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Copyright © 2017 Apex Institute of Education SITXFIN001 Process Financial Transactions Page | 1 SITXFIN001 Process Financial Transactions SIT60316 Advanced Diploma of Hospitality Management Name: _____________________________________ Student ID: _____________________________________ Copyright © 2017 Apex Institute of Education SITXFIN001 Process Financial Transactions Page | 2 This workbook has been designed to be used in conjunction with information and materials to be provided at sessions. This workbook does not contain all subject information and students should attend all scheduled sessions and read and understand all materials provided at sessions. Publisher: Apex Institute of Education Pty Ltd (A.C.N. 38 130 193 207) trading as Apex Institute of Education Parramatta Campus: 2 Sorrell Street, Parramatta NSW 2150 Sydney CBD Campus: L2&3 22-26 Goulburn Street Sydney NSW 2000 Telephone: 02 8007 6261 (Sydney) 02 8007 6262 (Parramatta) www.apexaustralia.edu.au RTO Provider No: 91606 CRICOS Provider: 03156M ABN: 38 130 193 207 Edition: 2nd Edition Release date: 24/07/2017 The publisher owns the copyright in this publication. All rights reserved. No part of this publication may be reproduced by any process without the prior written permission of Apex Institute of Education Pty Ltd. Copyright© 2017 Apex Institute of Education The publisher owns the copyright in this publication. All rights reserved. No part of this publication may be reproduced by any process without the prior written permission of Apex Institute of Education Pty Ltd. http://www.apexaustralia.edu.au/ Copyright © 2017 Apex Institute of Education SITXFIN001 Process Financial Transactions Page | 3 CONTENTS Subject Overview Page-4 Element 1 Process customer payments Page- 5 to 15 Knowledge test Page- 15 to 16 Element 2 Reconcile takings Page-16 to 24 Knowledge test Page-24 REFERENCES Page-25 Copyright © 2017 Apex Institute of Education SITXFIN001 Process Financial Transactions Page | 4 SUBJECT OVERVIEW ELEMENT PERFORMANCE CRITERIA Elements describe the essential outcomes. Performance criteria describe the performance needed to demonstrate achievement of the element. ELEMENT 1 Process customer payments 1.1. Receive, check and record cash float. 1.2. Check customer payments against sale value. 1.3. Provide correct change for cash payments. 1.4. Process and record transactions according to organisational procedures. 1.5. Prepare and issue accurate receipts including all relevant tax details. 1.6. Complete transactions using appropriate software applications in line with organisational speed and customer service requirements. ELEMENT 2 Reconcile takings 2.1. Balance customer payments at designated time according to organisational policy. 2.2. Separate cash floats from takings prior to balancing. 2.3. Determine point-of-sale records of customer payments. 2.4. Accurately count and calculate customer payments. 2.5. Balance cash and other payments with point-of-sale records. 2.6. Investigate or report discrepancies in the reconciliation. 2.7. Record takings according to organisational procedures. 2.8. Transport and secure cash floats, cash and other payments according to organisational security procedures. Copyright © 2017 Apex Institute of Education SITXFIN001 Process Financial Transactions Page | 5 Element 1: Process Customer Payments 1.1. Receive, check and record cash float. 1.2. Check customer payments against sale value. 1.3. Provide correct change for cash payments. 1.4. Process and record transactions according to organisational procedures. 1.5. Prepare and issue accurate receipts including all relevant tax details. 1.6. Complete transactions using appropriate software applications in line with organisational speed and customer service requirements. Financial Transactions A financial transaction is an agreement or communication which is carried out between a buyer and a seller to exchange an asset for payment. It involves a change in the status of the finances of two or more businesses or individuals. Debits and Credits A debit on a customer’s account means that the customer owes the business money. Such as they have eaten lunch but have not yet paid for it. A credit on a customer’s account means that their debt to the business is reduced. This means that this could be a result of a payment done by the customer or a refund of a charge which was done by the business. Types of Documents There are two types of documentations which are necessary for every transaction. They are: Invoice Receipt https://en.wikipedia.org/wiki/Contract https://en.wikipedia.org/wiki/Communication https://en.wikipedia.org/wiki/Buyer https://en.wikipedia.org/wiki/Seller https://en.wikipedia.org/wiki/Trade https://en.wikipedia.org/wiki/Asset https://en.wikipedia.org/wiki/Payment Copyright © 2017 Apex Institute of Education SITXFIN001 Process Financial Transactions Page | 6 Invoice: Invoice is a bill which must be paid by a customer. There are two forms of invoice. They are: An invoice A tax invoice An invoice: An invoice must contain the business information including the ABN, customer details, name of the purchased item or service and the total amount to be paid. An invoice is normally used by smaller businesses that are not required to be registered for GST. A tax invoice: A tax invoice is like an invoice. But it is used by the businesses that are registered for GST. A tax invoice is an official document issued by a business supplying goods and/or services to their customers when a sale is made. A tax invoice must contain some information. They are: The name of the business supplying the goods and/or service The ABN (Australian Business Number) The date of the invoice The words ‘Tax invoice’ Details of the goods and/or services provided The GST amount The total including GST Receipt: Receipt is an acknowledgement of the payment of a bill. It is a summary document containing the business information as well as the description of goods or service, the date of payment, the payment method and the amount paid. A receipt can also be in form of a tax invoice which has been paid by the customer. Copyright © 2017 Apex Institute of Education SITXFIN001 Process Financial Transactions Page | 7 Preparing Invoices Invoices can be prepared manually or the bill is created automatically with electronic systems. Many establishments use electronic system as they are less time consuming and they minimise mistakes as well. It also saves time. The receipt must have the term ‘tax invoice’ written or printed on it. It should also have the things on it which are stated below: The name of the business The address of the business The phone number of the establishment The ABN number of the business The date and time when the customer was served Name of the serving staff or staff number The items or services charged The total amount of the bill The amount of GST The total amount including GST The tax invoice must be printed and hand overed to the customer. Staff must ensure that correct items/services are charged from the customer. Staff must not allow any customer to leave the premises without paying the bill. GST GST is the goods and services tax (GST) in Australia. GST is a tax of 10% on most goods and services consumed in Australia. GST replated the wholesale tax system which was a very complicated tax of varying rates. It is comparatively an easy way. An example of calculating GST: Cost of the goods/service (excluding GST): $450 GST: $450 x 10% = $45 Total cost: $450 + $45 = $495.00 Copyright © 2017 Apex Institute of Education SITXFIN001 Process Financial Transactions Page | 8 Types of Payments There are different types of payment options available in Australia for the customers when they buy any good/service. They are: Cash Credit Cards Debit Cards/EFTPOS Cheques Advance Payment (Deposits) Voucher Traveller’s Cheque Foreign Currency Company Charge Cash: Cash is the most common and easy way of payment for smaller purchases. The customer can pay cash for bigger purchases in some circumstances. Credit Cards: Credit cards are the cards issued by banks and other financial institutions. This allows the cardholder to make purchases and/or cash withdrawals for amounts up to a fixed limit. The cardholder owes the institution the balance of the card and may either