FAC2B 2022 Assignment 10 to 21 October 2022(2)
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thomassahaaFAC2B 2022 Assignment 10 to 21 October 2022(2)
Uploaded by
thomassahaaFAC2B 2022
XERO assignment
The Xero assignment is an individual assignment consisting of 5 tasks. The 5th task will be the
submission of your assignment. More details will follow on the submission and marking of
your assignment.
The roadmap to successful submission is as follows:
Date Tasks
10 to 14 Task 1 Creating and setting up the details of Wood Corp (Pty) Ltd
October Task 2 Creating the contacts database (customers and suppliers)
17 to 21 Task 3 Creating inventory items
October Task 4 Processing conversion balances
TBC Task 5 Submission of your assignment
Date Tasks and resources
10 to 14 Task 1 Creating and setting up the details of Wood Corp (Pty) Ltd
October Task 2 Creating the contacts database (customers and suppliers)
Video – Editing financial settings 3 min of video
Video – Edit chart of accounts in Xero 4 min of video
Video – Set up tracking categories in Xero 3 min of video
Video – Edit organisation settings 3 min of video
PDF – Invoice Templates and Settings
Video – Add contacts 4 min of video
17 to 21 Task 3 Creating inventory items
October Task 4 Processing conversion balances
PDF – Creating Inventory Items
PDF –Inventory conversion balances
Video – -Enter conversion balances 4 min of video
PDF – Importing Invoices and Bills individually
PDF –Approve Bills and Payments
PDF – Task 4 Bills Pure Home
PDF – Task 4 Bills Woodworx bill 1
PDF – Task 4Bills Woodworx bill 2
PDF – Task 4 Invoice 170
PDF – Task 4 Invoice 177
PDF – Task 4 Invoice 180
PDF – Task 4 Invoice Roomly
TASK 1 – CREATING AND SETTING UP THE DETAILS OF
Wood Corp (Pty) Ltd
a. Setup the basics
b. Modify chart of accounts
1. The first step is to access Xero.
2. The company’s financial year ends on 30 June annually
a. Please verify that the company has the correct financial year.
b. Please change the VAT Basis to “Accrual Basis”.
c. The company’s VAT Number is 3320103222
d. The VAT Period should be set to “2 Monthly”.
e. Please change the default VAT settings for Sales to “Tax inclusive”.
f. Please change the default VAT settings for Purchases to “Tax inclusive”.
3. The company will make use of a modified version of the default
Chart of Accounts. Please create the following new accounts:
a. Handheld Sanders @ cost
i. Account type: Fixed Asset
ii. Code: 730
iii. Name: Handheld Sanders @ Cost
iv. Description: “Handheld sanders used to smoothen wood””
v. Tax: Standard Rate Purchases - Capital Goods (15%)
b. Handheld Sanders accumulated depreciation
i. Account type: Fixed Asset
ii. Code: 731
iii. Name: Handheld Sander Accumulated Depreciation
iv. Description: “The total amount of handheld sanders that has been
consumed by the business, based on useful life”
v. Tax: No VAT (0%)
c. Depreciation: Handheld Sanders
i. Account type: Depreciation
ii. Code: 417
iii. Name: Depreciation: Handheld Sanders
iv. Description: “The amount of handheld sander cost that was consumed
during the period”
v. Tax: No VAT (0%)
d. Service revenue (repairs)
i. Account type: Revenue
ii. Code: 201
iii. Name: Service Revenue
iv. Description: “Income from services relating to repairs and design fees”
v. Tax: Standard Rate Sales (15%)
4. The following accounts will not be used. Please delete each of the
accounts from the Chart
of Accounts:
a. 429 – General Expenses
b. 478 – Superannuation
c. 826 – Superannuation Payable
5. Please edit the following accounts:
a. 720 – Computer equipment
i. Name: Change to “Office Furniture”
ii. Description: Type your initials, surname and student number here
iii. Tax: Standard Rate Purchases - Capital Goods (15%)
iv. Select “Show on Dashboard Watchlist”
b. 721 – Less Accumulated Depreciation on Computer Equipment
i. Name: Change to “Accumulated Depreciation on Office Furniture”
ii. Description: Type your initials, surname and student number here
iii. Tax: No Vat (0%)
iv. Select “Show on Dashboard Watchlist”
c. 485 – Subscriptions
i. Name: Change to “Donations”
ii. Description: Donations made to charitable causes as part of CSR.
iii. Tax: Exempt Purchases (0%)
4. The following accounts will not be used. Please delete each of
the accounts from the Chart of Accounts:
a. 429 – General Expenses
b. 478 – Superannuation
c. 826 – Superannuation Payable
5. Please edit the following accounts:
a. 720 – Computer equipment
i. Name: Change to “Office Furniture”
ii. Description: Type your initials, surname and student number here
iii. Tax: Standard Rate Purchases - Capital Goods (15%)
iv. Select “Show on Dashboard Watchlist”
b. 721 – Less Accumulated Depreciation on Computer Equipment
i. Name: Change to “Accumulated Depreciation on Office Furniture”
ii. Description: Type your initials, surname and student number here
iii. Tax: No Vat (0%)
iv. Select “Show on Dashboard Watchlist”
c. 485 – Subscriptions
i. Name: Change to “Donations”
ii. Description: Donations made to charitable causes as part of CSR.
iii. Tax: Exempt Purchases (0%)
6. Create the following tracking categories.
a. Tracking category name: Stock type
Category options: Desks; Dining Tables; Chairs; Bookshelves; Service
item
b. Tracking category name: Region
Category options: Northern Region; Coastal Region; Central Region;
International
7. Wood Corp (Pty) Ltd has a business bank account with Global
Credit Bank. Please follow these steps to add the business bank
account to Xero.
a. Click on Accounting → Bank accounts
b. Click on “Add Bank Account”
c. Under “Find Account”, enter “Global Credit Bank’
d. In this course, we will not be using live bank feeds, but rather a
fictitious bank.
Therefore, Xero will not have Global Credit Bank as an option. Click on
“manually add
your account details”
e. Account Name: “Global Credit Bank”
f. Account Type: “Other”
g. Account Number: 112233445566
h. Currency: Make sure it is set to “ZAR”
i. Click on Save.
Note: do not add your own personal bank details here.
TASK 2 – CREATING CONTACTS
a. Creating contacts for both customers and suppliers
b. Creating a template for customer invoices using company logo
1. Wood Corp (Pty) Ltd has several customers and suppliers. Their details
need to be entered into Xero as part of the conversion process. However,
before entering their details into Xero, you first need to enter Wood Corp
(Pty) Ltd.’s details.
a. Display name: Leave unchanged
b. Legal / Trading name: Leave unchanged
c. Logo: Upload Company Logo.png (use any jpg image)
d. Line of Business Bespoke Furniture
e. Organisation type: Company
f. Business Registration: DJP-2018032310
g. Description: Bespoke Furniture
h. Postal address: 1 Wood Avenue
Johannesburg
Gauteng
South Africa
2190
i. The physical address is the same as the postal address
j. Telephone South Africa (+27) 011 559 3030
k. Email: info@woodcorp.joburg
l. Website: www.woodcorp.joburg
m. Make sure your postal address, organisation description, and email are
included in your
invoices by selecting the relevant check boxes.
2. The next step is to customise the template that Xero uses to generate
customer invoices.
Customise the standard invoice with the following specifications:
a. The top and bottom margins of the template should be set to 2 cm
b. The font should be changed to Georgia, 10 pt
c. The invoice should show item codes in addition to the Wood Corp (Pty)
Ltd company
details in Point 1.
d. The Terms & Payment Advice should read “Please contact us to
negotiate an early settlement discount”
e. The Terms (Quotes) should read “Quotes are only valid for 7 days after
the quotation date”
3. Under Default Settings, please add the following Payment Terms and
Automatic Sequencing numbers. This is to ensure that the new invoices,
credit notes, purchase orders and quotes have unique numbers that follow
on from the previous accounting system.
a. Wood Corp (Pty) Ltd uses the following as default Payment Terms:
i. For Bills Due: 30 days after bill date
ii. For Sales Invoices: 1st day of following month
b. The company will use one set of document numbers starting from the
following numbers:
4. Now we are ready to add some customers to Xero. Create the following
contacts for customers
5. Please create the following contacts for suppliers.
6. Wood Corp (Pty) Ltd has two customer categories. We can create a
contact group on Xero for each of these categories. Create the following
groups.
● Regular Customers
o Meubels Inc and Living Spaces to this group.
● Priority Customers
o Add Antique Log and Décor and Beyond to this group.
TASK 3 INVENTORY MANAGEMENT
Wood Corp (Pty) Ltd
a. Creating inventory items
1. Wood Corp (Pty) Ltd sells various items. For a demonstration on how
to create
inventory items, please work through the PDF guide on Blackboard (9.
Creating inventory items) before creating the following items.
TASK 4 CONVERSION BALANCES
a. Capturing the trial balance
b. Capturing outstanding invoices
c. Capturing bills to pay
d. Capturing opening inventory levels
1. Ms Magaia requires your assistance with the opening balances. Begin
with capturing the inventory balances. The Wood Corp (Pty) Ltd
Inventory Valuation as on the 30 June 2022 is as follows. Create the
following items:
Hint 1: Use the inventory asset account code which can be found in the
trial balance
Hint 2: Use the item codes created in Task 3
2. Now enter the opening balances in Xero using “Conversion Balances”.
Ms Magaia has instructed you to start processing all the transactions of
Wood Corp (Pty) Ltd starting on 1 July 2022. You have received the final
trial balance from the auditors for the period ending 30 June 2022 for Wood
Corp (Pty) Ltd:
Note 1: The Handheld Sanders shown in the trial balance was purchased on 1
July 2020 for R800 000.
The Handheld Sanders are depreciated on a straight-line basis at 15% per year.
Adding of the asset to
the Fixed Asset Register will be done in Task 5.
Note 2: Do not lock the conversion date when importing the conversion balances
3. Before processing any transactions, it is important to first import any
open transactions with customers into Xero. Use the invoices found under
Resources Task 4 on Blackboard for the invoice detail.
The Wood Corp (Pty) Ltd Customer Age Analysis as on 30 June 2022 is
as follows:
Try to add all the data available, based on the information provided in
Task 2.
4. We also need to import any unpaid bills into Xero, as received from our
suppliers. Import the bills individually. Use the bills found under Bills for
Task 4 for the bill detail.
The Wood Corp (Pty) Ltd Supplier Age Analysis as on the 30 June 2022
is as follows:
5. Before saving the conversion balances, ensure that you approve all bills
and invoices.