FNSACM401 Evaluate And Authorise Payment Requests



You will need to research information to assist with your responses for this task.

What you will need to complete these tasks

You should use a variety of sources to gather information including training resources, workplace policies and procedures (if you are able to access these) and government and industry bodies.

You are required to provide information about the following points. You must prepare a written response to each point, which can be supported by example documentation as required. Ensure material is referenced appropriately.

You are to research the following topics then outline your findings in a report. Use the questions below as a guide to your research:

Task 1

Your task is to choose an organisation and based on this organisation, answer the following questions:

  1. Identify the legislation and industry codes of practice relevant to the payment systems in the organisation.
  2. List and describe the organisational procedures for evaluating and authorising payment requests.
  3. Describe the types of payment requests and associated documentation handled by the organisation.
  4. Describe how payments are coded and allocated in the organisational system.

Task 2


Regardless of the company’s size, the mission of accounts payable is to pay only the company’s bills and invoices that are legitimate and accurate. This means that before a vendor’s invoice is entered into the accounting records and scheduled for payment, the invoice must reflect:

  • what the company had ordered
  • what the company has received
  • the proper unit costs, calculations, totals, terms, etc.

To safeguard a company’s cash and other assets, the accounts payable process should have internal controls. A few reasons for internal controls are to:

  • prevent paying a fraudulent invoice
  • prevent paying an inaccurate invoice
  • prevent paying a vendor invoice twice
  • be certain that all vendor invoices are accounted for

The accounts payable process must also be efficient and accurate for the company’s financial statements to be accurate and complete. Because of double entry accounting an omission of a vendor invoice will actually cause two accounts to report incorrect amounts. For example, if a repair expense is not recorded in a timely manner:

  • the liability will be omitted from the balance sheet, and
  • the repair expense will be omitted from the income statement.

If the vendor invoice for a repair is recorded twice, there will be two problems as well:

  • the liabilities will be overstated, and
  • repairs expense will be overstated.

In other words, without the accounts payable process being up-to-date and well run, the company’s management and other users of the financial statements will be receiving inaccurate feedback on the company’s performance and financial position.

Evaluating and Authorising Payment Requests Procedure and Process Flow

Your task is developing a procedure and process flow diagram that provides the steps to evaluate and authorise payment requests in a workplace or suitably resourced simulated environment.

In order to complete this task effectively you will require access to the following resources:

  1. Common office equipment, technology, software and consumables
  2. An integrated financial software system and data – you may refer and utilise your company file in MYOB that you have used in other units of competence in this course.

When developing the procedure and process flow diagram for this task there are several activities that you will need to complete, these include:

  1. Verifying and validating the accuracy of payment requests and accurately preparing payment documentation
  2. Checking and authorising payment requests following organisational policy and procedures, and legislative requirements

Ensure you include the ‘Three Way Match” in your procedure and process flow chart. The three-way match involves comparing the following information:

  • The description, quantity, cost and terms on the company’s purchase order.
  • The description and quantity of goods shown on the receiving report.
  • The description, quantity, cost, terms, and math on the vendor invoice.



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