accounting systems in spreadsheets tutorials

1/8/2012

Accounts Payables spreadsheets | hrashed

HAMR ACCOUNTING SYSTEM SPREADSHEETS

HAR Finance Department New Treasury Spreadsheets System

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Introduction: This system was built based on finance team and Yemen finance manager discussion and since the PMP requirements for 2010 are improving the system and preparing risk assessments for Finance Department, I intended to develop new treasury spreadsheets and reporting system that is started on Nov 26, 2009 and completed on June 15, 2010, to increase the efficiency of the Finance staff by designing the below several spreadsheets that are linked to each other by vba codes, and to provide more reliable and relevant financial information to several users.

- Invoice Register - Two Local Payment Process System.xls Files one for USD and another

for YER, this file contains 7 sheets as follow o Payment Voucher o Receipt Voucher o Temporary Register o Vendor Master o Vendor Setup Request Form o Transfer Letter o Check Draft Request Letter

- Bank Register 2010.xls File that contains 6 sheets. o USD Bank Register o YER Bank Register o USD Disbursement Sheet o YER Disbursement Sheet o Draft Journal for USD payments o Draft Journal for YER payments

- Bank Movement Register.xls. - Invoice Routing Registers.xls. - Database.xls File that contains 4 sheets.

o Database o Monthly Accounts Payables Performance Report o Accounts Payables Trial Balances o Exchange Rates List


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Contents: 1) Update Invoice Register 2) Create Payment/Receipt Voucher 2) Fill out the Voucher. 3) Print and Post 4) Add/Delete codes 5) Update Vendor Master File. 6) Exporting to Final Bank Register 7) Bank Movements Register and Reconciliation 8) Drafting Payment Journals & Journalize 9) Posting/updating all transactions into Database, and Month-end Reporting 10) System Control Points 11) New Flowchart of processing invoices.


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Update Invoice Register When invoices are received, they are recorded in the invoice register as below screenshot. When recording the invoice register, the cell of invoice number or the amount of PO may be changed depends on the following cases

- Changed to Red, if the Invoice No. is duplicated from the same supplier and of the same amount/PO is over billed. (This invoice should be blocked for payment or block the disputed amount and process the remaining amount, due to duplication in billing the service/goods)

- Changed to Orange, if the Invoice No. is duplicated from the same supplier but the amount is different. (This invoice should be verified if is it really related to previous paid service or goods. If yes, this invoice should be blocked too. If no, process the payment normally)

- The Invoice No. is duplicated but from different supplier and of different amount.

Write the serial number of invoice of each invoice received and recorded in IR (Invoice Register) and forward it to the concerning person. Specifying the appropriate person to deliver the invoice to for processing the payment is easy by looking at column “paid via”. If it is “SYD”, it will be paid via Sydney, but if it is “YE”, it will be paid from Sana’a Credit Agricole bank accounts. If the invoice is returned back, paid via petty cash or cancelled/deleted by supplier, we should indicate to this action in column “Remark”.


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Creating Payment/Receipt Voucher To issue new serialized payment Voucher, cheque, transfer and cheque draft request, please click on “New Voucher” Button.


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Fill Out the Voucher Fill out the cells which are highlighted in Yellow. Following cells shows drop list Payment Method Supplier’s Name Currency


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When you select the supplier’s name and the currency, the Payment method will appear automatically from vendor master in cell “I10” that can help you to choose the correct payment method

When you choose the payment method, the cheque number, transfer number or cheque draft request number is automatically serialized and captured in payment voucher.


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The following cells should be typed manually - License in Cell E15 - Description in Cell B21 - Invoice serial number (S/N) in cells A28 and down - Amount allocated to cost code in D28 for amount and E28 for cost

code and down - Description for each cost code should be typed in Cells in Column I. - Amount invoice in Column J and rows 28 and down is related to the

whole amount of invoice. - New first Check number should be typed in cell J4, if you going to pay

in cheque, the new first transfer number should be typed in cell J6, and the new first cheque draft request number should be typed in cell J8, then each time you post the voucher or click on new voucher button, the cheque, transfer, cheque draft request number is serialized automatically and appropriately.

If the supplier likes to change the payee name on the check for one time payment, not for current time and onwards, this system has flexibility to accept the new payee name without changing the vendor master by typing the payee name on cell I12, and it is automatically appeared in the payable to field, and “warning alert” note is displayed above coding table and under description, which gives an indication to the approver to ensure to have adequate documents or approval to process such payment.


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Print & Post If the payment via transfer or check draft, reference number of transfer/ check draft is automatically updated in the transfer letter/check draft request. For Credit Agricole Bank requirements, the purpose of the payment should be disclosed in the letter sent to the bank, therefore, type the purpose of the payment, then specify the Class A and B signatories by dropping down the names, as the below screenshot.

The following fields with symbol of “*” are required and the voucher can neither be printed nor posted if they are not filled, and if the cell of voucher amount becomes red.

- Supplier’s Name - Payment Method - Currency


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Type the amount of invoice number of debit/credit note on the range (J28:J) to ensure that we are paying the correct amount. If you are satisfied for the payment, click on “Print and Post” button, to print the payment voucher and either transfer letter or cheque draft request, as per your specification, and we will receive the below massage “Do you want to post this voucher?” Click on “Yes” if you are sure to post the voucher to the register or “No” if you want to review the payment voucher first.


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If you click on “Yes”, the voucher will be posted to the register and automatically gives you the next payment voucher number, and either next check number, check draft number or transfer number

Don’t forget, each time you want to issue payment voucher click on “New Voucher” If you have mistake in codes, or check number you can update it in “Temp.Register” sheet, if you want to void check or transfer after issuing it,


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you should keep the number and cheque/transfer number in the “Temp.Register”, and manually replace the amount to “0” value and other cells to “Void” Any payment other than main currency you should update the paid amount from bank register if you know the exam amount or use average FX rate, and update it in the “Temp.Register” sheet in the USD amount columns.


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Add/Delete Coding If you want to add or delete codes that you add, click on “Add code” or “Delete Code” buttons


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Update Vendor Master File: Any supplier payment details should be updated in this sheet “Vendors Master”, otherwise, payment voucher can not be displayed the vendor name, payable names, payment method, transfer letter, payment details if the supplier is not recorded in Vendor Master File. Vendor name should be imported from “Invoice Register.xls”, before clicking on “Import Vendor Name”, we should open the invoice register workbook. This “Vendor Master” sheet is protected. This file should be updated based on official letter from local supplier or official correspondence from overseas supplier, and this letter or correspondence should be documented in Vendor file.

To update the Vendor Master File, click on “New Supplier Setup” button, the below Supplier Setup Form will be displayed as the below screenshot. Select the Supplier name from the dropdown list, and update Payment details for the supplier. When you select the Check payment method the field of payable to will be activated to type the payable’s name that should be reflected in the check. When you select Transfer, the “Payable to” field will become inactivated and the bank details will be activated instead. For understanding the abbreviations of the bank transfers (e.g. SWIFT, IBAN, ABA), please see the “International Payment Concepts” document.


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Ensure that the Supplier payment details are properly filled, then click on “Post” button to Set up the new supplier, after that print out the “Supplier Setup Request Form” to be approved manually by the Supervisor for his review. The following fields with symbol of “*” are required and the vendor cannot be setup if they are not filled.

- For check/check draft payment o Vendor name o Payment method o Currency o Payable to

- For Local transfer payment o Vendor name o Payment method o Currency o Type of transfer o Account holder name o Account number o Beneficiary Bank Name

- For Overseas transfer payment o Vendor name o Payment method o Currency o Type of transfer o Account holder name o Account number o Beneficiary Bank Name o Beneficiary Bank SWIFT or IBAN o Intermediary Bank Name


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This payment information is required and programmed based on international banking payment requirements and ISO9362. For more information about International Banking Payments, please read the attached “International Payments Concepts”

If there is wrong in posting some vendor payment information, the FM should change the data of vendor that has been setup, and doing the following step.

1) Unprotect the workbook 2) Unhide the “Password” sheet 3) Click on the “Unprotect” button 4) Change the vendor data appropriately 5) Click on “Protect” button 6) Hide “Password” sheet 7) Protect the workbook again.


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Exporting to Final Bank Register At the end of each month, all the payments posted and recorded in “Temporary Register”, should be reviewed in amounts and in coding, then exported to Final Bank Register that is protected and cannot be changed after posting it to final bank register To post the payment transactions to the final bank register, you should do the following

1) Review the appropriateness of the transactions information 2) Click on “Export” button in “Temp. Register” sheet as displayed in the

below screenshot

3) Open the “Bank Register 2010.xls” file 4) Select the month that you want to post (e.g. Jun)


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5) Click on “Import” button, don’t close the “local payment Process

System” sheets before importing the data. All the transactions that are paid in June, will be posted.


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Bank Movements Register and Reconciliation Bank Movements Register and Reconciliation is a report that required by Sydney Finance Team, sent every month. This register is more similar to the final bank register except for the way of recording the payment transactions. In the Final Bank Registers, the payment transactions was recorded by invoice and account code, but the bank movements register record the payment transactions by payment voucher. Means, Final Bank register is more detailed and Bank movements register is more summarized. To update the bank movement register with the recent payment transactions, you should do the following steps.

1) Type the first Payment Voucher of the month, and draw the cell down to the end payment voucher number, for both account USD and YER.

2) Click on “Update” button, the Sheet “Jun” will be updated

automatically by the transactions paid in Jun.


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3) After updating the Bank Movement Register, Accountant should

compare the payments in this register and Bank statement, then reconcile the uncleared payments in the bottom of the register.


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Drafting Payment Journals & Journalize The GL accountant should reviewing the final bank register for the current month, then doing the following

1) drafting the payment journal by selecting the proper closing month as per the below screenshot.

2) Click on “Draft Journal” button, all the transactions paid in the current

month (e.g. Jun) will be journalized as per below screenshot

3) The drafted journal will be copied and past to the final payment

journals.


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Posting/updating all transactions into Database Database sheet is protected sheet except for column that are not protected and may needs to be updated manually. To Post all the invoices received into database, open the invoice register and AP/Treasury Database spreadsheets, then click on “Step 1: Import from invoice register” button.

To update the invoices to enable you to clear the invoices and generate the outstanding invoice report, Accounts Payable Performance Report and Accounts Payables Trial Balance, you should open the “Invoice Routing Register” and “Bank Register 2010” spreadsheets, then click on “Step 2: Update Database” button, wait until the database is updated.


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To generate the outstanding invoices, filter the data in column AH and choose “O/S”, all the invoices that are not cleared will be appeared in this report, if there is debit/credit note issued against some invoices, the some invoices were paid via petty cash, or some invoices were replaced, deleted/cancelled or returned back, the Data of those action should be manually updated in Range (Y9:AA10000), to update the status of the invoice, outstanding invoices report, accounts payables trial balances and Accounts Payables Performance Report


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Summary System Control points. Based on the inherent risk assessed previously, the following major spreadsheets controls are provided as guidelines.

- Amount invoice in Column J and rows 28 and down is related to the whole amount of invoice which must be matched to Amount that should be paid to supplier. If they are not matched Cell C18 will be changed to “Red”, as below screenshot, and the payment does not be processed.

- Reviewing the coding, if the coding is wrong, range from M28 to P28 helps us to identify the wrong code before posting.

- Payment Method in Cell I11 help us to identify the payment method, if the supplier wants to change the payment method for specific invoices from transfer to cheque and to different payable’s name from our database, type the new payable name on cell I12. And a Note “warning alert” is appeared above the coding table to give the approver an indication of not matching the payee name, and should obtaining official doc or approval for processing the new temporary payee.

- Checking the validity of the account code during preparation of voucher, and in Temp.Register before export the data to final register.

- “Vendor Master” sheet is protected and nobody can access to it to revise the payment details of any supplier, except the authorized person.

- Inadequate vendor information such as payments details are not allowed and cannot be posted to vendor master until typing the sufficient information.

- Inadequate payment information cannot be processed until typing the sufficient payment information.

- Final bank register is protected and nobody can access to it to revise the payments information, except for the authorized person.

- Testing the spreadsheet by end user other than the excel developer. - Limit access to some files by storing them in the server and ask IT

team to give different access to the different user. For more detailed controls over risks identified for applying this system, please see “Detailed Financial & Accounting Risk Matrics” document.


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Simple New Flowchart of processing invoices.

- Invoice receiving from receptionist, stamped received by Finance - Invoice information is recorded in the invoice register

Is there any indication to block the payment?

No

Yes Stop paying the invoice and update the invoice register

- Issue Payment Voucher along with cheque, transfer letter or cheque requisition form, and post - Forward the Payment voucher and transfer letter or cheque requisition to the FM to review it, and approve on Payment voucher as reviewer and on cheque, transfer letter or cheque requisition letter. - Forward the payment vouchers and cheques, transfer letter, and cheque requisition letters to GM for DOA approval on Payment Voucher, and signing on cheque, transfer or cheque requisition as Class A signatories. For invoices not covered by authorized PO, PR, CCOR, the invoice should be signed by DOA approver too

- Review the invoice - Ensure all the adequate documents are attached - Stamp on the each invoice “AFE approval” Stamp - Deliver the invoice to the G&S approver to approve on each invoice as recipient of the goods or services - Collect the approved invoices from G&S approver - Issue debit/credit note for disputed amount and take approval of G7S approver and FM on debit/credit note

accounting systems in spreadsheets tutorials

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