Admas University

Kality campus

Department of accounting

Occupational Standard: Accounts and Budget Support Level

III

Unit of competence: Prepare, Match and Process Receipts

Learning material
In this unit you are required to prepare, match and process a range of financial receipts.

Receive, identify and record receipt: Check all receipts for accuracy against remittance
document, all receipts are accurately recorded, remittance types are accurately identified to
ensure correct allocation, processing is completed

Match receipts to documentation: All receipts are checked and matched to documentation
accurately. Unmatched receipts are noted for follow-up

Enter data to systems: All receipts are accurately allocated to appropriate chart of account
areas, data is entered to systems without error and within time requirements, all receipts are
accurately matched to system debit, reconciliations are completed and discrepancies between
general ledger and sub systems are resolved

File documentation: All documentation is filed promptly and the location of filed
documentation is traceable

Lo1. Receive, identify and record receipts

 Established procedures are followed and receipts are checked for accuracy against
remittance documents
Receipts may include:
bankers orders
cash
cash journal entry
cheques
credit cards:
direct
mail
telephone
direct debits
direct drawing
payroll deduction
postal money order
 All receipts are recorded with remittance types accurately identified to ensure correct
allocation in accordance with organization policy and procedures
Organization policy and procedures may include:
computer systems documentation
internal control guidelines
operations manuals
 Batching is completed in accordance with organization systems and operating
procedures and relevant departments advised of total daily receipts
Lo2. Match receipts to documentation

 Receipts are checked and matched to documentation accurately and promptly and
documentation security maintained to protect interests of all parties to transaction
 Unmatched receipts are noted for follow-up or referral in accordance with
organization, industry and legislative requirements
Industry and legislative requirements may cover:
Cash Transaction manuals
credit directives
industry codes of practice
relevant Insurance law
Taxation proclamation

Lo3. Enter data to systems

 All receipts are accurately allocated to appropriate chart of account areas and data
entered onto receipt systems without error and within time requirements specified in
relevant organization policy and procedures
Receipt systems may include:

Assets
cash receipts debiting
commissions
investment
loans
receipting system may take account of optimising legislative requirements including Financial
Institutions Duty
computer based
manual
 All receipts are accurately matched to system debit with any data and allocation
discrepancies identified promptly to enable early follow-up
Data and allocation discrepancies may include:
incorrect account allocation
Key stroke error
 Advice on source and solution to discrepancies is sought, where necessary, to solve
outstanding problems
 Related systems are updated, reconciliations completed and discrepancies between
general ledger and sub-systems resolved

Lo4. File documentation

 Documentation is filed promptly in accordance with organization policy and

procedures
  Location of filed documentation is accessible and easily traceable when required

LO1: RECEIVE, IDENTIFY AND RECORD RECEIPT

Introduction
A receipt is a written or printed document that serves as proof of a transaction or purchase. It
typically includes details such as the date, time, and location of the transaction, the items
purchased, their quantities and prices, any applicable taxes, and the total amount paid. Receipts
are commonly issued by businesses to their customers as a record of the transaction and for
reimbursement or warranty purposes. They are also important for personal financial management
and tax filing.

What is the differences between bill, invoice, receipt and voucher?

Bill: A bill is a document that outlines the amount owed by a customer to a seller or service
provider. It is typically issued by the seller to request payment from the customer. Bills often
include details such as the items or services provided, their quantities and prices, any applicable
taxes or fees, and the total amount due. Bills are usually sent before payment is made.
Invoice: An invoice is similar to a bill, but it is typically issued by a seller or service provider
after the products or services have been delivered or rendered. It serves as a request for payment
and includes details such as the items or services provided, their quantities and prices, any
applicable taxes or fees, and the total amount due. Invoices often include payment terms and due
dates.
Receipt: A receipt is a document provided to a customer by a seller or service provider after
payment has been made. It serves as proof of payment and includes details such as the date, time,
and location of the transaction, the items purchased, their quantities and prices, any applicable
taxes, and the total amount paid. Receipts are typically issued for reimbursement, warranty
purposes, or personal financial management.
Voucher: A voucher is a document that authorizes or provides evidence of a financial
transaction. It can be used to claim or redeem goods, services, or discounts. Vouchers are often
issued by businesses as promotional tools or as a form of payment. They typically include details
such as the value or amount of the voucher, any restrictions or conditions, and an expiration date.
Vouchers may need to be presented or surrendered at the time of redemption.
1.1 Establish procedures and check receipt for accuracy against remittance
documents
What is remittances?
 Remittances refer to the transfer of money or funds from one individual or entity to another,
typically across borders. Remittances are often sent by migrant workers who are working in a
foreign country and sending money back to their home country to support their families or
for other purposes.
 Remittances can be sent through various channels, including banks, money transfer
operators, online platforms, or informal methods such as cash carried by individuals.
 The funds can be sent for various reasons, such as supporting family members, paying for
education or healthcare expenses, or investing in businesses or property.
What is remittance documents
 Remittance documents are records or forms that provide information about a payment or
transfer of funds.
 These documents are typically used to accompany or support the remittance of money from
one party to another.
 The specific content and format of remittance documents can vary depending on the context
and purpose of the payment.
What are the type of remittance documents?
 There are several types of remittance documents that are commonly used in various financial
transactions. The specific types of remittance documents can vary depending on the nature of
the payment, industry, and specific requirements.
 The some common types of remittance documents:
1. Banker's Orders: Banker's orders are instructions given by an account holder to their
bank to make regular payments to a specific recipient. This document authorizes the bank
to transfer a specified amount from the account on a regular basis.
2. Cash: Cash payments may not typically involve a specific remittance document, but a
receipt or acknowledgment may be provided by the recipient upon receiving the cash.
3. Cash Journal Entry: A cash journal entry is a record of cash transactions made by a
business or organization. It documents the inflow or outflow of cash and provides details
such as the date, amount, purpose, and any applicable reference numbers.
4. Cheques: Cheques are written orders from an account holder to their bank, instructing
the bank to pay a specific amount to the recipient named on the cheque. The cheque itself
serves as a remittance document.
5. Credit Cards:
A. Direct Credit Card Payment: This involves the cardholder making a payment
directly to the payee using their credit card details.
B. Mail Credit Card Payment: A credit card payment made by mail involves the
cardholder sending their credit card information along with the payment details to
the payee.
C. Telephone Credit Card Payment: A credit card payment made over the phone
involves the cardholder providing their credit card information to the payee
during a phone call.
6. Direct Debits: A direct debit is an authorization given by an account holder to a payee to
automatically withdraw funds from their bank account on a regular basis. The
authorization form or agreement serves as a remittance document.
7. Direct Drawing: Direct drawing refers to the process of drawing funds directly from a
bank account to make a payment. This can be done electronically or through a physical
authorization form.
8. Payroll Deduction: Payroll deduction is when an employer deducts a specified amount
from an employee's wages or salary to make a payment to a third party, such as for
insurance premiums or retirement contributions. The payroll deduction authorization
serves as a remittance document.
9. Postal Money Order: A postal money order is a document issued by a postal service,
representing a specified amount of money paid in advance. It can be used as a secure
method of remittance, especially for mail-based transactions.
10. Invoice: An invoice is a document issued by a seller to a buyer, requesting payment for
goods or services provided. It typically includes details such as the billing address,
itemized list of products or services, quantities, prices, payment terms, and instructions
for remittance.
11. Purchase Order: A purchase order is a document issued by a buyer to a seller,
specifying the goods or services to be purchased. It typically includes details such as the
buyer's information, item description, quantities, prices, delivery terms, and payment
terms.
12. Receipt: A receipt is a document issued by the recipient of payment to acknowledge that
funds have been received. It usually includes details such as the date, amount received,
payment method, and any applicable reference numbers. Receipts can be issued for
various types of payments, such as sales, rent, or services rendered.
13. Bank Statement: A bank statement is a document provided by a bank or financial
institution to an account holder, showing the transactions and balances of the account. It
can serve as evidence of funds received or transferred.
14. Payment Voucher: A payment voucher is a document used to authorize and record a
payment. It typically includes details such as the payee's name, payment amount, purpose
 of payment, and any supporting documentation. Payment vouchers are often used for
internal record-keeping purposes within an organization.
15. Money Transfer Receipt: When funds are sent through a money transfer service, a
receipt is often provided to the sender as proof of the transaction. It includes details such
as the sender's and recipient's names, the amount sent, and any applicable fees.
16. Remittance Advice: A remittance advice is a document sent by a payer to a payee,
providing details of a payment made. It typically includes information such as the
payment amount, invoice or account number, payment date, and any additional notes or
instructions.
To ensure that the correct amount of money has been received and recorded. This process
helps to prevent errors and discrepancies in financial records and ensures that all funds are
accounted for.
 When following established procedures,
 The first step is to compare the details on the receipt, such as the date, amount, and payment
method, with the corresponding remittance documents, such as invoices or purchase orders.
This helps to verify that the payment matches the intended transaction.
 Next, the accuracy of the receipt is checked against the remittance documents. This involves
ensuring that the correct amounts have been entered, any discounts or deductions have been
applied correctly, and any taxes or fees have been included.
 In addition to checking the accuracy of the amounts, it is also important to verify that the
correct payment method has been recorded. This could include cash, check, credit card, or
electronic transfer. Each payment method has its own specific procedures and documentation
requirements, and these need to be followed to ensure accuracy.
 Once the receipts have been checked and verified against the remittance documents, any
discrepancies or errors should be addressed and resolved. This could involve contacting the
payer to clarify any issues or contacting the relevant department or individual responsible for
processing the payment.
 Thus, following established procedures and checking receipts for accuracy against remittance
documents is an important step in maintaining accurate financial records and ensuring that all
funds are properly accounted for.
1.2 Record receipt with remittance type

 Recording receipts with accurately identified remittance types is crucial for correct allocation
of funds in accordance with organization policies and procedures. This process ensures that
the received payments are correctly matched with their intended purposes and are allocated
to the appropriate accounts or departments.

 To achieve this, it is important to have a clear understanding of the different types of

remittances that may be received.

 Remittance types can vary based on the nature of the payment, such as

 Customer payments,

 vendor payments,

 donations,

 Grants, or other types of income.

 Each remittance type may have specific requirements or guidelines for allocation and
recording. When recording receipts, the remittance type should be identified and clearly
documented. This can be done by using specific codes, categories, or labels that are
consistent with the organization's accounting system. For example, customer payments may
be categorized as "Accounts Receivable," while vendor payments may be categorized as
"Accounts Payable."

 Accurate identification of remittance types helps ensure that the funds are allocated to the
correct accounts or departments. This is important for maintaining accurate financial records,
tracking income and expenses, and facilitating financial reporting and analysis.

 Following organization policies and procedures is essential in this process. These policies
and procedures should outline the specific steps to be followed for recording receipts,
identifying remittance types, and allocating funds accordingly. This helps to ensure
consistency, accuracy, and compliance with internal controls and external regulations.
 Regular monitoring and review of the recorded receipts and their allocations should also be
conducted to identify any errors or discrepancies. Any discrepancies should be promptly
investigated and corrected to maintain the integrity of the financial records.

 In summary, accurately identifying remittance types and recording receipts accordingly is

crucial for correct allocation of funds in accordance with organization policies and
procedures. This process helps maintain accurate financial records, facilitates financial
reporting, and ensures compliance with internal controls and external regulations.
1.3 Complete batching in accordance with organisation system
Batching refers to the process of grouping together multiple transactions or tasks and processing
them as a single unit. It is commonly used in various industries and contexts to streamline
operations and improve efficiency.
What is batching in the context of remittance documentation
 In the context of remittance documentation, batching refers to the process of grouping
together multiple remittance documents or payments into a single batch for processing and
reconciliation.
 When a company or organization receives payments from customers or clients, they often
receive accompanying remittance documents that provide details about the payment, such as
invoice numbers, payment amounts, and customer information. Batching these remittance
documents involves collecting multiple documents received within a specific timeframe and
processing them together.
 Batching is an important process in financial management that involves grouping together
similar transactions or receipts for efficient processing and reporting. To ensure that batching
is completed in accordance with organization systems and operating procedures, the
following steps should be followed:
1. Understand organization systems and operating procedures: Familiarize yourself
with the organization's policies and procedures regarding batching. This includes
understanding the criteria for grouping transactions, the frequency of batching, and any
specific requirements or guidelines.
2. Identify similar transactions: Group together transactions that share common
characteristics or attributes. This could include transactions from the same department,
 transactions of a similar type (e.g., sales receipts, vendor payments), or transactions
within a specific time period (e.g., daily, weekly).
3. Determine batch sizes: Determine the appropriate batch sizes based on the
organization's requirements and capacity for processing. This could involve considering
factors such as the volume of transactions, available resources, and processing
timeframes.
4. Prepare batch documentation: Create batch documentation that clearly identifies the
batch number, date, and contents. This documentation should also include any relevant
details or instructions for processing the batch.
5. Complete batching process: Group the identified transactions together and ensure that
all necessary documentation is included. This could involve physically organizing paper
receipts or electronically grouping transactions in the accounting system.
6. Verify batch accuracy: Before finalizing the batch, review the transactions to ensure
accuracy and completeness. This may involve checking that all receipts are accounted
for, verifying the accuracy of amounts, and confirming that any necessary approvals or
authorizations are in place.
7. Notify relevant departments: Once the batch is complete and verified, notify the
relevant departments or individuals responsible for further processing or recording. This
could include notifying the accounts receivable department of daily sales receipts or
informing the accounts payable department of vendor payments.
8. Maintain batch records: Keep records of all batches processed, including batch
documentation and any supporting documents. These records are important for audit
purposes and future reference.
By following these steps and adhering to organization systems and operating procedures,
batching can be completed efficiently and accurately. This helps ensure that relevant departments
are advised of total daily receipts in a timely manner, facilitating proper financial management
and reporting.