Preparing for
the IAS examination
Integrated
Accounting Systems
Integrated
Accounting Systems
Integrated
Accounting Systems
•
Regarding Payroll
The following activity is usually required:
1) Restoring the setup Payroll dataset, 2) Creating new Pay elements,
3) Creating a new employee, 4) Adjusting Employee files,
5) Recording Timesheet information for the month at hand, 6) Producing Reports (in PDF),
1) Restoring the setup Payroll dataset:
❑ Login/ password details are provided on the face of the paper.
❑ Use the “Restore” option in the File (NI) or miscellaneous (ROI) menu, ❑ And browse to the location of the downloaded Setup Dataset.
❑ NB: Set the Payroll period.
❑ You do NOT need to adjust/change the company name
2) Creating new Pay elements:
Scan Section A and decide what new pay elements are required. ❑ Payments:
Should be indicated as Taxable (i.e. Subject to Payroll Taxes), (e.g. Holidays, Hourly etc)
Or
as Non-Taxable (i.e. Leave the checkboxes blank) (e.g. Mileage etc).
❑ Deductions:
Should be made from Gross Pay (e.g. Unpaid Leave, Pensions) Or
3) Creating a new Employee:
All employee records will be created manually using provided information. Taxes paid to date might be provided, and might be relevant.
Enter any details provided, don’t worry about anything else. ROI:
You can assume that RPN details have been received. Don’t forget about programming the USC thresholds!
4) Adjusting existing Employee files: Changes to be applied might include e.g.:
❑ Adjustments to Personal details ❑ Changes to Salary Values
❑ New ongoing Payments / Deductions (incl. Pensions) ❑ Etc.
5) Recording Timesheet Information:
❑ Pay close attention to the calculations involved! ❑ Make sure all values are actually calculated / included. ❑ ROI: Adjust PRSI weeks where indicated.
❑ Mark any Leavers within Timesheet entry.
❑ Make sure that all timesheet information, for all employees, has been recorded.
• Workings are not considered or awarded marks, only the reports from the software are considered for grading purposes.
‘Tricky’ items:
❑ (ROI) – Benefit in Kind (particularly Motor Vehicle BIK) • Calculate the Cash Equivalent,
• Deduct any employee contribution, • Then divide by 12.
❑ Pension contributions
• (NI) Edit the Pension Scheme
• (ROI) Make sure ‘Salary’ is ticked for inclusion in the calculations, • Check the payslip.
❑Staff advances
‘Tricky’ items: ❑ Redundancy
• You are told the rules for calculation, • Is a non taxable payment.
❑ Mileage
• (ROI) Check the engine size, • Perform the calculation, • Is a non taxable payment. ❑Car allowances
• Divide the annual value by 12 • Is a Taxable payment
Integrated
Accounting Systems
This is the end of Part 1,
You should now view Part 2.
Disclaimer
Care has been taken to ensure that all data and information
in these lectures is factual and that numerical values are
accurate.
To the best of our knowledge, all information in the these
lectures is accurate at the time of publication.
Accounting Technicians Ireland and its lecturers assume no
responsibility for errors or misinterpretation of the
information contained in these lectures or in their use.
Professional, Practical, Proven
Preparing for
the IAS examination
Integrated
Integrated
Accounting Systems
Welcome Back!
This is the start of Part 2.
Integrated
Accounting Systems
The following activity is often required:
1) Restoring the Setup Accounts dataset 2) Changing the Company Name
3) Posting the Salary Journal 4) Customer Transactions 5) Supplier Transactions
The following activity is often required:
6) Financing (Lease / Loan)
7) Petty Cash – Expenditure/Restore 8) Bank Activity
9) Bank Reconciliation 10)Period End Adjustments 11)Reporting
1) Restoring the Setup Accounts dataset:
❑ Login/ password details (if required) are provided on the face of the paper.
❑ Use the “Restore” option in the File menu,
❑ And browse to the indicated location of the Setup Dataset. 2) Changing the Company Name:
❑ 1 mark!
3) Posting the Salary Journal:
❑ Prepare the information on “Rough Work” pages, ❑ Debit the various expense accounts (7xxx), ❑ Credit the Liability accounts (2xxx),
❑ Exceptions might include a credit to an asset account e.g. “Advance Travel Costs”,
❑ The journal should balance, do not use the suspense account, ❑ Ensure that you identify the various expense accounts involved,
4) Posting Customer Transactions: ❑ “Posting” Customer Invoices
i.e. Prepared outside Sage 50 Accounts ❑ Creating Products
❑ Creating Quotations
❑ Generating Customer Invoices i.e. Using the software ❑ Posting, or generating, Credit Notes
❑ Recording Customer receipts, with Discount where applicable ❑ Contra Entries
❑ Actual Bad Debts (post a credit note, dr n/c 8100) ❑ Allocating!
5) Posting Supplier Transactions: ❑ “Posting” Supplier Invoices
e.g. Pay attention to the nominal account involved! ❑ Posting Supplier Credit Notes
❑ Supplier Payments, via Bank
❑ Supplier Payments, via Director (i.e. post a credit note) ❑ Contra Entries
6) Recording Finance Agreements in Sage 50 Accounts:
❑ In respect of a Lease agreement –
▪ Create the required nominal accounts (lease liability e.g. 2103, and lease interest expense e.g. 7909),
▪ Capitalise the asset and record the initial liability,
▪ Calculate and Record the recurring monthly lease repayment i.e. Recurring bank payment,
▪ Calculate and Record the recurring monthly lease interest i.e. Recurring journal debit and journal credit.
❑ In respect of a Loan taken out –
▪ Create the required bank account using the Wizard option in the bank module,
▪ Record the Loan drawdown; using the bank transfer option, ▪ Record the recurring monthly loan repayment
i.e. Recurring bank transfer,
▪ Record the recurring monthly loan interest i.e. Recurring Bank payment.
❑ (Remember to process the recurring transactions!)
7) Petty Cash (Expenditure / Restore): ❑ Recording Petty Cash payments
Use the correct “bank” for each transaction, use the correct nominal code, apply the correct VAT value,
❑ Calculate the value to restore the Petty Cash Imprest/Float
❑ Restoring/Replenishing Petty Cash from the Current Account i.e. via Bank Transfer
❑ Restoring/Replenishing Petty Cash using other funds i.e. As a Cash Receipt
8) Bank Activity:
❑ Cheque Payments, Lodgements, Corrections etc. ❑ Producing Remittance advice notes
9) Bank Reconciliation:
❑ “Match” bank statement items
❑ Record any missing items e.g. Staff Wages, P30/VAT payments, bank fees, interest paid/received, Supplier payments, Customer Receipts, refunds etc., using the correct treatment and/or nominal code. ❑ Print the Bank Reconciliation Report before you save the exercise.
10)Period End Adjustments: ❑ Depreciation
• Calculate the correct values – paying attention to the opening balances in the “@ cost” and “Acc Dep” accounts in the Fixed Asset Accounts,
• Depreciate new assets (leased assets according to the lease term, newly acquired assets according to the policy in place e.g. You may have to account for depreciation for the year to date, • Debit the expense accounts (8xxx), Credit the Accumulated
10)Period End Adjustments (Continued):
❑ Adjustments for Opening and Closing Stock ▪ Opening – Dr 5xxx, Cr 1xxx
▪ Closing – Dr 1xxx, Cr 5xxx ❑ Accruals and Prepayments
▪ Accruing for expenses (Dr 7xxx, Cr 2109)
▪ Accounting for Prepaid expenses (Dr 11xx, Cr 7xxx) ▪ Reversing Opening Accruals and Prepayments
10)Period End Adjustments (Continued): ❑ Corporation Tax
▪ Dr the Expense account 9xxx ▪ Cr the Liability account 23xx ❑ Bad Debt Provisions
▪ Dr the Expense account 8xxx ▪ Cr the -Asset account 11xx
Integrated
Accounting Systems
This is the end of Part 2,
You should now view Part 3.
Disclaimer
Care has been taken to ensure that all data and information
in these lectures is factual and that numerical values are
accurate.
To the best of our knowledge, all information in the these
lectures is accurate at the time of publication.
Accounting Technicians Ireland and its lecturers assume no
responsibility for errors or misinterpretation of the
Preparing for
the IAS examination
Integrated
Accounting Systems
Integrated
Accounting Systems
Welcome Back!
Integrated
Accounting Systems
•
Regarding Excel
The following activity is often required:
1) Export the financial statement to Excel, 2) Set up a Variance Column
3) Calculate the formulas to forecast Budget Projections 4) Insert new expenses into the Budget Spreadsheet 5) Calculate a summary of the Budget Projections 6) Format the Spreadsheet
7) Prepare an illustration of the values calculated 8) Prepare a Cashflow projection
