Student Workbook BSBFIA303 Process accounts payable and receivable 1 st Edition 2015 Part of a suite of support materials for the BSB Business Services Training Package
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Table of Contents Getting Started...1 About the unit...1 Structure of the training program...1 Recommended software...2 About Tiger Enterprises...2 Your Business Success...3 A note on websites...3 Introduction...4 Fundamentals of the accounting system...4 Double-entry bookkeeping...6 The accounting roadmap... 10 Cash and accrual accounting... 11 Introducing MYOB... 13 Section 1 Maintain Financial Journals... 22 What skills will you need?... 23 Source documents... 23 The journal system... 31 Cash journals... 35 Cash payments journal... 46 Sales Journal... 54 Purchases Journal... 60 Returns and allowances journals... 64 Organisational policies and procedures... 70 Legislative requirements... 73 Section summary... 82 Further reading... 83 Section checklist... 83 Section 2 General Ledger Basics... 84 What skills will you need?... 85 The General Ledger... 85 Chart of accounts... 86 Posting from the General Journal to the General Ledger... 88 Posting from specialised journals to the General Ledger... 90 Section summary... 100 Further reading... 101 Section checklist... 101 BSBFIA303 Process accounts payable and receivable 1 st edition version: 1
Section 3 Preparing Bank Reconciliations... 102 What skills will you need?... 102 The importance of reconciling... 103 Bank reconciliations... 103 Discrepancies... 106 Bank reconciliation in MYOB... 118 Section summary... 123 Further reading... 123 Section checklist... 123 Section 4 Maintaining Accounts Payable and Accounts Receivable... 124 What skills will you need?... 125 Subsidiary ledgers... 125 The Accounts Receivable subsidiary ledger... 127 Accounts Receivable subsidiary ledger in MYOB... 135 The Accounts Payable subsidiary ledger... 141 Reconciling accounts payable and receivable... 145 Section summary... 154 Further reading... 154 Section checklist... 154 Section 5 Processing Payments for Accounts Payable... 155 What skills will you need?... 156 Checking documents for errors and discrepancies... 156 Authorising payments to creditors... 157 Aged payables schedule... 158 Aged Payables in MYOB... 160 Remitting the payment... 160 Section summary... 162 Further reading... 163 Section checklist... 163 Section 6 Preparing Statements for Accounts Receivable... 164 What skills will you need?... 164 Checking accounts receivable details... 165 Receiving payments from debtors... 166 Discrepancies... 168 Producing receipts for debtors... 169 Section summary... 170 Further reading... 170 Section checklist... 170 1 st edition version: 1 BSBFIA303 Process accounts payable and receivable
Section 7 Follow up Outstanding Accounts... 171 What skills will you need?... 172 Aged receivables report... 172 Aged receivables reports in MYOB... 173 Collecting outstanding accounts receivable... 177 Section summary... 180 Section checklist... 180 Glossary... 181 Appendices... 184 Appendix 1: Answers to Introduction and Section 1 learning activities... 184 Appendix 2: Answers to Section 2 learning activities... 194 Appendix 3: Answers to Section 3 learning activities... 199 Appendix 4: Answers to Section 4 learning activities... 203 Appendix 5: Answers to Section 5 learning activities... 213 Appendix 6: Answers to Section 7 learning activities... 214 Appendix 7: Answers to MYOB activities... 216 BSBFIA303 Process accounts payable and receivable 1 st edition version: 1
Student Workbook Getting Started Getting Started About the unit This unit is for learners who are currently employed or working towards employment in an administrative support role working with the accounts payable/receivable function. The skills and knowledge gained in this unit are useful for many industry sectors including business and administration; finance; small, medium and large enterprises; private and/or public sector. Learners may work as individuals providing administrative support within an enterprise, or may be other members of staff with delegated responsibilities relating to maintaining the accounts payable and receivable function. Learners will acquire the skills and knowledge required to maintain accounts payable and receivable records, including processing payments to creditors and handling overdue accounts receivable. An understanding of the relevance of compliance and legislative requirements as they relate to accounts payable and receivable and the timely provision of information will be included. Systems may include computerised or manual systems. This workbook utilises a manual system. The skills gained in this workbook will easily transfer to a computerised system. The workbook has been designed to follow Tiger Enterprises and learners will throughout their studies, process the business s accounts payable and receivable. Structure of the training program This training program introduces you to processing accounts payable and receivable within a business or enterprise. Specifically, you will develop the skills and knowledge in the following topic areas: 1. Introduction to the unit 2. Accounting system fundamentals 3. Maintaining financial journal systems 4. General ledger basics 5. Preparing bank reconciliations 6. Maintaining accounts payable and receivable 7. Processing payments for accounts payable and receivable 8. Follow up outstanding accounts. Your facilitator may choose to combine or split sessions. For example, in some cases, this training program may be delivered in two or three sessions, or in others, as many as eight sessions. As with all industries, accounting has its own language. The workbook uses this language to familiarise you with accounting terminology. Throughout the workbook, terms are explained to simplify this process for you. In addition, a glossary of terms at the back of the workbook has an area of space to encourage the inclusion of your own thoughts. BSBFIA303 Process accounts payable and receivable 1 st edition version: 1 Page 1 of 226
Getting Started Student Workbook Recommended software In the course of completing this Workbook and the activities contained within, we will examine both the manual system of maintaining a General Ledger, as well as an electronic system through the use of MYOB. This will help ensure that you have the necessary knowledge of how the accounting process is applied to processing accounts payable and receivable, as well as the skills to use current software in order to maintain financial reports. If you don t have a current version of MYOB to work with, you can download a trial version of the software from the MYOB website at <http://www.myob.com.au>. These versions are fully featured, but create files that are only able to be edited for 90 days from the date the file was initially created. The trial package most suitable to the content of this unit is MYOB AccountRight Standard, AccountRight Plus, AccountRight Premier or AccountRight Enterprise. Many of the MYOB activities in this Workbook will be modelled within the sample company Clearwater, provided within current versions of MYOB if you are familiar with MYOB, you can create your own company file to edit and practice your skills. About Tiger Enterprises As previously mentioned, throughout the Student Workbook we will be examining a fictitious business called Tiger Enterprises. Tiger Enterprises is a medium-sized mechanics business established in 1988 that has a range of clients from individual clients to other small businesses in the neighbourhood. Tiger Enterprises began as a family business with father (James) and son (Patrick) having worked together for over two decades. They are excellent mechanics, but it is fair to say that they don t enjoy paperwork. They have a part time office manager/financial controller, Michelle, who runs the administrative side of the business. She is flexible and adaptable and has been with the business for almost twenty years. Her experience with the business gives her confidence with the ever-changing regulatory and administrative side of the business. On the days Michelle is not in the office, the mechanics are taken away from their duties in order to cover hers. If the accounting system was not user friendly, correctly set up and regularly monitored, there would be chaos when she returned. The business has an internal accountant and an external auditor who is provided with a copy of the accounting system file and all the relevant backup documentation to support her figures. The accounting system is the key to support the business framework and accurate information provides the necessary evidence to inform decision-making by the owners. 1 st edition version: 1 BSBFIA303 Process accounts payable and receivable Page 2 of 226
Student Workbook Getting Started Your Business Success Innovation & Business Skills Australia has licensed the use of over 200 video vignettes from the Channel 9 television program, Your Business Success. The videos have been carefully selected and embedded into relevant learning and assessment resources in order to assist education providers and students in the learning process. Each video is accompanied by a learning activity. Videos can be found on IBSA s YouTube channel at <http://www.youtube.com/ibsachannel>. A note on websites Please note that any URLs contained in the recommended reading, learning content and learning activities of this publication were checked for currency during the production process. Note, however, that IBSA cannot vouch for the ongoing currency of URLs. Every endeavour has been made to provide a full reference for all web links. Where URLs are not current we recommend using the reference information provided to search for the source in your chosen search engine. BSBFIA303 Process accounts payable and receivable 1 st edition version: 1 Page 3 of 226
Introduction Student Workbook Introduction Fundamentals of the accounting system To begin with, let s have a look at a few key accounting terms that we will be using throughout this workbook. These terms will be mentioned frequently throughout the book and we will be covering these terms in greater detail as you progress further through this workbook. For further definitions, see the glossary in the back of this workbook. Key accounting terms Accounts Assets Chart of Accounts Creditors Current Assets Debtor s Control Debtors Double-entry Bookkeeping Equity See Chart of Accounts. Things of monetary value that a business owns, benefits from, or has use of and which have the potential to earn future income for the business. They may be physical items (like cash, equipment and property), a legal claim against others (like monies owed to the business from debtors) or certain intellectual property rights (like patents and trademarks). See also Current Assets and Non-current Assets. An index which lists all of the ledger accounts used by an organisation and their identification codes. Entities a business owes money to for goods or services taken and not yet paid for (legally enforceable agreement to pay for goods at a later date). Cash or other assets that would be used in the normal course of business that can be converted into cash within the current or upcoming financial year. The total amount of all debtor accounts owed to the business by debtors. The parties that have received goods or services from your business and not yet paid for them (legally enforceable agreement to pay for goods at a later date). An accounting method to balance the business books. It is a method that records each transaction as both a debit and a credit in different accounts. Also known as owners equity or net worth, it is simply the owner s right to the assets of the business. It is what would be left over if a business or organisation sold all their assets and paid off all their liabilities. Owners equity is made up of the investments made by the owners and is increased by profits from the business and decreased by owners withdrawing their equity via drawings (personal takings) or dividends (payments to shareholders). 1 st edition version: 1 BSBFIA303 Process accounts payable and receivable Page 4 of 226
Student Workbook Introduction Expenses Financial Statement Financial Year General Ledger Journal Liabilities Non-current Assets (Fixed Assets) Reconciliation Revenue Source Documents Stakeholder Transaction Trial Balance Those assets and supplies that have been consumed in the earning of income or incurred in order to earn income. Examples include the cost of goods sold, supplies used, electricity, wages and rent. An official record of the financial activities of a business, person, or other entity for a specific point in time (an indication of how a business is performing). An accounting period for budgeting and taxation purposes. In Australia the financial year runs from 1 July to 30 June. Many companies use the same period for their financial year, although this is not compulsory. The main book of accounts where transactions of a business are recorded in terms of debit and credit. Journals serve as financial records where all transactions are recorded and organised by date. Journals provide information on the nature of the transaction and the accounts that are affected by them. The legal obligations of a business in relation to the money it owes to others. These include monies owed to suppliers, loan funders and bills that have not yet been paid (e.g. Income Tax payable). Assets that a business owns and that are not expected to be converted to cash in the current or upcoming financial year. An example would be furniture or office equipment. Reconciliation is a procedure conducted by the business to ensure that the business records (journals, General Ledger, accounts, balance sheet, etc.) are correct and that the bank s records are also correct. Payment from others (e.g. customers) for goods and services that have been provided by the business. Revenue is typically generated by the sale of merchandise or the provision of services. Any piece of information that gives evidence that a transaction has occurred (a receipt, cheque stub, invoice, etc.). Somebody that has a direct or indirect interest in an organisation because they can be affected by the organisation's actions, objectives, and policies. Stakeholders can include creditors, customers, directors, employees, government, owners (shareholders), suppliers, unions, and even the wider community. The event between two parties where there is an exchange of items of value, such as information, goods, services or money. A draft listing (trial run) of the position of all accounts from the General Ledger that determines whether the total debits equal the total credits. BSBFIA303 Process accounts payable and receivable 1 st edition version: 1 Page 5 of 226
Introduction Student Workbook The concept of accounting is that any business needs to account for their transactions within that business. The way accounting information is put together based on those transactions will give information to stakeholders of that business. There are so many procedures and processes that go into accounting for a business that, without policies and standard operating procedures, there would be no consistency. Many stakeholders have different motivations, yet all rely on the same set of information which must be accurate and compliant with legislation, regulation, standards, industry guidelines and accepted business practice. As an assistant within an accounting environment, you will learn to appreciate the different hats you wear to juggle what can sometimes be conflicting requirements. Double-entry bookkeeping Double-entry bookkeeping is fundamental to recording and reporting on the financial affairs of an organisation. The basic principle of double-entry bookkeeping is that every transaction that an organisation records affects/changes a minimum of two accounts. The way that each transaction changes the accounts is classified as either a debit or a credit depending on the nature of the account and whether its value is increased or decreased by the transaction. Double-entry bookkeeping is a closed accounting system where the inflow and outflow of money can be accounted for internally. When successfully implemented, double-entry bookkeeping allows organisations to track the movement of financial assets because both sides of the transaction (the debit and the credit) have been recorded. The total amount debited (to one or more accounts) must equal the total amount credited (to one or more accounts). Every debit must have a corresponding credit and vice versa. Debits Credits The most straightforward transaction that demonstrates debits and credits within a closed accounting system is the transfer of funds from one bank account to another. The account that contained the funds is debited and the account that the funds are destined for is credited. One increases in value by exactly the same amount that the other decreases by. Most transactions are more complicated than the example provided above and many involve several accounts. Despite the complexity of the transaction, every credit is balanced by and equal and opposite debit and vice versa. The number and the type of accounts that an organisation uses will vary greatly from organisation to organisation, however all accounts fall into five broad account groups. These account groups are detailed in the table below. 1 st edition version: 1 BSBFIA303 Process accounts payable and receivable Page 6 of 226
Student Workbook Introduction Definitions Assets Liabilities Equity Revenue Things of monetary value that a business owns, benefits from, or has use of and which have the potential to earn future income for the business. They may be physical items (like cash, equipment and property), a legal claim against others (like monies owed to the business from debtors) or certain intellectual property rights (like patents and trademarks). The legal obligations of a business in relation to the money it owes to others. These include monies owed to suppliers, loan funders and bills that have not yet been paid (e.g. Income Tax payable). As a rule, if an account name includes the descriptor payable, then it contains liability. Also known as owners equity or net worth, it is simply the owner s right to the assets of the business. It is what would be left over if a business or organisation sold all the assets and paid off all the liabilities. Owners equity is made up of the investments made by the owners and is increased by profits from the business and decreased by owners withdrawing their equity via drawings (personal takings) or dividends (payments to shareholders). The payment by others for goods and services that have been provided by the business. Revenue is typically generated by the sale of merchandise or the provision of services. Expenses Those assets and supplies that have been consumed in the earning of income or incurred in order to earn income. Examples include the cost of goods sold, supplies used, electricity, wages and rent. Learning activity: Five account groups Based on the definitions provided of the five account groups, review the following list and identify which accounting elements belong to which account group. Accounts payable Petty cash Dividends paid Capital investment Inventory/stock Cost of sales Telephone Asset Liability Equity Revenue Expense Suggested answers for this learning activity can be found in Appendix 1. BSBFIA303 Process accounts payable and receivable 1 st edition version: 1 Page 7 of 226
Introduction Student Workbook The nature of each account group can be classified as either debit or credit. The way the account changes (whether it increases or decreases in value) when it is credited or debited will depend on its classification. This can be confusing at first because, depending on their classification, accounts do not behave in the same way. This confusion is further complicated by the use of the terms creditor and debtor. Creditors are people or businesses that an organisation owes money to. Typically, creditors are suppliers who provide goods and services to the accounting entity. They are called creditors because we credit their account when we record the money owed to them. Because creditors are people or businesses that an organisation must pay, their records are referred to in the accounting process as the accounts payable. Debtors are people or businesses that owe money to the organisation. Typically these are the customers who purchase goods and services from the organisation. They are called debtors because we debit their account when we record the money they owe. As debtors are people or businesses that an organisation expects to receive money from, their records are referred to in the accounting process as the accounts receivable. Two tables explaining the behaviour of each account group have been included below. The tables contain the same information organised in different ways, in order to avoid confusion you should use whichever makes the most sense to you. Account group Nature of the account Increase in value Assets Debit Debit Credit Liabilities Credit Credit Debit Owners equity Credit Credit Debit Revenue Credit Credit Debit Expenses Debit Debit Credit Debit Increase in expense accounts Increase in asset accounts Credit Decrease in value Decrease in expense accounts Decrease in equity accounts Decrease in revenue accounts Decrease in liability accounts Decrease in asset accounts Increase in equity accounts Increase in revenue accounts Increase in liability accounts There are three important steps to take when analysing the nature of a transaction 1. Determine which accounts are affected by the transaction (there always at least two). 2. Determine which of the five account groups the accounts affected belong to. 3. Determine whether the accounts involved need to be debited or credited. 1 st edition version: 1 BSBFIA303 Process accounts payable and receivable Page 8 of 226
Student Workbook Introduction A key question to consider when approaching the third step is whether an account balance has increased or decreased as a result of the financial transaction. As you start out, you will find the account classification tables above very useful. As you gain experience and become more confident, you will begin to know instinctively whether accounts are being debited or credited. An important element of the accounting system is the relationship between assets, liabilities and capital/owners equity. This relationship is represented in the accounting equation as follows. Owners' equity What we own (assets) is a measure of what we owe (liabilities), and the owners equity is whatever is left over. YouTube videos: Debits and credits Watch the following two video clips hosted on YouTube that explain debits and credits. bigbeancounter, lecture 3:debits and credits, YouTube, viewed July 2015, <http://www.youtube.com/watch?v=99ltqkxzbpa> StudentsKnow, Trick to remember debits and credits, YouTube, viewed July 2015, <http://www.youtube.com/watch?v=onq8afjxjro&feature=related> Make note of any information that you think may assist you in the future. Learning activity: Matching transactions Assets Liabilities From the list of account activity below, circle whether they correspond to debits or credits. Increase in bank account Debit Credit Increase in loan taken out Debit Credit Decrease in computers held Debit Credit Increase in interest revenue Debit Credit Increase in trading stock Debit Credit Decrease in owners equity Debit Credit Increase in accounts payable/creditors Debit Credit Decrease in accounts receivable Debit Credit BSBFIA303 Process accounts payable and receivable 1 st edition version: 1 Page 9 of 226
Introduction Student Workbook Suggested answers for this learning activity can be found in Appendix 1. The accounting roadmap The concept of accounting dictates that all businesses, regardless of their size and function, need to account for their transactions and are accountable for whether or not those transactions balance. The accounting process serves many purposes, depending on the way the organisation is structured. It is an internal control for the distribution and movement of funds between accounts, the payment of employees and creditors, and the accurate and timely reporting of accounting information to stakeholders. The process also exists to meet the requirements of external stakeholders including government agencies, regulators and shareholders. An organisation s financial activity is communicated through routine reporting, both internal and external. The way accounting data is compiled will largely dictate the efficacy, efficiency and relevance of the financial reports produced. The process of routine reporting is illustrated by the accounting roadmap below. 1a. Transaction 7. Follow-up Outstanding Accounts 1b. Source Documents 6. Process Accounts Payable and Receivable 2. Journal Entries 5. Maintain Accounts Payable and Receivable 3. Posting to Ledger 4. Reconciliation In a computerised system the minute the transaction is entered in the software, all related accounts are immediately updated. In a manual system, the accounting process involves observing routine actions where the information from one ledger or journal is posted to the next in order to produce financial reports. This routine is illustrated in the accounting cycle diagram above and broken down in the steps below. If we start at the transaction phase of the accounting roadmap above, we can see that completing a transaction results in a source document being created (such as a receipt or invoice). The information from the source document is then entered into the relevant accounting journal. A journal captures details of financial transactions in date and time order. Ledgers break/distribute all the details in the journal entries into their account types, as determined by the chart of accounts. Reconciling journal entries involves comparing journal balances and individual journal entries with other financial records, most commonly bank statements. This process ensures that the journals are a true and accurate reflection of the monies that were actually received or paid. 1 st edition version: 1 BSBFIA303 Process accounts payable and receivable Page 10 of 226
Student Workbook Introduction Maintaining accounts payable and receivable ensures that debtor and creditor accounts are updated to reflect current activity/transactions. Processing accounts payable and receivable involves processing outgoing payments of creditor accounts and incoming payments of debtor accounts. Following-up outstanding accounts involves monitoring accounts payable and receivable to ensure that they are paid on according to the credit terms on which they were established. This process is repeated for each reporting period and this is why it is known as the accounting cycle. In double-entry bookkeeping, a credit is an entry on the right hand side of the accounting record and a debit is an entry on the left-hand side of an account record. An accounting record is the physical/material evidence of the presence of a transaction (an invoice, a journal entry, a ledger posting, a bank statement, a Trial Balance etc.). Each of these accounting records will be examined in great length throughout this unit. They form the accounting cycle where financial data is monitored and maintained by systematically posting from one to the next and so on. Cash and accrual accounting There are two approaches that a business in Australia can adopt when recording transactions and producing financial reports. These are called cash and accrual accounting. Cash accounting only recognises, records and processes a financial transaction when cash is actually received or paid. Accrual accounting recognises, records and processes a financial transaction when the transaction actually occurs regardless of when it is to be paid. A simple example of this difference would be a plumber doing work on a project that finishes in the last week of the July. The plumber issues the client with the invoice for $1,000 in July but does not receive payment until August. Under the cash accounting system, the money becomes income for the plumber in August, whereas under the accrual accounting system the income was really earned in July because that is when the client became legally responsible for payment for the work. While the upside of the cash accounting process is simplicity, the down side is that the financial statements would not give a true picture of the financial position or performance of the business at a particular point in time. Accrual accounting is an accounting process designed to more accurately reflect the true nature of a business position and performance. In accrual accounting a financial transaction is created and recorded as it happens and is not dependant on whether the cash was received or paid. Learning activity: Cash or accrual? Look at the following treatments of transactions in the last month of an accounting period (June) and determine if it is being recorded on a cash or accrual basis. Suggested answers for this learning activity can be found in Appendix 1. BSBFIA303 Process accounts payable and receivable 1 st edition version: 1 Page 11 of 226
Introduction Student Workbook Transaction history Cash or accrual? It was discovered that a payment was made in June for an advertising campaign that ran for three months. The accountant only recorded one month s value in the financial statements ended June. Money was paid by a client in June for work that was not going to start until August. The accountant recorded the money as sales in the financial statements ended June. The accounting period ends in June but the quarterly electricity is for the three months, from 1 June to 31 August. The accountant included one month s worth of electricity charges in the financial statements ended June. Benefits of accrual accounting After centuries of accounting practice, accrual accounting has become the standard for reporting a true and fair view of a business financial performance and position. So adopting the accrual accounting method aligns with the accounting standards and with larger corporations. Other benefits for adopting the accrual accounting method include: more accurately reporting the profit of a business for a given period providing a better method for planning expenses, as well as preparing monthly and yearly budgets provides the true value of a business being suited to tracking large volumes of transactions giving a more accurate picture of the organisation's overall financial performance and financial position allowing external stakeholders like banks and creditors to be better informed about the business prospects being more comprehensive and focusing on total resources, not just cash accrual accounting methods allowing for a seamless transition from small to large as the business grows and expands the focus on total resources providing a better and more comprehensive measure of financial performance and facilitates resource allocation. 1 st edition version: 1 BSBFIA303 Process accounts payable and receivable Page 12 of 226
Student Workbook Introduction Introducing MYOB MYOB provides products and services for businesses in areas of accounting and bookkeeping. The products range from entry level accounting software through to multiuser enterprise software. Other products offered by MYOB include retail point of sale (POS) software, asset management, payroll, payment services, practice and tax software and e-commerce solutions. The MYOB software supports Microsoft Windows and Apple Mac OS X operating systems. For accounting practices, MYOB offers system-wide operations systems incorporating client management, document and workflow management and tax and compliance processing systems. Current versions of MYOB, when installed, have a sample company set up that you can explore to learn about some of the functions and capabilities of MYOB. This company is called Clearwater. You can use the Clearwater file to experiment or practice financial data management because it doesn t affect a real-world client if something is accidentally deleted or incorrectly accounted for. When you open your MYOB software you will be presented with options in the Welcome Screen. As you can see, you are presented with options to: 1. Open an existing company file (i.e. the file for your business or your case study business if it already exists). 2. Create a new company file. 3. Explore the sample company, called Clearwater, provided by MYOB. 4. Find out what s new in your current version of MYOB. 5. Exit the program. BSBFIA303 Process accounts payable and receivable 1 st edition version: 1 Page 13 of 226
Introduction Student Workbook Opening a company file or exploring the sample company If you choose to Open a company file or Explore the sample company file, you will be presented with a security screen. Many organisations secure and restrict access to their financial and MYOB files, since they contain significant personal (individual) and private (business) information. You should make sure you understand the security requirements of the organisation you work for often this information is contained in policy and procedure documents for your business. In MYOB, multiple user IDs can be set up, so that individuals other than the Administrator (who has full access to everything) can be granted partial access e.g. an accounts receivable clerk may have access to debtors and creditors, and respective journals, but not access to payments, employee or payroll sections. Tip: For the purposes of enforcing good accounting practices in MYOB, once you open your company file, click on the Setup menu, select Preferences and then choose the Security tab. Tick the option Transactions CAN T be Changed; They Must be Reversed [System-wide]. 1 st edition version: 1 BSBFIA303 Process accounts payable and receivable Page 14 of 226