipped, the document must include the total quantity, unit price, and unit of measure (Boeing Suppliers, 2014). By Boeing accurately completing print packing slips the quality would be enhanced, and the cycle-time would be decreased. Creating the packing slips allow for accuracy in getting the correct items to the correct purchaser. This gives Boeing a quality method of service, which is their overall goal. References Boeing Suppliers (2005) “Commercial Invoice Requirements: Retrieved from: http://www.boeingsuppliers.com/X32411English.pdf Boeing Suppliers (2014) “Boeing – Anaheim Supplier Payment Information” Retrieved from:...
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...errors in billing. Cash Collection 4. Is there a periodic reconciliation of bank statements with records by someone not involved in cash receipts processing? 5. Is there a segregation of duties? The answer no to either of these questions represents a threat in that there is a higher risk of fraud or theft. 13.5. Use Table 13-2 to create a questionnaire checklist that can be used to evaluate controls for each of the basic activities in the expenditure cycle (ordering goods, receiving, approving supplier invoices, and cash disbursements). Required * a .For each control issue, write a Yes/No question such that a “No” answer represents a control weakness. For example, one question might be “Are supporting documents, such as purchase orders and receiving reports,...
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...Internal Control Questionnaire—Sales Transaction Processing | |Yes, No, N/A | | |Assertions and Questions | |Comments | | | |Occurrence assertion: | | 1. Is the credit department independent of the sales |Yes |The sales dept is located within the marketing dept. | |department? | |The credit dept is located within treasurer’s dept. | | 2. Are sales of the following types controlled by the |N/A |There is only an indication that ‘cash sales’ are treated the | |same procedures described below? Sales to employees, COD | |same as credit sales. | |sales, disposals of property, cash sales, and scrap | | | |sales. | | | ...
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...Whenever inventory records in any departments are below its re-order level, a dedicated staff in each department will submit a purchase requisition to the purchasing department clerk. Upon receiving the documents, the clerk will prepare the purchase orders. He will send Copy 1 to the supplier, Copy 2 to the receiving department and Copy 3 to the accounts payable department. A few days later, the supplier ships the order and the goods arrive at the receiving department, together with a copy of Packing Slip. The receiving clerk reviews the purchase order (and the packing slip), inspects the goods and prints three copies of receiving report. The first copy of the report will be used to update the inventory records to reflect the receipt of goods, and later filed in the department. The second copy with the goods is sent to the warehouse and the third copy is sent to the accounts payable department. A day or two later, the accounts payable clerk receives a supplier’s invoice for the items shipped. The clerk assesses the receiving report and respective purchase order and later reconciles these documents with the supplier’s invoice. If all aspects of the order reconcile, the clerk records the amount of purchase into the respective accounts payable. Every Friday, a clerk from the accounting department will review the accounts payable and identify any items which are due for payment. A cheque will be prepared. Once approved and signed, it will be sent to the supplier and General Ledger will...
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...Job Description of Accounts Officer Monitor and coordinate with outside units with regard to generation of revenue. Reconcile exchange collection with system (TIIMS). Prepare ageing analysis every month in coordination with revenue officers in areas & Exchanges. Reconcile final bill claim with provisional bill claim at the end of the year. Pass necessary journal entries & prepare cash trial and bank reconciliation statement. Ensure that necessary books of accounts like cash book, ledger etc. are prepared and compare with exchange bank statement. Compile & record the revenue statement and reconcile the balance with branch. Record the fund transferred from various exchanges and crosscheck with the revenue ledgers and if necessary correspond with the bank. Update the fixed asset register for each addition of assets on the basis of disbursement or Journal voucher Record the detail of transfer in the fixed asset register at the headquarter Inspect asset on receipt of scrap report and make necessary entry in the books Calculate depreciation at the end of each month as per the rates prescribed by the statute. Carry out annual physical verification of fixed assets with reference to the fixed asset register. Prepare physical verification report and submit to the management. Obtain approval from the management to write off missing, unserviceable, damaged or condemned assets and pass necessary entries in the books of accounts. Prepare the...
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...A. Student Name: Ricardo Figueroa B. Lab 1 Part C Questions: 1. Entities in the conceptual model eventually are converted to tables in the database, and the attributes convert to the fields within the tables. Given this information, list the attributes (fields) found in the supplier table. The attributes are supplier ID, Company, Last Name, First Name, E-mail Address, Job Title, Business Phone, Home Phone, Mobile Phone, Fax Number, Address, City, State/Province, ZIP/Postal Code, Country/Region, Web Page and Notes. 2. With the Customers table sorted in alphabetical order by city, what is the name of the first customer to appear in the table? Ming-Yang Xie is the first customer to appear. 3. Who are the Customers located in the Tennessee? Amritansh Raghav, and Andre Ludick are located in Tennessee. 4. List the tables along with the primary key for each. Table Primary Key Customers ID Shippers ID Orders Order ID Orders Status Status ID Orders Tax Status ID Order Details ID Invoices Invoice ID Inventory Transactions Transaction ID Employees ID Order...
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...tactical in nature when expeditor was picking up parts with no confirmed orders or supply department receiving invoices for items that could not be matched to corresponding purchase order. 2. Purchasing procedures at Blozis are related to specifications, the use of requisitions, purchase orders, and receipt and delivery. Should these be changed? Why or why not? If they should be changed, how? Problems: Yes they should be changed because the current processes will only generate a lot of inaccuracies in the inventory and documentations. Current inventory and purchasing process allows for inventory to go missing, late payments to suppliers as well as mismatched receiving of invoices with purchase orders. No proper tracking and accounting of inventory is possible. Early payment discounts are also missed. The lack of documentation for the items picked up is not helping the departments to stay within budget. Corners are being cut with the way the system works. Two micrometers are lost because the expeditor most likely has picked up them up at the receiving dock and has taken them directly to the engineers. Since no documentation was in place to illustrate what has happened, it has become a financial and time loss to the company. Supply department also has to face with invoice for which they have no confirming documentation to support the payment for. There are also issues with suppliers claiming long overdue payments on materials that have been received by Blozis...
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...IV. Purchasing Cycle Ordering materials, supplies and services The Purchasing Group is responsible for receiving Purchase Order request forms from different departments. Usually, the majority of orders come from Planning Department because they use JIT inventory system to schedule production runs. Once the order request is approved by upper management, the purchaser will choose a vendor and decide if a Purchase Order (PO) is needed. Practically, PO will not be required for minor purchases that are less than $1,000 such as office supplies, lunches etc. For those purchases, the purchaser will contact the preferred vendors to place orders and pay them with the American Express credit card. The Purchase Order request forms are then completed for filing purposes. If the purchase exceeds $1,000, a PO is created. The purchaser will select a vendor, send them the PO and receive a confirmation number. If the shipment is delayed, the purchaser will contact backup vendors for immediately needed parts. Receiving Deliveries from vendors are handled by the Receiving Department. The docking clerk checks Bill of Lading (BOL) and Packing Slip for correct shipments. All incoming deliveries with right addresses are received at the dock. After blind receiving the products, the raw material handler will compare the actual receipt of goods with the quantity of goods on BOL and packing slip. All shipments are subject to inspection for any defected items. The raw material handler will notify the...
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...Fraud #1 What is the Fraud? The fraud consists of Equipment Overshipping and a kickback scheme. Who is involved? Charlie Thurgood and Ben Hill. How was it done? The first two months, April and May, TBC used Sports Chalet as its equipment vendor, however for the last two months, Ben Hill has diverted the business to Sports Equipment for no credible reason besides that Charlie is his friend, in the catalog there are no price differences between the two. Michele would submit the purchase order to Ben, so Ben had a chance to recreate purchase orders since they are left open and increase the orders. He would change the quantities ordered and told charlie to falsify the invoices. Charlie would also swap the shipping slips and the invoices so they would match TBC's records and alter the price on the invoice so the same total would be charged. Charlie and Ben could then fence the excess goods and divide the money. What is the economic impact of the fraud for the last 4 months? This fraud has cost the Tallahassee Beancounters $4,150 dollars since it began in June. How can this fraud be corrected? Ben had an overlapping authority when it came to choosing vendors, handling purchase orders, and paying vendors. By having access to all of these it was far too easy for him to use his position for fraud. Asking for the lost revenue back or possibly suing them for it. Sports Equipment could also be forced to deliver the amount of goods that appeared...
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... List each document found in this system, the number of copies, and whether it is prepared internally or externally. * Sales Invoice * Two copy * internal * Invoice Slips * One copy * internal * Validated bank deposit slips * Two copies * internal * Cash remittance * Four copies * internal * Bank statement * One copy * external * Bank reconciliation * One copy * internal * Bill of lading * One copy * Internal Answer each of the following questions. For each "No" answer, comment on whether an internal control weakness is indicated. QUESTION | YES | NO | COMMENT | (1) Is each document within this system pre-numbered? | X | | Yes, each document is pre numbered. For example, the sales invoice, and the...
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...Revenue Cycle (Ch11 Hurt) 92% of Public Companies’ Revenue Processes at Risk for Compliance Failures and Restatements New study by RevenueRecognition.com and IDC reveals widespread reliance on spreadsheets, which greatly increases the likelihood of control weakness and accounting errors. A recent survey of 685 senior financial executives from a broad range of companies, revealed that revenue recognition and reporting activities are not automated within Financial/ERP systems. As a result, 92% of public companies are forced to rely on spreadsheets to fill vital gaps in their revenue reporting processes—despite the fact that spreadsheets are prone to errors, lack audit capabilities, and resist internal controls. This, and other findings, is from a new report by www.RevenueRecognition.com and IDC, “Enterprise Systems and Revenue Recognition: The Missing Link”. Revenue Spreadsheets: The Compliance Killers These results should be alarming for corporate finance departments, executives, and investors alike, because: 1. The risks introduced by spreadsheets violate basic compliance principles. 2. Revenue accounting problems are the leading cause of financial restatements. 3. The number of restatements is on the rise. As a result, compliance managers should be addressing the issue of having spreadsheets in the revenue reporting process. Executives should be extremely cautious about the integrity of the numbers they are attesting to under Sarbanes-Oxley requirements...
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...Letter OF Credit: Case: Beyene sells to Mohammed Sofan. Sofan financed purchase from YBRD (Irvene Trust) The documents for LC that is the bill of lading listed the party for shipping company to notify upon arrival of the houses as Mohammad and not Mohammed Sofan. Irvene refused to pay stating that there was discrepancy between the bill of lading and letter of credit. Judgement: Court ruled in favor of Irevene .Does misspelling in case give right to Irevene to refuse to pay the LOC (Yes) Reason supporting judgement: The issuing bank that acts as the confirming bank for the issuer takes on absolute duty to pay the amount of the credit to the beneficiary, so as long and the beneficiary complies with the terms of the letter. The appeals court agreed with the lower court stating that the misspelling in the bills of lading of Sofan’s name as Soran was a material discrepancy that entitled Irevene to refuse to honour the LOC. The misspelling of his name could have resulted in his non receipts of goods and his justification refusal to reimburse Irving for credit. Documentary letter of credit defined. The documentary letter of credit is defined as (page 234) Is letter of credit a contract? Answer: LC does act like a promise from and issuing bank to a beneficiary and it seems to be treated like a contract and discussed in terms of principle contract of law. But it does not meet requirement for a contract as it does not come about through offer, acceptance or mutual assent, nor there...
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