Employees of AP, AR, GL departments employed in SSC/GBS.

The aim of the entire course is to guide participants from the basics of accounting and financial reporting, including terminology and accounting principles, to more advanced aspects such as practical skills in maintaining accounting records and making entries in general ledger accounts and subsidiary ledgers.

In an accessible and understandable way, the basic principles of accounting. Participants will learn the essence of accounting and bookkeeping as well as selected tax aspects using numerous examples/case studies.
The course will facilitate participants’ understanding of complex accounting issues so that they can be more self-reliant in the future in the areas of accounting in which they specialise.

LEVEL II – is a more advanced level. Its purpose is to consolidate the knowledge and skills acquired at Level 0 as well as to develop them in specific areas, i.e. understanding of general principles related to accounting, understanding of month-end closing procedures, accounting and calculation of allowances, confirmation of balances and collection of receivables, as well as other specific areas/aspects of accounting.

1. Accounting principles:
a) The principle of matching revenues with associated costs.
b) Accrual basis.
c) The precautionary principle.
d) The principle of individual valuation.
e) The principle of continuity.
(+discussion with examples)

2. Month closing [AP]:
a) Month closing procedures – detailed discussion with examples:
• analysis of open AP positions – reconciliation of accounts with suppliers (different kind of open positions on AP side (invoices, payments)/ analysis, explanation (methods and possible scenarios),
• analysis of open AP positions – purchase reconciliation account (methodology of analysis, explanation of differences and discussion on possible solutions),
• creating of provisions and accruals.

3. Sales recognition:
a) Sales registering process (goods, services, pro-forma invoices),
b) Discussion on revenue recognition principles (Incoterms) and allocation of sales to appropriate periods.

4. Receivable write-offs (impairment of receivables):
a) Reasons for recognition of receivable write-offs.
b) Principles of creating and accounting for receivable write-offs.
c) Tools used to calculate receivable write-offs:
• Detailed analysis of individual balances.
• Analysis of system reports – receivables aging reports.
(+analysis of a sample of trade receivables aging report and sample accounting for receivable write-offs)

5. Confirmation of collection of accounts receivables [AR]:
a) Sending and confirming of accounts with customers (legal requirement,
b) Analysis, preparation and sending of payment notice documents,
c) Phone contact with the customer to ensure receiving of payment,
d) Methods/ tools that help manage AR collection process.

6. Specific topics:
a) Presentation of booking schemes in the general ledger for selected transactions: revenue, provisions, prepayments, accruals and booking of interests, bank statements – with discussion of impact of these bookings on the balance sheet and profit and loss statement – month/ period closing),including:
• discussion on characteristics of tangible fixed assets, intangible fixed assets and depreciation,
• differentiating between CAPEX and current costs,
• booking of fixed assets purchases,
• booking of fixed assets sales including determining the result on sale,
• booking of depreciation and amortisation (incl. explaining the difference between amortisation and depreciation),
• discussion on prepayments and accruals,
• discussion on recognition of development costs (ex. know-how),
b) Results of financial audit – and its impact on accounting ledger (booking of auditors’ adjustments, possible audit opinions),
c) Self-invoicing, consignment invoices – discussion on characteristics of these documents,
d) Advanced payments matching (AR/AP):
• payment forms – bank transfers, bills of exchange, checks, compensations, prepayments/ advances,
• booking of payments received on customers’ accounts and matching these payments with invoices,
e) Trade rebates received – rebates adjusting costs. Discussion on calculation and booking scheme,
f) VAT settlement – presentation of VAT accounting on purchase and sales invoices, i.e. input VAT and output VAT. Discussion of the differences between the receivable and the tax liability due to VAT at the end of the month. VAT balance on invoices to be settled in subsequent periods:
• VAT payable, a VAT receivable,
• General VAT reconciliation principles. (+ example bookings),
• Reverse charge mechanism – general rules,
• VAT reconciliation periods – specific cases/ transactions (ex. utility costs).
g) Realized and unrealized forex differences:
• The accounting treatment of realized and unrealized exchange rate differences.
• Valuation of transactions expressed in foreign currencies in the accounting books (+ example bookings),
• Valuation of assets and liabilities expressed in foreign currencies as at the balance sheet date (+ example bookings),
• Foreign receivables write-offs.

*Programme protected by copyright. All rights reserved. Copying, reproduction and use of part or all of the information, programmes contained in the ADN Academy’s offer in electronic or other form without the author’s permission is prohibited.

• In Polish version.

• As a closed training, exclusively for employees of your organisation or centre.