Unit 21: Administer Finance - FW Solutions

1 Pearson BTEC Level 2 Diploma in business Administration (QCF) Specification Issue 2 January 2015 Pearson Education Limited 2015 157 Unit 21: Administer Finance Unit reference number: R/506/1890 QCF level: 2 Credit value: 4 Guided learning hours: 21 Unit type: Competence Unit summary The Finance department plays a key role in the survival of the organisation and it is important that accurate and up to date records are kept and that everyone in the department knows how to generate key documentation to ensure cash continually flows into the business . In this unit you will learn how to identify who is responsible for ensuring payments are authorised in the company as well as ensuring that key documents which need to leave the department are done so in a timely manner.

2 It is vital that activities within this area follow organisational policies and procedures and you will have the opportunity to work within these guidelines whilst carrying out your day to day duties. Pearson BTEC Level 2 Diploma in business Administration (QCF) Specification Issue 2 January 2015 Pearson Education Limited 2015 158 Learning outcomes and assessment criteria To pass this unit, the learner needs to demonstrate that they can meet all the learning outcomes for the unit. The assessment criteria outline the requirements the learner is expected to meet to achieve the unit. Learning outcomes Assessment criteria 1 Understand Finance for administrators Describe organisational hierarchy and levels of authority for financial transactions Explain organisational systems for sales invoicing, purchasing, payments and receipts Describe the use of a purchase order, invoice, receipts and expenses 2 Be able to Administer Finance Record income and expenditure in accordance with organisational policies and procedures Process purchase orders.

3 Invoices or expenses in accordance with organisational policies and procedures Process outgoing payments to the correct recipient Accept or allocate incoming payments in accordance with organisational policies Pearson BTEC Level 2 Diploma in business Administration (QCF) Specification Issue 2 January 2015 Pearson Education Limited 2015 159 Unit amplification : Describe organisational hierarchy and levels of authority for financial transactions The knowledge to meet this AC depends on the particular organisational requirements and context. Learners need to apply the knowledge specific to their organisation to meet this AC : Explain organisational systems for sales invoicing, purchasing, payments and receipts The knowledge to meet this AC depends on the particular organisational requirements and context.

4 Learners need to apply the knowledge specific to their organisation to meet this AC : Describe the use of a purchase order, invoice, receipts and expenses Purchase order: document required before an item can be purchased; must be authorised or signed by correct staff; purchase order number should be quoted on the invoice; items listed on the purchase order must match those on the invoice Invoice: required document prior to a payment being made; must be signed by correct staff to ensure accuracy of amount and items; gives the total amount due to be paid, including VAT where required; how the final invoices are distributed Receipts: money coming into the company as a result of invoices paid, sales; other sources of income, funded projects; how invoices coming into the company are administered within the Finance department Expenses: costs to the company, rent, salaries; how these expenses come into the company, via invoice.

5 Those expenses incurred by staff whilst working on behalf of the company whilst away from the office, mileage expenses, hotel expenses Pearson BTEC Level 2 Diploma in business Administration (QCF) Specification Issue 2 January 2015 Pearson Education Limited 2015 160 Information for tutors Suggested resources Books Carysforth C Administration nvq level 2 (Heinemann, 2006) ISBN 9780435463335 Sutherland J and Sutherland D business and Administration nvq level 2 (Hodder Education, 2011) ISBN 9781444144208 Websites Skills CFA: Sector Skills Council for business Administration Assessment This unit is internally assessed. To pass this unit the evidence that the learner presents for assessment must demonstrate that they have met the required standard specified in the learning outcomes and assessment criteria and the requirements of the Assessment Strategy.

6 To ensure that the assessment tasks and activities enable learners to produce valid, sufficient, authentic and appropriate evidence that meet the assessment criteria, centres should apply the Unit assessment guidance provided and the requirements of the Assessment Strategy given below. Wherever possible, centres should adopt a holistic approach to assessing the units in the qualification. This gives the assessment process greater rigour and minimises repetition, time and the burden of assessment on all parties involved in the process. Unit assessment requirements This unit must be assessed in the workplace in accordance with the Skills CFA Assessment Strategy for business Administration, Customer Service and Management and Leadership in Annexe A.

7 Simulation is not allowed for this unit. All evidence of occupational competence should be generated through performance under workplace conditions; this includes evidence of achievement for knowledge-based learning outcomes and associated assessment criteria. Pearson BTEC Level 2 Diploma in business Administration (QCF) Specification Issue 2 January 2015 Pearson Education Limited 2015 161 Unit assessment guidance This guidance supports assessors in making decisions about how best to assess each unit and the evidence needed to meet the assessment requirements. Centres can adapt the guidance for learners and the particular assessment context, as appropriate. The primary source of evidence for demonstrating achievement of learning outcome 2 is direct observation of the learner carrying out their work activities relating to administering Finance .

8 Finance can relate to invoices, receipts, purchase orders and expenses either for the organisation or your team. The evidence from the direct observation for learning outcome 2 could be supported by examining work products such as written or electronic records, spreadsheets, emails etc. this provides further evidence to meet the requirements of , , and Witness testimony could be used to support the evidence from direct observation for Question and answer (Q&A) sessions could be used to corroborate the competence of the learner ( for , , and ) as well as meeting the requirements of the knowledge assessment criteria in learning outcome 1. Learners responses must be at the appropriate breadth and depth to meet the level of demand of the knowledge assessment criteria; for example, the responses must have sufficient detail about the organisational systems for sale invoicing, purchasing, payments and receipts ( ).

9 Evidence of Recognition of Prior Learning (RPL) can also be used within the unit to confirm competence. Wherever possible, the learning outcomes in this unit should be assessed holistically across the qualification.