AAT Level 2 Diploma in Accounting and Business

Transcription

1 AAT Diploma in Accounting and Business Qualification specification Version date: July 2014 Ofqual qualification number:

2 Purpose statement Who is this qualification for? The purpose of this qualification is to provide students (16-19 year olds) with the skills, competence knowledge and understanding to effectively fulfil various junior finance roles in almost any type of industry and organisation both large and small. It will give you an all-round understanding of accountancy, finance and business skills to help you work effectively when you move into the workplace. What does this qualification cover? The Diploma in Accounting and Business is made up of ten mandatory units, assessed by a mixture of computer based tests and projects. The first five units comprise the existing Certificate in Accounting with an additional five mandatory units to make up the Diploma in Accounting and Business. Competency in all ten units is required for award and certification of the Diploma in Accounting and Business. 1. Processing bookkeeping transactions 2. Control accounts, journals and the banking system 3. Basic costing 4. Work effectively in accounting and finance 5. Computerised accounting 6. Applied business communications and personal skills 7. Spreadsheet software 8. Developing study skills 9. Introduction to payroll systems 10. Computerised payroll skills What could this qualification lead to? Some of the possible jobs available to you are listed below: Accounts Administrator Accounts Assistant Accounts Payable Clerk Bookkeeper Payroll Administrator Payroll Officer Purchase/Sales Ledger Clerk Tax Assistant/Trainee Trainee Accounts Technician Will the qualification lead to further learning? This qualification offers an alternative entry route to the AAT Accounting qualification at Level 3. Completion of AAT Level 3 Diploma in Accounting gives a student 160 UCAS points. In addition more than 30 UK universities and higher education institutes offer exemptions to AAT qualified students enrolling on accounting and finance-related degrees. At AAT also offer a smaller qualification which is the AAT Certificate in Accounting this provides an alternative for those students who wish to pursue a pure bookkeeping and or Accounting pathway. The larger AAT Diploma in Accounting and Business builds upon the certificate size qualification by including business and payroll units thereby allowing the student to pursue careers in finance and general business. 2

3 Who supports this qualification? This qualification is supported by CIPFA and the professional arm of AAT. In addition we have received support from the following employers: Futures for Children North Yorkshire County Council Hampshire County Council Birch Cooper Complete Bookkeeping Further information on the qualification, and supporting statements, can be found here. 3

4 The qualification at a glance What you ll learn The Diploma in Accounting and Business is made up of ten mandatory units, assessed by a mixture of computer based tests (CBT) and projects (CBP). Competency in all ten units is required for award and certification of the Diploma in Accounting and Business. Qualification number: Unit Unit title Level GLH 1 Processing bookkeeping transactions Control accounts, journals and the banking system Basic costing Work effectively in accounting and finance Computerised accounting Applied business communications and personal skills Spreadsheet software Developing study skills Introduction to payroll systems Computerised payroll skills Total QCF credit Assessment method CBT Ten tasks CBT 12 tasks CBT 17 tasks CBT 11 tasks CBP CBP CBP CBP CBT 1.5 hours CBP Assessment strategy CBT Students will normally be assessed by computer-based assessment and will be required to respond to CBT tasks in a variety of ways, for example using multiple choice, true/false, drag and drop, pick lists, text select, linking boxes, gapfill tools and AAT purpose built question types to reflect real workplace activities. CBP Assessment of this unit is via a computer based project, or workplace evidence, both of which are locally assessed by the training provider. AAT s assessment will be based on a business organisation and comprise a series of tasks. Assessment summary Achievement at reflects the ability to select and use relevant knowledge, ideas, skills and procedures to complete well-defined tasks and address straightforward problems. It includes taking responsibility for completing tasks and procedures and exercising autonomy and judgement subject to overall direction or guidance. 4

5 Knowledge and understanding Use understanding of facts, procedures and ideas to complete well-defined tasks and address straightforward problems Interpret relevant information and ideas Be aware of the types of information that are relevant to the area of study or work Application and action Complete well-defined, generally routine tasks and address straightforward problems Select and use relevant skills and procedures Identify, gather and use relevant information to inform actions Identify how effective actions have been Autonomy and accountability Take responsibility for completing tasks and procedures Exercise autonomy and judgement subject to overall direction or guidance GLH 45 Credit value 9 1 Understand the principles of processing financial transactions 2 Understand the double entry bookkeeping system Processing bookkeeping transactions D/504/ Outline the purpose and content of these business documents: petty cash voucher invoice credit note remittance advice statement of account. 1.2 Explain the purpose and content of the books of prime entry. 1.3 List the ways in which customers may pay an organisation and an organisation may pay its suppliers 2.1 Explain the accounting equation and how it relates to a double entry bookkeeping system. 2.2 Outline how the books of prime entry integrate with the double entry bookkeeping system. 2.3 Describe the function of a coding system within a double entry bookkeeping system. 2.4 Describe the processing of financial transactions from the books of prime entry into the double entry bookkeeping system. 2.5 Define capital income and capital expenditure. 2.6 Define revenue income and revenue expenditure. 3 Understand discounts 3.1 Explain the difference between settlement, trade and bulk discount. 3.2 Describe the effect that settlement discount has on the sales tax (VAT) charged. 5

6 4 Prepare and process financial documentation for customers 5 Process supplier invoices and credit notes and calculate payments 4.1 Use source documents to prepare invoices or credit notes 4.2 Calculate invoice or credit note amounts reflecting any: trade discount bulk discount settlement discount sales tax 4.3 Enter sales invoices and credit notes into books of prime entry using suitable codes 4.4 Check the accuracy of receipts from customers against relevant supporting documentation 4.5 Produce statements of account to send to credit customers 5.1 Check accuracy of supplier invoices and credit notes against these source documents: purchase orders goods received notes delivery notes. 5.2 Enter supplier invoices and credit notes into books of prime entry using suitable codes. 5.3 Reconcile supplier statements to purchase ledger accounts. 5.4 Calculate payments due to suppliers. 6 Maintain the cash book 6.1 Enter receipts and payment details from relevant primary records into a three column analysed cashbook. 6.2 Total and balance the cashbook. 7 Maintain petty cash records 7.1 Enter petty cash transactions into an analysed petty cash book, accounting for tax where appropriate. 8 Process ledger transactions and extract a trial balance 7.2 Total and balance the petty cash book. 7.3 Reconcile the petty cash book with the cash in hand. 7.4 Enter the reimbursement of the petty cash expenditure in the petty cash book using the imprest system. 8.1 Transfer data from the books of prime entry to the ledgers. 8.2 Total and balance ledger accounts, clearly showing balances carried down and brought down. 8.3 Extract an initial trial balance. Learners will be able to understand the double entry bookkeeping system and associated processes. Learners will be able to process financial documents into books of prime entry and ledger accounts, and produce an initial trial balance. 6

7 GLH 40 Credit value 8 1 Understand the purpose and use of control accounts and journals 2 Maintain and use control accounts Control accounts, journals and the banking system H/504/ Describe the general purpose of control accounts. 1.2 Describe the specific purpose of the following control accounts: sales ledger purchase ledger tax (VAT). 1.3 Explain the importance of reconciling the sales and purchase ledger control accounts regularly. 1.4 Describe the purpose of an aged trade receivables analysis. 1.5 Explain the need to deal with discrepancies quickly and professionally. 1.6 Describe the reasons for maintaining the journal. 1.7 Explain the content and format of the journal. 1.8 Identify errors that are corrected through the journal. 2.1 Prepare these control accounts: sales ledger purchases ledger tax (VAT). 2.2 Reconcile sales and purchase ledger control accounts with the relevant ledgers. 2.3 Verify the balance on the tax control account. 3 Maintain and use the journal 3.1 Create journal entries to record these transactions: a new set of double entry bookkeeping records an irrecoverable debt written off wages and salaries. 4 Reconcile a bank statement with the cash book 3.2 Create journal entries to correct errors not disclosed by the trial balance. 3.3 Create journal entries to open a suspense account to balance the trial balance. 3.4 Create journal entries to correct errors disclosed by the trial balance and to clear the suspense account. 3.5 Record journal entries in the ledger accounts. 3.6 Redraft the trial balance following adjustments. 4.1 Identify differences between individual items on the bank statement and in the cashbook. 4.2 Update the cashbook from the bank statement. 4.3 Prepare a bank reconciliation statement. 7

8 5 Process supplier invoices and credit notes and calculate payments 6 Understand retention and storage requirements relating to banking documents 5.1 Identify the main services offered by banks and building societies. 5.2 Explain when funds banked are cleared and available for use. 5.3 Identify other forms of payment: cash cheques credit cards debit cards automated payments. 5.4 Identify the information required to ensure the following payments are valid: cheque credit card debit card. 5.5 Describe procedures to ensure the security of receipts and payments. 5.6 Describe the effect that different forms of payment will have on an organisation s bank balance. 6.1 Explain the importance of a formal document retention policy for an organisation. 6.2 Identify the different types of documents that should be stored securely. Learners will be able to maintain the journal and control accounts, reconcile balances and make corrections, and redraft the trial balance. They will also understand the banking system. GLH 60 Credit value 8 1 Understand the cost recording system within an organisation 2 Be able to use the cost recording system to record or extract data Basic costing L/504/ Explain the nature of an organisation s business transactions in relation to its accounting systems. 1.2 Explain the purpose and structure of a costing system within an organisation. 1.3 Identify the relationship between the costing and accounting systems within an organisation. 1.4 Identify sources of income and expenditure information for historic, current and forecast periods. 1.5 Identify types of cost, profit and investment centres. 2.1 Explain how materials, labour and expenses are classified and recorded. 2.2 Explain different methods of coding data. 2.3 Classify and code cost information for materials, labour and expenses. 8

9 3 Be able to use spreadsheets to provide information on actual and budgeted income and expenditure 2.4 Classify different types of inventory as: raw materials part-finished goods (work in progress) finished goods. 2.5 Calculate inventory valuations and issues of inventory using these methods: first in first out (FIFO) last in first out (LIFO) weighted average. 2.6 Use these methods to calculate payments for labour: time rate piecework rate bonuses. 2.7 Explain the nature of expenses and distinguish between fixed, variable and semi-variable overheads. 2.8 Calculate the direct cost of a product or service. 3.1 Enter income and expenditure data into a spreadsheet. 3.2 Explain how spreadsheets can be used to present information on income and expenditure and to facilitate internal reporting. 3.3 Enter budgeted and actual data on income and expenditure into a spreadsheet to provide a comparison of the results and identify differences. 3.4 Use basic spreadsheet functions and formulas. 3.5 Format the spreadsheet to present data in a clear and unambiguous manner and in accordance with organisational requirements Learners will be able to use cost recording systems to prepare information relating to the income and expenditure of an organisation. They will be able to make comparisons and identify differences between actual and expected figures, and communicate their findings using spreadsheets. GLH 40 Credit value 5 1 Understand the accounting or payroll function within an organisation Work effectively in accounting and finance Y/504/ Explain the role of accountancy or payroll functions within an organisation. 1.2 Identify the contribution of those in accounting or payroll functions to maintaining the smooth running, solvency and legal compliance of an organisation. 1.3 Identify appropriate reporting lines within the working environment. 1.4 Identify organisational policies or procedures that affect the workplace. 9

10 2 Be able to use a range of communication skills 3 Work independently or as part of a team 4 Develop skills and knowledge to meet personal and organisational needs 5 Understand ethical values and principles 6 Understand sustainable values 2.1 Prepare information using effective numeracy and literacy skills. 2.2 Present information in these formats using organisational house styles/guidelines: business report letter or memo. 3.1 Manage work to prioritise routine and non-routine tasks. 3.2 Identify the impact that the completion or non-completion of work can have on colleagues. 3.3 Explain how dissatisfaction can occur within a team and when it is appropriate to refer to a manager. 4.1 Explain the importance of continuing professional development. 4.2 Identify appropriate activities to meet development needs and objectives. 5.1 Identify the fundamental principles of ethical behaviour. 5.2 Explain the importance of confidentiality. 5.3 Identify situations when a conflict of interest may arise. 6.1 Identify organisational initiatives which support sustainability. 6.2 Explain the benefits of sustainable initiatives on an organisation and the environment. Learners will be able to apply the skills of literacy and numeracy in their work and gain skills of self-management and time management. Learners will also gain an appreciation of ethical issues and sustainability. GLH 25 Credit value 4 1 Enter accounting data at the beginning of an accounting period 2 Record customer transactions 3 Record supplier transactions Computerised accounting R/504/ Set up general ledger accounts, entering opening balances where appropriate. 1.2 Set up customer accounts, entering opening balances where appropriate. 1.3 Set up supplier accounts, entering opening balances where appropriate. 2.1 Process sales invoices and credit notes, accounting for VAT. 2.2 Allocate monies received from customers in partial or full payment of invoices and balances. 3.1 Process purchase invoices and credit notes, accounting for VAT. 3.2 Allocate monies paid to suppliers in full or partial settlement of invoices and balances. 10

11 4 Record and reconcile bank and cash transactions 5 Be able to use journals to enter accounting transactions 4.1 Process receipts and payments for non-credit transactions. 4.2 Process recurring receipts and payments. 4.3 Process petty cash receipts and payments, accounting for VAT. 4.4 Perform a periodic bank reconciliation. 5.1 Process journals for accounting transactions. 5.2 Use the journal to correct errors. 6 Produce reports 6.1 Produce these routine reports for customers and suppliers: day books account activity aged analysis statements or remittance advice notes. 7 Maintain the safety and security of data held in the computerised accounting system 6.2 Produce these routine reports from the general ledger: trial balance audit trail account activity. 7.1 Make a copy of accounting data using the backup function of the accounting software. 7.2 Use a software password to protect accounting information. Learners will be able to use a computerised accounting system to enter accounting transactions, perform a reconciliation, correct errors and produce a range of reports. They will also be able to maintain the security of accounting information using passwords and backup routines. GLH 15 Credit value 7 1 Understand how to communicate in own business environment. 2 Understand how to evaluate own business communications and skills. Applied business communications and personal skills Y/504/ Explain own use and organisational practice or policy (if formalised) for the following forms of communication: a) business greetings b) telephone communications c) letter writing d) business s e) record keeping f) business meetings. 2.1 Identify own strengths and weaknesses in relation to business communications and personal skills, including consideration of: a) organisation of time b) initiative c) commitment d) perseverance e) ability to embrace change and respond positively to new priorities. 2.2 Work with another to establish with criteria for success, realistic short and long-term goals in relation to communication and personal skills. 11

12 3 Be able to apply effective communication and personal skills in the business environment. 2.3 Use evidence from personal involvement in an issue which results in resolution to demonstrate effective communication and personal skills. 3.1 Demonstrate effective team work over a period of at least a month in work using evidence of: a) contribution to discussions b) changes in approach to suit different roles and situations c) identification of strategies which facilitated agreement and achieved results. Learners will be able to understand and demonstrate how to evaluate and apply effective communication and personal skills in their own business environment. GLH 30 Credit value 4 1 Use a spreadsheet to enter, edit and organise numerical and other data 2 Select and use appropriate formulas and data analysis tools to meet requirements 3 Select and use tools and techniques to present and format spreadsheet information Spreadsheet software F/502/ Identify what numerical and other information is needed in the spreadsheet and how it should be structured. 1.2 Enter and edit numerical and other data accurately. 1.3 Combine and link data across worksheets. 1.4 Store and retrieve spreadsheet files effectively, in line with local guidelines and conventions where available. 2.1 Identify which tools and techniques to use to analyse and manipulate data to meet requirements. 2.2 Select and use a range of appropriate functions and formulas to meet calculation requirements. 2.3 Use a range of tools and techniques to analyse and manipulate data to meet requirements. 3.1 Plan how to present and format spreadsheet information effectively to meet needs. 3.2 Select and use appropriate tools and techniques to format spreadsheet cells, rows, columns and worksheets. 3.3 Select and format an appropriate chart or graph type to display selected information. 3.4 Select and use appropriate page layout to present and print spreadsheet information. 3.5 Check information meets needs, using spreadsheet tools and making corrections as necessary. 3.6 Describe how to find errors in spreadsheet formulas. 3.7 Respond appropriately to any problems with spreadsheets. Learners will be able to use a spreadsheet to record data in rows and columns, perform calculations with numerical data and present information, using a range of tools and techniques. 12

13 GLH 24 Credit value 3 1 Understand how to develop personal learning skills 2 Understand and use information 3 Be able to plan, manage and produce work Developing study skills Y/504/ Describe personal learning styles and preferences and how to meet own learning needs. 1.2 Define benefits of: a) active engagement in learning b) working with others. 2.1 Describe how to locate, retrieve and store information. 2.2 Identify and use valid sources of information. 2.3 Select key points of information and reference the sources. 2.4 Use appropriate note making techniques. 3.1 Create and monitor own action plan to complete set work on time. 3.2 Plan and structure the content of a piece of work. 3.3 Describe ways to resolve a problem. 3.4 Choose a suitable method and use it to present content of work. 3.5 Improve work using feedback. Learners will understand how to develop necessary skills to underpin their academic studies and enhance their learning across all subject areas. GLH 11 Credit value 3 1 Know how to use the recognised procedures for payroll systems Introduction to payroll systems Y/502/ Identify the types of information that must be kept for each employee. 1.2 Describe own organisation s signatories and authorisations procedures. 1.3 Define positive and negative payroll systems. 1.4 Outline payroll procedures for leavers. 1.5 Outline payroll procedures for starters. 1.6 State the importance of maintaining confidentiality and security of employee information. 13

14 2 Know how to ascertain gross pay 3 Know how to calculate net pay 2.1 State the importance of maintaining confidentiality and security of employee information. 2.2 Identify statutory pay entitlements. 2.3 Use a timesheet to calculate an employee s gross pay, taking into account overtime rates where necessary. 2.4 Undertake the necessary steps to calculate basic pay. 3.1 Describe how to operate a pay as you earn system for employees. 3.2 Calculate national insurance contribution for an employee. 3.3 Identify different types of payment contributions, including give as you earn. 3.4 Explain how to calculate tax refunds for new employees. 3.5 State which items must be included within a payslip. 3.6 Identify different payment methods. 3.7 Check net pay totals to ensure that all applicable allowances and deductions have been made. Learners will be able to understand payroll processes by developing their knowledge of payroll procedures, including the skills involved in performing routine and some non-routine payroll tasks. Learners will be able to understand the importance of accuracy and security in performing any payroll tasks. GLH 25 Credit value 4 1 Be able to process information on starters, leavers and changes to current employees Computerised payroll skills Y/505/ Set up and maintain company information. 1.2 Create a record for a new employee, producing reports as necessary. 1.3 Complete the records for a leaver producing reports as necessary. 1.4 Update records for all PAYE, NIC parameters and rates, and statutory payments in accordance with instructions, including: tax codes national insurance rates attachment of earnings non-statutory deductions pay rates overtime rates advanced holiday pay net payments. 14

15 2 Be able to process payroll accurately on a pay period basis 3 Be able to back up and update systems when required 2.1 Update all employee records prior to the payroll being run 2.2 Input all necessary authorised data including: pay overtime bonuses expenses pre-tax and post-tax voluntary deductions. 2.3 Run the payroll, in accordance with organisational timescales, checking results conform to expected limits. 2.4 Produce reports to include payslips and payment summaries and ensure they are accurate and complete. 2.5 Run internal period end returns, with required report runs, in accordance with all relevant timescales. 3.1 Make a permanent back-up and store this safely according to organisational guidelines. 3.2 Restore previous period data, from back-up. Learners will be able to accurately record information and process payroll. Learners will understand the importance of maintaining accuracy, security and data integrity in performing any payroll tasks within a computerised payroll system, using commercially available computerised payroll software. 15