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Voucher Adjustments can be used in cases where there is: incorrect data entry; incorrect vendor invoice information; or, failure of the vendor to provide the agreed upon goods or services.
If the voucher has not been posted or paid, it is possible to correct these errors by modifying the original voucher. However, if the voucher has been posted or paid it is possible to create a voucher adjustment.
Budget checking must be performed on the voucher adjustment. The result is updated vendor balances and accounting entries when these adjustment vouchers are posted. An audit trail is also created when using the voucher adjustment. To make an adjustment on a voucher that has already been posted, it must first be unposted. For more information on how to unpost a voucher, see Voucher Unposting, Understanding in the ESP Library.
The acquittal of advance payments are processed in the Accounts Payable system as a voucher adjustment rather than by journal entry. A detailed paper/case study on how to manage advances has been prepared and is published on the web at:
Travel Advances are subject to the procedures outlined in the Finance and Business Services Manual (Section 506 Advance Payments) http://www.anu.edu.au/finance/manual/500/506_1.htm#506.1.2
Wherever practicable, advances should be charged against an appropriate advance account and not directly expensed. However, if an advance is directly expensed it is still necessary to process acquittals through ESP Accounts Payable using ‘voucher adjustments’. This is required so that the University can claim GST input tax credits incurred by the employee. Business Units are encouraged to acquit and clear advances in their own area. Supporting documentation (including original tax invoices/receipts) is to be attached to the voucher register for filing in Finance and Business Services.
The accounts to be used for advances are:
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Advance
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Equipment |
1454 |
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Advance
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Other |
1457 |
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Advance
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Travel |
1460 |
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Advance
|
Field and Survey |
1465 |
Advance payments to employees are not subject to ABN withholding provisions.
The steps to process an advance to an employee are:
Use the Get Employee/student function to activate the vendor
Process a voucher for the advance – the advance will not include any GST.
The steps to acquit an advance to an employee are:
Use the Get Employee/student function again to reactivate the vendor, key in the ABN if GST is to be claimed.
Acquit the advance by processing voucher adjustments to record the expenditure which must be supported by original tax invoices and/or receipts.
Arrange for a refund to be receipted * (if any). There may be an additional payment if the amount spent is greater than the advance.
Normal processing of vouchers still applies eg. approval, use of voucher registers.
* Note: Receipt any refund of an advance as GST free income
Note: This document assumes that an employee is someone paid a salary through the ANU payroll. When acquitting advances to non-employees the GST input tax credits cannot be claimed by the ANU.
A worked example showing the steps for an advance of $1,000 and receipts for $950 (some with GST and some without) is contained in the following pages. To obtain the ESP procedures for processing advances please select one of the available document formats:
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ESP - GST Version 7.5 - Treatment of Advances |
http://www.anu.edu.au/finance/manual/500/506_1.htm#506.1.2
