Accounting Systems in spreadsheets Tutorials


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This tutorials explain how to use simple Accounting system in spreadsheets and macros for accounts payable and payments process.

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  • Excel spreadsheets is very good for reporting, and it is good for posting or to be used as general ledger but for very small business. This tutorial gives you an understanding of how the spreadsheets can be used as accounting system for small business.
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Accounting Systems in spreadsheets Tutorials

  1. 1. 1/8/2012HAMR  ACCOUNTING SYSTEM SPREADSHEETS   Accounts Payables spreadsheets | hrashed 
  2. 2. HARFinance DepartmentNew Treasury Spreadsheets SystemIntroduction:This system was built based on finance team and Yemen finance managerdiscussion and since the PMP requirements for 2010 are improving thesystem and preparing risk assessments for Finance Department, I intendedto develop new treasury spreadsheets and reporting system that is startedon Nov 26, 2009 and completed on June 15, 2010, to increase the efficiencyof the Finance staff by designing the below several spreadsheets that arelinked to each other by vba codes, and to provide more reliable and relevantfinancial 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 ListCreated on 12/26/2011 9:31:00 PM Page 2 of 26
  3. 3. HARFinance DepartmentNew Treasury Spreadsheets SystemContents:1) Update Invoice Register2) Create Payment/Receipt Voucher2) Fill out the Voucher.3) Print and Post4) Add/Delete codes5) Update Vendor Master File.6) Exporting to Final Bank Register7) Bank Movements Register and Reconciliation8) Drafting Payment Journals & Journalize9) Posting/updating all transactions into Database, and Month-end Reporting10) System Control Points11) New Flowchart of processing invoices.Created on 12/26/2011 9:31:00 PM Page 3 of 26
  4. 4. HARFinance DepartmentNew Treasury Spreadsheets SystemUpdate Invoice RegisterWhen invoices are received, they are recorded in the invoice register asbelow screenshot. When recording the invoice register, the cell of invoicenumber 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 thepayment is easy by looking at column “paid via”. If it is “SYD”, it will be paidvia Sydney, but if it is “YE”, it will be paid from Sana’a Credit Agricole bankaccounts.If the invoice is returned back, paid via petty cash or cancelled/deleted bysupplier, we should indicate to this action in column “Remark”.Created on 12/26/2011 9:31:00 PM Page 4 of 26
  5. 5. HARFinance DepartmentNew Treasury Spreadsheets SystemCreating Payment/Receipt VoucherTo issue new serialized payment Voucher, cheque, transfer and cheque draftrequest, please click on “New Voucher” Button.Created on 12/26/2011 9:31:00 PM Page 5 of 26
  6. 6. HARFinance DepartmentNew Treasury Spreadsheets SystemFill Out the VoucherFill out the cells which are highlighted in Yellow. Following cells shows droplistPayment MethodSupplier’s NameCurrencyCreated on 12/26/2011 9:31:00 PM Page 6 of 26
  7. 7. HARFinance DepartmentNew Treasury Spreadsheets SystemWhen you select the supplier’s name and the currency, the Payment methodwill appear automatically from vendor master in cell “I10” that can help youto choose the correct payment methodWhen you choose the payment method, the cheque number, transfer numberor cheque draft request number is automatically serialized and captured inpayment voucher.Created on 12/26/2011 9:31:00 PM Page 7 of 26
  8. 8. HARFinance DepartmentNew Treasury Spreadsheets SystemThe 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 timepayment, not for current time and onwards, this system has flexibility toaccept the new payee name without changing the vendor master by typingthe payee name on cell I12, and it is automatically appeared in the payableto field, and “warning alert” note is displayed above coding table and underdescription, which gives an indication to the approver to ensure to haveadequate documents or approval to process such payment.Created on 12/26/2011 9:31:00 PM Page 8 of 26
  9. 9. HARFinance DepartmentNew Treasury Spreadsheets SystemCreated on 12/26/2011 9:31:00 PM Page 9 of 26
  10. 10. HARFinance DepartmentNew Treasury Spreadsheets SystemPrint & PostIf the payment via transfer or check draft, reference number of transfer/check draft is automatically updated in the transfer letter/check draftrequest.For Credit Agricole Bank requirements, the purpose of the payment should bedisclosed in the letter sent to the bank, therefore, type the purpose of thepayment, then specify the Class A and B signatories by dropping down thenames, as the below screenshot.The following fields with symbol of “*” are required and the voucher canneither be printed nor posted if they are not filled, and if the cell of voucheramount becomes red. - Supplier’s Name - Payment Method - CurrencyCreated on 12/26/2011 9:31:00 PM Page 10 of 26
  11. 11. HARFinance DepartmentNew Treasury Spreadsheets SystemType 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 printthe payment voucher and either transfer letter or cheque draft request, asper your specification, and we will receive the below massage “Do you wantto post this voucher?” Click on “Yes” if you are sure to post the voucher tothe register or “No” if you want to review the payment voucher first.Created on 12/26/2011 9:31:00 PM Page 11 of 26
  12. 12. HARFinance DepartmentNew Treasury Spreadsheets SystemIf you click on “Yes”, the voucher will be posted to the register andautomatically gives you the next payment voucher number, and either nextcheck number, check draft number or transfer numberDon’t forget, each time you want to issue payment voucher click on “NewVoucher”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,Created on 12/26/2011 9:31:00 PM Page 12 of 26
  13. 13. HARFinance DepartmentNew Treasury Spreadsheets Systemyou should keep the number and cheque/transfer number in the“Temp.Register”, and manually replace the amount to “0” value and othercells to “Void”Any payment other than main currency you should update the paid amountfrom bank register if you know the exam amount or use average FX rate, andupdate it in the “Temp.Register” sheet in the USD amount columns.Created on 12/26/2011 9:31:00 PM Page 13 of 26
  14. 14. HARFinance DepartmentNew Treasury Spreadsheets SystemAdd/Delete CodingIf you want to add or delete codes that you add, click on “Add code” or“Delete Code” buttonsCreated on 12/26/2011 9:31:00 PM Page 14 of 26
  15. 15. HARFinance DepartmentNew Treasury Spreadsheets SystemUpdate Vendor Master File:Any supplier payment details should be updated in this sheet “VendorsMaster”, otherwise, payment voucher can not be displayed the vendor name,payable names, payment method, transfer letter, payment details if thesupplier is not recorded in Vendor Master File.Vendor name should be imported from “Invoice Register.xls”, before clickingon “Import Vendor Name”, we should open the invoice register workbook.This “Vendor Master” sheet is protected. This file should be updated based onofficial letter from local supplier or official correspondence from overseassupplier, and this letter or correspondence should be documented in Vendorfile.To update the Vendor Master File, click on “New Supplier Setup” button, thebelow Supplier Setup Form will be displayed as the below screenshot. Selectthe Supplier name from the dropdown list, and update Payment details forthe supplier. When you select the Check payment method the field of payableto will be activated to type the payable’s name that should be reflected in thecheck. When you select Transfer, the “Payable to” field will becomeinactivated and the bank details will be activated instead. For understandingthe abbreviations of the bank transfers (e.g. SWIFT, IBAN, ABA), please seethe “International Payment Concepts” document.Created on 12/26/2011 9:31:00 PM Page 15 of 26
  16. 16. HARFinance DepartmentNew Treasury Spreadsheets SystemEnsure that the Supplier payment details are properly filled, then click on“Post” button to Set up the new supplier, after that print out the “SupplierSetup Request Form” to be approved manually by the Supervisor for hisreview. The following fields with symbol of “*” are required and the vendorcannot 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 NameCreated on 12/26/2011 9:31:00 PM Page 16 of 26
  17. 17. HARFinance DepartmentNew Treasury Spreadsheets SystemThis payment information is required and programmed based on internationalbanking payment requirements and ISO9362. For more information aboutInternational Banking Payments, please read the attached “InternationalPayments Concepts”If there is wrong in posting some vendor payment information, the FM shouldchange 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.Created on 12/26/2011 9:31:00 PM Page 17 of 26
  18. 18. HARFinance DepartmentNew Treasury Spreadsheets SystemExporting to Final Bank RegisterAt the end of each month, all the payments posted and recorded in“Temporary Register”, should be reviewed in amounts and in coding, thenexported to Final Bank Register that is protected and cannot be changedafter posting it to final bank registerTo post the payment transactions to the final bank register, you should dothe 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)Created on 12/26/2011 9:31:00 PM Page 18 of 26
  19. 19. HARFinance DepartmentNew Treasury Spreadsheets System 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.Created on 12/26/2011 9:31:00 PM Page 19 of 26
  20. 20. HARFinance DepartmentNew Treasury Spreadsheets SystemBank Movements Register and ReconciliationBank Movements Register and Reconciliation is a report that required bySydney Finance Team, sent every month. This register is more similar to thefinal bank register except for the way of recording the payment transactions.In the Final Bank Registers, the payment transactions was recorded byinvoice and account code, but the bank movements register record thepayment transactions by payment voucher. Means, Final Bank register ismore detailed and Bank movements register is more summarized.To update the bank movement register with the recent paymenttransactions, 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.Created on 12/26/2011 9:31:00 PM Page 20 of 26
  21. 21. HARFinance DepartmentNew Treasury Spreadsheets System 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.Created on 12/26/2011 9:31:00 PM Page 21 of 26
  22. 22. HARFinance DepartmentNew Treasury Spreadsheets SystemDrafting Payment Journals & JournalizeThe GL accountant should reviewing the final bank register for the currentmonth, 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.Created on 12/26/2011 9:31:00 PM Page 22 of 26
  23. 23. HARFinance DepartmentNew Treasury Spreadsheets SystemPosting/updating all transactions into DatabaseDatabase sheet is protected sheet except for column that are not protectedand may needs to be updated manually.To Post all the invoices received into database, open the invoice register andAP/Treasury Database spreadsheets, then click on “Step 1: Import frominvoice register” button.To update the invoices to enable you to clear the invoices and generate theoutstanding invoice report, Accounts Payable Performance Report andAccounts Payables Trial Balance, you should open the “Invoice RoutingRegister” and “Bank Register 2010” spreadsheets, then click on “Step 2:Update Database” button, wait until the database is updated.Created on 12/26/2011 9:31:00 PM Page 23 of 26
  24. 24. HARFinance DepartmentNew Treasury Spreadsheets SystemTo generate the outstanding invoices, filter the data in column AH andchoose “O/S”, all the invoices that are not cleared will be appeared in thisreport, if there is debit/credit note issued against some invoices, the someinvoices were paid via petty cash, or some invoices were replaced,deleted/cancelled or returned back, the Data of those action should bemanually updated in Range (Y9:AA10000), to update the status of theinvoice, outstanding invoices report, accounts payables trial balances andAccounts Payables Performance ReportCreated on 12/26/2011 9:31:00 PM Page 24 of 26
  25. 25. HARFinance DepartmentNew Treasury Spreadsheets SystemSummary System Control points.Based on the inherent risk assessed previously, the following majorspreadsheets 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.Created on 12/26/2011 9:31:00 PM Page 25 of 26
  26. 26. HARFinance DepartmentNew Treasury Spreadsheets SystemSimple New Flowchart of processing invoices. - Invoice receiving from receptionist, stamped received by Finance - Invoice information is recorded in the invoice register Stop paying the Is there any Yes invoice and update indication to the invoice block the register payment? No - 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 - 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 tooCreated on 12/26/2011 9:31:00 PM Page 26 of 26