Unit 2 Making and recording payments

This unit is about the organisation’s expenditure. It includes dealing with documentation from suppliers, preparing payments and recording expenditure.

You are required to obtain 1 of the 2 elements

Element objective

Example activities to demonstrate competence

2.1 Process documents relating to goods and services received

This is about coding and entering documents in a manual or computerised system. Making accurate calculations, including any discounts.

Checking suppliers invoices against goods received notes
Checking that details and calculations are correct
Coding of invoices and credit notes and entering the details in manual or computer systems
Re-performance testing of process (audit)
Sample inspecting documentation (audit)
Re-performing calculations (audit).

2.2 Process payments

This is about preparing authorised payments for creditors, payroll or petty cash and entering the payments in a manual or computerised system. Selecting the appropriate payment method and ensuring the security of any payments.

Accurate calculation of payments in accordance with invoices or supplier statements
Scheduling and obtaining authorisation for payments
Managing and balancing off petty cash
Entering payments made in appropriate ledger
Re-performance testing of the process (audit)
Compliance testing of authorisation policies (audit)
Reviewing the cash book and vouching unusual payments (audit).

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Unit 2 Making and recording payments