Certificate in Xero Assessment
Certificate in Xero Assessment
Congratulations on working through all the course material within the Certificate in Xero! In this assessment, you are required to complete certain tasks for Stormer Bikes.
Instructions
To complete this assessment, you are required to record bills and sales, reconcile the bank account and generate reports. You will be asked to export certain invoices and reports to PDF and it is crucial that you save these files on your computer because you will be required to upload the files for grading.
This assessment is based on a fictional company Stormer Bikes and you will find information relating to this company below.
Background:
Chris Douglas from Stormer Bikes has asked you to help him get his accounts up to date. Stormer Bikes is a business that is focused on selling and repairing bikes in your local area.
Chris is great with bikes but he struggles to keep his accounts up to date. His monthly account preparation to date has involved gathering statements, invoices and bills, but he hasnt entered anything into Xero since the end of last month.
Chris heard you are pretty good with Xero and he has asked you to process the data from last month, and tidy up the Xero file if needed. He has just dropped off an envelope filled with invoices, bills and statements for Stormer Bikes and wants you to complete the work asap.
Required:
In the following pages, there are a range of transactions and processes that you need to complete within the headings listed below. Work through the requirements in the order that they are presented.
The headings containing tasks you need to complete are: Reset the Demo Company and Change the Company Name
Import Inventory File
Purchases.
Sales.
Bank Reconciliation.
Reporting.
Complete your assessment
1. Reset the Demo Company and Change the Company Name
Task One: Reset Demo Company
You are required to complete the following assessment in the Xero Demo Company. To access the Demo Company please login to Xero > Go to My Xero > Click on Try the Demo Company at the bottom of the screen.
Remember: The Demo Company contains its own data, and it is reset every 28 days, make sure you complete the assessment requirements before the Demo resets in 28 days.
Task Two: Change Company Name
Since Chris isn't that great with accounting it is a good idea to ensure the Xero file is set up correctly before getting started.
Click on the Company Menu at the top left and then go to Settings > Organisation details
Change the Display name and Legal/Trading name to Stormer Bikes
Fill in the line of Business as Retail Bike Shop.
Ensure the following contact details are entered:
Organisation Type: Company
Postal Address: 123 Wakefield Place, (Your town/city)
Physical Address: Same as postal address
Website: www.stormerbikes.com
Save and return to the Dashboard.
2. Import Inventory File
Task One: Import File
In order to complete some of the tasks below, there will need to be some data added to the Xero demo file you will be working in.
Go to Business > Products and services and select import/items and import the file of inventory titled InventoryItemsStormerBikesAU.csv located [here].
3. Purchases
Assume you have sorted out all the purchase invoices Chris provided you with for the period, and you have extracted all of the key information and you are now ready to enter the purchases.
Note: Take care when entering the prices into the bill or purchase orders. You will need to correctly record whether the amount is GST Inclusive (referred to as Tax Inclusive) or GST Exclusive (referred to as Tax Exclusive) and ensure that the appropriate option is selected under Amounts are.
Task One: Create New Item
This is an exciting bill for Chris as Stormer Bikes is the first supplier to get their hands on the Storm Elite Saddle V10s. Historically, Stormer Bikes has supplied V9s, which were popular with biking enthusiasts and the V10s are on the top of their wish lists.
First, you will need to create a new item. Go to the Business tab > Products and services and create a new item with the following details:
Item Code: PS10
Item Name: Storm Elite Saddle V10
Leave Track Inventory Item de-selected
Leave Purchase selected
Cost price: 300.00
Purchases Account: 300 - Purchases
Purchases Description: Storm Elite Saddle V10. Contact Grant with '#SES V10'
Leave Sell selected
Sales price: 500.00
Sales Account: 200 - Sales
Sales Description: The New Elite" Storm Saddle V10
Save
Task Two: Create New Bill
Click on the + on the top right of the screen and select create new Bill and then create and approve a bill for Grants Bike Supplies (new contact) with the following details:
Date: 1st of last month
Due: 20th of last month
Reference: 0215
Amounts are: Tax Inclusive
Line 1:
Item: PS10 Storm Elite Saddle V10
Qty: 25
Price: $300 as per the pre-populated data
Line 2:
Description: Various Bike Parts for the workshop
Qty: 1
Price: $1,500
Account: 300 Purchases
Approve and Print PDF. (Save this file).
Task Three: Create a Purchases Order
The next document you process is a purchase order for some bikes in the retail shop.
Click on the + on the top right of the screen and select create new Purchase Order. Create and approve a purchase order for Reliable Bikes (new contact) with the following details:
Date: 3rd of last month
Delivery Date: 20th of last month
Reference: 10023
Amounts are: Tax Exclusive
Line 1:
Item: B1 TC: ThunderCrosserQty: 20
Price: $1,500 as per the pre-populated data
Line 2:
Item: B2 LS: LightningSpeederQty: 30
Price: $2,000 as per the pre-populated data
Approve and Mark as Sent and Print to PDF. (Save this file).
Task Four: Create New Bill
Click on the + on the top right of the screen and select create new Bill. Create and approve the bill from Truxton Property Management with the following details:
Date: 15th of last month
Due: 28th of last month
Reference: INV-0015
Amounts are: Tax Inclusive
Line 1:
Description: Rent and operating expenses for workshop and shop
Price: $2,000
Account: 469 Rent
Line 2:
Description: Power
Price: $500
Account: 445 - Light, Power, Heating
Approve.
Task Five: Amend Purchase Order/Bill
Unfortunately, Reliable Bikes were unable to provide 20 of the 30 requested LightningSpeeders, so instead Chris decided to supply 20 more ThunderCrossers.
Go to the Business tab > Purchase Orders and find the purchase order for Reliable Bikes. Click on Options > Copy to > Bill. De-select "Mark this purchase order as fully billed" > Create Draft.
Change the draft bill details to match the new details (Quantity changes):
Date: 6th of last month
Due: 28th of last month
Reference: 10045
Amounts are: Tax Exclusive
Line 1:
Item: B1 TC: ThunderCrosserQty: 40
Price: $1,500 as per the pre-populated data
Account: 300 Purchases
Line 2:
Item: B2 LS: LightningSpeederQty: 10
Price: $2,000 as per the pre-populated data
Account: 300 - Purchases
Approve and Print PDF. (Save this file).
Task Six: Add a Credit Note
Chris got back to us regarding the bill 0215 from Grants Bike Supplies. It turned out that Stormer Bikes returned 5 saddles to Grant's Bike Supplies because they were damaged during Transit. Chris managed to find the crumpled credit note in the workshop, and he has provided you with this.
Go to the Business tab > Bills to pay and find the bill 0215 from Grants Bike Supplies. Once in the bill screen, go to Bill Options > Add Credit Note and change the credit note to match the following details (most fields should be prepopulated):
Date: 10th of last month
Item: PS10 Storm Elite Saddle V10 as per the pre-populated data
Qty: 5
Price: $300 as per the pre-populated data
Account: Purchases as per the pre-populated data
Remove the line that relates to the various bike parts
Update the total at the top right to match the Credit Note amount
Approve.
In the payment section of the invoice click on credit note:
Print PDF (Credit Note). (Save this file).
Well done, you have now completed all the purchases.
4. Sales
The next step is to focus on sales. You have gathered together all the sales invoices Chris has issued during this period and extracted key information.
Note: Take care when entering the prices into the invoices. You will need to correctly record whether the amount is GST Inclusive (referred to as Tax Inclusive) or GST Exclusive (referred to as Tax Exclusive) and ensure that the appropriate option is selected under Amounts are.
Task One: Create a New Invoice
During the month there was another exciting event for Chris! He managed to secure a new contract with Bayside Club. They are a club located on the marina nearby. They provide a range of bikes for customers to ride on. Bayside Club has chosen Stormer Bikes to supply the ThunderCrosser in their New Elite" collection. If this goes well, more bikes will be sold and negotiations are already in place for the LightningSpeeder.
Go to the + on the top right and select create new Invoice. Create and approve an invoice to Bayside Club with the following details:
Date: 15th of last month
Due: 20th this month
Invoice #: INV-0044
Amounts are: Tax Exclusive
Item: B1 ThunderCrosserQty: 25
Price: $1,700 as per the pre-populated data
Account: 200 Sales as per the pre-populated data
Approve.
Task Two: Create a New Invoice
Go to the + on the top right and select create new Invoice. Create and approve an invoice to Berry Brew with the following details:
Date: 17th of last month
Due: 20th of last month
Invoice #: INV-0045
Amounts are: Tax Inclusive
Line 1:
Item: B1-TC ThunderCrosserQty: 1
Price: $1,700 as per the pre-populated data and a
Line 2:
Item: B2-LS LightningSpeederQty: 2
Price: $2,300 as per the pre-populated data
Approve.
Under the payment section of the invoice enter a payment using the following details:
Amount Paid: $2,000
Date: 20th of last month
Paid to: Business Bank Account
Reference: Billy
Add payment.
Task Three: Create a Quote
Bill Kenneth of Berry Brew is a long-time customer and owns a collection of bikes. Chris told you that last month he brought in a discontinued mountain bike called the EliteClimber. During a regular service, they found issues with the gearing and braking mechanisms that need to be repaired. He is very keen on a couple of the "New Elite" Storm Saddle V10s.
He asked for a quote to be prepared for the repairs and to buy some of the V10s.
Go to the + on the top right and select create new Quote. Create and approve a quote to Berry Brew with the following details:
Date: 24th of last month
Expiry: 20th of next month
Amounts are: Tax Inclusive
Quote #: 0017
Line 1:
Item: PS10 Storm Elite Saddle V10
Qty: 5
Price: change the price to $200
Line 2:
Description: Inspected EliteClimber Bike, need to replace Gearing and Braking Mechanisms. See workshop repair slip for more information.
Qty: 1
Price: $800
Account: 200 Sales
Save
View quote and Print to PDF. (Save this file)
Save.
Task Four: Activity Statements
While creating the quote, you noticed that Bill of Berry Brew still hadnt paid the last invoice. Chris has discussed this non-payment with Bill, and Bill has asked for a statement of his account for the last month. Chris doesnt know how to do this, so he has instructed you to generate this statement for him.
Go to the Business tab > Sales Overview and click on Send Statements: Statement type: Activity
Date range: enter date range for last month.
Tick: Berry Brew
Print to PDF (Save this file)
Task Five: Credit Note
Bayside Clubs "New Elite" collection is doing great and they are planning on buying a range of LightningSpeeders. However, they realised they have purchased too many ThunderCrossers compared to the current number of customers. Chris has a 7-day return policy if the bikes are still in the boxes.
Bayside Club contacted Chris by email and explained this, and they have now returned 7 of the bikes and they wish the credit to be applied to the next bill. Create this credit note for Bayside Club now.
Go to the Business tab > Invoices and find the sales invoice INV-0044 for Bayside Club. Once in the sales invoice go to Invoice Options > Add Credit Note and change the credit note to match the following details (most fields should be prepopulated):
Date: 20th of last month
Items are: Tax Exclusive
Item: B1 ThunderCrosserQty: 7
Price: $1,700 as per the pre-populated data
Account: 200 - Sales as per the pre-populated data
Approve.
Bayside Club wants to see the credit note applied to the invoice and the remaining amount due. You should still be in the sales invoice INV-0044 for Bayside Club.
Print PDF (Invoice) and Mark as Sent (Save this file).
Well done, you have now completed all of the Sales activities.
5. Bank Reconciliation
Xero already has the bank transactions for the last month.
Task One: Reconcile the Bank
Go to Accounting > Bank Accounts and reconcile the Business Bank Account using the following information:
Code all transactions that match up with an invoice or purchase order (shown as green or showing an OK).
Create a spend money bank rule called Whitcoulls for the transaction under this name. Make sure the contact is Whitcoulls and it codes any payments to the expense 461 Printing & Stationery
Create a spend money bank rule again for the Central City Parking transaction, with the name and contact as Central City Parking and payments coded to the 449 Motor Vehicle Expenses account.
For the remaining transactions use theCreatetab to enter thecontactname in theWhofield and then selectwhat you think would be therelevant account in the What field (you may need to create a new contact for some of the matches). This includes the City Limousines transaction (switch from the Discuss tab to the Create tab).
6. Reporting
Chris is impressed with the work you have done so far. But he is a bit concerned about how the performance of the business is operating. There is little cash in the Bank account and he is finding it hard to pay his suppliers.
Task One: Profit & Loss
You have suggested generating the Profit & Loss to help Chris understand the financial performance during last month. Go to Accounting > Reports > Profit & Loss (new) and run a profit/loss for last month. Under More select the following:
Show percentage of trading Income
Hide show decimals
Chris had a quick look at the report you generated, and he wants you to change the layout so he can easily see the cost of the retail space and workshop: Create a new group of accounts called "Building Costs" which includes the Light, Power, Heating and Rent. Ensure this new group displays each line item and a total.
Export this report as a PDF and (Save this file)
7. Complete your Assessment
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Congratulations, you have now completed the assessment!
Great! Now that you have completed all of the actions above you should have eight pdf files saved. These files need to be saved to a zipped folder and then submitted to your tutor to mark from within The Career Academy learning platform.
Check that you have the following files on your computer, and then submit the following in a zipped folder for marking (there will be eight documents in total), using the assessment submission link in the course:
Bill 0215 from Grants Bike Supplies.
Purchase order 10023 for Reliable Bikes.
Bill 10045 from Reliable Bikes.
Credit Note for Grants Bike Supplies.
Quote for Berry Brew.
Activity Statement for Berry Brew
Invoice 0044 for Bayside Club (after credit note).
Profit & Loss for the last month.
When you are ready to submit the required files, click on the link below to go to the Certificate in Xero Assessment page in The Career Academy learning platform - Certificate in Xero Assessment Submission.
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