* Entering data in sheet Data column A (SRC)

Why we want to identify sources ?

Apparently, source can be said best as a group of document that get filed together. Proper identification of source will help you easily refer back and search to your physical (paper) document.

Filling cells under column title ‘SRC’

Under the column title 'SRC' (for Source), enter a name for your source of transaction. The source refers to a group of documents having similar function that you have, such as invoices, vouchers, journals etc.

Common sources

Below are some of the common sources :

1. Opening Balances

If this is the first time you use this system, or in a new accounting year, opening balances is one source of transaction. You may write 'OB' or other term of your choice to identify Opening Balance source.

2. Audit Adjustment (previous accounting year)

It is good to identify Auditor's adjustment as a separate source, rather than group them under journals. You may write 'PREV AUDIT ADJ' or other term to identify Audit Adjustment for the previous accounting year brought to the current accounting year. However, please make sure that the opening balances of the current year do not already contain the previous auditor adjustments to avoid double counting.

3. Provisions for expenses

It is good to identify provisions for expenses as a separate source. Usually, we use journals to be our source for provisions. In this case, we identify journal for provision separate from other journals. You may write 'PROV' or other term to identify Provisions.

4. Purchase (Supplier) Invoices

This refers to invoices from local suppliers.
You may write 'INV' or other term to identify Purchase Invoices.

5. Import Invoices

This refers to invoices from oversea suppliers.
You may write 'IMPORT' or other term to identify Import Invoices.

6. Salary-Production

This refers to salary summary for production workers. Accounts staff may get the summary from payroll system (separate system from this book-keeping system).

It is good to obtain separate salary summary for production staff from administrative staff. You may write 'SALARY-P' or other term to identify Salary summary for production staff.

7. Salary-Admin

This refers to salary summary for administrative staff.
Accounts staff may get the summary from payroll system.
It is good to obtain separate salary summary for administrative staff separate from production staff. You may write 'SALARY-A' or other term to identify Salary summary for administrative staff.

8. Bonus-Production

This refers to bonus summary for production staff. Accounts staff may get the summary from payroll system. It is good to obtain separate bonus summary for production staff separate from administrative staff. You may write 'BONUS-P' or other term to identify bonus summary for production staff.

9. Bonus-Admin

This refers to bonus summary for administrative staff. Accounts staff may get the summary from payroll system. It is good to obtain separate bonus summary for production staff separate from administrative staff. You may write 'BONUS-A' or other term to identify bonus summary for administrative staff.

10. Sales Invoices

This refers to our local sales invoices. You may write 'SALES' or other term to identify sales invoices.

11. Export Invoices

This refers to our Export invoices. You may write 'EXPORT' or other term to identify export invoices.

12. Sales-Subsidiary A

This refers to sales invoices to one of our subsidiary with name A. It is good to identify sales to each subsidiary as separate source. You may write 'SALES-A' or other term to identify sales to company A (a subsidiary).

If you have another subsidiary, say subsidiary B, write "sales to subsidiary B" as another (different) source.

13. Sales-Associate co. X This refers to sales invoices to one of our accociate company. It is good to identify sales to each associate company as separate source. You may write 'SALE-X' or other term to identify sales to company X (an associated company).

If you have another associate company, say associate B, write "sales to associate B" as another (different) source.

14. Sales-Holding company

This refers to sales invoices to our holding company. It is good to identify sales to holding company as separate source. You may write 'SALE-H' or other term to identify sales to company H (holding company).

15. Debit Note Issued to

This refers to Debit Notes issued (whether to supplier or to customer). You may write DN-To to identify Debit Note issued to third party. The purpose of DN issued is usually to decrease the amount charged by supplier or to increase the amount charged to customer.

Can the third party issued Credit Notes to us ? Yes she can. The CN received can strengthen our course.

16. Debit Note issued from

This refers to Debit Notes received (whether from supplier or from customer). You may write DN-From to identify Debit Note received from third party. The purpose of DN issued by third party is usually to increase the amount charged by supplier or to decrease the amount charged to customer.

Can we issue Credit Note to third party ? Yes she can. The CN issued can strengthen third party course.

17. Petty Cash A

This refers to one of petty cash transactions (receipts and payments). It is good to identify each petty cash float as separate source. You may write 'PC-A' or other term to identify Petty Cash float managed by staff A.

If you have another petty cash float, say Petty Cash B, write "Petty Cash B" as another (different) source.

18. Bank A

This refers to one of banks transactions (receipts and payments). It is good to identify each one bank as separate source. You may write 'BANK A' or other term to identify Bank A transactions.

If you have another bank accounts, say Bank B, write "Bank B" as another (different) source.

19. Interest on HP A

This refers to interest on hire purchase of one hire ourchase item. It is good to identify each item under hire purchase as a separate source. Usually, we use journals to be our source for interest on Hire Purchase. It is good to identify interest on hire purchase as separate source from general journals. You may write 'INT-HP-X' or other term to identify Hire Purchase Interest for item X.

If you have another hire ourchase on other item, say Item B, write "Interest on HP B" as another (different) source.

20. Depreciation

This refers to depreciation of one type or category of fixed assets. It is good to identify depreciation of each one type of assets as separate source rather than lump them all together. You may write 'DEPR-X' or other term to identify Depreciation for item X.

If you have depreciation on another other asset, say Asset B, write "Depreciation on Asset B" as another (different) source.

21. Journal

This refers to general journals, ie journal which could not be conveniently identified as separate source. As we see, usually depreciation and interest on hire purchase will lump under journals. But since we can conveniently identify them as separate source, we do separate it. You may write 'JOURNAL' or other term to identify journals.

22. Closing Stock-Raw material

This refers to closing stock of raw material. Accounts staff may get the summary from store system. You may write 'CS-RM' or other term to identify Closing Stock of Raw Material.

23. Closing Stock-Finished Product

This refers to closing stock of finished product. Accounts staff may get the summary from store system staff. You may write 'CS-FP' or other term to identify Closing Stock of Finished Product.

24. Closing Stock-Semi-Finished Product

This refers to closing stock of semi-finished product. Accounts staff may get the summary from store system. You may write 'CS-SF' or other term to identify Closing Stock of Semi-Finished Product. Variances in source identified.

Different manner to identify sources

You may identify sources differently eventhough the above samples are most common. Below are some of the differences :

Some company file their suppliers invoices in a file for each supplier, rather than ALL supplier invoice in ONE file. If this is the case, it is more appropriate if the source is written such as "INV-SUPPLIER XXX", "INV-SUPPLIER YYY", and so on. The sample in this book assume that ALL supplier invoices are kept in ONE (same) file.

Some company file their sales invoices in the separate file for each customer, rather than ALL sales invoice in ONE file. If this is the case, it is more appropriate if the source is written such as "INV-CUST-XXX", "INV-CUST-YYY", and so on. The sample in this book assume that ALL sales invoices are kept in ONE file.

However, some companies generate more than one internal copies for sales invoice. They keep one copy in a master file and another copy in the respective customer file. If this is the case, you can use either way as source.