Computerised Financial

Systems
 Module 1 - Introduction to computers

WHAT IS A COMPUTER?
A computer is an electronic device that manipulates information or data. In
the workplace, many people use computers to keep records, analyse data,
do research and manage projects. At home, you can use computers to find
information, store pictures and music, track finances, play games and
communicate with others.

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 Module 1 - Introduction to computers (continued)

PHYSICAL COMPONENTS OF A COMPUTER

A computer system consists of mainly five physical components, namely:
• Input devices;
• Processing unit;
• Output devices;
• Storage devices; and
• Communication devices.

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 Module 1 - Introduction to computers (continued)

OPERATING SYSTEMS
MS-DOS, the acronym for Microsoft Disk Operating System, is an operating system
with a command-line interface used on personal computers.

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 Module 1 - Introduction to computers (continued)

WINDOWS OPERATING SYSTEM

Windows XP provides the tools you need to work and play in today’s high-speed
communications environment. Your toolbox includes system tools that help you set
and adjust system resources, users and user groups, and scheduled system tasks.

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 Module 2 - Applying basic Windows commands

INTERNAL AND EXTERNAL COMMANDS

The computer responds to commands in both the external system, such as
switching on the computer using the power button as well as the internal
system, such as formatting the harddrive.

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 Module 2 - Applying basic Windows commands (continued)

STARTING OF WINDOWS
Startup menu options – select
what you want to do:

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 Module 2 - Applying basic Windows commands (continued)

HELP AND SUPPORT

Start / Help and Support /

Key in what you want help
with.

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 Module 2 - Applying basic Windows commands (continued)

APPLICATION PROGRAMS

• Word processing;
• Spreadsheets;
• Access;
• Publisher;
• Pastel Accounting.

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 Module 3 - Mastering the keyboard

KEYBOARD TECHNIQUES

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 Module 4 - Basic Word Processing

ELEMENTARY WORD PROCESSING FUNCTIONS

Elementary word processing functions include:
• Creating margins;
• Opening and saving a new document;
• Printing a document;
• Changing the font styles;
• Aligning the text; and
• Adding a tab stop.
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 Module 5 - Computerised bookkeeping

CHARACTERISTICS OF ACCOUNTING PACKAGE

Pastel allows you to maintain as many separate companies, or set of books,
as you require. With each company, you can create different users in order to
gain access and work in the company (specify which areas a user can or
cannot use). This allows you to control access to information.

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 Module 5 - Computerised bookkeeping (continued)

INSTALLING PROCEDURES
All the requirements needed to run will be included in the package. A CD will be
provided and will install automatically once the CD is inserted into the CD-ROM
drive. It will take you through the installing process with the licence agreement.
After installation, you need to register your accounting package / enter the
product serial number and authorisation code. You only have to register your
software once.

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 Module 5 - Computerised bookkeeping (continued)

USE OF ACCOUNTING PACKAGE MANUALLY

The manual will take you through the different processing that needs to be
done in an accounting environment.

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 Module 5 - Computerised bookkeeping (continued)

HELP FUNCTION

Click on the Help button.

Go to
Contents/ Index/ Search/
Favorites and select the
item you need help with.

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 Module 5 - Computerised bookkeeping (continued)

KEYBOARD FUNCTION KEYS

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 Module 6 - Opening a set of accounts and input
of cash and credit block transactions
OPENING PARAMETERS
Follow these steps to create a new set of accounts:
1. File / New / Start New Company
2. Setup / Company Parameters
3. Setup / Report Writer Categories
4. Edit / General Ledger / Accounts
5. Setup / Entry Types
6. Setup / Periods
7. Setup / Tax
8. Setup / Customers / Control
9. Setup / Suppliers / Control
10. Edit / Customers / Accounts
11. Edit / Suppliers

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 Module 6 - Opening a set of accounts and input
of cash and credit block transactions (continued)

PETTY CASH TRANSACTIONS

Go to:
Cash Books / Petty Cash / Payments / Settings /
Click This Year Transactions / Untick Repeat Description & Invoke Open Item /
Increment Reference – Yes (for petty cash voucher) / Close

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 Module 6 - Opening a set of accounts and input
of cash and credit block transactions (continued)

BANK RECONCILIATION

In order to complete a bank reconciliation, one must compare the entries in the
Cash Receipt Journal and the Cash Payment Journal with those
on the bank statement.

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 Module 6 - Opening a set of accounts and input
of cash and credit block transactions (continued)

PRINTOUTS

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 Module 6 - Opening a set of accounts and input
of cash and credit block transactions (continued)

PRINTING AND INTERPRETATION OF GENERAL LEDGER ACCOUNTS

Printing account code lists:

• View/General Ledger/Listings/Accounts
• View/Customers/Listings/Accounts
• Suppliers’ accounts View/Suppliers/List Suppliers

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 Module 6 - Opening a set of accounts and input
of cash and credit block transactions (continued)

PRINTING AND INTERPRETATION OF TRIAL BALANCES

Monthly/(periodic) printouts

• Trial Balance: View/General Ledger/Financial Reports/Trial Balance

• Income Statement: View/General Ledger/Financial Reports/Income
Statement
• Balance Sheet: View/General Ledger/Financial Reports/Balance Sheet
• General Ledger accounts: View/General Ledger/Transactions/Detailed
Ledger
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 Module 7 - Application of Value Added Tax (VAT)
in a computerised accounting package
HOW DOES VAT WORK?
VAT is an abbreviation for the term Value Added Tax. It is an indirect tax
based on consumption in the economy. Which is levied on goods and
services. VAT is currently charged at 14% but certain goods and supplies,
such as exports, are levied at zero rate of TAX.

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 Module 7 - Application of Value Added Tax (VAT) in a computerised
accounting package (continued)

VAT RETURNS

The purpose of a VAT return is to inform the Receiver of Revenue of how

much VAT the supplier is required to pay/receive in respect of a fixed
period. VAT can be paid by using various electronic methods, including
eFiling, Internet banking, debit order and electronic funds transfer.
Vendors can also pay at any of the four major banks.

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 Module 7 - Application of Value Added Tax (VAT) in a computerised
accounting package (continued)

TAX PERIODS

Vendors are required to submit returns and account for VAT to SARS
according to the tax period allocated to them. Available tax periods cover
one, two, four, six or twelve calendar months. Tax periods end on the last day
of a calendar month.

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 Module 7 - Application of Value Added Tax (VAT) in a computerised
accounting package (continued)

ACCOUNTING AND VAT

Organisations that register as VAT payers must supply proof of VAT paid and
VAT charged. There are two methods of doing this:
• Invoice method; and
• Payment method.

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 Module 7 - Application of Value Added Tax (VAT) in a computerised
accounting package (continued)

VAT CONCEPTS
• Zero-rated items are taxable supplies on which VAT is levied at a rate of 0%.
• VAT-exempted items involve services that are not subject to VAT.
• A standard-rated supply is a supply of goods or services which is subject to
VAT at the rate of 14%.
• VAT output is the tax on sales and income that must be paid over to SARS.
• VAT input is the tax paid on items that can be claimed back from SARS.
• VAT control is a summary of the VAT input and output.

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 Module 7 - Application of Value Added Tax (VAT) in a computerised
accounting package (continued)

VAT CALCULATIONS

VAT can be worked out as following:

Price exclusive: 100%
VAT: 14%
Therefore, price inclusive: 114%

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 Module 7 - Application of Value Added Tax (VAT) in a computerised
accounting package (continued)

ADMISSABLE DEDUCTIONS WITH REGARD TO INPUT TAX

The following are admissible for VAT deductions:

• Advertisements; • Insurance; • Rent;
• Bank charges; • Office equipment; • Repairs and
• Consumable goods; • Packing material; maintenance;
• Delivery costs; • Printing and stationery; • Telephone and fax; and
• Electricity and water; • Refreshment; • Vehicles.

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