FNSACC405 - MAINTAIN INVENTORY RECORDS

Participant


Name:

Date:

It is important that you access the following documents and materials to complete this assessment task. You can find these located within the 'Written Assessment' area titled

'FNSACC405 Supporting Material.zip'.

Requirements:

Access to a computer loaded with MYOB

· AccountRight – Version 19

· Calculator

· AASB102 Inventory

· No data file required

Complete the following assessment tasks and ensure that any printouts of evidence are signed by yourself in the bottom right hand corner. The completed Assessment Tasks and any evidence must be presented to your Workplace Assessor in order to be assessed on the subject, and ultimately marked Competent.

Assessment Conditions

Assessment must be conducted in a safe environment where evidence gathered demonstrates consistent performance of typical activities experienced in the accounting field of work and include access to:

· A range of common office equipment, technology, software and consumables

Requirements:

· Maintain Inventory Records User Guide

· Access to a computer loaded with MYOB AccountRight – Version 19

· AASB102 Inventories

· USB Stick to copy your files onto for a backup

Please

note; there is no data file required.

Observed by Supervisor/Trainer/Coach: Date:

This assessment can be done manually or using MYOB AccountRight v19 or both. To install the software please follow the link below

Download link for PC - v19.8

http://www.mentor.edu.au/resources/Enterprise+EDU.zip
Download link for Mac - Account Edge v11.5

http://www.mentor.edu.au/resources/AccountEdge_EDU_v11.5.dmg.zip

The Instruction guide on how to run the software on MAC can be found within the Written Assessment area on the dashboard

Please keep in mind it is 300mb in size. Also, you do not require a serial number. If you have any trouble with the download, speak with your Trainer/Assessor.

Some of the Accounting / Bookkeeping units require you to use MYOB and a matching exercise file (data file). The exercise files can be downloaded from within the Student Resources area for those relevant units.

Whilst completing your learning, you will need to navigate between the User Guide, MYOB Software and your Interactive Assessment tool.

How to Best Use the Interactive Assessment Tools

Your Trainer will advise you when it is time to commence your Assessment Tool. These can be found in the main index of the LMS under the folder
Assessments.

It is hoped that these notes will help students to work effectively with the interactive Assessment Tools. If further help is required please contact your Trainer/Assessor.

The interactive Assessments Tools have been developed to be used with Adobe Reader Version

10.1. Even if you are using a
MAC machine, you MUST use Adobe Reader to view and complete with the Assessment Tools.

To download the latest version of Adobe Reader, go to
http://get.adobe.com/reader/

Please






note

:

If you use an earlier version of Adobe Reader you are likely to encounter problems when saving your work – the interactivity functionality maybe lost and you may are not able to update your work.

To best use the interactive Assessment Tool you are advised to open the copy within the LMS and

save it to your desktop.

When you are ready to start the Assessment Tool, open the copy of the Assessment Tool from your desktop and enter your answers, remembering to
regularly save your work.

You can have the LMS open on your desk top at the same time enabling you to access the user guide, reference material and exercise files for each unit.

The interactive Assessment Tools provide the facility to add ‘Sticky Notes’ (similar to post-it-notes) to the Assessment Tool. This feature can be used to provide answers to the questions, for example entering the date of cheques entered into MYOB or for communicating questions and/queries to your Trainer/Assessor.

To use a Sticky Note, go to the ‘Tools’
menu, select
‘Comment’
and then
‘Sticky Note’, then click on the place in the assessment tool where you want to leave the note and type in your text into the pop up box that appears.

Some of the Assessment Tools contain tasks that will require you to complete work in another program, for example Microsoft Word or Microsoft Excel. This work should be attached electronically when submitting your files to your Trainer/Assessor. When working in MYOB Software, reports can be printed to Adobe PDF. Please ensure that all MYOB printouts are named according to the instructions in the Assessment Tool and attached in numerical order when submitted to your Trainer/Assessor, with your Assessment Tool and any Exercise Files, via email.

Please



note


that:

· date fields have been setup to accept the format DD/MM/YYYY

· money fields have been setup to accept figures to 2 decimal places

· the forms contain the ability to enter electronic signatures

· text fields will keep expanding if you are typing more lines of text Remember to regularly save your work!

& Assessment Details

You are employed as the bookkeeper of: Office Equipment Pty Ltd

Office Lane

Melbourne, State, Postcode.

The business buys and sells office supplies and equipment. These items are inventoried.

The business also buys and sells cables. This item will not be inventoried in MYOB AccountRight – you will keep a manual stock card for this item.

The business has an ABN [35 933 355 333] and is registered for GST reporting quarterly on an accrual basis. The business is not taking advantage of the Small Business Income Tax Concessions.

Office Equipment Pty Ltd

Extract


from ACCOUNTING POLICIES AND PROCEDURES

COMPANY DETAILS

Office Equipment Pty Ltd was incorporated on 1st January 2010 as a business that buys and sells office equipment and supplies to trade and the public. Dennis Wells is the director, owning 100% of the shares. The company has an ABN, is registered for GST reporting quarterly on a non-cash basis. The business reports income tax on an accrual basis and does not take advantage of the small business income tax concessions.

INVENTORY

Perpetual inventory is used for all stock with the exception of cables which uses periodic inventory because this item is usually only purchased when required by clients.

An item card is set up for each stock item. Minimum numbers [no re-order quantities] are entered to optimise stock levels and assist with automatic reordering of stock

The inventory ledger should be reconciled with the balance sheet control a/c at the end of each month by printing the inventory value reconciliation report. Any discrepancies should be identified and adjustment made.

PURCHASES

1. Each morning the “stock alert” report is printed. The printout is handed to the manager who authorises which stock is to be ordered that day. This printout acts as a purchase requisition.

2. Orders are generated automatically or keyed in and printed or emailed to the supplier.

3. A copy of the purchase order is sent to the “goods inwards” section. Each purchase order will be numbered consecutively in MYOB AccountRight and missing purchase order numbers must be accounted for.

4. The purchase order must contain a complete description of the goods ordered and price including GST, delivery address and any special delivery instructions.

5. When goods are received, the store person must check that the goods are in good order and condition. Goods must be checked against the purchase order to make sure the correct goods and quantity have been delivered. If a packing slip or delivery note was sent with the goods, this must be attached to the purchase order and forwarded to the accounts department. If no packing slip was received, a “goods received” slip must be completed and signed and attached to the purchase order.

6. Any discrepancies in the order must be attended to immediately by the bookkeeper after checking the tax invoice with the purchase order and goods received slip or packing slip.

7. If goods are to be returned for any reason, a “goods returned” slip should be completed and forwarded to the accounts department for entry into MYOB AccountRight.

8. Should there be goods on backorder; a copy of the purchase order must be kept in the store noting the goods on backorder. When goods are received, the purchase order is then forwarded to the accounts department.

9. Any invoices received with the goods must be forwarded to the accounts department immediately. It is the responsibility of the accounts department to check the prices on the tax invoice and calculations and attach the tax invoice to the purchase order on file plus the purchase order and delivery note or goods received as proof of delivery of the goods. The purchase order in MYOB AccountRight should then be changed to a “bill” checking prices, invoice total and enter the supplier’s tax invoice number and invoice date.

10 A physical stocktake is conducted to check on the accuracy of stock numbers in the data file.

FNSACC405 AT VOL8.15 V8.15 © Copyright 2015 OfficeLink Learning

Part A: Questions and Answers

a) What is periodic inventory?

b) What is perpetual inventory?

c) What is the document AASB102 Inventories?

d) What does the term FIFO mean?

e) What does the term weighted average mean?

f) List below some of the organisational procedural information that is needed to setup a computerised accounting system with inventory.

g) Provide one example of a small procedural instruction regarding entering stock into a computerised system.

h) Outline the key steps for commencing a new computerised accounting system for a business who wants inventory set up. Take this process up to the point before you would buy or sell items.

i) Provide two reasons why a computerised inventory system may not reconcile.

Part B: Practical Exercise / Evidence

:

Task


1:

Business Information

Before entering data you must:

a) Read the Policies and Procedures printed on Page 3.

b) Review the Chart of Accounts on the following page to be used by the business. This Chart was drawn up in consultation with the accountant for the business.

: Task 2: Create the Data File

Create the MYOB AccountRight data file for the business from the following details.

a) Key in the business details as per the policy and procedures extract.

b) Use July 2010 as your conversion date.

c) Thirteen [13] accounting periods are required.

d) Use the “I would like to build my own account list ….”

: Task 3: Adjust Preferences

a) Check the following “Security” preferences are selected to meet the needs of the business. Deselect all other options in this exercise

· “Audit Trail” option is selected

· Back up when exiting the data file

b) Check the following “Purchases” preferences are selected to meet the needs of the business. Deselect all other options in this exercise

· “Warn for Duplicate Purchase Order and Supplier Invoice Numbers”

· “Show Supplier Invoice Number in Payments”

· “Retain Original Purchase Order Number on Backorders”

· Default Terms: Payment is due EOM after EOM

c) Check the following “Sales” preferences are selected to meet the needs of the business

· “Warn for Duplicate Invoice and Purchase Order Numbers”

· Deselect “Retain Original Invoice Number on Backorders”

· Default Terms: Payment is due 30 days from the date of the invoice

: Task 4: Check the setting up of the Tax Codes

a) Delete the following codes in this order:

ABN, VWH, WST, IMP, GW, LCG, WEG, WET, LCT

b) Check the setting up of the remaining Tax Codes.

: Task 5: Create your Accounts List and allocate the appropriate Tax Codes to Income, Cost of Sales and Expense Accounts

Create the following Accounts List.

Accounts List [Summary]

1-0000 Assets

1-1000 Current Assets [header with sub-total] 1-1100 General Cheque Account

1-1180 Undeposited Funds

1-1190 Electronic Clearing Account 1-1200 Payroll Cheque Account

1-1300 Cash on Hand 1-2000 Trade Debtors

1-4000 Inventory – Office Equipment 1-4500 Stock on Hand - Cables

1-5000 Non-Current Assets
[header with sub-total]

1-5100 Computer Equipment

1-5110 Computer Equipment at Cost

1-5120 Computer Equipment Accum Dep 1-5200 Office Equipment

1-5210 Office Equipment at Cost

1-5220 Office Equipment Accum Dep 1-5300 Low Value Pool

2-0000 Liabilities

2-1000 Current Liabilities
[header with sub-total]

2-2000 Accounts Payable

2-2100 A/P Accrual - Inventory 2-3000 GST Liabilities

2-3010 GST Collected

2-3030 GST Paid

5-0000 Cost of Sales

5-1000 Cost of Sales - Office Equip

5-2000 Cost of Sales - Cables [heading with sub-total] 5-2010 Opening Stock – Cables

5-2020 Purchases – Cables

5-2030 Closing Stock - Cables

: Task 6: Entering General Ledger Opening Balances

Key in the following General Ledger account opening balances as at your conversion date.

Trial Balance 1 JULY 2010

Account

Debit Credit

General Cheque A/c ......................... 8,000.00 Cash on Hand................................................................. 10.00

Inventory........................................... 1,490.00

Stock on Hand – Cables........................ 110.00

Office Equipment at Cost .................. 5,272.73

Office Equipment Accum Dep............................................... 172.88

Settlement Sum........................................................................ 10.00

Retained Earnings .......................................... ............... 14,699.85

$14,882.73 $14,882.73

:

Task


7:

Create Cards for Suppliers and Customers

SUPPLIER:

Technology

Australia Pty Ltd

Technology Lane

Your Suburb, State and Postcode ABN 35 000 000 001

Default Terms

CUSTOMER:

Pine

Regional Council
Address of your choice Default Terms

: Task 8: Create Item Cards for the following items

[The business does not enter re-order quantities.]

Item Number: MBRTFAX2820

Item Name: Brother Soho Laser Fax/Copier

I Buy [Each]

I Sell [Selling Price $330.00 each including GST] I Inventory

Restock Information: Minimum Level: 5

Supplier: Technology Australia Supplier Number: BRTFAX2820

Item Number: SUNV38161

Item Name: Universal Light-Duty Shredder

I Buy [Each]

I Sell [Selling Price $110.00 each including GST I Inventory

Restock Information: Minimum Level: 2

Supplier: Technology Australia Supplier Number: UNV38161

Item Number: RSHRXEA102

Item Name: Sharp SE-A102 Cash Register

I Buy [Each]

I Sell [Selling Price $165.00 each including GST] I Inventory

Restock Information: Minimum Level: 2

Supplier: Technology Australia Supplier Number: SHRXEA102

Item Number: CIVR30001

Item Name: Innovera USB Cable 2m

I Buy [Each]

I Sell [Selling Price $22.00 each including GST

I Inventory DO NOT INVENTORY, you will keep a manual stock card for this item

Restock Information:

Supplier: Technology Australia Supplier Number: IVR30001

: Task 9: Enter Inventory on hand

Inventory on Hand 1 July 2010

Brother Soho Laser Fax/Telephone 4 ........... @ average cost of $150.00 each Sharp SE-A102 Cash Register 6 ........... @ average cost of $75.00 each Universal Light-Duty Shredder 8 ........... @ average cost of $55.00 each

Value of Inventory: $1,490.00

Cables on hand = 10 @ $11.00 last cost = $110.00

: Task 10: Select Item Purchase Order to be used

Item GST Inclusive Purchase Orders are printed on
plain paper A4. No customisation is required.

Make a back up of your setup.

:

Task


11:

Transaction

1:

2
Printout

1:

Transaction

2:

Transaction

3:

Enter

Transactions – June 2011

Print the required report as per Policies and Procedures required each morning in the business to monitor stock levels.

Report to monitor stock levels

What is this report used for?

The manager has authorised the purchase of the following items on 1 JUNE 2011. Enter and print the purchase order to be faxed to Technology Australia for the following items [a copy would also be forwarded to the “Goods Inwards” section].

Brother Soho Laser Fax/Telephone 2 ........... @ $155.00 including GST Universal Light-Duty Shredder 2 ........... @ $60.00 including GST Sharp SE-A102 Cash Register 2 ........... @ $90.00 including GST Innovera USB Cable 2m 10 ......... @ $11.00 including GST

2 Printout 2: Order to be faxed to the Supplier

Transaction 4:
The items ordered above have been delivered together with the Tax Invoice below.

(a) On receipt of the goods, what procedures will the store person follow?

(b) Complete the following form as required by the Policies and Procedures of the business. [All goods received in good condition.]

Office Equipment Pty Ltd

GOODS RECEIVED

ABN 35 933 355 333

Goods Received from: Date:

Purchase Order Number:

Invoice Number:

Received by

(c) What discrepancies need following up?

{Discuss


this


issue


with


your Workplace


Assessor


who will confirm the correct amount.]

(d) Is the Tax Invoice received a valid Tax Invoice and all calculations correct?

(e) Enter the Tax Invoice on the previous page in your data file and record.

Transaction 5:
A Purchase Order was received from Pine Regional Council for the following:

Record the above sale on 10 June 2011 – do not print an invoice.

Transaction

6:
Pine Regional Council returned 1 Brother Soho Laser Fax/ Telephone on 15 June 2011 – not required. Record the return of the Fax and settle against the original invoice.

Transaction 7:
The business has decided to purchase a new computer for the office.

Before entering the purchase of the asset, list your ideas of the procedures that could be followed by the business when purchasing assets.

The following Tax Invoice was received for the purchase of a new computer. Check all invoice details for accuracy and check that it is a valid Tax Invoice. The purchase is entered as soon as the Tax Invoice is received.

Transaction 8:
Enter the purchase and payment (via the next cheque number) in MYOB AccountRight. [use a Service Invoice].

Transaction

9:
The Stock Card for “Innovera USB Cables 2m” is printed below.

The FIFO method is used to value stock of cables on hand. Enter the opening balance on the Stock Card.

Enter the purchase on the previous page on the manual Stock Card kept by the business.

Enter the sale on the previous page on the manual Stock Card kept by the business.

Transaction 10:
On 20 June 2011, 1 Brother Soho Laser Fax/Telephone was taken from stock for the office of the business.

Using a weighted average cost in MYOB AccountRight record the following inventory adjustment in your data file:

Debit 1-5300 $146.97

Credit 1-4000 $146.97

Transaction 11:
On 20 June 2011, the Canon Laser Printer on hand in the office was sold for $440.00 including GST (this printer was originally bought on 20/6/2010

- the purchase cost was $1272.73 and the depreciation in 2010 was

$41.73).

Using the above printout, record the disposal of the Printer in your data file so that the GST will be calculated on your BAS.

Transaction 12:
A stock take was taken at the end of June the figures were as follows:

Enter the above stock take figures in the data file. [1 Shredder was damaged and written off.]

Transaction 13:

(a) On 30 June 2011, in your data file, enter the transfer of the opening stock value of cables to Cost of Sales [use a journal entry].

(b) Use the Closing Stock value of Cables on the Stock Card to record a Closing Stock value of Cables at the end of June 2011 in the data file [use a journal entry].

(c) What method of stock valuation is used for the office equipment for sale in your data file?

(d) What method of stock valuation is used for the USB Cables in your data file?

Transaction


14:


Enter the following depreciation transaction.

Enter the following journal entry to record the calculated depreciation. Select the appropriate accounts and use the correct tax codes. The Accountant has provided you with the depreciation amounts. Also note that the depreciation on the Canon Laser was expensed when it was disposed of on 20/6/11.

2 Printout 3: Print a copy of the Balance sheet in your data file on 30 June 2011.

2
Printout

4: Transaction Journal [All] for June

2
Printout

5: General Ledger [Detail] for June

(a) Print a General Ledger [Detail] report. Check all entries have been allocated to the correct accounts. Make any necessary adjustments.

2 Printout 6: Items List [Summary] at 30 June

2
Printout

7: Price Analysis using tax exclusive weighted average cost

:

Task


12:

The business wants the Selling Price [including GST] to be 55% Profit Margin using Average Cost and a multiple of .50

(a) Backup your data file.

(b) Use “Set Item Prices” to change the selling price to be a 55% Profit Margin using Average and a multiple of .50

2 Printout 8: Inventory Value Reconciliation on 30 June 2011 reconciling the Stock Ledger with the General Ledger [include selling price and average cost in this report]

(a) Compare the selling price with the price in Printout 7 – different selling price because of the increase in profit margin.

(b) Does the Stock Ledger reconcile with the General Ledger?

2 Printout 9: Profit and Loss [Accrual] Statement for June 2011

:

Task


13:

Question to Answer

b) List the 3 approved methods in AASB 102 Inventories for assigning values to stock.

: Task 14: Sending a MYOB report to Microsoft Excel

(a) Access the Price Analysis using Tax Exclusive average cost for all items and then send it to Microsoft Excel.

(b) Use your own formatting skills to change the style of data. Example, font size, colour

(c) Then change the cost price figures to be as follows:

(d) Now you need to use your Microsoft Excel skills to:

- change the formulas for Gross Profit

- delete the column % Margin

- add a formulae to calculate the % Mark-up

(e) Save the report to your working folder, titled - Draft Price Analysis.

(f) Print the report as printout 10.

2 Printout 10: Price Analysis using tax exclusive weighted average cost

You have now completed Part B, exit out of all applications.

Part C: Outcome Assessment Matrix

Participant is:

☐Competent

☐Not yet Competent

Participant Details: Name:

Signature:

Date:

W/Assessor Details: Name:

Signature:

Date:

Further Action / Strategies if Participant is Deemed Not Yet Competent: