Topic outline

  • FBSFT 501- PROCESSING FINANCIAL TRANSACTIONS

    Introduction

     This module Processing financial transaction describes the skills, knowledge and attitudes required for a learner of certificate 5, level V FBS to process financial transactions. By the end of this module, the learner will be able to record and balance petty cash transactions, to balance all transactions, in hospitality establishments without supervision. Transaction processing system (TPS) can be considered as an activity consisting of three major subsystems called cycles: the revenue cycle, the expenditure cycle, and the conversion cycle. While each cycle performs different specific tasks and supports different objectives, they share common characteristics. For example, all three TPS cycles capture financial transactions, record the effects of transactions in accounting records, and provide information about transactions to users in support of their day-to-day activities. In addition, transaction cycles produce much of the raw data from which management reports and financial statements are derived. Because of their financial impact on the organization transaction cycles command much of the accountant’s professional attention.