Aura Solar Administration Simulation

Deliverable Part B: Discrepancy Investigation & Audit Control

Review the resulting variances. Focus on the high-value discrepancy found in Lipo-Batt-10k. Outline three administrative checks or physical investigation procedures you would execute to resolve this $15,200 shortage before adjusting system records.

[Investigation Check 1]

[Investigation Check 2]

[Investigation Check 3]

Validation Checks: Verify absolute/relative cell references. Variance values must correctly display negative currency signs.

Page 1 of 1

To: samantha.v@ecovolt.com.au

Subject: Purchase Order Dispatch: AURA-2026-PO084 — Aura Solar Melbourne

[Draft your business-to-business procurement email here...]

Compliance Requirement: Double check the difference between ex-GST and inc-GST. Under Australian Tax Law, GST must be listed on separate line items.

Page 1 of 1

Page 1 of 1

Required Attendees: fiona.vance@aurasolar.com.au; d.patel@aurasolar.com.au; panel@warsc.wa.gov.au

[Draft the invitation body and timed agenda here...]

Quality Check: Verify calendar overlaps. Booking a meeting when an attendee is busy is a major performance failure in a professional environment.

Page 1 of 1

[Root/Folder structure tree diagram]

APP Core Reference: APP 7 (Direct Marketing), APP 11 (Security of Personal Information), and APP 12 (Access to Personal Information).

Page 1 of 1

Generating legally compliant invoices ensures the organization maintains steady cash inflow. In Australia, a valid Tax Invoice requires critical details to comply with ATO guidelines.

Australian GST Rules

Standard Australian Goods and Services Tax (GST) is exactly 10%. Aura Solar projects and components are taxable supply items. Invoices must show whether prices are GST-Inclusive or GST-Exclusive.

Tax Invoice Checklist

A compliant Australian tax invoice must contain:

1 Header: Clearly labeled "Tax Invoice"

2 ABN: Aura Solar's Australian Business Number

3 GST Breakdown: Explicit GST components

4 Due Date: Consistent with 14-day credit terms

ATO Standard Compliance

Slide 4 of 5

AURA SOLAR

Financial Intelligence

Executive Reporting

Reporting & Compliance in Xero

At the end of each reporting period (monthly or quarterly), administrators run standardized financial reports to guide strategic business decisions.

Profit & Loss (P&L)

Summarizes revenues, costs, and operating expenses over a specific date range. Measures direct profitability.

Balance Sheet

Provides a static financial snapshot on a single date, tracking assets, liabilities, and equity structure.

Activity Statement

Calculates tax liabilities including GST collected vs GST paid, used for generating Business Activity Statements (BAS).

Financial Performance Metrics

Slide 5 of 5

2. Set the Contact (Who is the Payee):

3. Allocate Account (Code & Name):

4. Tax Rate (GST Component Selection):

Part 3: The "Discuss" Audit Workflow

A credit of $450.00 was received with the description DEP RECURRING PYMT SOLAR INVST. There is no matching open sales invoice in the ledger. Under corporate guidelines, you cannot simply matching-guess this deposit.

1. Draft the exact note you would write in the Xero "Discuss" tab to query this transaction with the Finance Manager. Be highly professional, referencing the exact transaction details.

2. According to Xero Best Practice and the Australian Tax Office (ATO), why is it crucial to use the "Discuss" tab rather than randomly allocating the deposit to general sales? Explain the compliance risk.

AURA SOLAR • XERO SIMULATION ASSIGNMENT Page 2 of 2

Scenario: Meridian Living reported that two specialized commercial micro-inverters (each worth $400.00 GST-Exclusive) were damaged during shipment. The Regional Operations Manager has authorized a credit note return.

1. Calculate the Grand Total of the Credit Note issued to Meridian Living. Show all components (Subtotal, GST 10%, and Total Credit Applied).

2. Describe the precise operational clicks and ledger mapping inside Xero to issue this Credit Note and apply it to their outstanding Tax Invoice (established in Part 1).

AURA SOLAR • XERO SIMULATION ASSIGNMENT Page 2 of 2

1. Compute the Net GST liability or refund. Indicate whether Aura Solar must pay the ATO or is eligible for a refund, and state the exact amount.

2. Identify which Xero report allows an administrator to audit individual invoice line items to reconcile these GST components prior to BAS submission. Why is auditing necessary?

AURA SOLAR • XERO SIMULATION ASSIGNMENT Page 2 of 2

AURA SOLAR • XERO EDUCATOR GUIDE Page 1 of 2

Aura Solar Australia • Xero Cloud Accounting

Educator Guide & Worksheet Answer Keys

TEACHER RESOURCE

Answer Key: Invoicing & Accounts Worksheet

Part 1: Tax Invoice Calculations

• • 24kW Commercial Array: Price $12,500.00 • GST $1,250.00 • Total $13,750.00
• • Heavy-Duty Roof Mounting: Price $1,200.00 • GST $120.00 • Total $1,320.00
• • Specialized Courier Freight: Price $350.00 • GST $35.00 • Total $385.00
• • Consolidated Summary: Subtotal: $14,050.00 • GST Total: $1,405.00 • Grand Total: $15,455.00

Part 2 & 3: SKU Configuration & Credit Note Solutions

Inventory SKU Setup: SKU pattern could be SOL-ARR-24KW. Sales Account mapping should be 400 (Sales/Revenue). Tracking physical items is vital because it creates automatic entries in the 140 (Inventory Asset) account, calculating dynamic COGS on sales.

Credit Note Calculations: 2 damaged micro-inverters = $400 x 2 = $800.00 (GST-Ex). GST 10% = $80.00. Grand Credit Applied: $880.00. This credit is raised in Xero Invoices, allocated to Meridian Living, and applied directly against the outstanding balance of their unpaid contract invoice.

Answer Key: Financial Reporting Worksheet

Part 1 & 2: Profit & Loss and Balance Sheet Solutions

• • Gross Profit: $450,000 - $180,000 = $270,000.00
• • Total Expenses: $120,000 (Salaries) + $22,000 (Rent) + $15,000 (Marketing) + $1,200 (Bank) = $158,200.00
• • Operating Net Profit: $270,000 - $158,200 = $111,800.00
• • Gross Profit Margin: ($270,000 / $450,000) x 100 = 60.00%
• • Balance Sheet Equation: Total Assets = $850,000.00. Total Liabilities = $320,000.00. Net Assets = Assets - Liabilities = $530,000.00. Since Net Assets = Equity, the Equity of the company must also be exactly $530,000.00.

Part 3: BAS Tax Reconciliation Solutions

• Net GST Calculation: GST Collected ($35,000) - GST Paid ($18,500) = $16,500.00 Liability (Payable). Aura Solar owes the ATO exactly $16,500.00.

• Audit & Reconcile Report: The GST Audit Report or BAS Audit Trail in Xero is used. It breaks down every single transaction's tax component. Auditing is mandatory to ensure transaction tracking codes (such as standard GST vs GST Free) were classified correctly by administrators.

AURA SOLAR • XERO EDUCATOR GUIDE Page 2 of 2