Certificate in Accounting (SKM 3)
There are six modules in this course.
The modules are as follow: -
- ACCOUNTS PAYABLE
- ACCOUNTS RECEIVABLES
- PAYROLL
- CASH AND BANK TRANSACTIONS
- PROPERTY, PLANT AND EQUIPMENT (PPE) REGISTER
- MONTH END FINANCIAL STATEMENT
ACCOUNTS PAYABLE - C01
Course Objectives
The objectives of this course to is ensure all purchase invoices are recorded and payments to creditors are made in accordance with the term of payment.
Upon completion of this competency unit, trainees will be able to: -
- Gather Accounts Payable (AP) information and documents.
- Record purchase documents into AP ledger
- Process creditor payment
- Prepare AP Report.
Course Content
- Gathering of accounts payable (AP) information and documents
(i) Understand the definition of AP terminology such as: -
- AP Recording
- Type of procurement
- Trade
- Non trade
- Utilities
- Type of payable
- Trade Creditors
- Other creditors
- Prime book
- Purchase book
- Purchase return book
- Ledger (subsidiary ledger)
- Creditors ledger
- Source of document
- Purchase requisition
- Quotation
- Purchase order
- Delivery order
- Invoice
- Goods return note
- Debit note
- Credit note
(ii) Understand the format and content of AP source documents such as: -
- Purchase requisition
- Quotation
- Purchase order
- Delivery order
- Invoice
- Goods return note
- Debit note
- Credit note
(iii) Understand the procedure in receiving AP source documents such as: -
- Receive AP source documents
- Check completeness of AP source documents
- Acknowledge
- Reception of AP source documents
- Inform related department regarding incomplete/incorrect documents
- Recording of purchase documents into AP ledger
- Understand the purchase details’ accuracy such as: -
- Item Quantity
- Price
- Authorised personnel
- Understand the differences between internal and external discrepancies
- Understand the format and content of AP recording such as: -
- Purchase book
- Purchase return book
- Creditors ledger
- Understand the procedure in notifying purchase discrepancies to creditor such as: -
- Inform creditor regarding purchase discrepancies
- Provide related documents to creditor
- Obtain confirmation from creditor
- Understand the procedure in preparing purchase adjustment such as: -
- Prepare purchase adjustment requisition form
- Submit requisition form for approval
- Prepare purchase adjustment
- Debit note
- Credit note
- Submit purchase adjustment document to creditor
- Understand the important of properly posting of subsidiary ledger
- Double entry system for purchase
- Debit for purchase account
- Credit for creditor ledger
- Double entry system for purchase adjustment
- Debit note from creditor
- Debit for purchase account
- Credit for creditor ledger
- Creditor note from creditor
- Debit for creditor ledger
- Credit for purchase account ix. AP filing system
- Learn how to process creditor payment
- Doing Creditor payment arrangement such as: -
- Credit terms
- Payment mode
- Cheque
- Cash
- Online payment
- Telegraphic Transfer (TT)
- Letter of credit
- Adjustment document
- Preparation of payment listing preparation for approval
- Procedure in preparing creditor payment such as: -
- Preparation of payment voucher
- Preparation of payment based on selected payment mode
- Arrangement of signatories’ approval
- Understand the Importance of payment acknowledgement of receipt by creditor
- Double entry system for creditor payment
- Debit for creditor ledger
- Credit for bank/cash account
- Preparation of AP report
- Balancing of AP ledger
- Understand the AP aging format and content
- Preparation of AP aging
- Understand the common errors in preparing AP report such as: -
- Error of omission
- Error of commission
- Error of principle
- Compensating error
- Error of original entry
- Complete reversal of entry
- Transposition of error
- Understand the importance of confirming AP amount
- Submission procedures of AP aging report and AP ledger to superior
Learning Outcome
The person who is competent in this competency unit (CU) shall be able to ensure all purchase invoices are recorded and payments to creditors are made in accordance with the term of payment.
Upon completion of this competency unit, trainees will be able to: -
- Gather Accounts Payable (AP) information and documents.
- Record purchase documents into AP ledger
- Process creditor payment
- Prepare AP Report.
