B.

Com in Accounting

Module: Computerised Accounting

Module Code: AOC 220

STUDY GUIDE

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Contents

STUDY UNIT 1: PASTEL PROGRAMME INSTALLATION .................................. 1

1.1 Introduction ...................................................................................................... 1
1.2 Installing Pastel Partner ................................................................................... 1
1.3 Registering Pastel Partner ............................................................................... 3
1.4 Decimal separator error.................................................................................... 5
STUDY UNIT 2 PASTEL LANGUAGE AND NAVIGATION ............................... 11
2.1 Introduction .................................................................................................... 11
2.2 Working with the demo and navigating ........................................................... 11
STUDY UNIT 3 COMPANY CREATION AND SETUP ...................................... 15
3.1 Introduction .................................................................................................... 15
3.2 Creating a new company................................................................................ 15
3.3 Use of Auto Setup .......................................................................................... 20
STUDY UNIT 4 CREATE AND MAINTAIN CUSTOMER ACCOUNTS .............. 25
4.1 Introduction .................................................................................................... 25
4.2 Customer categories ...................................................................................... 25
4.3 Sales analysis codes...................................................................................... 26
4.4 Customer accounts ........................................................................................ 27
STUDY UNIT 5 CREATE AND MAINTAIN SUPPLIERS ACCOUNTS .............. 29
5.1 Introduction .................................................................................................... 29
5.2 Suppliers categories....................................................................................... 29
5.3 Create suppliers accounts .............................................................................. 30
STUDY UNIT 6 CREATE AND MAINTAIN INVENTORY ACCOUNTS ............. 31
6.1 Introduction .................................................................................................... 31
6.2 Inventory categories ....................................................................................... 31
6.3 Inventory items ............................................................................................... 31
STUDY UNIT 7 CREATE AND MAINTAIN GENERAL LEDGER ACCOUNTS .. 34
7.1 Introduction .................................................................................................... 34
7.2 Understand the difference between a main and a sub general ledger account34
7.3 Create general ledger main and sub accounts ............................................... 34
STUDY UNIT 8 SUPPLIER PROCESSING ...................................................... 37
8.1 Introduction .................................................................................................... 37
8.2 Process a purchase order to a supplier .......................................................... 37
8.2 Process a supplier invoice .............................................................................. 38
8.2.1 Updating the batch ...................................................................................... 40
8.3 Process a return and debit ............................................................................. 41
STUDY UNIT 9 CUSTOMER PROCESSING.................................................... 42
9.1 Introduction .................................................................................................... 42
9.2 Customer quotation ........................................................................................ 42
9.2.1 Tax invoice to a customer ........................................................................... 42
9.2.2 New customer ............................................................................................. 43
9.3 Customer’s credit note ................................................................................... 44
STUDY UNIT 10 TAKE ON BALANCES ............................................................. 45
10.1 Introduction .................................................................................................. 45

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10.2 Take on balances ......................................................................................... 45
STUDY UNIT 11 CASH BOOK PROCESSING ................................................... 52
11.1 Introduction .................................................................................................. 52
11.2 Cash book processing .................................................................................. 52
STUDY UNIT 12 BANK RECONCILIATION ........................................................ 55
12.1 Introduction .................................................................................................. 55
12.2 Process bank reconciliation .......................................................................... 55
12.3 Self-evaluation questions ............................................................................. 60

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Module Information
Name of programme Bachelor of Commerce in Accounting
Type of programme Contact (Full-Time & Part Time)
NQF Level 6
Name of module Computerise Accounting
Credits 10
Notional hours 100
Module purpose The purpose of this module is to provide learners with computerised
accounting skills. The Pastel Accounting package, which appears to be
commonly used in the accounting field, forms the basis of this module.
Learning Outcomes: At the end of this module learners should be able to:
• Demonstrate an understanding of the menu structure of Pastel
Partner
• Use the system navigator
• Use Pastel Explorer
• Use the toolbar
• Use the function keys
• Use online help
• Explain what profit and loss are
• Demonstrate an understanding of debits, credits, double entry
accounting, source documents and entry types
• List the minimum requirements for installing Pastel Partner
• List and describe the three methods of creating a new company
• Use the case study information to create a new company
• Set up a company
• Create a backup of the company
• Use the Zoom facility
• Use different methods to search for accounts in Pastel
• Use the Add facility to create new accounts and descriptions
• Link notes to accounts
• Link files created in other applications to Pastel accounts
• Use F2 to create notes
• View notes
• Enquire on selling prices without printing a price list report
• Use F9 and the Utility menu to invoke the calculator
• Copy results from the calculator into a Pastel entry type
• Use the data remote to search for records
• Use the data remote to delete records
• Use the data remote to create new records
• Use the data remote to edit records
• Activate the Zoom facility from the data remote
• Create sales analysis codes
• Create cost codes
• Create GL accounts
• Demonstrate an understanding of the purpose and use of
customer categories
• Demonstrate an understanding of the construction of customer
and supplier account codes
• Link customers to sales analysis codes

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• Change default settings in new accounts
• Link customers to price lists
• Add a credit limit to customer/supplier accounts
• Create inventory categories
• Link inventory item files to inventory categories and groups
• Differentiate between physical and service items
• Differentiate between cost and selling price
• Create sub-accounts for the suspense account
• Record the take-on balances for the General Ledger
• Record the take-on balances for customer and supplier accounts
• Record the take-on balances for inventory
• Identify the different tax codes and list their uses
• Set tax options for inventory items
• Set tax options for GL accounts
• Set tax options for customer and supplier accounts
• Explain the difference between the export/import option on the
file menu and the export utility
• Demonstrate an understanding of ASCII file format
• Demonstrate familiarity with the layout of ASCII files
• Demonstrate an understanding of the validation process of data
during importing
• Import inventory files
• Describe the cycle of supplier processing
• Identify the input fields of a document
• Record information in a document
• Link documents
• Demonstrate an understanding of how Pastel deals with price
variances between GRN’s and supplier invoices
• Use a GRN to create a supplier invoice
• Update batches
• Differentiate between supplier debit notes and credit notes
• Use open item allocations during document processing
• Demonstrate an understanding of the cycle of customer
document processing
• Record transaction lines
• Use the Zoom facility to enquire about inventory amounts
• Use Remarks to add non-billing information to a document
• Use abbreviations in description fields
• Create a sales order
• Link a sales order to a tax invoice
• Understanding volume discounts
• Discuss customer specific price and special prices
• Explain how to create volume discounts
• Demonstrate an understanding of the price hierarchy in Pastel
Partner
• Link an invoice to a quotation
• Create a purchase order from a sales order window
• Link a purchase order to a GRN
• Switch between inclusive/exclusive processing in a document
• Demonstrate an understanding of the recurring invoice

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 • Distinguish between a customer debit note and credit note
• Setting Up and Operating Different Stores for Processing
• Linking Inventory Items to a store
• Transferring between Stores
• Re-ordering Inventory
• Cash Books
• Using the Petty Cash Book
• Entering Transactions in the Journals
• Bank Reconciliation
• Correction of Errors
• Discuss the preparation for the inventory count
• Initiate the count procedure
• Take a snapshot of inventory quantities
• Enter physical quantities
• Complete the count procedure
• Run different inventory reports
• Generate GL related reports
• Generate customer related reports
• Generate supplier related reports
• Print price lists
• Discuss prerequisites for a year end
• Perform a final back up
• Initiate the year end procedure

Prescribed textbooks and Pastel

other sources Partner
Computerised AOC Version Sage PAS
2017 Sage
Accounting 220 17 Pastel 76-124
College
Manual

Icons Additional information

Self-check activity

Reading in prescribed textbook

Bright ideas

Think point

Case Study

Study Group Discussion

Vocabulary

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STUDY UNIT 1: PASTEL PROGRAMME INSTALLATION

1.1 Introduction
After studying this study unit, the student should be able to:

• Install Pastel programme

• Registering Pastel Partner Version 17
• Start and end the programme
• Decimal separator error

1.2 Installing Pastel Partner

Please take note that this is a practical subject and we are going to create a company as if
we are in real world. We are going to create a company that we will be using throughout the
whole module. Now we are going to use examples one after another and the later example
is dependent on the preceding example (i.e. you cannot work on example 6 if you were
absent the day when example 5 was done) therefor attendance is very crucial.

Exercise 1.1

1. Insert the Pastel Partner Installation DVD into the DVD-ROM

2. The following screen displays

3. Select the run autorun.exe.

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4. The following screen displays

5. Select Partner and proceed

6. Read the dialog on the install wizard screen and then select next.
7. Read the software licence agreement screen and select next
8. On the setup type screen select the typical installation.
9. Click next
10. On the setup screen leave the default selection as typical and select next
11. The default C-rive is select if you want to change this you can select change
otherwise select next.
12. Select the install button to start the installation
13. Throughout the installation various screens appear, all you need is to sit back and
relax while the installation is taking place.
14. When installation is complete the install shield wizard completed screen displays as
follows

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 15. Click the finish button to complete the installation
16. The sage pastel icon will now appear on your desktop.

1.3 Registering Pastel Partner

Now you need to register the software so that it will not expire. The software that you are

going to use is an educational software and it will expire after at least 90 days.

Exercise 1.2

Now open pastel partner by clicking on the pastel icon on your desktop.

1. The following screen displays

2. Select the next button and the registration type screen displays as follows:

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3. Select the single user/sever registration and then click next.

4. The following screen displays

5. Select the education pack and make sure that the register online is not selected

6. Not press Ctrl + shift + T and a registration code screen will display

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 7. Enter the authorisation key exactly as per your student manual or disk.

8. After you enter the authorisation key select OK

9. A screen displaying a summary of your registration details appears.

10. Click next and then finish.

1.4 Decimal separator error

when opening the pastel for the first time you may receive an error massage that reads: the

decimal/thousand separators for number and currency formats are not the same. Please

change your windows settings.

To resolve this error

1. To resolve this error click on start button at the bottom left hand corner of your
screen and then click on the control panel link

2. This may differ depending on the windows that you are using,
3. Select regional and language option and the following screen displays:

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4. Insure that the format is English (South Africa)
5. At the bottom right corner select additional settings, and the following screen displays:

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4. Ensure that the Numbers tab is formatted as above

5. Next select the currency tab and ensure the following have been selected:

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8
6. Set the time format as follows:

7. Go to the ate tab, and the following screen displays:

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8. make sure that the date format is set so that the Short Date Format reads dd/MM/yy
and that the Long Date Format reads dd MMMM yyyy
9. Once all the settings are set select apply
10. Restart you PC in order for the new settings to take effect.
11. After restarting the computer, you can now open pastel.

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STUDY UNIT 2 PASTEL LANGUAGE AND NAVIGATION

2.1 Introduction
After studying this study unit, you should be able to:

• Work with Demo Company

• Navigate in Pastel using the different options available
• Use the functions and shortcut keys
• Back-up and restore information in pastel

2.2 Working with the demo and navigating

Exercise 2.1

1. On the desktop, double click on the icon.

2. The programme pastel opens
3. From the menu bar select File.
4. From the drop down menu select Open.
5. The following screen display

6. Select the demo company and select Open

7. If you are asked to put a password type demo as your password and click ok.

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 8. The following screen displays

9. For now, we are going to concentrate on the menu bar

The menu bar

As we go through each option, click on the function in order to be able to relate it to the
screens that are displayed.

The menu bar is as follows:

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File
Select file and the following screen displays:

We are going to look at all of these functions one by one

Open – allows you to choose the company you want to open

New- gives the option to create a new company

Delete- gives the option for the company’s data base to be deleted

Consolidate- consolidates two or more companies

Export/import- allows for the importing or exporting of information

Data integrity- this makes sure that all the records are readable and that the system is in
balance, this should be done before a daily backup.

Backup- this is used to make a copy of the company data.

Restore- this function allows the system to override the existing data

Pastel Iron tree online backup- this is an online backup service, into which data can be
updated.

Send and receive accountant data- this allows data to be sent between the accountant and
the company.

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Printer/ Fonts set up- used to specify printers and fonts for different types of printing, per
user

Exit pastel- this option is selected to close the pastel programme.

Edit
This option is used to maintain or make changes to the records such as suppliers,
customers, inventory etc. selecting this option ill lead you to the below options. We are going
to discuss these options in detail.

General ledger- maintain and create new general ledge accounts

Customers
when you select the customers option the following options appear

Accounts- maintain and create new accounts

Categories – the categories of customers according to the suppliers own criteria

Sales analysis codes- this will give an option for the company to analyse customers by sales
person, geographic areas etc.

Customer prices- used to create a price per customer and per inventory item

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STUDY UNIT 3 COMPANY CREATION AND SETUP

3.1 Introduction
After studying this study unit, you should be able to:

• Creating a New Company using Pastel Setup Assistant

• Use of Auto Setup, Auto Setup Menu and Auto Setup Process

3.2 Creating a new company

Exercise 3.1
Use the Setup Assistant to create the company from the information given below:

New Company Name: RE2018DAM Where 2018DAM is your student number

e.g. FE12345.
Company Name: Type your full names i.e. Names and Surname
Date format: Y/M/D, with four-digit format
Financial year: 2018/02/28 (period ends on last day of month)
Number of periods: 12
Chart of accounts: Retail
Cash Books: 2 (ABSA Bank and Petty Cash)
Inventory prices: Local; Export and Cash
Default terms: Period based, 60 days
Customer defaults: Open item
Paper style: Plain, continuous sheet.

Comment
1. On the menu bar click on file

2. A drop down will come click on new

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 3. The following screen displays:

Use set up assistant – this is the recommended method you will be taken to through a series
of screens in which specific information will be captured about the company. The set up
assistant helps you to set up the company.

Copy another company – this option allows you to copy another company.

Start a new company – in this option is created from scratch, where you will need to set up
everything from scratch. (Never use this option under exam conditions as it will require a lot
of time and you will not be able to finish the exam within the required time.

4. Select the option use setup assistant and then select create
5. Type RE followed by your student registration number and then select create
6. The pastel setup screen displays as follows, read the screen and select next

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 7. The following screen displays

Fill in the information as per exercise 3.1 and once done select next

8. The date format displays, select the correct options as per exercise 3.1 then click
next
9. The period screen displays, select 2018/03/01 as the start date of the current
financial year and select next
10. The period setup continued screen displays, enter the number of periods as 12 and
select next
11. The following screen displays:

Read the account screen carefully and the retail from the drop down arrow then select next

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12. The cash books / bank accounts screen displays:

Enter the number of cashbooks as per exercise 3.1 and select next

13. The following screen displays

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Inventory prices - often companies they have different prices for different customers e.g.
local, export and cash customers. Input the prices as given in exercise 3.1 and select next.

14. The default terms screen displays; this helps you to set the default terms for all
customers. In this case you are supposed to select the 60 days as per your exercise
3.1 and select next
15. The customer displays next, read the screen carefully and select open item then next
16. The document printing screen displays, read the screen carefully and select the
correct paper style as per the requirements of exercise 3.1. when done select finish.
17. The create company screen displays, select process
18. The operation complete displays, select finish
19. The login screen displays, create the password as per the requirements and select
ok.
20. You have just created a company. If you look on top of the screen it is displayed as
follows

Please take note that your student number appears and this is how the lecturer is
going to identify that it your work.

Before proceeding, close pastel by either going to the File then exit pastel option on the
menu bar, or selecting the close icon on the top right corner of your screen.

The following dialog will display:

For now, we are going to ignore the back up so select no and you will be back to the
desktop.

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3.3 Use of Auto Setup

Example 2.2
Using the setup menu, change the following default settings:

Setup Customers Control

Configuration tab
Interest: Annual % rate 10%
Default tax type : 01 Vat standard rated at 14%
Tax prompt amount: R4 500

User defined lines: Line 1: Director

Line 2: Tel No
Line 3: Manager
Line 4: Tel No.
Statement tab
Terms: Strictly 30 days nett
Terms +1: Settle your account ASAP
Terms +2: Contact our legal dept.

Default tab
Create the following default early payment terms for customers
2.5% 30 days from invoice date
5% 14 days from invoice date
10% 1 day from invoice date

Setup Customers Documents

Quotation
Quotation message should read
Quotation valid for only 5 days.
Thank you for your interest

Tax Invoice
Tax invoice message should read
Your support is appreciated
Come again

Setup Suppliers Control

Configuration tab
Default tax type: 01 Vat standard rated at 14%
User defined lines Line 1: Contact Person
Line 2: Tel No

Goods Received Notes: Never

Remittance message tab

Kindly contact the accounts dept. with any queries. Thank you

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Setup Suppliers Documents
Purchase Order
Purchase Order message should read
Kindly confirm delivery date with logistics dept. Thank you.

Invoice
Invoice message should read
Received by:
Signature:
Date:

Exercise 3.2
From the desk top select the pastel icon and open the company that you have just created,
make sure you select the correct company with your registration number as they are many
companies that were created by other students.

On the menu bar, click on Setup. The following drop down menu displays:

This will take you through the steps reflected on the menu. It allows you to edit the existing
settings and set up more detail settings to each of the respective categories appearing in this
menu.

1. From the main menu bar select setup, customer then control

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 2. The following screen displays

Starting with the configuration tab complete all the tabs as per the information provided in
exercise 2.2
3. For the terms go on the default tab and select early payment terms
4. Go on the magnifying glass
5. The following screen displays:

6. Select modify, and the following screen displays:

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 7. Change the early payment terms as per the exercise 2.2 and select ok
8. Select close and then ok

For the set up customer documents

9. Select set up, customer then documents

10. The following screen displays

Starting with the quotation tab complete all the tabs as per the information provided in
exercise 2.2

Set up supplier

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 11. Form the menu select set up, supplier then control
12. The following screen displays:

13. Starting with the configuration tab complete the information as given in exercise 2.2
14. Select ok
15. From the menu select setup, suppliers then documents
16. The following screen displays:

Complete the massages box as per exercise 2.2 and select ok

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STUDY UNIT 4 CREATE AND MAINTAIN CUSTOMER ACCOUNTS

4.1 Introduction
After studying this study unit, you should be able to:

• Create Customer master file accounts

• Create sales analysis codes
• Create cost codes.
• Demonstrate an understanding of the purpose and use of customer categories
• Create Customer Accounts
• Link customers’ Accounts to sales analysis codes.
• Change default settings in new accounts.
• Link customers to price lists

4.2 Customer categories

Exercise 4.1
The company had the following customer categories:
1. Local
2. Export
3. Cash
Create these customer categories.

Exercise 4.1 explanation

Customer categories are used to group customers together into areas, types of products and
so forth.

1. From the menu bar select Edit, Customers then categories

2. The following screen displays:

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 3. Type the customer categories in the description field and click ok

4.3 Sales analysis codes

Exercise 4.2

Create the following sales analysis codes:

Code: TM001
Description: Tumisho Mashasha
Pay commission on: Sales
Range R1 to R75 000: 5%
Range R75 001 to R155 000: 8%
Range R155 001 onwards: 10%

Exercise 4.2 Explanation

1. To create sales analysis codes, select edit, customer then sales analysis code
2. The edit sales analysis code screen displays as follows:

3. Enter the information as provided in exercise 4.2

4. Make sure you click the save icon and close the sales analysis code screen
• Sales analysis code- enter a code to identify the sales code in this field. In
this case TM001
• Description – enter the name of the ales code
• Blocked- if you want to block a certain sales code, select this tick this box
• Pay commission on- indicate how commission is to be paid to the sales
representatives, i.e. on gross profit or sales

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 • Commission structure table- specify target values and the commission
percentages relating to those reached.

4.4 Customer accounts

Exercise 4.3
Customers’ Accounts
Create the following Customer Accounts (No addresses and contact details are required and
leave other information as per default)

Code: MT001
Description: MTN
Sales Code: Tumisho Mashasha
Processing method: Balance Forward
Normal Terms: 60 Days
Price List: Local
Credit limit: 150 000

Code: CE001
Description: Cell C
Sales Code: Tumisho Mashasha
Processing method: Balance Forward
Normal Terms: 30 Days
Price List: Export
Credit limit: 500 000

Exercise 4.3 explanation

1. From the menu bar, select edit, customer, accounts
2. The following screen displays:

3. Enter the information provided in exercise 4.3

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4. Remember after you enter the details of each and every customer you need to save
before you proceed.
• Account code- suppliers are identified y codes and you need to enter the code here
• Description- the customer name is entered here
• Cash sale account- tick this box if the account is a cash sale
• Blocked- should we wish not to transact with a certain customer tick this account
• Customer category- by selecting the drop down arrow the previously customer
categories that you created can come out the you can select the correct category.

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STUDY UNIT 5 CREATE AND MAINTAIN SUPPLIERS ACCOUNTS

5.1 Introduction
After studying this study unit, you should be able to:

• Create and maintain supplier categories

• Create and maintain supplier accounts
• Change default settings in new accounts
5.2 Suppliers categories
Suppliers categories are optional and they are used to group suppliers into different
categories such as geographic, types of products etc.
Exercise 5.1
Create the supplier categories as follows:
Services

Goods

Select Ok once completed

1. From the menu bar select edit, suppliers then accounts

2. The following screen displays:

3. Enter the information as per exercise 5.1 and select ok

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5.3 Create suppliers accounts

Exercise 5.2
Suppliers Accounts
Create the following Supplier Accounts (No addresses and contact details are required and
leave other information as per default)
Code: SO055
Description: Sony
Processing method: Balance Forward
Normal Terms: 30 Days

Code: SA082
Description: Samsung
Processing method: Open Item
Normal Terms: 90 Days

1. Select edit, supplier then accounts

2. The following screen displays:

3. Enter the information provided in exercise 5.2 remember to serve every supplier
before you enter the next.

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STUDY UNIT 6 CREATE AND MAINTAIN INVENTORY ACCOUNTS

6.1 Introduction
After studying this study unit, you should be able to:

• Create inventory categories

• Create inventory items
6.2 Inventory categories
Inventory categories are used to group various inventory together so that various reports
may be produced in category sequence.

Exercise 6.1

Create the following inventory categories:

Services

Goods

1. From the menu bar select edit, inventory then inventory categories
2. The following screen displays

Enter the inventory categories as per exercise 6.1

6.3 Inventory items

Under the inventory item is where you can come up with inventory items where by you can
create inventory codes, as well as setting the prices.

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Exercise 6.2

Inventory Accounts
Create the following Inventory Codes (All prices are inclusive):
Code: PT321
Description: Polo Travel Bag
Unit: Set
Type: Physical Item
Local Price: 1 750.00
Export Price: 1 550.00
Cash Price: 1 400.00

Code: PB945
Description: Police Black Sunglasses
Unit: Pair
Type: Physical Item
Local Price 1 960.00
Export Price): 1 800.00
Cash Price: 1 680.00

1. Select edit, inventory then item file

2. The following screen displays:

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3. Enter the information as given in exercise 6.2
4. Remember to serve for each and every inventory item

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STUDY UNIT 7 CREATE AND MAINTAIN GENERAL LEDGER ACCOUNTS

7.1 Introduction
After studying this study unit, you should be able to:

• Understand the difference between a main and a sub general ledger account
• Create general ledger main and sub accounts

7.2 Understand the difference between a main and a sub general ledger account
As you have learned in Accounting 1A in your first year of study, the General Ledger
analyses transactions and reflects the business activities of a company.

Pastel allows you to create 9999 general ledger main accounts and 999 general ledger sub
accounts. This can be best understood by looking at the table below.

From the table above t can be seen that the main account is 4150/000 (motor vehicle
expenses) while the sub accounts that further breakdown the expenses are 4150/010 to
4150/030.

7.3 Create general ledger main and sub accounts

Exercise 7.1
General Ledger Accounts
Create the following General Ledger Accounts
Code: 6325
Description: Security safes
Type: Balance Sheet
Balance Sheet Category: Fixed Asset

Code 6325/010
Description: Security safes- at cost
1. From the menu bar, select Edit, General ledger, accounts
2. The following screen displays:

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 3. In order to create a new account, click on the (new icon)
4. The following screen displays

Now let’s have a look at the screen displayed above:

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Main account number – this is the main account and it contains up to 9999 main general
ledger accounts.

Sub account – up to 999 sub accounts can be created for each main account.
Account description this describes the account

Blocked – when a general ledger is no longer required it can be blocked

The details tab

Income statement or Balance sheet – select whether the new account belongs to te income
statement or the balance sheet.

Income statement financial category – this allocates the account to a specific financial
category e.g. for the balance sheet it can be allocated amongst inventory share capital etc.

Now that you understand the edit general ledger accounts screen you can enter the
information as provided in exercise 7.1

Please note that when you are creating the sub account 6325/010 you cannot change the
details tab as this was set when the main account was created.

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STUDY UNIT 8 SUPPLIER PROCESSING

8.1 Introduction
After studying this study unit, you should be able to:

• Create a purchase order

• Create a supplier invoice
• create return and debit notes.

8.2 Process a purchase order to a supplier

Exercise 8.1
Complete the SUPPLIER PROCESSING as shown below:
(VAT applies to all transactions, and all documents are to be entered in exclusive mode).
ALL documents are to be processed as at the current system date of the current period.

Purchase Orders:
Supplier: Sony
Item: Police Black Sunglasses
Quantity: 97
Price 1035.00

Supplier: Samsung
Item: Polo Travel Bag
Quantity: 63
Price 976.00

1. to access purchase orders from the main menu bar, select process, supplier, a
supplier invoice will display
2. In the field document type click in the drop down arrow and select the purchase order
option (the document should turn yellow)
3. Tab to the supplier field, and the search icon display, select the correct supplier as
per exercise 8.1
4. Use the tab key or enter key on the key board until you are on the Type column.
Select item code 4 and press enter
5. Complete the rest of the purchase order as per exercise 8.1
6. Make sure the first purchase order appears as follows:

7. when you are done select next document

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If select ok when you are connected the printer your purchase order will print, for now select
cancel and pastel will take you back to the purchases order ready to process the next order.

Process the rest of the purchases orders, and take note that as you select next document
your purchases orders are being automatically served.

8.3 Process a supplier invoice

Exercise 8.2
Supplier Invoices:
Process the following Supplier Invoice for ALL items ordered above, and link these to the
purchase orders processed above.
REMOVE THE WHOLE ORIGINAL DOCUMENT (Purchase order) IN PLACE after linking.

Supplier: Sony
Supplier Invoice No: INVOA01

Supplier: Samsung
Supplier Invoice No: INVRA01
Update this batch upon completion.

1. From the main menu bar select process, supplier

2. From the document field select supplier invoice
3. In the supplier field select Sony,
If the following dialog displays, select the correct date and proceed

38
4. Select ok
The following dialog displays

5. The system can link a purchase order to an invoice to avoid you from creating a new
invoice from start. Select yes
6. The following screen displays

7. Select the correct supplier as per exercise 8.2

8. Select link, and the following dialog display

39
Leave the original document in place – the original purchase order will remain on the system

Delete only use lines form the original document – if only some of the stock was received
then the system will remove only the items that were received

Remove the whole original document – the complete purchase order will be remove from the
system.

9. As all the items were received select remove the whole original document
10. Select Ok
11. Ensure that the period, date and supplier invoice number is correct
12. Select next document
13. Cancel all printing instructions
14. You should be now back on a clean new supplier invoice

Process all the other invoices as per exercise 8.2

8.3.1 Updating the batch
To update the invoice batch, while you are in the invoices:
1. select batch (this is found at the bottom)
2. Select, update
3. The following dialog display:

4. Select no, and then update

40
8.4 Process a return and debit
This is used when they are purchases returns to the supplier

Exercise 8.3
Return Debit
You are required to process the appropriate document upon sending back the following
inventory item to the supplier:
Supplier: Sony
Supplier Invoice No: INVOA01
Item: Police Black Sunglasses
Quantity: 3
(Put a Remark on document: Goods damaged).
Update this batch upon completion.

1. From the main menu select, process, suppliers

2. From the document type field select, return and debit
3. Complete the return and debit, and remember to put the quantity that is to be
returned as per exercise 8.3
4. To put the remark, under the type column select the search magnifying glass
5. Select 7 remarks
6. Under the description column type, goods damaged
7. Select next document
8. Ignore the printing instructions
9. Update the batch upon completion

41
STUDY UNIT 9 CUSTOMER PROCESSING

9.1 Introduction
After studying this study unit, you should be able to:

• Process a quotation
• Link a quotation to a sales order
• Link a sales order to a customer invoice
• Create a cash customer account
• Create customer’s credit note

9.2 Customer quotation

Exercise 9.1
Complete the CUSTOMER PROCESSING as shown below (VAT applies to all transactions,
and all documents to be processed in exclusive mode).
ALL documents are to be processed as at the current system date of the current period.

Quotation
Customer: MTN
Item: Police Black Sunglasses
Quantity: 19
Item: Polo Travel Bag
Quantity: 22
Price: Local

Customer: Cell C
Item: Police Black Sunglasses
Quantity: 23
Item: Polo Travel Bag
Quantity: 3
Price: Local

1. From the main menu bar select, process, customers

2. On the document type field select, quotation
3. Tab to the customer field
4. Select the correct customer as per exercise 9.1
5. Complete the quotation as per information given in exercise 9.1. take note that the
information is processed the same way as for the suppliers

9.2.1 Tax invoice to a customer

42
Exercise 9.2
Tax Invoice
Process the following Tax Invoices for Customers. The Customers have accepted the
quotations in full, in those instances where linking is prompted. LEAVE THE ORIGINAL
DOCUMENTS (Quotations) IN PLACE AFTER LINKING:
Customer: MTN
Customer: Cell C

Additional Customers:
Code: (NEW CUSTOMER TO BE CREATED)
Description: Telkom
Type: Balance forward
Sales code: Tumisho Mashasha
Price list: Cash
Credit limit: 40 000
Item: Police Black Sunglasses
Quantity: 3
Item: Polo Travel Bag
Quantity: 2
Update this batch upon completion.

1. If you are still in the quotation

2. Select the document type field and select tax invoice
3. Go to the customer field and select the correct customer, press enter
4. The following dialog display

5. Select yes
6. Select the customer name
7. Select link
8. Select next document
9. Ignore the printing instructions and proceed

9.2.2 New customer

We created accounts for MTN and Cell C already but in exercise 9.2 we have a new
customer Telkom. You can create a new account as we did in study unit 4 or you can do the
following.

1. While you are in the processing customer

2. Tab the customer
3. Select, add

43
 4. Now the edit customer dialog opens
5. You can now capture the details of the new customer as given in exercise 9.2
6. When you are done serve the customer details and close the edit customer screen
7. Now Telkom had been added to the customers’ list
8. Select Telkom and enter the details for the invoice as given in exercise 9.2
9. Take note there is no quotation for Telkom and you will have to do the invoice
manually.
10. Update the batch

9.3 Customer’s credit note

This is processed when a customer returns good for various reasons or when there is a
change in price after the customer and the supplier negotiated.

Exercise 9.3
Code: (NEW CUSTOMER TO BE CREATED)
Description: Telkom
Type: Balance forward
Sales code: Tumisho Mashasha
Price list: Cash
Credit limit: 40 000
Item: Police Black Sunglasses
Quantity: 3

44
STUDY UNIT 10 TAKE ON BALANCES

10.1 Introduction
After studying this study unit, you should be able to:

• Take on balances
• Print a trial balance, customer and supplier aged analysis

10.2 Take on balances

Most companies start as small businesses and they will not have enough capital to initially
computerise their bookkeeping thereby make use of the manual system. When the company
grows and it can now afford to computerise its bookkeeping cycle, it will have balances in its
bookkeeping such as balances for debtors, creditors, PPE etc. These balances need to be
put as opening balances when introducing the computerised bookkeeping.

Opening/Take on Balances

Take on the following Opening Balances for the company, which have been made available
late to the company by the bookkeeper.
The balances must be taken on as at period 12 of last year. No VAT is applicable to any of
the balances and contra main account is the Suspense/Opening Balance Account
(9990/000), create appropriate sub accounts. The reference must be TB and the description
must read opening balance

Exercise 10.1
Use the appropriate journals to record the balances below:

Trial Balance as at 28 February 2010

Dr Cr
R R
Share Capital 84 600
Security Safes at cost 10 000
Motor Vehicles at Cost 40 000
Computer Equipment at Cost 32 000
Inventory Control: 4 Polo Travel Bag 3 600
Bank: ABSA Bank 1 000
Supplier: Sony 12 000
Customer: Cell C 10 000
Totals R96 600 R96 600

You are required to open the following sub accounts under the main account of
Suspense/Opening Balance Account - 9990/000.
9990/001 Bank
9990/002 Customers
9990/003 Supplier
9990/004 Inventory

45
 To take on balances the following steps need to be taken
1. Click on Process…….Journals on the Menu bar
2. Select General Journal…….and press enter key on the key board.
The following screen displays:

3. Click on the setting button at the bottom of the screen.

The following screen displays:

46
 4. Deselect this year transactions so that you are processing in last year
5. Make sure that Tax Processing is also unselected
6. The rest of the settings will remain as default
7. Click on the close button to save the settings
8. Notice that the words Last Year now display at the bottom of the screen in Red
Lettering

Now let’s go through this screen before we proceed.

Contra account this is the account that will be used for balancing purposes. Every debit
balance must be equal to the credit balance. For cash books the contra account must be
always a bank account.

This year transaction you can post transaction in any financial period that you want. To
take on balances from the previous year into the current year the balances are entered in to
the previous year and they will be brought down as opening balances in the current year, to
achieve this uncheck this year (take note at the bottom it will be written last year to show that
you are now working in the last year module)

Repeat Descriptions this field lets you contol the description field defaults on new lines. If
you check this check box, the description on a new line defaults to the previous line’s
description

Repeat cost codes this field lets you control how the cost code field defaults on new lines. If
you check this box, the cost code on a new line defaults to the previous line’s cost code.

Allocate settlement discount this field applies to cash book processing only. If you check
this check box, the system can calculate and process any early payment discounts your
suppliers offer you.

9. In the per column select period 12

10. Select the appropriate accounts e.g. capital, motor vehicles at cost etc.
11. Remember to put reference as TB and description as opening balance
12. Enter the amount on the Dr or Cr as per exercise 10.1

Note for the inventory (9990/004), suppliers (9990/003) and customers (9990/002) you need
to create new sub general ledger accounts as given in exercise 10.1. to refresh on how to
create sub ledger accounts refer to study Unit 7

Take on customer balances

1. From the main menu click on Process ….. Journals and double click on Customer
journal as follows:

47
2. Click on the settings button
3. Enter the contra account for customer take on balance 9990/002 in the relevant
block
4. Deselect the option to processing this year transactions select to increment
references and ensure that Tax Processing is not selected. Leave the rest of the
settings as the default settings.
5. Your screen will look as follows:

6. Select close
7. You are now back to the customers’ journal
8. Enter your information as follows

48
Remember when you were processing the general journal you debited the customer’s
account (9990/002), now you are crediting that same account (9990/002) and debiting the
actual account that is MTN. we opened the temporary account for customers so that we will
be able to complete our double entry system as it is not possible to post or update a journal
that is not in balance.

Taking on the supplies balances

1. While the Journal processing screen is open, select the supplier Journal from the
entry type drop down list.
2. Click on the settings button
3. Select the relevant contra account, deselect to process in this year, select to
increment references and ensure that tax processing is not selected.
4. Click on the close button to continue.
5. Your supplier’s journal should look like the one below:

Take on inventory item balance

1 Click on process …….inventory journals
2 Select period 12 Last year
3 A warning screen display click ok
4 Click on the settings button
5 Ensure that all the settings have been deselected by clicking on each option to
deselect
6 Proceed to enter all the relevant information
7 Select to update batch and then close this screen
9. Your journal should look like the one below:

49
Take on cash book balances
1. Click on process…. Cash book from the main menu
2. Click on the receipts
3. Click on the settings button
4. Deselect the option this year Transactions, select to Increment References and
ensure that the Tax Processing option is deselected.
5. Click on the close button
6. Enter the relevant information
7. The receipts page should display as follows

8. Click on the Preview button and select to Preview all lines.

9. You preview would look like the one below:

50
Take note that the account that you are supposed to credit is (9990/001) the one that you
debited when doing the general journal

51
STUDY UNIT 11 CASH BOOK PROCESSING

11.1 Introduction
After studying this study unit, you will be able to:
• Process the cash book transactions
➢ Capture the bank statement
➢ Capture cash transaction
➢ Capture cheque payments

11.2 Cash book processing

Exercise 11.1
Process the following:
ABSA BANK CASH BOOK (RECEIPTS AND PAYMENTS):
RECEIPTS:
Use the deposit slip provided as your reference. (Enter the company names as descriptions
where appropriate). Process all receipts as at the last day of the systems current period
REF Details
DEP68 Received R9 100 from Cell C as account payment
DEP69 Received R7 830 from MTN as part payment (auto match the
amounts)
DEP70 Received part payment (R3 560) from Telkom as account payment.
DEP71 Received interest from KL Investment, R13 910

PAYMENTS:
Ensure the Payments settings are as follows:
(Tax processing is checked/on; Repeat Description is unchecked; and Increment Reference
is set to Yes).
For items indicated as inclusive, VAT must be applied accordingly. Enter the company
names as descriptions where applicable. Process all cheques as at the last day of the
systems current period.
REF Details
CHQ65 Paid for Telephone to Vodacom, R2 320 (VAT inclusive).
CHQ66 Paid Sony R16 580 as account payment
CHQ67 Paid for rental to KG Rentals, R12 950 (VAT inclusive).
CHQ68 Paid for Advertising to Fashion Mag, R4 640 (VAT inclusive).
CHQ69 Paid for Repairs to Window Seal, R2 490 (VAT inclusive).
CHQ70 Paid for Legal Fees to Legal Corp., R2 780 (VAT inclusive).
CHQ71 Paid for Security Safes from Dion, R3 330 (VAT inclusive).

Steps to follow
1. Select the cash book entry icon on the toolbar or click on Process …. Cash book
2. The following screen will appear.

52
 3. Click on the receipts tab (pale blue in colour)
4. Click on settings at the bottom of the table and edit the settings as per exercise 11.1

Now let’s discuss various buttons on the cash book

Period- In this column you enter the period in which to process the transaction.

Date- here you enter the date of the transaction.

GCS G- to enter a general ledger account, C – to enter a customer account and S - to enter
a supplier account.

Account- in this field you enter the account to which you are processing the transaction.

Reference- enter a reference to identify the transaction

Cash description- enter a narrative for the transaction

Tax- allows you to enter the correct tax code by clicking on the drop down arrow

Bank inclusive and exclusive – these will display if the option to process tax as selected
5. Starting with the GCS column enter the information given in exercise 11.1
receipts
Make sure when you are done you don’t update the cashbook as we are going to update this
after we are done with the bank reconciliation.

53
Payments

When you are done with the receipts go to the payments

1. The following screen displays:

2. Starting with the Per column anter the information as provided in exercise 11.1

54
STUDY UNIT 12 BANK RECONCILIATION

12.1 Introduction
After studying this study unit, you will be able to:
• Process a bank reconciliation
• Viewing, updating and printing reports

12.2 Process bank reconciliation

Complete the bank reconciliation, after processing the necessary entries from the bank
statement into the relevant cash book. Use the reference numbers provided for direct
entries. Reconciliation should be done to current system date.

Exercise 12.1
Capture the following bank statement and process the bank reconciliation thereafter.

ABSA BANK: Bank Statement for the month ended....

Payment Receipts Balance
st
Opening balance as 1 1 000.00
Deposit 68 9 100.00 10 100.00
CHQ 65 2 320.00 7 780.00
CHQ 69 2 490.00 5 290.00
CHQ 68 4 640.00 650.00
Deposit 71 13 910.00 14 560.00
Deposit 70 3 560.00 18 120.00
Stop Order: BM Rentals (Rental - Inclusive) Ref 3 690.00 14 430.00
1987
CHQ 66 16 580.00 -2 150.00
Debit Order: Outsurance (Insurance - Inclusive) 1 450.00 -3 600.00
Ref 9
CHQ 67 12 950.00 -16
550.00
Service fees (Inclusive) Ref BSF 1 110.00 -17
660.00

Comment

The first stage when processing the bank reconciliation is to enter all the information that is
on the bank statement but is not in the cashbook. To activate this, follow the steps below

1. Click on Process…. Cash book from the main menu

2. Ensure that you are on the Payments page and click on Settings button
3. Deselect the option to process in this year. Click on the close button

55
4. Start entering all the payments and deposits on the bank statement that does not
appear in the cash book
5. Remember they are transactions that you have already captured in the cash book in
exercise 11.1
6. When you are done leave this module open as we are going to update the cashbook
after our bank reconciliation have balanced.

Bank reconciliation

1. From the menu bar, click on Process ….Bank Reconciliation

2. The following screen displays:

3. Make sure you select the correct Cash book period and up to which date from the
displayed screen
4. On the Statement balance enter the closing balance on the bank statement or the
closing balance on the day the recon is done.
5. Click on Next to continue

56
6. The following screen displays:

7. Now you need to reconcile the opening balance amount as it will not be part of the
current reconciliation and it is not outstanding, it is just an opening balance.
8. Reconcile all the amounts that appear on both the cash book and the bank statement
9. Now you bank reconciliation should be in balance update the bank reconciliation
together with the cash book.
After reconciling your bank reconciliation must look like the one below:

57
 10. Now that you bank statement is in balance you can update the bank
reconciliation.
11. After you update the bank reconciliation the following screen will display:

Take note that only the unreconciled items remain.

To view the bank reconciliation select options and the following sceen displays:

Select view bank reconciliation and the following dialog will display:

This will give you the options in which you would like to view your bank reconciliation.
Choose screen and the following bank statement will display:

58
Take not the difference is 0.00

59
12.3 Self-evaluation questions

Question 1

You are required to complete the following question on a computerised bookkeeping

package (Pastel).

The following print-outs from the software package (pastel) you are using are required:

The cash book of Topliner (receipts and payments) only the current account. [20 marks]

The trial balance of Topliner suppliers as at 31 January 2017. [60 marks]

The suppliers and customers detailed accounts. [20 marks]

Note: You are supposed to come up with a group number to replace the name Topliner, and
all your print outs should reflect the number of you group on top. Also you can save the
required print outs in pdf then you can make print outs from these PDFs.

Topliner (where Topliner is the number of your group) is a registered Vat vendor and trades
only with registered Vat vendors that can provide tax invoices. The business charges 14 %
Vat on all its sales. All amounts are inclusive of Vat unless Vat is not applicable. The
business uses the perpetual inventory system. The business’s financial year end is 31
January 2017.

Additional information required for creating and setting up Topliner Ltd:

Postal address: P O Box 999, Cape Town, 2020

Tel: (012) 555-6060,

Email: [email protected]

The retail chart of accounts should be selected and four cash books are required:

• Current account
• Petty cash
• Cash float
• Visa credit card
• Two price list must be set up, one for trade and one for retail.
• The default settings for customer’s monthly terms will be 30 days and processing
must be done using the open item method. All printing will be done using plain single
sheet paper.
• A bank transfer general ledger account must be created and set up. The tax
reference prompt amount should be set as per SARS requirements.
Goods received notes will not be used. Set the invoice lines to default to use inventory
codes. Sales orders should be set to reserve inventory. Processing supplier should default to
inclusive.

60
The owner Mr Thato has instructed that you bring in the opening balances from December
2016 and then continue operating live for the month of January 2017. The following has
been included to assist with the balances as at 31 December 2016:

A table of items appearing on the bank reconciliation statement as at 31 December 2016.

The debtors and creditors lists on 31 December 2016.

The inventory valuation list on 31 December 2016.

The trail balance on 31 December 2016.

Create the following customer accounts:

Account No. Debtor Vat No Normal Terms

ABC Ltd 60 days

Van 60 days

Chetty 4965523125 60 days

Cash Customer current

Create the following suppliers accounts:

Account No. Creditor Vat No.

MTN 4965432125

Vodacom 4258369147

Telkom 4876542586

Cash Supplier

Create the following inventory items, all prices are exclusive of VAT and must be set for the

inventory Goods group:

61
Code Description Cost Retail Trade

SAMA7 Samsung-A7 32 GB 3 500 5 500 5 000

IPHO7 IPhone 7 5 000 7 500 6 500

HUAW8 HuaweiP8 2 000 2 800 2 400

NOK01 Nokia 1 000 1 600 1 300

BCKZ10 Blackberryz10 900 1 200 1 150

General Ledger accounts to be created when required.

Using the information below bring in the balance as at 31 December 2016 for Topliner.

Table of items appearing on the bank reconciliation statement of Topliner as at 31 Dec 2016.

Balance as per bank statement (favourable) 2 250.00

Outstanding chq 80 190.00

Balance as per bank account (favourable) 2 060.00

Debtors List of Topliner – 31 December 2016

Debtor Amount

ABC Ltd 5 000.00

Van 3 000.00

Chetty 2 580.00

10 580.00

Creditors list of Topliner on 31 December 2016:

Creditor Amount

MTN 2 100.00

Vodacom 900.00

Telkom 2 200.00

5 200.00

62
Inventory valuation of Topliner at 31 December 2016

Code Description Qty Cost Amount (Excl. Vat)

SAMA7 Samsung-A7 32 GB 3 3 500.00 10 500.00
IPHO7 IPhone 7 2 5 000.00 10 000.00
HUAW8 HuaweiP8 1 2 000.00 2 000.00
NOK01 Nokia 3 1 000.00 3 000.00
BCKZ10 Blackberryz10 4 900.00 3 600 .00
Total stock value 29 100.00
Trial balance of Topliner – 31 December 2016

balance sheet section Debit Credit

capital 167199.1
Drawings 6500
Land and buildings 65000
Office Equipment 55000
Furniture 20000
Vehicles 60000
Bank 2060
Debtors Control 10580
Petty Cash 0
Cash float 0
Trading inventory 29100
Creditors Control 5200
Visa credit card 0
Vat input 15450
Vat output 11220.5

Nominal Accounts
sales 350820.5
Cost of sales 150320.15
Insurance 250.15
Interest on current account 350.5
Sundry Income 350.8
Bank charges 500
Bookkeeping fees 11920
Office refreshments 2600
Printing and stationary 290
Telephone 6851.11
wages and salaries 98520

Source documents of Topliner for January 2017

Note: SLP, Cq, DCI, INV, Dc/n, REC, Vch, OI, Oc/n, and PCV are the source document

codes foe cash register slips, cheque counterfoils, duplicate cash invoices, duplicate credit

63
invoices, duplicate credit notes, duplicate receipts, journal vouchers, re-numbered original

invoices, re-numbered original credit notes and petty cash vouchers respectively.

Date Sd no. Name Description Amount

6 Cq40 Imperial Purchased a delivery motor cycle for 20 500

business use.
8 INV30 ABC Sold the following stock on account:
(using trade prices) ?
2 x Samsung A7 32 GB
1 x IPhone 7
2 x Nokia
10 EFT FNB Received a mortgage loan for FNB 68 000
10 OI140 Diskom Purchased equipment (shop cash 1 178.00
register for business use in the
production of income, on account
11 OI141 MTN Bought the following stock on credit:
4 x IPhone 7 ?
3 x HuaweiP8
4 x Nokia
12 INV31 Cash sale Sold the following goods: (using trade
prices) ?
2 x IPhone 7
1 x HuaweiP8
2 x Nokia
14 OC/n30 MTN The following damaged goods were
returned to the supplier: ?
1 x IPhone 7
1 x HuaweiP8
15 OI142 Telkom Bought the following goods on credit:
5 x Samsung-A7 32 GB
6 x IPhone 7 ?
4 x HuaweiP8
3 x Nokia
6 x Blackberryz10
16 Cq41 MTN Payment on account 2 100.00

64
17 Cq42 D Furnishers Purchased office furniture for business 45 000.00
use
18 Cq43 Game Purchased microwave for staff 3 400.00
19 OI143 Imperial Cars Purchased a motor vehicle 68 000.00
20 INV31 KPMG Bookkeeping services 5 000.00
21 Cq44 Payment for wages 30 000.00

65
Question 2

Create the following company using the information provided:

New company CWSN where SN = The last five digits of your student number e.g.
CW12345 for student number
Company name Your full name including surname
Address P.O Box 42, Polokwane, 1089.
Information Tel: 099 999 998
Fax: 099 999 999
E-mail: [email protected]
Vat No: 456321798
Date format YYYY/MM/DD (4 Digit year format)
Financial year 2013/03/01
Number of periods 12
Chart of accounts Retail
Cash books Current Account – ABSA
Current Account – FNB
Petty Cash
Inventory price list Cash
Dealer (as most common)
Private
Default terms Period based
30 days
Customer default Open item
Paper style Plain, single sheet

Using the setup menu, change the following default settings:

Customers
2.1 Configuration tab
• Annual % rate 15%
• Default tax type 01 Vat standard rated at 14%
• Tax prompt amount R4 500
• User defined lines Line 1: Sales Manager
Line 2: Tel No
Line 3: Workshop Manager
Line 4: Tel No.
2.2 Statement tab
• Terms: Strictly 30 days nett
• Terms +1: This account is now overdue. Kindly remit payment ASAP
• Terms +2: This account must be paid to avoid legal action

2.3 Quotation message should read

• Quotation valid for only 7 days.
• Thank you for your interest

66
2.4 Tax invoice message should read
• Thank you for your support
• Call again
2.5 Create the following default early payment terms for customers
• 2.5% 30 days from invoice date
• 5% 14 days from invoice date
• 10% 1 day from invoice date
Suppliers
2.6 Configuration tab
• Default tax type: 01 Vat standard rated at 14%
• User defined lines Line 1: Order contact
Line 2: Tel No
2.7 Remittance message tab
• Kindly contact the accounts dept. with any queries. Thank you

2.8 Description tab

Postal address Delivery address
• Line 1 P.O Box No/Street
• Line 2 Suburb Suburb
• Line 3 City City
• Line 4 Province Province
• Line 5 Post code Post code

2.9 Purchase Order message should read

• Kindly confirm delivery date with Racheal Asiimwe on 011 796 2000. Thank you.

2.10 Invoice message should read

• Received by:
• Signature:
• Date:

CREATION OF MASTER ACCOUNT

Customer Accounts
3.1 Create the following sales analysis codes
Code: DAN
Description: Daniel Jones
Code: SHE
Description: Sheila Fenyane
All receive commission on sales on the following basis.
• From 1 2.5%
• From 3 000 5%
• From 10 000 R7.5%

3.2 Create the following 3 customer categories

• Cash

67
 • Dealer
• Private
3.3 Create the following customer accounts
Code CASH MOU01 ALL01
Description Cash Sales Mountain Motors CC All Cars CC
Category Cash Dealer Private
Analysis code Dan Jones Sheila Fenyane
Processing method Balance forward Open item Balance forward
Sales Manager Joe Human George Bold
Tel No 011 345 7689 011 687 8954

Supplier Accounts
3.4 Create the following supplier accounts
Code ASS001 BAR001 CLE001
Description Assegaai Chemicals Barco Ltd Cleaning Suppliers
Processing method Open item Balance forward Open item
Early term 5% within 14 days of 10% within 1 day of 2.5% within 30 days
invoice invoice of invoice
Credit limit 100 000 150 000 50 000

Inventory Accounts
3.5 Create the following inventory category
• Services – Valet
• Services – Special Treatment
• Products – Cleaning and Valet
• Product – Car Accessories

3.6 Create the following inventory items:

Re-order level Selling prices (incl.)
Code Description
Inventory Unit Min Max Cash Dealer Private
category price price price
VAAL001 Full Valet Services -Valet Each 270 300 330
UND001 Underbody Seal Services – Pack 108 120 132
Special
Treatment
RAG001 Rags Products – Bags 5 10 200 225 250
Cleaning and
Valet
CHA001 Chamois & Car Products – Car Kit 10 20 40 50 60
Wash Accessories

General ledger Accounts

• Create/rename the following general ledger accounts:

68
Code 8250 11120 1000
Description Deposits Repair Services Carwash Services
Type of account Balance Sheet Income Statement Income Statement
Financial category Current Assets Other Income Sales
Reporting category Current Assets Other Income Sales

• Create the following general ledger sub-account:

Code 8250/100 8250/200 1000/100 1000/200
Description Deposits – Deposit - Carwash Carwash –
Water& Telephone Services - Valet Special
Electricity treatment

69
Question 3

Creation of company
Use the Setup Assistant to create the company from the information given herein below:
New Company Name SUP2010 Where 2010 is your student number e.g.
SUP12345.
Company Name: Type your full names i.e. Names and Surname
Date format: Y/M/D, with four digit format
Financial year: 2013/03/01 (period ends on last day of month)
Number of periods: 12
Chart of accounts: Retail
Cash Books: 3 (Standard Bank, ABSA Bank and Petty Cash)
Inventory prices: Retail; Bulk and Discounted
Default terms: Period based, 60 days
Customer defaults: Open item
Paper style: Plain, single sheet.

Company customization
Complete the following setup and customization (default) options for this company, before
you begin processing.
Using the setup menu, change the following default settings:

Setup Customers Control

Configuration tab
Interest: Annual % rate 5%
Default tax type: 01 Vat standard rated at 14%
Tax prompt amount: R4 500

User defined lines: Line 1: Director

Line 2: Tel No
Line 3: Manager
Line 4: Tel No.

Statement tab
Terms: Strictly 60 days nett
Terms +1: Settle your account ASAP
Terms +2: Contact our legal dept

Setup Customers Documents

Quotation
Quotation message should read
Quotation valid for only 7 days.
Your interest is appreciated

Invoice
Tax invoice message should read

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Thank for your support
Call again

Defaults
Create the following default early payment terms for customers
2.5% 30 days from invoice date
5% 14 days from invoice date
10% 1 day from invoice date

Setup Suppliers Control

Configuration tab
Default tax type: 01 Vat standard rated at 14%
User defined lines Line 1: Sales Manager
Line 2: Tel No

Remittance message tab

Kindly contact the accounts dept. with any queries. Thank you

Purchase Order
Purchase Order message should read
Kindly confirm delivery date with logistics dept. Thank you.

Invoice
Invoice message should read
Received by:
Signature:
Date:

Creation of Accounts
Create the following sales analysis codes:
Code: SARAH
Description: Sarah Michaels
Pay commission on: Sales
Range R1 to R150 000: 5%
Range R150 001 to R155 000: 7.5%
Range R155 001 onwards: 10%

Create the following General Ledger Account:

Code: 8420
Description: Deposits
Type: Balance Sheet
Balance Sheet Category: Bank

Create the following Customer Accounts (No addresses and contact details are required and
leave other information as per default)
Code: AF594

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Description: Africa Watches
Sales Code: Sarah Michaels
Processing method: Balance Forward
Normal Terms: 90 Days
Price List: Bulk
Credit limit: 78 000

Code: BW953
Description: Brand Time
Sales Code: Sarah Michaels
Processing method: Open Item
Normal Terms: 30 Days
Price List: Discounted
Credit limit: 82 000

Create the following Supplier Accounts (No addresses and contact details are required and
leave other information as per default)
Code: GW239
Description: Global Watches
Processing method: Balance Forward
Normal Terms: 30 Days
Credit Limit: 650 000

Creation of the Inventory Items (All prices are inclusive of VAT):

Code: LGW495
Description: Ladies Guess Watch
Unit: Each
Type: Physical Item
Last Unit Cost: 950.00
Retail Price: 1 750.00
Bulk Price: 1 550.00
Discounted Price: 1 400.00
Minimum: 6
Maximum: 50

Code: MSW410
Description: Men’s Swatch Watch
Unit: Each
Type: Physical Item
Last Unit Cost: 1 860.00
Retail Price: 3 000.00
Bulk Price: 2 800.00
Discounted Price: 2 750.00
Minimum: 8
Maximum: 60

Code: MDW294

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Description: Men’s Diesel Watch
Unit: Each
Type: Physical Item
Last Unit Cost: 1 450.00
Retail Price: 2 100.00
Bulk Price: 2 000.00
Discounted Price: 1 900.00
Minimum: 4
Maximum: 40

Code: WRP920
Description: Watch Repair Service
Unit: Hour
Type: Service
Retail Price: 250.00
Bulk Price: 240.00
Discounted Price: 220.00

Document Processing
Supplier Document Processing
Complete the SUPPLIER PROCESSING as shown below:

(VAT applies to all transactions, and all documents are to be entered in exclusive mode).
ALL documents are to be processed as at the current system date of the current period.

Purchase Orders:
Supplier: Global Watches
Item: Men’s Diesel Watch
Quantity: 35
Price 1 520.00
Item: Ladies Guess Watch
Quantity: 44
Price 975.00

Goods Received Notes (Link the GRN to the Purchase Order. Leave the original document
in place)
Document GRN
Supplier: Global Watches
Link: Yes
Quantities Received: 33 Men’s Diesel Watches
41 Ladies Guess Watches

Supplier Invoices: (Link the Supplier Invoice to the GRN. Leave the original document in
place)
Document Supplier Invoice
Supplier: Global Watches
Link: Yes

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Supplier Invoice No.: GW34
Quantities Received: 33 Men’s Diesel Watches
41 Ladies Guess Watches

Additional charge on invoice: Freight on goods purchased at R1 000

Discount: 2% on the whole invoice
Update this batch upon completion

Supplier Return:
Process the following Supplier Return
Document Return & debit
Supplier: Global Watches
Link: Yes
Supplier Invoice No.: GW34
Quantities Returned: 2 Men’s Diesel Watches
Update this batch upon completion

Customer Document Processing

Complete the CUSTOMER PROCESSING as shown below (VAT applies to all transactions,
and all documents to be processed in exclusive mode).
ALL documents are to be processed as at the current system date of the current period.

Quotation
Customer: Africa Watches
Item: Men’s Diesel Watches
Quantity: 12
Item: Ladies Guess Watches
Quantity: 11

Customer: Brand Time

Item: Men’s Diesel Watches
Quantity: 13
Item: Ladies Guess Watches
Quantity: 9

Tax Invoice
Process the following Tax Invoices for Customers. The Customers have accepted the
quotations in full, in those instances where linking is prompted. LEAVE THE ORIGINAL
DOCUMENTS (Quotations) IN PLACE AFTER LINKING:

Customer: Brand: Time

Link to Quotation: Yes
Additional Charge: Watch Repair Service – 4 Hours

Customer: Africa Watches

Link to Quotation: Yes

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Additional Charge: Watch Repair Service – 3 Hours

Additional Tax Invoice:

Customer: Africa Watches
Link to Quotation: NO
Item: Men’s Diesel Watches
Quantity: 3
Item: Ladies Guess Watches
Quantity: 5
Item: Watch Repair Service
Quantity: 2 Hours

Customer: Brand Time

Link to Quotation: NO
Item: Men’s Diesel Watches
Quantity: 2
Item: Ladies Guess Watches
Quantity: 4
Item: Watch Repair Service
Quantity: 3 Hours
Update this batch upon completion

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Question 4

Creating company
Set up the following new company using the information provided (the company sells
jewellery to its customers and other businesses). Use the Setup Assistant to create the
company.

Name: T88888 where 88888 is your student number with the last five digits.
Company name: Type your full names here
Date format: Y/M/D, with four digit year format
Financial year: 2014/07/12 (period ends on last day of month).
Number of periods: 12
Chart of accounts: Retail
Cash books: 3 (Standard Bank, Nedbank Bank and Petty Cash)
Inventory prices: Retail, Wholesale, Sale.
Default terms: Period based, 30 days
Customer defaults: Open item
Paper style: Plain paper, single sheet

Company Setup

Complete the following setup and customization (default) options:

Suppliers: Next Number for Purchase Order: PN0001
Goods Received Note: Set to NEVER
User Defined Field 1: Other Contact
User Defined Field 2: Banking Details
Default Terms: 60 Days
Default Processing: Balance forward

Inventory: Set the maximum line and invoice discounts to 10%

Set the minimum gross profit percentage to 10%
Set the maximum selling price to 10%

Customers: Message for Credit Note: Account will be updated accordingly

Message for Invoices: Thank you for your support
Message for Quotation: Valid for 7 days
Warn Overdue when invoicing should be checked
Set the default credit limit to R130 000
Sales Order Number to change to: SN0001

Creation of master accounts

Create the following General Ledger Accounts:

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Code: 2708
Description: Repair Service
Account Type: Income Statement
Financial Category: Other Income

Create the following Sales Analysis Code:

Code: EP001
Description: Elson Phiri
Pay Commission on: Sales
Range R1 to R130 000: 7%
Range R130 001 to R700 000: 14%
Range R700 001 onward: 21%

Create the following Supplier Accounts (Leave all other information as per default):
Code: PS1
Description: Platinum World
Processing Method: Balance Forward
Normal Terms: 90 Days

Code: GS1
Description: Gold City
Processing Method: Balance Forward
Normal Terms: 30 Days

Create the following Customer Accounts (Leave all other information as per default):
Code: S01
Description: Mrs. Smith, Jenny
Sales Code Elson Phiri
Processing Method: Open Item
Normal Terms: 90 Days
Price List Sale

Code: J01
Description: Mrs. Jones, Mary
Sales Code Elson Phiri
Processing Method: Balance Forward
Normal Terms: 60 Days
Price List Wholesale

Create the following Inventory Codes:

Code: WG01
Description: White Gold Pendant
Unit: Set
Type: Physical Item
Retail Selling Price (Inclusive): 7 000.00
Wholesale (Inclusive): 6 800.00
Sale (Inclusive): 6 000.00

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Code: PR01
Description: Platinum Ring
Unit: Each
Type: Physical Item
Retail Selling Price (Inclusive): 5 000.00
Wholesale (Inclusive): 4 900.00
Sale (Inclusive): 4 800.00

Document processing

Complete the following supplier processing (ALL PROCESSING IS TO BE DONE ON

SYSTEMS CURRENT DATE/PERIOD). VAT applies to all transactions and documents. And
all documents are to be entered in exclusive mode:
Purchase orders as follows:
Supplier: Gold City
Details: Order of 8 sets of White Gold Pendant at R1 750 each.

Supplier: Platinum World

Details: Order of 10 sets of Platinum Ring at R1 600 each.

Process the following Supplier Invoices:

Link these Invoices to the Purchase Orders processed above (for the identical items and
quantities).
Supplier: Gold City
Invoice No: INV549

Supplier: Platinum World

Invoice No: NW951
Update these batches upon completion.

Document Processing

Complete the following customer processing (ALL PROCESSING IS TO BE DONE ON

SYSTEMS CURRENT DATE/PERIOD). VAT applies to all transactions and documents. And
all documents are to be entered in exclusive mode:

Process the following Customer Quotation:

Customer: Mrs. Jones, Mary
Items: 3 White Gold Pendants
2 Platinum Rings

Customer: Mrs. Smith, Jenny

Items: 2 White Gold Pendants
3 Platinum Rings

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Process the following Tax Invoices and Link to the Quotation above; keep the original
document in place after linking.
Customer: Mrs. Jones, Mary
Items: All items on Quotation accepted

Customer: Mrs. Jones, Mary

Items: All items on Quotation accepted

Update this Batch upon completion.

Cash Book

Process the following Standard Bank Deposits/Receipts and Bank Payments/Cheques. All
processing must be done as at the end of the current period (System date).

RECEIPTS
(Cash Book Settings: This year is checked/on, repeat description is unchecked/off,
increment reference is set to yes). Use the words ‘Thank you for payment’ followed by
company names in the description fields where applicable. Use the deposit number provided
as your reference number in the cash book processing.
- DEP001 Received R19 000.00 from Customer Mrs. Jenny Smith.
- DEP002 Received R17 000.00 from P Paul for repair service (Income).
- DEP001 Received R21 000.00 from Customer Mrs. Mary Jones.
- DEP001 Received R5 000.00 from Customer Mrs. Jenny Smith.

Update the Receipts batch

PAYMENTS
(Cash Book Settings: This year is checked/on, repeat description is unchecked/off,
increment reference is set to yes, and Tax is checked/on).
Set the VAT 01 where the amount is indicated as inclusive. Use the word ‘Payment’ followed
by company names in the description fields where applicable. Use the cheque number
provided in the reference fields.
- CHQ101 Paid for Petty Cash Float, R2 000.
- CHQ102 Paid for cleaning to Spotless Cleaners, R4 000 inclusive
- CHQ103 Paid Gold City, R14 000 as account payment
- CHQ104 Paid Platinum World, R16 000 as account payment
- CHQ105 Paid for rent expense to AA Rentals, R9 000 inclusive
- CHQ106 Paid for advertising to Sunday Times, R2 800 inclusive
- CHQ107 Paid salary to B Zandile, R16 000
- CHQ108 Paid for Office Equipment from Makro, R4 500 inclusive
- CHQ109 Paid donation to Damelin College, R15 000

Update the Payments batch

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