Assessment Task 2: PRACTICAL ASSESSMENT
\nTask summary
\nThe Case Study is a hypothetical situation which will not require you to have access to a workplace, although, your past and present workplace experiences may help with the responses you provide. You will be expected to encounter similar situations to these in the future as you work in financial services.
\nIn real life, you will be required to reconcile and monitor subsidiary accounts, identify bad and doubtful debts and plan a recovery action, record creditor invoices, and remit payments to sundry creditors. This assessment will help you demonstrate skill requirements in such situations.
\nDeliver
\nCase Study 1.4 \u2013 Roleplay
\nCase Study 1.6 – Roleplay
\nCase study 3.2.1 -Role play
\nSubmit
\n\u2022 FNSACC312 \u2013 Case Study 1.4 – Remittance Advice
\n\u2022 FNSACC312 \u2013 Case Study 1.7 – Unpaid Account
\n\u2022 FNSACC312 \u2013 Case Study 1.8 – Electronic Payment
\n\u2022 FNSACC312 \u2013 ABA File \u2013 WB C.aba
\n\u2022 FNSACC312 \u2013 Case Study 1.8 – Remittance Advice
\n\u2022 FNSACC312 \u2013 Case Study 1.9 – Reconciliation Report
\n\u2022 FNSACC312 \u2013 Case Study 1.10 Reports – Supplier Ledger
\n\u2022 FNSACC312 \u2013 Case Study 1.10 Reports – Payables Reconciliation Detail
\n\u2022 FNSACC312 \u2013 Case Study 1.10 Reports – General Ledger
\n\u2022 FNSACC312 \u2013 Case Study 1.10 Reports – Balance Sheet
\n\u2022 FNSACC312 \u2013 Case Study 1.10 Reports – GST Report
\n\u2022 FNSACC312 \u2013 Case Study 1.10 Reports – Profit and Loss
\n\u2022 FNSACC312 \u2013 Case Study 1.10 Reports – Supplier Payments
\n\u2022 FNSACC312 \u2013 Case Study 2.2 – Invoice Louise Wales
\n\u2022 FNSACC312 \u2013 Case Study 2.8 – Bank Deposit Slip
\n\u2022 FNSACC312 \u2013 Case Study 2.10 – Activity Statement
\n\u2022 FNSACC312 \u2013 Case Study 2.11 – Bank Reconciliation
\n\u2022 FNSACC312 \u2013 Case Study 2.12 Reports – Customer Ledger
\n\u2022 FNSACC312 \u2013 Case Study 2.12 Reports – Receivables Reconciliation
\n\u2022 FNSACC312 \u2013 Case Study 3.1.1. \u2013 Recovery Plan 1
\n\u2022 FNSACC312 \u2013 Case Study 3.1.1. \u2013 Recovery Plan 2
\n\u2022 FNSACC312 \u2013 Case Study 3.3.1 \u2013 Letter of Demand (Kevin)
\n\u2022 FNSACC312 \u2013 Case Study 3.3.1 \u2013 Letter of Demand (Kal)
\n\u2022 FNSACC312 \u2013 Case Study 3.4 – Screenshot
\n\u2022 FNSACC312 \u2013 Case Study 4.1 Reports \u2013 All Transactions
\n\u2022 FNSACC312 \u2013 Case Study 4.1 Reports \u2013 Balance Sheet
\n\u2022 FNSACC312 \u2013 Case Study 4.1 Reports \u2013 Profit and Loss
\nAssessment criteria
\nFor your performance to be deemed satisfactory in this assessment task, you must satisfactorily address all of the assessment criteria. If part of this task is not satisfactorily completed, you will be asked to complete further assessment to demonstrate competence.
\nRe-submission opportunities
\nYou will be provided feedback on your performance by the Assessor. The feedback will indicate if you have satisfactorily addressed the requirements of each part of this task.
\nIf any parts of the task are not satisfactorily completed, the assessor will explain why, and provide you written feedback along with guidance on what you must undertake to demonstrate satisfactory performance.
\nYou have the right to appeal the outcome of assessment decisions if you feel that you have been dealt with unfairly or have other appropriate grounds for an appeal.
\nYou are encouraged to consult with the assessor prior to attempting this task if you do not understand any part of this task or if you have any learning issues or needs that may hinder you when attempting any part of the assessment.<\/p>\n
Part 1: Accounts Payable
\nPart 1 of the practical assessment deals with accounts payable. The tasks included in this part of the assessment cover the following activities:
\na. Planning recovery action
\n? Reviewing accounts payable
\no Invoices received
\no Cheque requisitions
\no Statement of accounts
\nb. Remitting payments to creditors
\n? Making payments
\no BPAY payments
\no Electronic transfer payments
\n? Reconciling cheque accounts
\nRefer to the scenario on the following page to complete the tasks in this part of the case study.<\/p>\n
SCENARIO
\nOlivia Reins Dental Group is owned by Olivia Reins and her partners Alphonse Fache, Edward Mills, and Roberta Wong. They are dentists based in Sydney, New South Wales, Australia.
\nThey offer the following services:
\nComprehensive Oral Health Care
\nRegular Check-up and Cleaning
\nOrthodontics
\nTreatment for Dental Trauma
\nCare of Primary Teeth
\nRoot Canal Therapy
\nSpecial Needs
\nOlivia Reins Dental Group is a professional partnership. It has an ABN and is registered for GST reporting on a cash basis.
\nOlivia and her partners employ a bookkeeper (you) to monitor and look after the accounts of the business. The bookkeeper has the permission to sign cheques and pay accounts online.
\nThe company purchases dental supplies from Teeth and Teeth Necessities and other supplies from Sydney Supplies and Strocc Supermarket. It is leasing its space from Jaka Leasing and uses the services of the following:
\n? AdVisable Advertising Agency
\n? Cool Mountain Water Supply
\n? Energy Australia
\n? Hutcherson Telecommunications
\n? Speedway Gas Station
\n? Sydney Water<\/p>\n
Excerpt from Olivia Reins Dental Group Policies and Procedures Manual
\nPURCHASING
\n1. Olivia personally purchases all dental supplies needed by the business. A purchase order is rarely used because the supplies are usually bought over the counter by Olivia. Dental supplies are bought from Teeth and Teeth Necessities.
\n2. Supplies and business needs other than dental supplies are usually purchased by the bookkeeper.
\n3. At the time of purchase, a printed invoice is received listing all items and total cost of supplies. All details are checked for accuracy. Should there be a discrepancy, a telephone call is made to the supplier and a new tax invoice is requested.
\n4. Suppliers usually send a statement at the end of the month, however, some invoices are payable on invoice, not statement.
\n5. On receipt of the statement, the bookkeeper checks this statement with the invoices received at the time of the purchase.
\n6. Credit terms vary from supplier to supplier. No discounts are allowed by any suppliers. Olivia is given a trade price at the time of purchase.
\nSUPPLIER PAYMENT PROCEDURES
\n1. Upon receipt of an invoice, the validity and accuracy of the invoice must be checked before entering into the data file.
\n2. Statements received are reconciled with invoices received. And the invoices are entered into the computerised system.
\n3. Due dates of supplier invoices are monitored using the \u201cTo Do List\u201d.
\n4. Accounts are paid by BPAY, electronic transfer or cheque. All cheques are accompanied by a remittance slip. Electronic payments register must be authorised by Olivia before uploading to the bank. Remittance advice is provided to the customer once payment has been made.
\n5. Expenses incurred by the bookkeeper (e.g. office supplies) must be authorised by Olivia using a Cheque Requisition Slip.
\n6. The bookkeeper is authorised to pay accounts by BPAY, transfer electronic payments (after approval by Olivia) and sign cheques.
\n7. At the end of the month, a payables reconciliation report is printed to make sure the Payables Subsidiary Ledger and General Ledger reconcile. This report includes the supplier\u2019s invoice number and due date.
\nThis report (excluding the ageing details) is exported to Excel and reviewed by Olivia, who authorises the accounts (reflected in the Excel printout) to be paid by the bookkeeper, who must consider the cash flow situation.
\n1.1: Preview Existing Data
\nSteps to take
\n1. Open the data file Olivia Reins Dental Group.myo and sign in as Administrator with no password.
\n? View the Accounts List
\n? View the Card File
\n? Read the Policies and Procedures
\nYou can download the file through the link below:
\nOlivia Reins Dental Group MYOB file
\n2. Include your name in the company name field as the business name for printout identification purposes.
\n3. Check that the file you are using is in the current financial year. If not, start a new financial year.
\nGuidance: For the purpose of this assessment, you are working in the month of May of the current year 2017. Remember to back up on a regular basis.
\nThis is only an intermediate step for the candidate to complete the next tasks.
\n1.2: Reviewing Invoices Received
\nOlivia has purchased the following materials from Teeth and Teeth Necessities, taking the goods and receiving the invoice at the time of purchase.
\nSteps to take
\n1. Check the validity and accuracy of the following invoices. Note any discrepancies and discuss with your assessor, where necessary.
\n2. Enter the corrected tax invoices in your data file. Individual items are not recorded \u2013 just the total of the tax invoice.
\n3. Remember to indicate that the invoice has been entered, see Policies and Procedures.<\/p>\n
1.2.1 Refer to the invoice below:
\nTeeth and Teeth Necessities Tax Invoice
\n28 Carlton Right 169
\nREID NSW 2627
\nPhone (02) 6532 8869 Fax (02) 6532 8867
\nTO: Olivia Reins Dental Group
\n226 Beau Lake St, Southbridge
\nREID NSW 2627
\nDate: 3\/5\/2017 Purchase Order Number: Olivia Terms: 30 days
\nQuantity Item Number Description Unit Price
\ninc. GST Total inc. GST Tax Code
\n10 B31 Disposable Bib Holders $18.90 $189.00
\n60 B28 Bib Chains \u2013 Non Autoclavable 1.00 60.00
\n20 A03 Full Chair Sleeves 39.00 780.00
\n30 D23 Evacuation\/Suction Tips 5.50 165.00
\n30 D22 Saliva Ejectors 5.50 165.00
\n2 C01 Surgical Blades 31.00 62.00
\n10 D47 Separating Strips Roll 11.50 115.00
\n20 D31 Self-Etching and Self-Adhesive 59.90 1,198.00
\n20 F09 Temporary Filling Material 22.80 456.00
\n15 F08 Hydrogen Peroxide 35% 23.50 352.50
\n20 F11 Alcohol 95\/5 14.50 290.00
\n10 B41 Lightly Powdered Gloves 9.30 93.00
\nAmount of GST in this invoice: $356.86 $3,925.50
\nReview the invoice and note any discrepancies you might find. Answer the questions that follow.
\nGuidance: Before commencing your transaction in your data file, complete all assessments included in this task.<\/p>\n
1. What discrepancies did you find (if any)?<\/p>\n
2. What is the consequence if this error is not corrected?<\/p>\n
1.2.2. Refer to the invoice below:
\nTeeth and Teeth Necessities Tax Invoice
\n28 Carlton Right 307
\nREID NSW 2627
\nPhone (02) 6532 8869 Fax (02) 6532 8867
\nABN: 88 143 526 096
\nTO: Olivia Reins Dental Group
\n226 Beau lake St, Southbridge
\nREID NSW 2627
\nDate: 5\/5\/2017 Purchase Order Number: Olivia Terms: 30 days
\nQuantity Item Number
\nDescription Unit Price
\ninc GST Total inc GST Tax Code
\n5 B22 Powder-Free Exam Gloves $7.95 $39.75
\n2 G03 Amalgamator 275.00 550.00
\n7 F12 Long Term Temporary Cement 49.10 343.70
\n8 G02 Absorbable Sutures 114.00 912.00
\n4 D48 Spongostan 24\u2019s 135.00 540.00
\n30 G01 Dental Needles 19.20 576.00
\nAmount of GST in this invoice: $269.22 $2,961.45
\nReview the invoice and note any discrepancies you might find.
\n3. What discrepancies did you find (if any)?<\/p>\n
1.3: Entering Invoices
\nSteps to take
\n1. Enter the following invoices received checking for validity and accuracy.
\n2. Create a new card for suppliers if needed.
\n3. Before accepting the cheque, check the cheque for accuracy.
\na) Hutcherson Telecommunications
\nHutcherson Telecommunications Tax Invoice
\nABN Quoted Ref: 4154746
\nTO: Olivia Reins Dental Group
\n226 Beau lake St, Southbridge
\nREID NSW 2627
\nDate: 06\/05\/2017 Phone Number: 07 46366011 Due Date: 20th of the month
\nDetails of Telephone Calls listed. $504.00
\nAmount of GST in this invoice: $45.82
\nb) Jaka Leasing
\nJaka Leasing Tax Invoice
\nABN Quoted 2137
\nTO: Olivia Reins Dental Group
\n226 Beau lake St, Southbridge
\nREID NSW 2627
\nDate: 08\/05\/2017 Terms: 7 days
\nPrepaid Rent for the month @ $22,000 $22,000 inc GST
\nBSB Number: 111-777
\nAccount Number: 12034587<\/p>\n
c) Toothy Equipment*
\nToothy Equipment Tax Invoice
\n59 097 631 340 983
\n44 Freedom Ave, KHALIL NSW 2444
\nTO: Olivia Reins Dental Group
\n226 Beau lake St, Southbridge
\nREID NSW 2627
\nDate: 10\/056\/2017 Reference: Olivia Terms: 14 days
\nA-Dec 500 Dental Chair $13,195.00
\nAmount of GST in this invoice: $1,199.55
\nBSB Number: 361-502
\nAccount Number: 4569741
\n* this is purchase of dental equipment
\n4. On 7 May 2017, some of the supplies purchased from Teeth and Teeth Necessities on Invoice #307 were returned \u2013 wasted.
\n-1 G03 Amalgamator $275.00 -$275.00* GST
\n*GST inclusive
\nAdjustment note 25 was received on 7 May.
\nEnter the above adjustment and settle against the original invoice.
\nGuidance: The date of allocation should be the same date as the adjustment note.<\/p>\n
1.4: Cheque Requisition
\nThe bookkeeper pledged a $300 sponsorship towards the cost of the cooking displays at the local show.
\nSteps to take
\n1. Enter the following tax invoice in your data file.
\nLocal Show Society Invoice
\nABN 35 933 444 111 6561
\nShowgrounds Road
\nKALEEN NSW 2617
\nTO: Olivia Reins Dental Group
\n226 Beau lake St, Southbridge
\nREID NSW 2627
\nDate: 14\/5\/2017 Purchased by the bookkeeper Terms: 14 DAYS
\nSponsorship $300.00
\nNOT REGISTERED FOR GST.
\nGuidance: You may have to enter missing suppliers and new account codes into the card file if needed.<\/p>\n
Steps to take
\n2. A manual check is to be issued for the sponsorship of a local cooking show. You need to obtain authorisation from Olivia Reins. She has to sign the Cheque Requisition Slip together with the invoice in step 1 for proper documentation.
\nA Cheque Requisition Form should be completed with all pertinent information and required approval. This protocol is part of the procedures in place to ensure that there is control and to prevent fraud. You are to give Olivia a heads-up by placing a call while sending her the Cheque Requisition Slip for her to sign.
\nBefore Olivia Reins can sign the form, all details on the Cheque Requisition Slip must be filled in for signature. Complete the Cheque Requisition Slip below to attach to the invoice in Step 1.
\nCHEQUE REQUISITION SLIP
\nI certify that the services described on the attached tax invoice are accurate and the price has been agreed to.
\nReason for expenditure
\nGeneral ledger allocation A\/c following policies and procedures of the organisation
\nAmount
\n? GST
\n? FRE
\n? GNR
\nSigned by:
\nAuthorised by: Olivia Reins will sign here
\nEntered in MYOB AccountRight by: Date Entered:
\nDate of Payment: Payment Ref: 1003
\nEntered in MYOB AccountRight by: Date Entered:
\n(continued)
\nFor this activity, there is no specific script to be followed. However, you must demonstrate that you are requesting for the authorisation of the release of a cheque meant to sponsor a local cooking show from Olivia Reins.
\nFollow the steps below as your guide to completing this activity.
\nRead all instructions carefully before starting.
\nRoleplaying Activity
\nResources required
\nTo complete this roleplaying activity, you will need access to the following:
\n?
\nOne (1) volunteer to take the role of Olivia Reins
\n?
\nA safe environment to conduct the roleplaying activity in
\n(e.g. living room of your house)
\nSteps to take
\na. Review the criteria items in the roleplaying activity Assessor\u2019s Checklist below. Note that you must demonstrate ALL of the criteria items outlined in this checklist. Guidance is also provided in the checklist to help you complete this activity.
\nFNSACC312 \u2013 Case Study 1.4 – Roleplay
\nRoleplaying Activity \u2013 Assessor\u2019s Checklist
\n(The candidate is to leave this blank. This is for the assessor\u2019s use only.)
\nDid the candidate\u2026\u2026\u2026. YES NO Assessor\u2019s Comments
\n1. Prior to the roleplaying activity, introduce themselves as the candidate who is taking the assessment. ?
\n?<\/p>\n
2. Demonstrate active listening skills by:
\n\u2022 Asking questions
\n\u2022 Responding appropriately ?
\n?<\/p>\n
2. During the roleplaying activity, relay what the cheque is for and briefly discuss to Olivia why you are sponsoring the local cooking show.
\nGuidance: The candidate must relay to Olivia what the cheque is for and the reason why the business is sponsoring a local cooking show. ?
\n?<\/p>\n
3. Ask for Olivia\u2019s authorisation by asking her to fill in the Cheque Requisition Form. ?
\n?<\/p>\n
4. Thank Olivia for granting the authorisation. ?
\n?<\/p>\n
Steps to take
\n3. Write out the cheque to pay the amount owing to the Local Show Society on 15\/month.
\nDate:
\nPay:
\nDetails:
\nFWD
\nThis Cheque
\nBalance
\n001003 Bendigo Bank
\n3\/75 Elizabeth St., Sydney NSW 2000 001003
\nDate:
\nPay
\nOR BEARER<\/p>\n
The sum of
\n$
\nSignature:<\/p>\n
DRAWER
\nOlivia Reins Dental Group
\n[NOT NEGOTIABLE]
\n-001001 -014-\u2018667: 1245784-<\/p>\n
Steps to take
\n4. Enter the cheque in your data file and indicate that the payment has been entered. Remember to enter the payment details on the Cheque Requisition Slip.
\n5. Save as pdf formatthe remittance advice to attach to the cheque.
\nFNSACC312 \u2013 Case Study 1.4 \u2013 Remittance Advice
\n1.5: BPAY Payments
\nBPAY: Pay the amount owing to Hutcherson Telecommunications on 15 May. This account was paid using BPAY.<\/p>\n
1.6: Reviewing Statements
\nThe following statement of account has been received:
\nTeeth and Teeth Necessities STATEMENT
\nABN 88 143 526 096
\nFor the Month of
\n28 Carlton Right May
\nREID NSW 2627
\nPhone (02) 6532 8869 Fax (02) 6532 8867<\/p>\n
TO: Olivia Reins Dental Group
\n226 Beau lake St, Southbridge
\nREID NSW 2627
\nDate Reference Description Sales
\n[Debits] Payments\/
\nAdjustments
\n[Credits] Balance
\n1\/month Balance from previous month 0.00
\n1\/month Inv 169 Sales $3,925.50 $3,925.50
\nInv 307 Sales $2,961.45 $6,886.95
\nInv 398 Sales $4,740.00 $11,626.95
\nAdj 25 Adjustment $275.00 $11,351.95
\n3\/month
\n4\/month
\n60 days Overdue 30 days Overdue Current Total Amount Owing
\n$11,351.95 $11,351.95
\nSteps to take
\n1. Check the statement for accuracy against the data in your data file and answer the question that follows.
\n1. In the space provided below, list any discrepancies you find and outline what you would do to correct them if any.
\nDiscrepancies How would you correct these?<\/p>\n
Steps to take
\n2. For this activity:
\na. You are to call up Olivia Reins to check if the invoice indeed belongs to Olivia Reins Dental Group.
\nb. You are to call up Teeth and Teeth Necessities to address the discrepancy in the statement of account.
\nThere is no specific script to be followed for this activity. However, you must demonstrate that you have called Olivia Reins and Teeth and Teeth Necessities to address any discrepancies you have found in the statement of account.
\nFollow the steps outlined below as your guide to completing this activity.
\nRead all instructions carefully before starting.<\/p>\n
Roleplaying Activity
\nResources required
\nTo complete this roleplaying activity, you will need access to the following:
\n?
\nOne volunteer to take the role of Olivia Reins
\n?
\nOne (1) volunteer to take the role of a representative from Teeth and Teeth Necessities
\n?
\nA safe environment to conduct the roleplaying activity in
\n(e.g. living room of your house)
\nSteps to take
\na. Review the criteria items in the roleplaying activity Assessor\u2019s Checklist below. Note that you must demonstrate ALL of the criteria items outlined in this checklist. Guidance is also provided in the checklist to help you complete this activity.
\nFNSACC312 \u2013 Case Study 1.6 – Roleplay<\/p>\n
Roleplaying Activity \u2013 Assessor\u2019s Checklist
\n(The candidate is to leave this blank. This is for the assessor\u2019s use only.)
\nIn the video submission, the candidate\u2026 YES NO Assessor\u2019s Comments
\n1. Prior to the roleplaying activity, introduce themselves as the candidate who is taking the assessment. ?
\n?<\/p>\n
3. Demonstrate active listening skills by:
\n\u2022 Asking questions
\n\u2022 Responding appropriately ?
\n?<\/p>\n
2. During the roleplaying activity, call up Olivia, introduce themselves and explain why they\u2019re calling.
\nGuidance: The candidate must relay to Olivia that they discovered a discrepancy amount in the statement of account set by Teeth and Teeth Necessities. ?
\n?<\/p>\n
3. Confirm with Olivia if the discrepancy amount belongs to Olivia Reins Dental Group since she is the one responsible for purchasing supplies.
\nGuidance: The candidate must ask Olivia if the amount belongs to the business, considering that she handles the purchases of supplies herself. ?
\n?<\/p>\n
4. Thank Olivia for confirming that the discrepancy amount does not belong to the business and tell her that they are calling Teeth and Teeth Necessities to inform them about the situation. ?
\n?<\/p>\n
5. Call up Teeth and Teeth Necessities and introduce themselves properly and explain why they called.
\nGuidance: The candidate must explain to Teeth and Teeth Necessities that they discovered a discrepancy amount in the statement of account they sent to their organisation. ?
\n?<\/p>\n
6. Tell their representative that the discrepancy amount does not belong to Olivia Reins Dental Group and that they have confirmed this with their authorised purchaser Olivia Reins herself.
\nGuidance: The candidate should ask Teeth and Teeth Necessities to correct the statement of account. ?
\n?<\/p>\n
7. Thank their representative for agreeing to address the issue soon and sending a revised statement of account as soon as possible. ?
\n?<\/p>\n
Steps to take
\n3. Complete the following table to reflect what should be in the adjusted statement.
\nDATE REFERENCE DESCRIPTION SALES
\n[DEBITS] PAYMENTS\/
\nADJUSTMENTS
\n[CREDITS] BALANCE
\n1\/month Balance from previous month 0.00<\/p>\n
60 days Overdue 30 days Overdue Current Total Amount Owing<\/p>\n
1.7: Unpaid Accounts
\nSteps to take
\n1. Prepare the required list of unpaid accounts report on the last day of the month (31 May) for payment authorisation.
\nGuidance: Remove any information that isn\u2019t needed. Prepare the report of Aged Payables (detail) in an excel spreadsheet format.
\n2. On the space provided below, write an email seeking authorisation to pay the accounts in the report. Submit the list of unpaid accounts for approval in an Excel report.
\nGuidance:
\nAccounts to be paid must be approved by your assessor in the above report.
\n– If you are doing this assessment by distance learning, your workplace assessor will send the approval to you via email or training portal.
\n– There is no need to submit an actual email.
\nSave and submit the document using the filename
\nFNSACC312 \u2013 Case Study 1.7 – Unpaid Account<\/p>\n
To:
\nSubject:
\nMessage:<\/p>\n
1.8: Electronic Transfer Payments
\nSteps to take
\n1. Setup the file for electronic banking.
\nGo to the Bank Account in the Accounts List and enter the banking details:
\nBank Code = BB
\nBank ID = 66700
\n2. Pay these accounts as per Olivia\u2019s authorisation below.<\/p>\n
3. Save as pdf format the following documents.
\na. Electronic payment register
\nSave and submit the file.
\nFNSACC312 \u2013 Case Study 1.8 \u2013 Electronic Payment
\nb. ABA file ready to upload to the bank.
\nSave and submit the file as shown below.
\nFNSACC312 \u2013 ABA File \u2013 WBC.aba
\nc. Remittances for the accounts that have been paid.
\nSave and submit the file.
\nFNSACC312 \u2013 Case Study 1.8 \u2013 Remittance Advice
\n1.9: Reconciling Cheque Accounts
\nPrinted below is the Bank Statement extract received, dated end of May:
\nBANK STATEMENT
\nIssued: 2\/6\/2017 Bank Statement 11 Page 1
\nDate Transaction Withdrawal Deposit Balance
\n1\/5\/2017 Balance 100,000.00 CR
\n15\/5 Local Show Society 300.00 99,700.00 CR
\n15\/5 Hutcherson Telecommunications 504.00 99,196.00 CR
\n21\/5 Account Keeping Fees 50.00 99,146.00 CR
\nEnd\/month EP0000001 41,806.95 57,339.05 CR
\nStep to take
\n1. Reconcile your Cheque Account.
\n2. Save as pdf format a copy of the bank reconciliation on end of the month before reconciliation showing cleared payments.
\nSave and submit the file .
\nFNSACC312 \u2013 Case Study 1.9 \u2013 Reconciliation Report
\n3. Reconcile the electronic payments account \u2013 balance is \u201c0.\u201d
\nGuidance: No report is required for this Step.<\/p>\n
1.10: Reports Part 1
\nSteps to take:
\n1. Save as pdf format the following reports. Remove accounts with $0 balances from the reports.
\n2. Save and submit the documents as shown below.
\na. Supplier Ledger for all suppliers for the period 1\/month to end\/month.
\nGuidance: Display transaction amount not debits and credits.
\nFilename:
\nFNSACC312 \u2013 Case Study 1.10 Reports – Supplier Ledger
\nb. Payables Reconciliation (detailed) on end\/month using a number of days since invoice date ageing.
\nGuidance: Include accounts with 0 balance.
\nFilename:
\nFNSACC312 – Case Study 1.10 Reports – Payables Reconciliation Detail
\nc. General Ledger Detail for the \u201cmonth.\u201d
\nGuidance: Remove any accounts that haven\u2019t had any activity. Remove Job No and Net Activity fields. Only show accounts with Activity.
\nFilename:
\nFNSACC312 – Case Study 1.10 Reports – General Ledger<\/p>\n
d. Balance Sheet on end\/month.
\nGuidance: Remove any accounts that haven\u2019t had any activities.
\nFilename:
\nFNSACC312 – Case Study 1.10 Reports – Balance Sheet
\ne. GST (Detailed-Cash) report for the month.
\nFilename:
\nFNSACC312 – Case Study 1.10 Reports – GST Report
\nf. Profit and Loss (Accrual) for the month.
\nFilename:
\nFNSACC312 – Case Study 1.10 Reports – Profit and Loss
\ng. Supplier payments history for the month \u2013 to be reviewed by Olivia.
\nGuidance: Include the reconciliation date in the report as evidence of payment withdrawn from the bank.
\nFilename:
\nFNSACC312 – Case Study 1.10 Reports – Supplier Payments<\/p>\n
Part 2: Accounts Receivable
\nPart 2 of the case study deals with accounts receivable. The tasks included in this part of the assessment cover the following activities:
\na) Reconciling and monitoring financial accounts receivable systems
\n? Entering sales invoices
\n? Making adjustments
\n? Entering payments:
\no Cash
\no Cheque
\no Electronic transfer
\n? Reconciling bank statements
\nb) Identifying bad and doubtful debts
\nRefer to the scenario to complete the tasks in this part of the case study.
\nSCENARIO
\nOlivia Reins Dental Group is owned by Olivia Reins and her partners Alphonse Fache, Edward Mills, and Roberta Wong. They are dentists based in Sydney, New South Wales, Australia.
\nThey offer the following services:
\nComprehensive Oral Health Care
\nRegular Check-up and Cleaning
\nOrthodontics
\nTreatment for Dental Trauma
\nCare of Primary Teeth
\nRoot Canal Therapy
\nSpecial Needs<\/p>\n
Extract from Olivia Reins Dental Group Policies and Procedures Manual
\nDENTAL SERVICES BILLING PROCEDURES
\n1. A job card is completed with the necessary details when an appointment is set up over the phone. Include the job card number in the customer PO field on the invoice.
\n2. The job card is completed and signed by the customer after the appointment.
\n3. An invoice is given to the customer as soon as possible. For individuals, the invoice is tendered right after the appointment. For companies, invoices will be sent within three (3) days\u2019 time.
\nPAYMENT OF CUSTOMER ACCOUNTS PROCEDURES
\n1. Under the Privacy Act 1988, details kept must be accurate and not given to any person without the consent of the customer.
\n2. Payments in the form of cash and cheques are processed immediately upon receipt, stored in the safe during the day, and allocated to \u201cundeposited funds\u201d in MYOB AccountRight or MYOB AccountEdge Pro. A receipt is written out for accounts paid in cash over the counter.
\n3. Any payment resulting in an overpayment is recorded as credit and applied to a future invoice.
\n4. Bank deposit slips are printed and submitted to the bank with a credit summary slip when cash and cheques are banked.
\n5. Cheques are only accepted from long-term customers. On receipt of the cheque, the date, payee, amounts and signature must be checked.
\n6. Dishonoured cheques are reversed, not deleted.
\n7. Monthly statements are printed by the 5th of the following month.
\n8. Payment terms are as follows:
\nAmount Range Payment Term Penalty in case of default
\nLess than or equal to $2,000 C.O.D
\n$2,001 – $30,000 Net 7
\n$30,001 – $100,000 2\/10 Net 30 10%
\nOver $100,000 5\/30 Varies from 90 days to 300 days 30%
\n9. At the end of each month, a \u201cReceivables Reconciliation\u201d report is printed to identify overdue accounts and the accuracy of the ledgers.
\nCUSTOMER CREDIT POLICY
\n1. A credit application is completed when an account is set up. A phone call is made to two nominated referees to check on the customers payment history.
\n2. Overdue accounts up to 30 days: an overdue reminder sticker will be attached to the next statement.
\n3. Accounts overdue more than 30 days: a telephone call made to assess the reason for non-payment and perhaps negotiate a payment plan. A note is made in the contact name in MYOB. Keep trying to contact the debtor.
\n4. Accounts overdue 60 days: send first collection letter notifying the intention to take action and review credit terms and place credit on hold [entered in MYOB AccountRight & Mac Version]. A note should be made in the contact log in the MYOB AccountRight contact & Mac version.
\n5. Account overdue 90 or more days: a spreadsheet\/report is prepared documenting the following: accounts receivable debt; recovery type; reason for the debt recovery plan. This is then ratified by the business owner. This spreadsheet is paramount to provide a record of comments\/communications\/actions taken to try to collect the debt.
\n6. A letter of demand will be sent to the customer asking for payment within 14 days. If this fails, the MYOB Debt Recovery service will be used to collect the debt if more than $200. Small debts $200 will be written off as a bad debt. The Debt Collection Guideline for Collectors and Creditors must be adhered to at all time.
\n7. Legal action will only be used as a last resort.
\n8. All bad debt recovery reports are filed in the special file for \u201cBad Debt Recoveries\u201d.<\/p>\n
2.1: Preview Existing Data
\nSteps to take
\n1. View the following to familiarise yourself with the data file:
\n? Accounts list
\n? Unpaid tax invoices issued to customers
\n? Read the Policies and Procedures
\n2. Check that the file you are using is in the current financial year. If not, start a new financial year.
\nGuidance: For the purpose of this assessment, you are working in the month of May of 2017. Remember to back up your files on a regular basis.
\n2.2: Entering a Sales Invoice
\nThe following service rendered to Louise Wales has been completed:<\/p>\n
Steps to take
\n1. Enter the job details as Sale Invoice #27 in your data file.
\n2. Save as pdf format invoice for Louise Wales.
\nSave and submit a copy of the invoice as shown below.
\nFNSACC312 \u2013 Case Study 2.2 – Invoice Louise Wales
\nGuidance: Use AccountRight\u2019s plain paper invoice.
\n2.3: Making Adjustments
\nEdward Mills has realised that the treatment for dental trauma charged to Rue Andrews, a 32-year-old patient, was overstated by $10,000. This was entered into the system on 16 May 2017.
\nSteps to take
\n1. Enter an adjustment note on 17 May to send to Rue Andrews.
\n2. Remember to apply it against the original invoice date when the adjustment invoice is raised.
\nGuidance: You are not required to save as pdf format a copy of the adjustment note.<\/p>\n
2.4: Entering Cheque Payments
\nRefer to the following. Note that as per the policies and procedures, the handwritten Tax Invoice Number must be recorded in the body of the electronic invoice.
\nDUPLICATE COPY OF HANDWRITTEN INVOICE PLUS CHEQUE
\nOlivia Reins Dental Group
\nTax Invoice
\nABN 84 158 523 623 32
\nGold Card No. 750788
\n226 Beau lake St, Southbridge
\nREID NSW 2627
\nTO: University of Sydney
\nProvidence St
\nHoult Act 2617
\nDate: 18 May 2017 Terms: COD
\nDescription Total ex GST Tax Code
\nAttended to four (4) employees ($1,000 x 4) $4,000.00 FRE<\/p>\n
TOTAL including GST $4,000.00
\nNorthpac Bank
\nWiretown Sydney 4344 001200
\nDate: 18 June 2017
\nPay Olivia Reins Dental Group OR BEARER
\nThe sum of Four thousand dollars
\n$4,000-00
\nDRAWER
\nUniversity of Sydney NOT NEGOTIABLE A Robbins
\n-001200 -062-\u2018001: 4512739-
\nSteps to take
\n1. Create a new card for University of Sydney. Remember the credit terms are COD.
\n2. Before accepting the cheque, check the cheque details for accuracy.
\nGuidance: Before commencing your transaction in your data file, complete all assessments included in this task.
\nSteps to take
\n1. Assuming the problem has been rectified, enter the sales invoice provided and the cheque payment. Refer to relevant policies and procedures for cheque payments.
\n2.5: Entering Cash Payments
\n$33,000.50 cash was received from Dylan Ackles on 20 May as payment of handwritten Invoice 31 for the treatment of dental trauma.
\nSteps to take
\n1. Enter the invoice for the treatment of dental trauma for Dylan Ackles, a regular customer, following the appropriate policies and procedures.
\nGuidance: You may notice he already has a previously unpaid invoice dated 22 April.
\n2. Signing the receipt on behalf of the business, complete the details required below.
\n3. Record the receipt of cash into your data file into the undeposited funds account.
\nOlivia Reins Dental Group Receipt 31
\n226 Beau lake St, Southbridge
\nREID NSW 2627 \u2026\u2026\u2026\u2026\u2026Date: \u2026…<\/p>\n
Received from: \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026..\u2026
\nThe amount of only and No\/Nil\u2026\u2026.cents. ………….
\nReason for payment: \u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026\u2026.\u2026\u2026\u2026\u2026..
\nPer \u2026\u2026\u2026\u2026\u2026…
\n2.5.1: Written Questions
\nBased on the previous task you completed, answer the questions below.
\n1. What discrepancies did you find (if any)?<\/p>\n
2. How should this discrepancy be resolved?<\/p>\n
2.6: Entering Sales
\nThe following Minerva Pall job has been completed.
\nEnter the following job details as a sale in your data file:<\/p>\n
Guidance: As per the policies and procedures, make sure to record the job number on the invoice.<\/p>\n
2.7: Entering Cheque Payments
\nThe following cheque was received as payment of Tax Invoice 13.
\nNorthpac Bank
\nWiretown Sydney 4344 001317
\nDate: 24 May 2017
\nPay Olivia Reins Dental Group OR BEARER
\nThe sum of Four thousand dollars
\n$187,000-00
\nDRAWER
\nFeve Landers Designs NOT NEGOTIABLE C Torres
\n-001317 -084-\u2018001: 9021645-
\nSteps to take
\n1. Check for discrepancies between monies owed and monies paid.
\n2. Enter the cheque received.
\nGuidance: Follow the policies and procedures of the business to deal with any discrepancies.
\n3. Answer the questions below about any identified discrepancies.
\n4. Upload a screenshot of the deposit in MYOB.
\n2.8: Depositing Payments Received
\nSteps to take
\n1. On 25 May 2017, bank the cheques and cash received to date.
\n2. Save as pdf format the bank deposit slip on 25 May.
\nSave and submit a copy of the bank deposit slip as shown below.
\nFNSACC312 \u2013 Case Study 2.8 – Bank Deposit Slip
\n3. Check the accuracy of the deposit with details of money received during the month.
\n2.9: Entering Electronic Transfer Payments
\nThe following fax was received from Clairborne Silver.
\nClairborne Silver
\n56 Angels Street
\nHalle NSW 2619
\nFAX to: Olivia Reins Dental Group Date: 28 May 2017
\nSUBJECT: REMITTANCE ADVICE
\nPayment of the following invoice has been made to your Bank Account by electronic transfer:
\nDetails Amount
\nInvoice 7 $239,000.00
\nLess discount -$2,390.00
\nPayment $236,610.00
\n[Do not save as pdf formatthe Discount Invoice]
\nSteps to take
\n1. Link a sales account for discounts. Select an appropriate account for the cash discount.
\n2. Enter the payment details in your data file accounting for the cash discount.
\n2.10: Activity Statements
\nSteps to take
\n1. Save as pdf format an Activity Summary for the whole month of May.
\nSave and submit a copy of the Activity Summary as shown below.
\nFNSACC312 \u2013 Case Study 2.10 \u2013 Activity Statement
\nGuidance: Use AccountRight\u2019s plain paper statement.
\n2. Draft a note that will be sent along with the Activity Summary to the supervisor, Lee Pines, and manager, Mina Lyons, of Feve Landers Designs briefly describing the report.<\/p>\n
Step 2
\nTo:
\nSubject:<\/p>\n
2.11: Reconciling Bank Statement
\nRefer to the bank statement extract below:
\nBANK STATEMENT
\nIssued: 2\/6\/2017 Date Bank Statement 11 Page 1
\nDate Transaction Withdrawal Deposit Balance
\n30\/April Balance 57,389.05 CR
\n21\/5 Account Keeping Fees 50.00 57,339.05 CR
\n25\/5 Deposit 224,000.00 281,339.05 CR
\n28\/5 Clairborne Silver 227,050.00 508,389.05 CR
\nEnd of month Balance 508,389.05 CR
\nSteps to take
\n1. Reconcile the bank statement at the end of month.
\n2. Save as pdf format a copy of the Bank Reconciliation showing cleared and uncleared items.
\nSave and submit a copy of the Bank Reconciliation as shown below.
\nFNSACC312 \u2013 Case Study 2.11 \u2013 Bank Reconciliation
\n3. Reconcile the undeposited funds, there is no printout required for this.<\/p>\n
2.12 Reports Part 2
\nSteps to take
\n1. Save as pdf format the following reports. Save and submit the documents using the filename as specified:
\na) Customer Ledger for all customers for the whole month of May
\nGuidance: Display debits and credits, not transaction amount and make the memo field wider.
\nFNSACC312 \u2013 Case Study 2.12 Reports \u2013 Customer Ledger
\nb) Receivables Reconciliation [Detail] report selecting days overdue using invoice terms.<\/p>\n
FNSACC312 \u2013 Case Study 2.12 Reports \u2013 Receivables Reconciliation
\n2. Answer the questions in the spaces provided for you below.
\nAnswer the following questions:
\n1. What is the amount owing by customers at end\/month?
\n2. Display the balance sheet at the end of the month. What is the amount owing in the trade debtors A\/c in the balance sheet?<\/p>\n
3. Does the answer in (1) reconcile with the answer in (2)?<\/p>\n
Part 3: Bad Debts and Doubtful Debts
\nPart 3 of this assessment deals with bad and doubtful debts. The tasks included in this part of the assessment cover the following activities:
\n? Reviewing unpaid invoices
\n? Identifying bad and doubtful debts
\n? Collection of debts
\n? Writing off bad debts
\nExcerpt from Olivia Reins Dental Group Policies and Procedures Manual
\nCUSTOMER CREDIT POLICY
\n1. A credit application is completed when an account is set up. A phone call is made to two nominated referees checking on the Customers payment history.
\n2. Overdue account up to 30 days: an overdue reminder sticker will be attached to the next statement. Account overdue more than 30 days: a telephone call made to assess the reason for non-payment and perhaps negotiate a payment plan. A note is made against the contact in MYOB. Keep trying to contact the debtor.
\n3. Account overdue 60 days: send first collection letter notifying the intention to take action and review credit terms and place credit on hold (entered in MYOB AccountRight & Mac version). A note should be made in MYOB against in the contact log. Keep trying to contact the debtor.
\n4. Account overdue 90 or more days: a spreadsheet\/report is prepared documenting the following: accounts receivable debt, recovery type; the reason for the debt, and recovery plan. This is then ratified by the business owner. This spreadsheet is paramount to provide a record of comments\/communications\/actions taken to try to collect the debt.
\nA letter of demand will be sent to the customer asking for payment within 14 days. If this fails, the MYOB Debt Recovery service will be used to collect the debt if more than $200. Small debts $200 will be written off as a bad debt. The Debt Collection Guideline for Collectors and Creditors must be adhered to at all time.
\n5. Legal action will only be used as a last resort.<\/p>\n
3.1: Reviewing Unpaid Invoices
\n3.1.1: Review Client Compliance with Terms and Conditions
\nSteps to take
\n1. Study the following table. The table below outlines overdue accounts for the last three (3) months:<\/p>\n
2. Review the company policies and procedures for recovering debts.
\n3. Assume you are reviewing this report on the same day it was generated (31 May 2017), identify the customers you can make contact with to facilitate debt collection.
\nCustomers you can contact to facilitate debt collection:
\ni.
\nii.
\niii.
\n4. Access the Recovery Plan template through the following link:
\nRecovery Plan Template
\n(username: newusername password: newpassword)
\nUse the template to develop two (2) debt recovery plans for the clients with overdue accounts previously identified. The plans developed in this task must include:
\n? one (1) recovery plan following the organisation\u2019s regular procedure of debt recovery
\n? one (1) recovery plan including the initiation of legal action as last resort.
\nEach plan must include:
\n? a clear outline of the plan of action for the specific debt recovery plan, including at least four (4) measures to pursue debt recovery
\n? timeframes to be followed
\nGuidance: Each measure must be in line with organisational policies, guidelines and timeframes given at the beginning of Part 3 of this case study.
\nWhen developing the plans, ensure to follow these:
\n? Record information accurately using correct spelling, grammar, and terminology.
\n? Ensure to follow legislative requirements (e.g. Australian Consumer Law, Debt Collection Guideline for Collectors and Creditors) when coming up with debt recovery measures.
\n5. Save and submit the completed Recovery Plans using the following filenames:<\/p>\n
FNSACC312 \u2013 Case Study 3.1.1\u2013 Recovery Plan 1<\/p>\n
FNSACC312 \u2013 Case Study 3.1.1\u2013 Recovery Plan 2<\/p>\n
3.1.2: Roleplaying Activity
\nFor this activity, there is no specific script to be followed. However, you must demonstrate that you have facilitated the realisation of the different debtors\u2019 reasons for non-payment and where applicable, make payment arrangements with the debtors.
\nEnsure to follow the timelines specified in the Recovery Plans you completed in the previous task. You must complete this task and submit the required evidence within the timeline defined in the Recovery Plans.
\nFollow the steps outlined below as your guide to completing this activity.
\nRead all instructions carefully before starting.
\nResources required
\nTo complete this roleplaying activity, you will need
\n?
\nThree (3) volunteers to play
\n? Kevin Smith
\n? Kal Cairns
\n? Volunteer in lieu of Dylan Ackles
\n?
\nA safe environment to conduct the roleplaying activity in (e.g. living room of your house)
\n?
\nCharacter brief<\/p>\n
Steps to take
\na. Review the Customer Credit Policy. This will Help your discussion in the activity.
\nb. Read and access the Character Brief. Provide your volunteers a copy of the Character Brief before you conduct the roleplaying activity. You can access this here:
\nFNSACC312 Character Brief
\n(Username: newusername Password: newpassword)
\nc. Review the assessment criteria for the roleplaying activity Assessor\u2019s Checklist found below. Note that you must demonstrate ALL of the criteria items outlined in this checklist. Guidance is also provided in the checklist to help you complete this activity.
\nFNSACC312 \u2013 Case Study 3.1.2 \u2013 Roleplay
\nRoleplaying Activity \u2013 Assessor\u2019s Checklist
\n(The candidate is to leave this blank. This is for the assessor\u2019s use only.)
\nthe candidate\u2026 YES NO Assessor\u2019s Comments
\n1. Introduce themselves as the candidate taking the assessment.
\nGuidance: You may simply state your name and confirm that you are the one completing the assessments in this assessment workbook. ?
\n?<\/p>\n
the candidate\u2026 YES NO Assessor\u2019s Comments
\n2. Follow the Customer Credit Policy provided for this case study. ?
\n?<\/p>\n
3. Demonstrate active listening skills by:
\n\u2022 Asking questions
\n\u2022 Responding appropriately ?
\n?<\/p>\n
KEVIN SMITH
\nthe candidate\u2026 YES NO Assessor\u2019s Comments
\n1. Introduce themselves by stating:
\n? Their name
\n? The company they represent
\n? That they are looking for a specific debtor
\nGuidance: The candidate must not immediately disclose that the call is about a debt and try to schedule a meeting or a call with the debtor or check for the debtor\u2019s availability. The candidate must be courteous at all times. ?
\n?<\/p>\n
2. Make an arrangement for the debtor to pay outstanding monies.
\nGuidance: The candidate\u2019s discussion must meet the status of the debtor as provided in the Character Brief. ?
\n?<\/p>\n
KAL CAIRNS
\nthe candidate\u2026 YES NO Assessor\u2019s Comments
\n1. Introduce themselves by stating:
\n? Their name
\n? The company they represent
\n? That they are looking for a specific debtor
\nGuidance: The candidate must not immediately disclose that the call is about a debt and try to schedule a meeting or a call with the debtor or check for the debtor\u2019s availability. The candidate must be courteous at all times. ?
\n?<\/p>\n
2. Make an arrangement for the debtor to pay outstanding monies.
\nGuidance: The candidate\u2019s discussion must meet the status of the debtor as provided in the Character Brief. ?
\n?<\/p>\n
DYLAN ACKLES
\nthe candidate\u2026 YES NO Assessor\u2019s Comments
\n1. Introduce themselves by stating:
\n? Their name
\n? The company they represent
\n? That they are looking for a specific debtor
\nGuidance: The candidate must not immediately disclose that the call is about a debt and try to schedule a meeting or a call with the debtor or check for the debtor\u2019s availability. The candidate must be courteous at all times. ?
\n?<\/p>\n
2. Make an arrangement for the debtor to pay outstanding monies.
\nGuidance: The candidate\u2019s discussion must meet the status of the debtor as provided in the Character Brief. ?
\n?<\/p>\n
3.1.3: Written Questions
\nSteps to take
\n1. Answer the following question:
\na. Which customers would you call to assess reasons for non-payment and attempt negotiation for a payment plan? Explain your answer.
\n0
\nDylan Ackles
\n0
\nKevin Smith
\n0
\nKal Cairns
\n0
\nNone of the above
\nExplain your answer<\/p>\n
Steps to take
\n2. Consider the following information.
\nOn 15 May, 15 days after your initial attempt to contact the customers, you made another round of phone calls:
\na. Kevin Smith informed you that he might be officially declaring bankruptcy within the next 30 days
\nb. Kal Cairns is willing to pay the amount owed upon redoing of the treatment for dental trauma but does not want to pay any other fees.
\nc. Dylan Ackles seems to have moved residence. When you called his home number, another man answered your call explaining that he does not know of any \u201cDylan Ackles\u201d and is just new in the neighbourhood.
\n3. Classify the debts as bad debts, doubtful debts, or neither. Justify your answer.
\nIn the spaces provided for you below, write:
\n? B for bad debt
\n? D for doubtful debt
\n? N for either.<\/p>\n
Kevin Smith<\/p>\n
Kal Cairns<\/p>\n
Dylan Ackles
\nExplain your answers
\na.
\nb.
\nc.
\n3.2: Debt Collection
\nAssume that the date is now 31 May 2017, you have completed the preliminary steps to recover from the debtors but they have not complied with your request and no payment has been made for the three (3) accounts listed on your 31 May report.
\nThe following steps were previously done as per the Customer Credit Policy:
\n? Kevin Smith
\nA letter went out at 30 days and then a letter of demand was sent to the customer asking for payment within 14 days.
\nA spreadsheet\/report is prepared documenting the accounts receivable debt, recovery type, cause and recovery plan and ratified by the business owner.
\n? Kal Cairns
\nThe first collection letter notifying the intention to take action and review was sent out at 30 days.
\nSteps to take
\n1. Following the Policies and Procedures, describe how would you handle the recovery of these overdue accounts.
\nSpecify the number of days overdue How to handle the recovery of overdue accounts
\nKevin Smith
\ndays overdue<\/p>\n
Kal Cairns
\ndays overdue<\/p>\n
Dylan Ackles
\ndays overdue<\/p>\n
Steps to take
\n2. After your initial review on June 20, you\u2019ve found that Kevin Smith is past 90 days overdue. Prepare a recovery report for Kevin Smith. Use the template provided below.
\nRECOVERY REPORT \u2013 TO BE SENT TO OWNER
\nDEBTOR NAME Kevin Smith
\nOUTSTANDING AMOUNT
\nNUMBER OF DAYS OUTSTANDING
\nDEBTOR\u2019S EXPLANATION FOR NOT PAYING
\n(INCLUDE DATES OF CONTACT)
\nRECOVERY STAGE
\n(E.G. 90+ DAYS, 60-90 DAYS)
\nDATE FOR REVIEW OF RECOVERY ACTIONS<\/p>\n
3.3: Collection
\n3.3.1: Letter of Demands
\nConsidering the organisation\u2019s procedures for debt recovery, write two (2) letters of demand requesting payment from Kevin Smith and Kal Cairns.
\nSteps to take
\n1. Access the following templates for the letter of demands you are required to write in this task:
\nLetter of Demand (Kevin)
\nLetter of Demand (Kal)
\n(username: newusername password: newpassword)
\n2. Complete the templates with the required information.
\n3. Save and submit the two (2) completed letter of demands using the following filenames:<\/p>\n
FNSACC312 \u2013 Case Study 3.3.1 \u2013 Letter of Demand (Kevin)<\/p>\n
FNSACC312 \u2013 Case Study 3.3.1 \u2013 Letter of Demand (Kal)<\/p>\n
3.3.2: Written Questions
\nSteps to take
\n1. Answer the following questions.
\na. ASIC and ACCC have released their \u201cDebt collection guideline for collectors and creditors\u201d.
\nAt what times can the collector contact the debtor in their workplace if the debtor\u2019s exact working hours is unknown?
\n0
\n9am to 5pm weekdays.
\n0
\nAny day between 9am to 5pm
\n0
\n8am to 6pm weekdays
\n0
\nAny time except weekends
\nb. How does Clause 10 The Fundamental Principles of the ICB Professional Code of Conduct affect you as a bookkeeper when dealing with customers with overdue accounts?
\n0
\nYou must never reveal your identity or purpose of calling unless you have verified that you are speaking to the debtor.
\n0
\nYou may only reveal details of the debt to immediate family members.
\n0
\nYou must at all times be courteous to all those with whom you have professional dealing.
\n0
\nNone of the above.<\/p>\n
c. Briefly outline your organisation\u2019s procedures for conducting client follow-ups for outstanding payments.<\/p>\n
d. Review all activities and communication conducted so far with the three (3) clients in Case Study 3.
\nAre the follow-up procedures outlined by your organisation sufficient for the collection of your clients\u2019 outstanding payments? Why or why not?<\/p>\n
e. Review all activities and communication conducted so far with the three (3) clients in Case Study 3.
\nHave you and your organisation exhausted all possible avenues for recovering the outstanding payment? Why or why not?<\/p>\n
3.4: Writing off Bad Debts
\nThe business has been notified that Kevin Smith has gone into bankruptcy and there is little chance of recovering the amount owing.
\nFor reporting purposes only.
\nUsing the MYOB file, you are working with, assume that you are to write off the amount owing as bad debt on the last day of the current month.
\n? Settle this adjustment against the original invoices
\n? Save and submit a screenshot of the settled adjustment as shown below.<\/p>\n
Part 4: Supplementary Reports
\n4.1: Save as pdf format Reports
\nSteps to take
\n1. Save as pdf format copy of the following reports.
\nSave and submit the documents as shown below.
\na. All transaction journals for the whole month of May.<\/p>\n
FNSACC312 \u2013 Case Study 4.1 Reports \u2013 All Transactions
\nb. balance Sheet on the last day of May.
\nFNSACC312 \u2013 Case Study 4.1 Reports \u2013 Balance Sheet
\nc. Profit and Loss for the month of May.<\/p>\n
FNSACC312 \u2013 Case Study 4.1 Reports \u2013 Profit and Loss<\/p>\n
Olivia Reins Dental Group Record-Keeping Policy
\nThe Olivia Reins Dental Group complies with all record-keeping requirements and keep accurate records of all financial transactions made in the course of business.
\nTo ensure compliance with these requirements, all records and documents relating to the organisation\u2019s financial transactions are safely and securely kept, with access to these limited to authorised personnel only.
\nPhysical copies of records and documents are saved in a locked file cabinet in the Accounting Department.
\nDigital copies of records and documents are saved in the dedicated Accounts computer. These are to be saved in a separate folder using the filename \u201c[Month]-[Year]-Accounts Documentation.\u201d
\nAll file folders must be password-protected.
\n4.2: File Documentation and Distribute Reports
\nSteps to take
\n1. Save all evidence submissions for this unit according to the organisation\u2019s record-keeping policy and procedures.
\nUse the password \u2018OliviaReins\u2019 in the file folder.
\n2. Upload your file folder to a cloud storage service of your choice (e.g. Google Drive, Dropbox, etc.).
\n3. Using the simulated email template on the following pages, distribute the MYOB reports to the personnel listed below by sending them a link to your cloud storage folder.
\nPersonnel Email Address
\nTerrence Malone (Accounting Department Head) terrence@oliviareinsdentalgroup.com.au
\nJeff Serns (Accounts Manager) jeff@oliviareinsdentalgroup.com.au
\nKyna Sanchez (Accounts Team Leader) kyna@oliviareinsdentalgroup.com.au
\n(continued on the next page)
\n(continued)
\nPersonnel Email Address
\nHazel Mercator (Collections Supervisor) hazel@oliviareinsdentalgroup.com.au
\nAaron Mann (Bookkeeper) aaron@oliviareinsdentalgroup.com.au
\nErika Reed (Chief Financial Officer) erika@oliviareinsdentalgroup.com.au
\nUse the subject \u2018MYOB Reports\u2019 and ensure to attach the link to your cloud storage folder in your message.
\nTo
\nSubject
\nMessage<\/p>\n","protected":false},"excerpt":{"rendered":"
Assessment Task 2: PRACTICAL ASSESSMENT Task summary The Case Study is a hypothetical situation which will not require you to have access to a workplace,\u2026<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10099,10681,7636,615,10892,10680,10891],"tags":[10553,10616,10254,10896,10897,10247,10295,10898,10893,10894,10895,10899,10551],"class_list":["post-125064","post","type-post","status-publish","format-standard","hentry","category-buy-essay","category-cheap-dissertation-help-online","category-cheap-essay-writer-usa","category-homework-help-writing-service-usa","category-page-paper","category-university-dissertation-writing-service","category-write-my-assignment-ireland","tag-1-assignment-help-online-service-for-students-in-the-usa","tag-australian-best-tutors","tag-can-someone-write-my-assignment-for-me","tag-case-study-in-nursing-writing-a-nursing-case-study-essay","tag-free-nursing-case-studies","tag-help-me-write-my-dissertation","tag-homework-for-you","tag-nursing-case-study-assignment-examples","tag-nursing-case-study-examples","tag-nursing-case-study-presentation-example","tag-nursing-case-study-questions-and-answers","tag-student-nurse-case-study-assignments","tag-write-my-assignment-help-for-college-students"],"_links":{"self":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/125064","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/comments?post=125064"}],"version-history":[{"count":0,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/posts\/125064\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/media?parent=125064"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/categories?post=125064"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.studyproessays.com\/help\/wp-json\/wp\/v2\/tags?post=125064"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}