Processing Payment Documentation

A.
A TVET AND TECHNOLOGY BUREAU
Account and Budget Support Level III

Based on August 2012, Version 2
Occupational Standards (OS) and
Curriculum
Unit of competencies: process payment documentations
Module Title: processing payment documentation
LG Code: EIS ACB3 M07 1121 LO (1-5)

TTLM Code: EIS ACB3 TTLM07 1121v1
December, 2021
Addis Ababa, Ethiopia
TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2
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Technology Level III
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Development Bureau December 2021
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A.A TVET AND TECHNOLOGY BUREAU
TABLE OF CONTENTS PAGE

Contents
Contents...........................................................................................................................................2
LG #30,LO #1: Enter data to system...............................................................................................4
Instruction sheet...............................................................................................................................4
Information Sheet 1,Entering and specifying data into systems......................................................6
Self-Check 1....................................................................................................................................8
Information Sheet 2,Allocating and updating data..........................................................................9
Self-Check 2 Written Test.............................................................................................................10
Information Sheet 3,Maintain System controls.............................................................................11
Self-Check 3..................................................................................................................................14
Operation Sheet 1 Enter data to system.........................................................................................15
Lap test Practical Demonstration................................................................................................16
LG #31,LO #2: Create payment facility........................................................................................16
Instruction sheet.............................................................................................................................16
Information Sheet 1,Processing Payment......................................................................................18
Self-Check 1..................................................................................................................................23
Information Sheet-2,Maintaining Documentation.........................................................................24
Operation Sheet 2 Create payment facility....................................................................................27
LG #32,LO #3: Verify payments...................................................................................................28
Information Sheet 1,Confirm and match payment facility............................................................29
Information Sheet 2,Identify and follow Discrepancies promptly................................................34
Operation Sheet 3 Verify payments...............................................................................................38
LG #33,LO #4: Effect payments...................................................................................................39

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Information Sheet 1,Payments are made within agreed credit arrangements................................40
Information Sheet 2,Sign Payment instrument..............................................................................43
Information Sheet 3,Primary document associate with payment..................................................46
Operation Sheet 4 Effect payments...............................................................................................50
LG #34,LO #5: File documentation...............................................................................................51
Information Sheet 1,Documentation is filed promptly..................................................................52
Information Sheet 2,Location of file documentation.....................................................................56
Operation Sheet 5 File documentation..........................................................................................62
LG #30 LO #1: Enter data to system

Instruction sheet
This learning guide is developed to provide you the necessary information regarding the following
content coverage and topics:
 Entering and specifying data into systems without error and with time requirements.
 Allocating and updating data, relating to correct systems and accounts.

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 Maintaining System controls to ensure the integrity and security of client and payee
database.
This guide will also assist you to attain the learning outcomes stated in the cover page.
Specifically, upon completion of this learning guide, you will be able to:
 Enter and specify data into systems without error and with time requirements.
 Allocate and update data , relating to correct systems and accounts
 Maintain System controls to ensure the integrity and security of client and payee
database.
Learning Instructions:
Read the specific objectives of this Learning Guide.
Follow the instructions described below.
1. Read the information written in the “Information Sheets”. Try to understand what are
being discussed. Ask your trainer for assistance if you have hard time understanding
them.
2. Accomplish the “Self-checks” which are placed following each information sheets.
3. Ask from your trainer the key to correction (key answers) or you can request your
trainer to correct your work. (You are to get the key answer only after you finished
answering the Self-checks).
4. If you earned a satisfactory evaluation proceed to “Operation sheets placed at the end of
each LO
5. Perform “the Learning activity performance test” which is placed following “Operation
sheets”
6. If you earned a satisfactory evaluation proceed to the next learning guide.
7. Reflect broad conceptual knowledge and adaptive vocational and generic skills
8. Reflect essential knowledge, skills or attitudes;
9. Focus on results of the learning experiences;
10. Reflect the desired end of the learning experience, not the means or the process;
11. Represent the minimum performances that must be achieved to successfully complete

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a course or program;
12. Answer the question, "Why should a student take this course anyway”.
Information Sheet 1 Entering and specifying data into systems
Introduction
The enter program displays forms constructed in form designer. Enter controls the data entry
process using settings and check code specified in form designer. Data can be typed directly into
Splus or read in from a file. Data objects can also be the result of an expression (combination

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of data objects and constants with operators and functions). Splus objects are stored in
the .Data directory and are saved from one session to the next
In computer hardware and software product development, documentation is the information

that describes the product to its users. It consists of the product technical manuals and online
information (including online versions of the technical manuals and help facility descriptions).
Operations Objectives – These pertain to effectiveness and efficiency of the entity’s operations,
including operational and financial performance goals, and safeguarding assets against loss.
Reporting Objectives – These pertain to internal and external financial and non-financial
reporting and may encompass reliability, timeliness, transparency, or other terms set forth by
regulators, standard setters, or the entity’s policies.
Compliance Objectives – These pertain to adherence to laws and regulations to which the entity
is subject
You can access the enter program by clicking the enter data button on the Epic info main menu.
It can be accessed from the tools>enter data sub menu option. In form designer, you can access
enter data by clicking the enter data button. This button is a convenient method to switch
between designing a form and entering data to system test your form design.
1.1 Identifying the entering data to systems?
Enter data can be used to enter new data, modify existing data, or search for records. When data
entered into a form, the data table inside the project is populated. As data are entered, the cursor
moves to a new page. If you try to exist a page before data is saved, you will be prompted to save
the data (yes or no)
The find function allows records to be located based on a series of matched variables.
Navigation is provided for using the new record button and navigation buttons for, first,
previous, next, and last records.
1.1.1 How to enter data

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Data for the different variables are entered in different columns of the spreadsheet. All data for a
single subject or case are entered in one row in the spreadsheet. In the top row of the columns
you can enter the names of the variables.
A variable name should not include any spaces. If necessary, you can use the underscore
character to separate words, e.g. GRADE_A. also the following characters cannot be used in a
variables name.
In addition the variable name must not start with a number and must be different from reserved
words such as TRUE, FALSE, ROW and COLUMN
The variable name should also not be equal to the address of a spreadsheet cell such as A1, S1,
AB35, IL6, etc.
To enter the variable name LENGTH in the top row of column A, you first position the mouse
button.
Organization policy and procedures
Organizational policies and procedures provide guidelines for decision making processes and
the way that work in an organization should be carried out. The result of having clear, well-
written policies and procedures are increased transparency, accountability, uniformity and
stability.
The ISO 15489 is a standard for records management policies and procedures. The purpose of
this standard is to ensure that appropriate attention and protection applies to all records, and that
the evidence and information they contain can be retrieved efficiently and effectively using
standard practices and procedures.
5 Essential Records Management Procedures
 Step 1: Set-up a Records Retention Schedule.

 Step 2: Policies and Procedures.
 Step 3: Accessibility, Indexing, and Storage.
 Step 4: Compliance Auditing.

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 Step 5: Disposal of Obsolete Records.
Self-Check 1
Instruction: Answer all the questions listed below, if you have some clarifications- feel
free to ask your teacher
1. If you are entering data and have a required field, you must enter information into that field
before proceeding to the next page. (5)
A. True
B. False
2. What are the two ways you can enter a new record? Check all that apply. (5)
A. Tab through to the last record.
B. Click New.
C. Select the last available page.
Note: Satisfactory rating – 8 out of 8points Unsatisfactory - below 8 and 8points
Score = ___________
Rating: ____________
Information Sheet 2 Allocating and updating data
1.2.1 What is data allocating?

Data allocating is any computer process that converts data into information.
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The processing is usually assumed to be automated and running on a Mainframe, minicomputer,

microcomputer, or personal computer. Because data are most useful when well-presented and
actually informative, data processing systems are often referred to as information systems to
emphasize their practicality. Nevertheless, both terms are roughly synonymous, performing
similar conversions; data-processing systems typically manipulate raw data into information, and
likewise information systems typically take raw data as input to produce information as output.
To better market their profession, a computer programmer or a systems analyst that might once
have referred, such as during the 1970s, to the computer systems that they produce as data-
processing systems more often than not nowadays refers to the computer systems that they
produce by some other term that includes the word information, such as information systems,
information technology systems, or management information systems.
In the context of data processing, data are defined as numbers or characters that represent
measurements from the real world. A single datum is a single measurement from the real world.
Measured information is then algorithmically derived and/or logically deduced and/or
statistically calculated from multiple data. Information is defined as either a meaningful answer
to a query or a meaningful stimulus that can cascade into further queries.
More generally, the term data processing can apply to any process that converts data from one
format to another, although data conversion would be the more logical and correct term. From
this perspective, data processing becomes the process of converting information into data and
also the converting of data back into information.
Self-Check 2 Written Test

Instruction: Answer the questions listed below, if you have some clarifications- feel free
to ask your teacher

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1. What is data allocating?(10)

______________________________________________________________________________
____________________________________
Score = ___________
Rating: ____________
Information Sheet 3 Maintain System controls

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1.3. 1 Data
Data are any facts, numbers, or text that can be processed by a computer.
Today, organizations are accumulating vast and growing amounts of data in different formats
and different databases. This includes:
• Operational or transactional data such as, sales, cost, inventory, payroll, and accounting
• Non-operational data, such as industry sales, forecast data, and macro economic data
• Meta data - data about the data itself, such as logical database design or data dictionary
definitions
1.3.2 Information
The patterns, associations, or relationships among all this data can provide information. For
example, analysis of retail point of sale transaction data can yield information on which products
are selling and when.
1.3.3 Types of Data
Think about any collected data that you have experience of; for example, weight, sex, ethnicity,
job grade, and consider their different attributes. These variables can be described as categorical
or quantitative.
The table summarizes data types and their associated measurement level, plus some examples. It
is important to appreciate that appropriate methods for summary and display depend on the type
of data being used. This is also true for ensuring the appropriate statistical test is employed.
Enter Data to the Survey

Use the record information provided to enter data into the View you created. Verify your
Check Code works as intended.
Enter Data to the Sample Survey

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Gives the opportunity to view a complete survey with existing records, enter data from the
surveys in Appendix C.
Navigating Enter Data

You cannot navigate through pages until data has been entered in the preceding page or until all
required fields are filled. You can familiarize yourself with the workspace prior to adding
records. Keep the Enter module open to complete the next lesson.
Enter Data Main Page
File
Use the File menu to open, close, save, print, or exit. You can also compact your database with
the compact utility. This reduces the size of your database but does not affect your data.
Edit
Use the Edit menu to find specific records or to delete records. Deletion removes the current
record from the project, and all records associated with it. It also marks the record as deleted in
the database. You can exclude deleted records from your analyses. Click Undelete to return the
record to active status
Options
Use the Options Menu to select the values of Yes/No variables. Variables can appear as Yes/No
or True/False. From Options, you can also maximize the size of your screen image by selecting
Full Screen.
Help

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Use the Help Menu to view the online help.
Enter Data Page Panel

Use the Page Panel to navigate pages in your View. If you are entering data and have a required
field, you must enter information into that field before proceeding to the next page.
From the Enter Page Panel you can go to the next record, save data, delete a record, find a
record, or create a new record.
Use the navigation arrows at the bottom of the Enter Page Panel to move between records.
Single arrows move you one record forward or backward. Double arrows move you to the first or
last record.
Type a specific record number in the Record field and press Enter to go directly to a record.
Enter Data into your View
Begin entering the four student records listed in the table on the following page. Tab through
each field to run the Check Code and to navigate through the survey. If you do not tab through
the survey, your check code will not run.

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Self-Check 3
.1. Once you create a ____________ you cannot change field names or types in your view. (2)
A. Survey
B. Data Table
C. Legal Value
2. What are the two ways you can enter a new record? Check all that apply. (2)
A. Tab through to the last record.

B. Click New.
C. Select the last available page.
3. If you are entering data and have a required field, you must enter information into that field
before proceeding to the next page. (2)
A. True
B. False
4. What expression could you enter in the Find feature to locate children who are greater than 6
in age? (2)
A. Age=6
B. Age<6
C. Age>6
5. From the Find feature, what button do you click to clear the page and begin a new search? (2)
A. Start
B. Reset
Score = ___________
Rating: ____________
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Operation Sheet 1 Enter data to system
5 Essential Records Management Procedures
Step 1: Set-up a Records Retention Schedule.

Step 2: Policies and Procedures.
Step 3: Accessibility, Indexing, and Storage.
Step 4: Compliance Auditing.
Step 5: Disposal of Obsolete Records.
Giving the necessary equipment’s and stationary materials you are required to perform the
following tasks within 2 hours
Lap test Practical Demonstration
Name: _____________________________ Date: ________________
Time started: ________________________ Time finished: ________________
Instructions: You are required to perform the following in group with the presence of your
teacher.
Task.1 defines data processing?

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LG #31 LO #2: Create payment facility

Instruction sheet
 processing Payment facility accurately
 maintaining Documentation in a secure manner to protect the privacy and interests of
all parties
This guide will also assist you to attain the learning outcomes stated in the cover page. Specifically,
upon completion of this learning guide, you will be able to:
 process Payment facility accurately
 maintain Documentation in a secure manner to protect the privacy and interests of all
parties
being discussed. Ask your trainer for assistance if you have hard time understanding them.
3. Ask from your trainer the key to correction (key answers) or you can request your trainer
to correct your work. (You are to get the key answer only after you finished answering the
Self-checks).
4. If you earned a satisfactory evaluation proceed to “Operation sheets placed at the end of each
LO
sheets”

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11. Represent the minimum performances that must be achieved to successfully complete a
course or program;
Information Sheet 1 Processing Payment
2.1 Identifying the create payment facilities
2.1.1 How to use create payments
Create payment is a secure payment gateway fully integrated within your create account,
meaning you can accept credit debit card payments with ease and its free to join! Offer your
customers an enhanced buying experience with the mobile-friendly payment process from create
payments.
This secure payment processing facility comes with a range of features and benefits, these
include:
 Dashboard and reports

From the create payments dashboard you will be able to view your transaction reports and
summaries. You can also toggle test mode on and off, enabling you to run test orders through
your gateway.
 Transaction
From the transaction tab at the top of your page, you will see an overview of all transactions
made through your store, including the status of each of these. You also have the option of

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filtering transactions by “transaction status”, “checkout mode” and “date range” using the drop
down options within the “show/hide filters” button.
2.2 What cards are accepted through create payments
Create payments accept the following credit and debit cards:
 Visa
 Visa debit
 Visa electronic
 Maestro
 Master card
Payment facility is processed accurately in accordance with organization policy and

procedures
Payment facility means a Facility operated for a Participant at a Payments Provider for the
purposes of paying and receiving payments in Batch Settlement or Real Time Gross Settlement.
Payment facility means any credit card, bank card, bank account or other payment facility,
details for which are provided by the Customer to Ever proof in connection with the payment of
the Fees.
Types of payments
Cash (bills and change): Cash is one of the most common ways to pay for purchases. Both
paper money and coins are included under the larger category of "cash." While cash has the
advantage of being immediate, it is not the most secure form of payment since, if it is lost or
destroyed, it is essentially gone. There is no recourse to recoup those losses.

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Personal Cheque (US check): These are ordered through the buyer's account. They are
essentially paper forms the buyer fills out and gives to the seller. The seller gives the cheque to
their bank, the bank processes the transaction, and a few days later the money is deducted from
the buyer's account. With the increasing trend toward fast payment, cheques are seen as slow and
somewhat outdated.
Debit Card: Paying with a debit card takes the money directly out of the buyer's account. It is
almost like writing a personal cheque, but without the hassle of filling it out.
Credit Card: Credit cards look like debit cards. But paying with a credit card temporarily defers
the buyer's bill. At the end of each month, the buyer receives a credit card statement with an
itemized list of all purchases. Therefore, rather than paying the seller directly, the buyer pays off
its bill to the credit card company. If the entire balance of the bill is not paid, the company is
authorized to charge interest on the buyer's remaining balance. Credit cards can be used for both
online purchases and at physical retailers.
Mobile Payments
A popular payment method in countries with low credit card and banking penetration, mobile
payments offer a quick solution for customers to purchase on ecommerce websites. Mobile
payments are also commonly used on donation portals, browser games, and social media
networks such as dating sites, where customer can pay with SMS
Ewallets
A ewallet stores a customer’s personal data and funds, which are then used to purchase from
online stores. Signing up for a ewallet is fast and easy, with customers required just to submit
their information once for purchases. Additionally, ewallets can also function in combination
with mobile wallets through the use of smart technology such as NFC (near field
communication) devices. By tapping on an NFC terminal, mobile phones can instantly transfer
funds stored in the phone.
Prepaid Cards
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An alternative payment method, commonly used by minors or customers with no bank

accounts.Prepaid cards come in different stored values for customers to choose from. Online
gaming companies usually make use of prepaid cards as their preferred payment method, with
virtual currency stored in prepaid cards for a player to use for in-game transactions..
Direct Deposit
Direct deposits are when customers instruct their banks to pull funds out of their accounts to
complete online payments. Customers usually inform their banks on when funds should be
pulled out of their accounts, by setting a schedule through them. A direct deposit is a common
payment method for subscription-type services such as online classes or purchases made
with high prices.
Bank Transfers
Customers enrolled in an internet banking facility can do a bank transfer to pay for online
purchases. A bank transfer assures customers that their funds are safely used, since each
transaction needs to be authenticated and approved first by the customer’s internet banking
credentials before a purchase happens.
In bank account-based systems the funds move from the payer's account to the payee's account
within the books of financial institutions providing payment services. The need for physical
transportation of cash has changed to transporting payment instructions for making the required
bookings. The diagram illustrates a typical sequence of payment operations.

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Payment facility documentation may include
 authorisation slips
 batch records
 cheque cancellations
 confirmation of receipt
 delivery dockets
 invoices
 payment requests
 periodic approvals
 signature verifications

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 stop payments
Self-Check 1
Instruction: Answer all the questions listed below, if you have some
clarifications- feel free to ask your teacher
1.____________ is a secure payment gateway fully integrated within your create
account. (5)
A. Transaction C. Dashboard
B. Create payment D. All
2. Which one is create payments accept of the credit and debit cards. (5)
A. Maestro
B. Master card
C. Visa electronic
D. A & B
E. All of the above
Score = ___________
Rating: ____________

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Information Sheet-2 Maintaining Documentation
2.2.1 What do the different transaction statuses mean?
 Success
Status SUCCESS means the customers financial institution has successfully processed the
payment and the money will be transferred to your create payments.
 Failed
Status FAILED means the customers financial institution refused to authorize the payment
possible reasons for refusal are: an exceeded credit limit, an incorrect expiry date, insufficient
balance, or many others depending on the selected payments method.
 Refunded
A payment obtains the status REFUNDED once the customer’s financial institution has
processed the refund and the amount has been transferred to the cardholders account. The
amount will be deducted from the next total amount to be paid out to you.
 Settled
A payment with the status SETTLED is ready to be paid out. This amount will either transfer to
your bank account within the next five days, or the amount has already been transferred to your
bank account.
 Charge back
The status CHARGED BACK means the cardholder reversed a payment processed by their bank
or Credit Card Company. The credit company then revokes the already captured payment. Please
note the legal difference between shopper who ordered the goods and cardholder who owns the
credit card and ends up paying for the order.
2.2.2 Electronic Payment of Shares (EPS)
I/We hereby request and authorize you:

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i. from time to time to pay all sales proceeds and contra gains due to me arising from transactions
effected through the above trading account (the "Trading Account") to the bank
ii. to link the designated Bank Account with the Trading Account in order for me to make
payment from time to time for purchases or contra losses due to you arising from transactions
Participating Banks (please tick ONE option only)
DBS/POSB ____________ Account No___________
UOB/OCBC/Citibank/May bank*_________ Account No___________
*please delete accordingly
2.2.3 I agree, acknowledge and undertake:
That I have read the Terms and Conditions applicable to the EPS service on page 2 and hereby
confirm that the same shall be binding on me whenever payments are made to the designated
Bank Account by the Member Company or whenever payments are made by me to the Member
Company from the designated Bank Account through EPS service.
That the authorizations herein shall continue to be in force until I expressly revoke them by
giving three (3) weeks’ notice in writing delivered to the Member Company or the closure of the
designated Bank Account, whichever is the earlier. The Member Company may in its absolute
discretion terminate the EPS service by giving me written notice at our last known address; or in
the case of closure of the Member Company, the designated Bank may in its absolute discretion
terminate the EPS service.
And consent to the disclosure by the Member Company to the Participating Bank and to any
relevant person of all or any of the information in relation to or concerning the transactions
effected through the Trading Account such as the contract or contra statement numbers, amounts
due there under, the Trading Account number and such information as may be necessary or
appropriate or that may arise in order to effect, or as a result of, the payments to the designated
Bank Account by the Member Company or the payments by me to the Member Company from
the designated Bank Account through the EPS service.

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1. What do the different transaction statuses mean?

 Success(3)
________________________________________________________________________
_____________________________________________________
 Failed(2)
________________________________________________________________________
__________________________________________________
 Refunded(3)
________________________________________________________________________
________________________________________________________________________
_______________________
 Settled(2)
______________________________________________________________________________
______________________________________________________________________________
_______
Score = ___________
Rating: ____________

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Operation Sheet 2 Create payment facility
1. How to Identifying the create payment facilities?
2. What cards are accepted through create payments?
3. What do the different transaction statuses mean?
4. What cards are accepted through create payments?
5. What men Electronic Payment of Shares (EPS)?
Name: _____________________________ Date: ________________
teacher.
Task1. What is Create payment?

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LG #32 LO #3: Verify payments

Instruction sheet
 confirming and matching payment facility
 identifying and following Discrepancies promptly
 confirm and match payment facility
 Identify and follow Discrepancies promptly
them.
4.If you earned a satisfactory evaluation proceed to “Operation sheets placed at the end of
each LO
5.Perform “the Learning activity performance test” which is placed following “Operation
sheets”

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6.If you earned a satisfactory evaluation proceed to the next learning guide.
7.Reflect broad conceptual knowledge and adaptive vocational and generic skills
8.Reflect essential knowledge, skills or attitudes;
11. Represent the minimum performances that must be achieved to successfully
complete a course or program;
Information Sheet 1 Confirm and match payment facility
3.1.1 Preparing and processing Purchase documents
• Sales invoices – to obtain payment from the buyer for what you have sold on credit
• Sales credit notes – to reduce the amount owed by the buyer, if, for example, goods have been
returned
In this chapter we deal with the same documents, but from the point of view of the buyer of
goods and services, who will need to check them carefully:
• Supplier invoices – received from the supplier and payable by you
• Supplier credit notes – to reduce the amount owed by you, if, for example, you return goods
3.1.2 Checking the documents
Checking by the seller

In the last chapter it was seen as being very important to check for accuracy the main sales
documents issued – the invoice and credit note. For example, checking:
 That the product codes of the goods invoiced are correct

 That the price charged is correct
 The calculations on the invoice, including the Value Added Tax, are all correct
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If you make a mistake it could prove costly. Your level of customer service would look rather
poor and payment could be delayed
3.1.3 Checking by the buyer
In this chapter we describe what checking has to be done by the buyer. If you are the buyer, you
will need to check the purchase documents, and for very specific reasons: you will want to
make sure that:
 The goods provided are the goods you have ordered in the first place – you can tell this
from the product codes used
 The correct unit price has been charged
 Any discounts you are entitled to have been correctly calculated and deducted
 Any VAT charged has been correctly calculated
 The calculations on the supplier invoice or supplier credit note are all accurate
3.1.4 What to do if you find an error
If the buyer finds any errors or discrepancies on a supplier invoice or supplier credit note the
document must be rejected and a reason given. This reason may be written on the document
itself or in a separate record. In your assessments you will be given a table in which to record
errors and discrepancies.
The golden rule is that you should never alter the document – an invoice total, for example –
and process it as if it were correct. It should always be referred back to the seller.
3.1.5 What needs to be checked?
There are three documents involved in the checking process:
 purchase order
This is the first document to be issued. It is drawn up by the buyer to order the goods and will set
out all the details of the purchase:
 quantity
 product code

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 description
 unit price
 Delivery note
This document is normally sent with the goods and is likely to be the first document relating to
the transaction received by the buyer from the seller. The details on this document should be
checked with the purchase order.
 Supplier (purchase) invoice

This sets out what is owed by the buyer and when it has to be paid. This should be checked
against the purchase order and delivery note. The questions the buyer is asking here are: “Are we
being charged for what we ordered?” and “Are we being charged the right amount?”
Checking the three purchase documents
1. SUPPLIER INVOICE
This is the amount charged – is it correct?
• What is the amount owed?
• When does it have to be paid?
• are discounts and VAT included?
• are the calculations correct?
• are the quantity, product code, description and unit price correct?
• is the purchase order number correct?
2. PURCHASE ORDER
Does the invoice relate to what we ordered?
• check the details
3. DELIVERY NOTE
Has the supplier sent what we ordered?
 check the details

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Checking purchase documents

In this Case Study we will track the purchase (and return) of some memory sticks from a
computer company. There are two businesses involved:
• Aztec Limited, the buyer – a computer shop
• Zillion Computers, the seller – a computer equipment supplier
We will concentrate on the process from the point of view of the buyer.
The purchase order is sent
Aztec Limited a computer shop, needs more memory sticks because stocks are running low. The
order is placed by Aztec who sends a purchase order on 9 December to its regular supplier,
Zillion Computers.
The purchase order is shown at the top of the next page. It has been given a unique reference
number (1095) and sets out details of product codes, quantities, descriptions and prices.
The order is received
On 14 December Aztec Limited receives delivery of the order. It is accompanied by a delivery
note issued by Zillion Computers. This is shown at the bottom of the next page.
The staff at Aztec will count and check the actual delivery to make sure:
• The correct number of items has been received
• The correct goods have been sent
• The goods are in acceptable condition

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1. W hat to do if you find an error?(5)
________________________________________________________________________
______________________________________________________
2. Discuss the examples of Checking by the seller (5)
________________________________________________________________________
__________________________________________________
Score = ___________
Rating: ____________

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Information Sheet 2 Identify and follow Discrepancies promptly
3.2.1 Checking the documents
When the order has been received the purchase order should be checked against the delivery
note. The specific checks (see opposite page) include:
• The purchase order number should be the same on both documents – here it is 1095
• The product codes, quantities and descriptions of the two types of memory stick should be the
same – as they are here
Note that the delivery note may not show the price of the goods. The reason for this is that prices
are not needed when goods are delivered.
3.2.1.1 Checking the supplier’s (purchase) invoice
The invoice for the memory sticks is received by Aztec Limited from Zillion computers the
following day. It is shown on the next page. The invoice is checked against the delivery note and
the purchase order. The specific points to look at (shown with a grey background) are:
a) Invoice and delivery note
Are the details of the goods on the invoice and delivery note the same?
The product code, description and quantity of the goods should agree.
b) Invoice and purchase order
Has the invoice quoted the correct purchase order number? Has the correct price been charged?
The unit price quoted by the supplier or obtained from the supplier's catalogue will be stated on
the purchase order, and should agree with the unit price stated on the invoice. If there is a
difference, it should be queried with the supplier.
3.2.1.2 Checking the calculations on the invoice
All the calculations on the invoice should be checked; they are shown on the next page within
dotted lines. If any of these calculations is incorrect, the final total will be wrong, and the invoice
will have to be queried with the supplier. The checks to be made are:
a) quantity x unit price
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The quantity of the items multiplied by the unit price must be correct. The result is used for the
calculation of any discounts applicable.
a) trade discount
Trade discount is a percentage deduction from the normal list price; it is normally given to
approve ‘trade’ customers. This discount is deducted from the total price. In the case of the
invoice shown opposite, the total price worked out is £390. The 25% trade discount is shown and
deducted on the line below the £390. The calculation is:
£390 x 25 = £97.50
100
The price charged (on which VAT will be charged) is therefore:
£390.00 – £97.50 = £292.50
b) bulk discount
Bulk discount is given for bulk purchases – is large quantity purchases.
If, for example, Aztec was to order 500 8GB memory sticks rather than just 10 it may be able to
negotiate a further bulk discount
c) Value Added Tax (VAT)
Value Added Tax is a tax on sales. In this book VAT is calculated at 20%.
On an invoice VAT is added to the total after the deduction of discount.
The calculation on the invoice below is:
£292.50 x 20 = £58.50 = VAT amount
100
If you are using a calculator, all you need to do is to multiply the total by
0.2 To give the VAT, which is then added to the total?
Note that fractions of a penny are normally ignored when calculating
VAT. If the VAT comes out on the calculator as £56.666666, the actual
VAT should be £56.66 and is not rounded up to £56.67.

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Dealing with errors and discrepancies
What can go wrong?

There are number of situations where a buyer checking the purchase documents and the
delivered goods will find errors and discrepancies. In each case action will have to be taken by
the buyer.
Some common examples of errors and discrepancies are listed below, together with examples of
the action that will need to be taken in each case.
You will find in commercial practice that the actions taken may vary to some extent, but the
examples given below are fairly common. As you will see from the table there are two main
situations:
 an invoice with an error on it should be rejected and a new invoice issued by the seller
 A problem involving the goods themselves – in these cases the goods should be returned
to the supplier with a goods returned note and a credit note requested from the supplier.

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Instruction: Answer all the questions listed below, if you have some clarifications- feel free
to ask your teacher
1. W hat to do if you find an error?(4)

________________________________________________________________________
______________________________________________________
2. Discuss the examples of Checking by the seller(4)
________________________________________________________________________
___________________________________________________
3. Explain the following statements.
 Sales in voices (2)
__________________________________________________________________
_______________________________________________
 Sales credit notes (2)
__________________________________________________________________
________________________________________________
Score = ___________
Rating: ____________

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Operation Sheet 3 Verify payments

1. How to checking the documents?
2. How to find error?
3. How to checking the calculations on the invoice?
Name: _____________________________ Date: ________________
teacher.
Task.1 List the documents involved checking process?

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LG #33 LO #4: Effect payments

Instruction sheet
 Agreeing made within payment credit arrangements
 Signing Payment instrument
 Primary documentation associating with payment is cancelling or noting to ensure
multiple payments are not maddening
This guide will also assist you to attain the learning outcomes stated in the cover page. Specifically,
upon completion of this learning guide, you will be able to:
 Agree made within payment credit arrangements
 Sign Payment instrument
 Primary documented associate with payment is cancel or not to ensure multiple
payments are not madden
them.
3. Ask from your trainer the key to correction (key answers) or you can request your trainer
to correct your work. (You are to get the key answer only after you finished answering
the Self-checks).
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each LO
sheets”
11. Represent the minimum performances that must be achieved to successfully complete a
course or program;
Information Sheet 1 Payments are made within agreed credit arrangements
4.1 Introduction to effect of payment system
The payment system – which includes financial market infrastructure for payments, securities
and derivatives – is a core component of the financial system, alongside markets and institutions.
If modern economies are to function smoothly, economic agents have to be able to conduct
transactions safely and efficiently. Payment, clearing and settlement arrangements are of
fundamental importance for the functioning of the financial system and the conduct of
transactions between economic agents in the wider economy. Private individuals, merchants and
firms need to have effective and convenient means of making and receiving payments.
Moreover, funds, securities and other financial instruments are traded in markets, providing a
source of funding and allowing households, firms and other economic actors to invest surplus
funds or savings in order to earn a return on their holdings. Active markets facilitate price
discovery, the efficient allocation of capital and the sharing of risk between economic actors.
Public trust in payment instruments and systems is vital if they are to effectively support
transactions. In financial markets, market liquidity is critically dependent on confidence in the
safety and reliability of clearing and settlement arrangements for funds and financial instruments.
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If they are not managed properly, the legal, financial and operational risks inherent in payment,
clearing and settlement activities have the potential to cause major disruption in the financial
system and the wider economy.
4.2 PAYMENTS AND THE PAYMENT SYSTEM
In every economy, a large number of transactions take place each day on the initiative of a wide
range of economic actors. All transactions, whether they involve the acquisition of goods,
financial assets or services (and provided they do not involve bartering), have two settlement
components: (i) the delivery of the good or service; and (ii) the transfer of funds – i.e. payment
using cash (banknotes and coins) or deposits held with banks (funds in accounts held with
banks).
A payment is therefore a transfer of funds which discharges an obligation on the part of a payer
vis-à-vis a payee. A payer is the party to a payment transaction which issues the payment order
or agrees to the transfer of funds to the payee.
A payee – or beneficiary – is the final recipient of funds.
Well-designed payment infrastructure contributes to the proper functioning of markets and helps
to eliminate frictions in trade. If the cost of a transaction exceeded the benefits expected from the
trade, services, assets and products might not even be exchanged. The availability of reliable and
safe payment mechanisms for the transfer of funds is therefore a sine qua non for the majority of
economic interactions (i.e. “no payment, no trade”).
In its more restricted sense, the term “payment system” is sometimes used as a synonym for
“interbank funds transfer system” or “IFTS”. However, at a general level, the term “payment
system” refers to the complete set of instruments, intermediaries, rules, procedures, processes
and interbank funds transfer systems which facilitate the circulation of money in a country or
currency area. In this sense, a payment system comprises three main elements or processes:

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1. Payment instruments, which are a means of authorizing and submitting a payment (i.e. the
means by which the payer gives its bank authorization for funds to be transferred or the means
by which the payee gives its bank instructions for funds to be collected from the payer);
2. Processing (including clearing), which involves the payment instruction being exchanged
between the banks (and accounts) concerned;
3. A means of settlement for the relevant banks (i.e. the payer’s bank has to compensate the
payee’s bank, either bilaterally or through accounts that the two banks hold with a third-party
settlement agent.

Instruction: Answer all the questions listed below, if you have some clarifications- feel free
to ask your teacher
1. What is the distinction between PAYMENTS AND THE PAYMENT SYSTEM?
 Payments(5)
__________________________________________________________________
____________________________________________
 The payment system (5)
__________________________________________________________________
________________________________

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Technology Level III Rating: ____________
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Information Sheet 2 Sign Payment instrument
4.2.1 PAYMENT INSTRUMENTS
A payment instrument is a tool or a set of procedures enabling the transfer of funds from the
payer to the payee. There are a variety of different payment instruments, each with its own
characteristics depending on the type of relationship and transaction between the payer and the
payee. The most common distinction is between cash and non-cash payment instruments.
Cash payments (i.e. payments made using banknotes and coins) are usually associated with face-
to-face transactions of low value between individuals or between an individual and a merchant.
If the parties do not exchange information on their identity, a cash payment is said to be
“anonymous”. A cash payment is an immediate and final transfer of value, and the recipient can
immediately use the cash received for further payments. In most countries, legislation or
regulation requires that banknotes and coins be accepted as payment for all types of transaction,
potentially subject to limits per denomination. This confirms the status of the banknotes and
coins as legal tender. Further identification measures are not normally required for cash
transactions, with the exception of large-value transactions in the context of increased efforts to
tackle money laundering and the financing of terrorism.
Non-cash payments, by contrast, involve the transfer of funds between accounts.
A non-cash payment instrument is therefore the means by which a payer gives its bank
authorization for funds to be transferred or by which a payee gives its bank instructions for funds
to be collected from a payer. The accounts of the two parties may be held with a single bank or
with different banks.
Non-cash payment instruments can be further classified on the basis of the following.
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– Physical form (paper-based or electronic instruments)

Payment instructions have traditionally been in paper form, but today they are increasingly
taking the form of electronic instructions.
4.2.2 LIFE CYCLE OF A PAYMENT
A stylized life cycle for a non-cash payment (e.g. a credit transfer) could be as follows.
1. Choice of payment instrument and submission of the payment instruction:

Depending on the payment instrument chosen (see Section 1.4), the payer or payee submits a
payment instruction to its bank. Payments are increasingly being initiated electronically, using
standardized formats (including, for example, the bank account number of the recipient and the
Bank Identifier Code (BIC) of the recipient’s bank). This makes it possible for the banks to
process payments without manual intervention using straight-through processing (STP).
2. Bank’s internal processing: The sending bank verifies and authenticates the payment
instrument in order to establish its legal and technical validity, checks the availability of funds
(or overdraft facilities), makes the necessary entries in the bank’s accounting system (e.g.
debiting the payer’s account in the case of a credit transfer) and prepares the payment instruction
for clearing and settlement (reformatting it where necessary).
3.Interbank processing of the payment: This comprises the transmission, reconciliation, sorting
and, in some cases, confirmation of payment transfer orders prior to settlement, potentially
including netting and the establishment of final positions for settlement. The interbank
processing of payments may take place through correspondent banking (in a bilateral or trilateral
exchange of messages) or through multilateral arrangements – i.e. payment systems.
4. Interbank settlement of the payment: The settlement asset is transferred from the sending
bank to the receiving bank, and the interbank transfer becomes irrevocable and unconditional
(i.e. final). The settlement asset may be transferred on a bilateral basis or multilaterally using a
settlement agent.

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5. Bank’s internal processing: The receiving bank credits the account of the recipient.
6. Information and communication: The receipt of payment is communicated to the beneficiary
via account statements following the crediting of its account.
(If the payment is made in response to an invoice, the recipient (e.g. a firm) will perform a
reconciliation following the receipt of funds in order to match incoming payments with invoices
sent.)

Instruction: Answer the questions listed below, if you have some clarifications- feel
1. Write the banks to process payments without manual intervention using straight-through
processing (STP).(10)
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------

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Score = ___________
Rating: ____________
Information Sheet 3 Primary document associate with payment
4.3.1 TYPES OF PAYMENT
Payments can be classified on the basis of the different types of payer/payee involved.
1. Wholesale payments are payments between financial institutions. They tend to have a high
value. In addition, they are usually time-critical (i.e. they need to be cleared and settled on a
particular day – sometimes even within a particular time period on that day). Their share in the
total number of payments is relatively small, but owing to their high value, their orderly
settlement is essential for the proper and stable functioning of financial markets.
2. Payments between non-financial institutions (e.g. private households, non-financial
corporations or government agencies) are normally classified as retail payments. There are
normally large numbers of retail payments, but these have substantially lower average values
than wholesale payments and are not usually cleared and settled in the same manner. That being
said, in some countries retail payments are settled in systems designed for both retail and
wholesale payments.
In addition to the two categories above, reference is sometimes also made to commercial
payments. These are payments generated by corporations.
Depending on the size and type of corporation, as well as the type of underlying commercial
transaction, these can sometimes have fairly large values. Large international corporations tend,
in particular, to generate some payments which resemble wholesale payments more than retail
payments.
In addition to the two categories above, reference is sometimes also made to commercial
payments. These are payments generated by corporations. Depending on the size and type of
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corporation, as well as the type of underlying commercial transaction, these can sometimes have
fairly large values. Large international corporations tend, in particular, to generate some
payments which resemble wholesale payments more than retail payments.
Payments can also be grouped on the basis of the number of payers and payees involved in a
particular transaction.
1. In a one-to-one transaction, one payer transfers funds to one payee.
Most customer-to-customer, customer-to-business and business-to-business payments are
transactions of this type.
2. In one-to-many transactions, one payer transfers funds to several payees with a single
submission. These are typically transfers from businesses or governments to private households
– for instance salary and social security payments. One-to-many transactions are also called
“bulk payments” and are usually cleared and settled in batches.
3. In many-to-one transactions, several payers transfer funds to a single payee, usually on the
initiative of the payee. These are typically transfers from private households to businesses or
governments – for instance utility or tax payments.
Finally, in the context of international trade, a distinction is also made between “clean” and
“documentary” payments.
In clean payments, all transportation documents and other paperwork relevant to the trade are
exchanged directly between the trading partners. Thus, from a banking perspective, normal
general-purpose payment instruments can be used to transfer funds between the two.
In documentary payments, the (international) trading partners entrust the handling of trade-
relevant documents to banks (with the exporter instructing its bank to release documents to the
importer, and the importer instructing its bank to make a payment to the exporter) as a way of
ensuring that the exporter receives payment for the goods sold and the importer receives and
pays for the goods ordered. This is done through the use of documentary instruments such as
letters of credit, documentary collection or bank guarantees.
4.3.2 TYPES OF PAYMENT SYSTEM

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A payment system is usually classified as a “large-value” or “retail” payment system depending

on the main type of transaction processed in the system. Large-value payment systems (LVPSs),
also called “wholesale payment systems”, are systems which are designed primarily to process
urgent or large-value payments.
These payments are exchanged between financial institutions in relation to financial market
activities and are generally for large amounts and require urgent or timely settlement.
Thus, a system handling such payments needs to meet high safety and efficiency standards.
Some LVPSs also process a large number of low-value or retail payments, but the systems are
designed primarily on the basis of the safety requirements for the processing and settlement of
wholesale payments. Most LVPSs settle in central bank money. Retail payment systems are
designed to handle a large volume of relatively low-value payments, such as credit transfers,
direct debits and card payments. Retail payment systems may settle in either central bank or
commercial bank money.
Depending on their settlement methods, payment systems are divided into four design types, as
shown in Table 1, with the most common forms being real-time gross settlement and designated-
time net settlement (DNS).
– Real-time gross settlement systems effect the final settlement of individual payments on a
continuous basis during the processing day and are the predominant form of LVPS.
– Designated-time net settlement systems settle the net positions of participants at one or more
discrete pre-specified settlement times during the processing day. This is the main form of retail
payment system, often with several settlement cycles during the day. Net settlement LVPSs
usually settle once at the end of the day.
– Designated-time gross settlement systems exist in some countries. In these systems, the final
settlement of transfers occurs at the end of the processing day with no netting of credit and debit
positions – i.e. on a transaction-by-transaction basis or on the basis of the aggregate credit and
debit positions of each bank.

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Instruction: Answer all the questions listed below, if you have some clarifications-
feel free to ask your teacher
1. Write the most common distinction is between cash and non-cash payment instruments.
Cash payments (5)

________________________________________________________________________
________________________________________________________
Non-cash payments (5)
________________________________________________________________________
_______________________________________________________

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Score = ___________
Rating: ____________
Operation Sheet 4 Effect payments
. How to identify payment system?

2. What men life cycle of a payment?
3. What are types of payment system?
Name: _____________________________ Date: ________________
teacher.

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Task1. Describe variety payment instruments
LG #34 LO #5: File documentation

Instruction sheet
 Documentation is filed promptly in accordance with organization policy and procedures
 Filling location of documentation is easily accessible and traceable
 Documented is filed promptly in accordance with organization policy and procedures
 Fill location of documentation is easily accessible and traceable.

1. 1. Read the information written in the “Information Sheets”. Try to understand what
are being discussed. Ask your trainer for assistance if you have hard time
understanding them.

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each LO
sheets”
11. Represent the minimum performances that must be achieved to successfully complete
a course or program;
Information Sheet 1 Documentation is filed promptly
Introduction
A computer file is a piece of arbitrary information, or resource for storing information, that is
available to a computer program and is usually based on some kind of durable storage. A file is
durable in the sense that it remains available for programs to use after the current program has
finished.
Computer files can be considered as the modern counterpart of the files of printed documents
that traditionally existed in offices and libraries.
5.1.1. File contents
As far as the operating system is concerned, a file is in most cases just a sequence of binary
digits. At a higher level, where the content of the file is being considered, these binary digits may
represent integer values or text characters, It is up to the program using the file to understand the

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meaning and internal layout of information in the file and present it to a user as a document,
image, song, or program.
At any instant in time, a file has might have a size, normally expressed in bytes, that indicates
how much storage is associated with the file.
Information in a computer file can consist of smaller packets of information (often calledrecords
or lines) that are individually different but share some trait in common. For example, a payroll
file might contain information concerning all the employees in a company and their payroll
details; each record in the payroll file concerns just one employee, and all the records have the
common trait of being related to payroll—this is very similar to placing all payroll information
into a specific filing cabinet in an office that does not have a computer. A text file may contain
lines of text, corresponding to printed lines on a piece of paper.
The way information is grouped into a file is entirely up to the person designing the file. This has
led to a plethora of more or less standardized file structures for all imaginable purposes, from the
simplest to the most complex.
Most computer files are used by computer programs. These programs create, modify and delete
files for their own use on an as-needed basis. The programmers who create the programs decide
what files are needed, how they are to be used and (often) their names.
In some cases, computer programs manipulate files that are made visible to the computer user.
For example, in a word-processing program, the user manipulates document files that she names
herself. The content of the document file is arranged in a way that the word-processing program
understands, but the user chooses the name and location of the file, and she provides the bulk of
the information (such as words and text) that will be stored in the file.
5.1.1.1. Operations on the file
Opening a file to use its contents

Reading or updating the contents
Committing updated contents to durable storage
Closing the file, thereby losing access until it is opened again
5.1.2 File Organization

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5.1.2.1 Sequential file
Access to records in a Sequential file is serial. To reach a particular record, all the preceding
records must be read.
As we observed when the topic was introduced earlier in the course, the organization of an
unordered Sequential file means it is only practical to read records from the file and add records
to the end of the file (OPEN..EXTEND).
It is not practical to delete or update records.
While it is possible to delete, update and insert records in an ordered
Sequential file, these operations have some drawbacks.
5.1.2.2 Problems accessing ordered Sequential files
Records in an ordered Sequential file are arranged, in order, on some key field or fields. When
we want to insert, delete or amend a record we must preserve the ordering. The only way to do
this is to create a new file. In the case of an insertion or update, the new file will contain the
inserted or updated record. In the case of a deletion, the deleted record will be missing from the
new file.
5.1.2.3 Inserting records in an ordered Sequential file
To insert a record in an ordered Sequential file:

1. All the records with a key value less than the record to be inserted must be read and then
written to the new file.
2. Then the record to be inserted must be written to the new file.
3. Finally, the remaining records must be written to the new file.
5.1.2.4 Deleting records from an ordered Sequential file
To delete a record in an ordered Sequential file:

1. All the records with a key value less than the record to be deleted must be written to the new
file.
2. When the record to be deleted is encountered it is not written to the new file.
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3. Finally, all the remaining records must be written to the new file.
5.1.2.5 Amending records in an ordered Sequential file
To amend a record in an ordered Sequential file:

1. All the records with a key value less than the record to be amended must be read and then
written to the new file.
2. Then the record to be amended must be read the amendments applied to it and the amended
record must then be written to the new file.
3. Finally, all the remaining records must be written to the new file.

1. Explain what is meant by the term storage device? Give three examples of storage
devices. Also give possible advantages and disadvantage of the same.(5)
________________________________________________________________________
________________________________________________________________________
____________________________________________________________________
_______________________________________________________
2. Explain different types of files with the help of suitable examples.(5)
________________________________________________________________________
________________________________________________________________________
___________________________________________________________________

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Score = ___________
Rating: ____________
Information Sheet 2 Location of file documentation
5.2.1 Relative File
As we have already noted, the problem with Sequential files is that access to the records is serial.
To reach a particular record, all the proceeding records must be read.
Direct access files allow direct access to a particular record in the file using a key and this greatly
facilitates the operations of reading, deleting, updating and inserting records.
COBOL supports two kinds of direct access file organizations -Relative and Indexed.
5.2.1.1 Organization of Relative files
Records in relative files are organized on ascending Relative Record Number.

A Relative file may be visualized as a one dimension table stored on disk, where the Relative
Record Number is the index into the table. Relative files support sequential access by allowing
the active records to be read one after another.
5.2.1.2 Accessing records in a Relative file
To access a record in a Relative file a Relative Record Number must be provided. Supplying this
number allows the record to be accessed directly because the system can use the start position of
the file on disk, the size of the record, and the Relative Record Number to calculate the position
of the record.

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Because the file management system only has to make a few calculations to find the record
position the Relative file organization is the faster of the two direct access file organizations
available in COBOL. It is also the most storage efficient.
5.2.2 Indexed Files
While the usefulness of a Relative file is constrained by its restrictive key,

Indexed files suffer from no such limitation.
Indexed files may have up to 255 keys, the keys can be alphanumeric and only the primary key
must be unique.
In addition, it is possible to read an Indexed file sequentially on any of its keys.
5.2.2.1 Organization of Indexed files
An Indexed file may have multiple keys. The key upon which the data records are ordered is
called the primary key. The other keys are called alternate keys.
Records in the Indexed file are sequenced on ascending primary key. Over the actual data
records, the file system builds an index. When direct access is required, the file system uses this
index to find, read, insert, update or delete the required record.
For each of the alternate keys specified in an Indexed file, an alternate index is built. However,
the lowest level of an alternate index does not contain actual data records. Instead, this level
made up of base records which contain only the alternate key value and a pointer to where the
actual record is. These base records are organized in ascending alternate key order.
 Protecting files
Many modern computer systems provide methods for protecting files against accidental and
deliberate damage. Computers that allow for multiple users implement file permissions to control
who may or may not modify, delete, or create files and folders. A given user may be granted
only permission to modify a file or folder, but not to delete it; or a user may be given permission
to create files or folders, but not to delete them. Permissions may also be used to allow only
certain users to see the contents of a file or folder.

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Permissions protect against unauthorized tampering or destruction of information in files, and

keep private information confidential by preventing unauthorized users from seeing certain files.
Another protection mechanism implemented in many computers is a read-only flag. When this
flag is turned on for a file (which can be accomplished by a computer program or by a human
user), the file can be examined, But it cannot be modified. This flag is useful for critical
information that must not be modified or erased, such as special files that are used only by
internal parts of the computer system. Some systems also include a hidden flag to make certain
files invisible; this flag is used by the computer system to hide essential system files that users
must never modify
5.2.3 Storing files
In physical terms, most computer files are stored on hard disks—spinning magnetic disks inside
a computer that can record information indefinitely.
Hard disks allow almost instant access to computer files.
On large computers, some computer files may be stored on magnetic tape.
Files can also be stored on other media in some cases, such as writeable compact discs, Zip
drives, etc.
5.2.3.1 Backing up files
When computer files contain information that is extremely important, a backup process is used to
protect against disasters that might destroy the files.
Backing up files simply means making copies of the files in a separate location so that they can
be restored if something happens to the computer, or if they are deleted accidentally.
There are many ways to back up files. Most computer systems provide utility programs to assist
in the back-up process, which can become very time consuming if there are many files to
safeguard. Files are often copied to removable media such as writeable CDs or cartridge tapes.
Copying files to another hard disk in the same computer protects against failure of one disk, but
if it is necessary to protect against failure or destruction of the entire computer, then copies of the
files must be made on other media that can be taken away from the computer and stored in a
safe, distant location.

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5.2.3.2 File Terminology
There are a few terms that you need to understand when learning about file system. These will be
explained over the next couple of pages. File can store data or information in various formats.
Copying files
Just copy the files in question somewhere.
5.2.4File System dump
Copy the file system that holds the files in question somewhere. This usually involves un-
mounting the file system and running a program like dump. This is also known as a raw partition
backup. This type of backup has the possibility of running faster than a backup that simply
copies files. A feature of some dump software is the ability to restore specific files from the
dump image.
Identification of changes
Some file systems have an archive bit for each file that says it was recently changed. Some
backup software looks at the date of the file and compares it with the last backup, to determine
whether the file was changed.
5.2.4.1 Block Level Incremental
A more sophisticated method of backing up changes to files is to only backup the blocks within
the file that changed. This requires a higher level of integration between the file system and the
backup software.
5.2.4.2 Versioning file system
A versioning file system keeps track of all changes to a file and makes those changes accessible
to the user. This is a form of backup that is integrated into the computing environment.

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5.2.4.3 Backing up on-line databases
An on-line database is constantly being updated. To make sure no data is lost in the event of
hardware failure, special back-up methods are used.
Transaction logging and RAID (Redundant Array of Inexpensive Disks) are two commonly used
methods.
Transaction logging involves storing the details of each update in a transaction log file. A
“before and after” image of each updated record is also saved. If any part of the database is
destroyed an up-to- date copy can be recreated by a utility program using the transaction log file
and the before and the after image of updated records.
RAID involves keeping several copies of a database on different disks at the same time.
Whenever a record is updated, the same changes are made to each copy of the database. This is
so that if one disk falls the data will still be safe on the others.

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1. What do you mean by Storage Capacity? How we measure the storage capacity of a
computer system?(2)
________________________________________________________________________
________________________________________________________
2. List down the differences between:
 RAM and ROM(2)
__________________________________________________________________
____________________________________________________
 Mega Byte and Giga Byte(2)
__________________________________________________________________
____________________________________________________
3. List down some important rules for backing up files.(2)
________________________________________________________________________
_________________________________

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4. Explain the process of taking backup of an online data base.(2)

______________________________________________________________________________
____________________________________________________________
Score = ___________
Rating: ____________
Operation Sheet 5 File documentation

1. What is file documentation?
2. How to storing files?
3. What men backing up files?
Name: _____________________________ Date: ________________
teacher.

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Task.1 Explain what is meant by the term File Generations? Explain with the help of suitable
example

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Processing Payment Documentation

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A.

A TVET AND TECHNOLOGY BUREAU

Account and Budget Support Level III

Unit of competencies: process payment documentations

Module Title: processing payment documentation

LG Code: EIS ACB3 M07 1121 LO (1-5)

TABLE OF CONTENTS PAGE

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

LG #30 LO #1: Enter data to system

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

Information Sheet 1 Entering and specifying data into systems

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

In computer hardware and software product development, documentation is the information

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

5 Essential Records Management Procedures

 Step 1: Set-up a Records Retention Schedule.

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

 Step 5: Disposal of Obsolete Records.

Note: Satisfactory rating – 8 out of 8points Unsatisfactory - below 8 and 8points

Information Sheet 2 Allocating and updating data

1.2.1 What is data allocating?

The processing is usually assumed to be automated and running on a Mainframe, minicomputer,

Self-Check 2 Written Test

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

1. What is data allocating?(10)

Note: Satisfactory rating – 8 out of 8points Unsatisfactory - below 8 and 8points

Information Sheet 3 Maintain System controls

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

1.3.3 Types of Data

Enter Data to the Survey

Enter Data to the Sample Survey

Navigating Enter Data

Enter Data Main Page

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

Use the Help Menu to view the online help.

Enter Data Page Panel

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

A. Tab through to the last record.

Operation Sheet 1 Enter data to system

5 Essential Records Management Procedures

Step 1: Set-up a Records Retention Schedule.

Lap test Practical Demonstration

Name: _____________________________ Date: ________________

Time started: ________________________ Time finished: ________________

Task.1 defines data processing?

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

LG #31 LO #2: Create payment facility

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

6. If you earned a satisfactory evaluation proceed to the next learning guide.

Information Sheet 1 Processing Payment

2.1 Identifying the create payment facilities

2.1.1 How to use create payments

 Dashboard and reports

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

Create payments accept the following credit and debit cards:

Payment facility is processed accurately in accordance with organization policy and

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

An alternative payment method, commonly used by minors or customers with no bank

TVET program title- ACCOUNTS AND BUDGET SUPPORT Version -2

Name: _____________ Date:

Time started: ________ Time finished:

Name: _____________ Date:

Time started: ________ Time finished:

Name: _____________ Date:

Time started: ________ Time finished: