FNSACC312 Administer Subsidiary Accounts and Ledgers MYOB … · This course has been designed for users of the MYOB product AccountRight Plus AU (Education) 2017.1.1. Mac users will

FNSACC312 Administer Subsidiary Accounts

and Ledgers MYOB 2017 ISBN Number: 978-1-925782-96-7

Part Number: 412

Version: 18.4 ARL 2017

AUTHOR – Kerryn Maguire

Kerryn has been working with accounting software products for over twenty years. Originally working from 1994 as an accountant with small business when accounting software became mainstream. Kerryn then focused on providing consulting and training services to small business in particular. Expanding from this into to providing curriculum based resources to TAFE and private RTOs. From this she established Microstar Publishing and more recently incorporated OfficeLink Learning to provide a wide range of resources for the Accounting and Business Services Certificate courses. Kerryn has a long association with many TAFEs and RTOs across Australia. Kerryn’s fundamental aim is to provide resources that are easy to understand while providing a practical application of skills acquired. Kerryn also co-authors two titles for Cambridge University Press which are in their 4th Edition – first published in 2000. Kerryn has considerable experience and knowledge:

Bachelor of Applied Science Mathematics Diploma of Education Graduate Diploma of Accounting CRI: Criterion Referenced Instruction Member of Institute of Certified Bookkeepers Member of VELG

Reproduction and Communication for educational purposes

The Australian Copyright Act 1968 (the Act) allows a maximum of one chapter or 10% of the pages of this publication, whichever is greater, to be reproduced and/or communicated by any educational institution for its educational purposes provided that the educational institution (or the body that administers it) has given remuneration notice to the Copyright Agency Limited (CAL) under the Act. For details of the CAL license for educational institutions contact:

Copyright Agency Limited Level 15 233 Castlereagh Street Sydney NSW 2000 Telephone: (02) 9394 7600 Facsimile: (02) 9394 7601 Email: [email protected]

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Contents

© Copyright 2018 OfficeLink Learning ii

All Rights Reserved

© Copyright 2018 OfficeLink Learning Version 18.4 ARL 2017

This User Guide is based on the FNS15 FNSACC302 User Guide V18.3 ARL 2017 and

updated for FNS17

No part of the contents of this book may be reproduced or transmitted in any form or

by any means without the written permission of OfficeLink Learning. All registered

trademarks or service marks are the property of their respective owners. A licence to

reproduce this tool may be requested through the OfficeLink Learning website

www.officelinklearning.com.au.

While care has been taken in the preparation of this Training Tool, OfficeLink Learning,

the developers do not accept any liability for any damage or loss (including indirect and

consequential loss) incurred by any person as a result of relying on the information

contained in this material. This tool should not be regarded as professional advice and

it should not be relied upon in any important matter without obtaining appropriate

advice relevant to your situation.

It is the Registered Training Organisation’s responsibility to validate the mapping of this

tool to the performance criteria.

Trademarks and Acknowledgements

All terms or products mentioned in this manual that are known to be trademarks have

been acknowledged. OfficeLink Learning cannot attest to the accuracy of this

information. Use of a term in this manual should not be regarded as affecting the

validity of any trademark.

Software Description

This course has been designed for users of the MYOB product AccountRight Plus AU

(Education) 2017.1.1.

Mac users will need to install and use ‘Parallels’ or similar software, i.e. an emulator

installed to allow the Mac to run PC programs.

The case study in this material uses fictional information.

Accredited MYOB Publisher

OfficeLink Learning has been accredited by MYOB as a Publishing Partner and has met

the selection criteria to hold this status.

Exercise Files

You can access the required exercise files and supporting materials for this unit via the

OfficeLink Learning website.

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Contents

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Contents

UNIT 1 INTRODUCTION ...................................................... 1 Organisation of this user guide ....................................... 2 What You Will Need .................................................... 4 Conventions Used in This User Guide ............................... 4 Symbols Used in This User Guide .................................... 5 Installing AccountRight Plus 2017.1 On A Windows Pc ............ 6 Case Study Introduction .............................................. 12 Introducing AccountRight Plus ...................................... 14 Viewing the Accounts List ............................................ 17 Help ..................................................................... 18 Spell Check Preferences ............................................. 20 Security Preferences .................................................. 21 Setting Up Linked Accounts .......................................... 22 Tax Codes You May Need for Your Business ....................... 24

UNIT 2 PURCHASING FROM SUPPLIERS ................................. 27

Makka’s Plumbing – Purchasing Procedures ....................... 28 Ryce Plumbing – Account Application .............................. 29 Overview of Purchase Transactions ................................ 30 Valid Tax Invoices ..................................................... 31 Research Legislative, Statutory and Regulatory Requirements 33 Overview of Legislation, Regulations and Codes of Practice ... 34 Tax Agent Services Legislation ...................................... 35 Professional Associations ............................................. 40 Privacy Act 1988 ....................................................... 41 Setting Up a Company File Password ............................... 42 Viewing Purchase Preferences ...................................... 43 Adding Supplier Cards ................................................ 44 Search and Find ....................................................... 47 Deleting a Card ........................................................ 48 Account Opening Balances ........................................... 50 Entering Historical Supplier Balances for Purchases ............. 51 View Supplier Cards ................................................... 54 Using Purchase Layouts .............................................. 55 Creating an Item Purchase Order ................................... 56 Changing the Status of Purchase Orders ........................... 59 Create A Service Bill .................................................. 62 Create Service Bill and Add a New Supplier Card ................ 64 Receiving Bills from Suppliers ....................................... 67

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Bill Received from Ryce Plumbing ................................. 68 Entering an Invoice – Purchase of an Asset ....................... 70 Viewing Your Purchases ............................................. 72

UNIT 3 SUPPLIER PAYMENTS AND REPORTS ........................... 75

Learning Outcomes ................................................... 75 Payables Procedures ................................................. 76 Working Out What Is Owed .......................................... 77 Finding Information in Your File .................................... 81 Cheque Requisition Forms ........................................... 82 Recording Supplier Payments ....................................... 83 Send Remittance Advices ............................................ 85 Checking the Accuracy of Statements Received ................. 86 Simple Explanation of Debit and Credit ........................... 88 Display Payables Reconciliation [Detail] Report ................. 91 Exporting Reports to Microsoft Excel .............................. 93 Reconciling Accounts Payable to General Ledger................ 94 Preparing Report for Owner – Unpaid Bills ........................ 95 Set Up Linked Banking Accounts ................................... 96 Entering Payments Using Electronic Payments ................... 98 Authorisation of Electronic Payments ............................ 100 Checking Bank Register Details .................................... 101 Displaying Supplier Payment History Report .................... 102 Displaying GST Claimable for The Month ......................... 103 Entering a Supplier Adjustment ................................... 104 Settling an Adjustment Against the Original Invoice ........... 105 Balance Sheet at The End of the Month .......................... 106 Reconciling Trade Creditors and GST Paid ....................... 106

UNIT 4 BACKING UP AND RESTORING ..................................109

Backing Up a Company File ........................................ 110 Restoring A Backed Up Company File ............................. 113 Closing AccountRight ................................................ 115

UNIT 5 CONSOLIDATION EXERCISE ACCOUNTS PAYABLE ...........117 UNIT 6 PROCESSING SALES ..............................................131

Learning Outcomes .................................................. 131 Overview .............................................................. 132 GST and Invoices ..................................................... 132 Entering Customer Cards and Opening Balances ................ 135 Sales Transactions ................................................... 139 Sales Layouts ......................................................... 139 Billing Procedures – Real Estate Maintenance ................... 143

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Calculating Cost of Materials and Labour ........................ 144 Creating A Service Invoice for Real Estate Maintenance ...... 145 Correcting Errors .................................................... 150 Billing Procedures – Contract Plumbing .......................... 151 Creating an Invoice for Contract Plumbing ...................... 151 Viewing the Customer Ledger ..................................... 152 Billing Procedures – Domestic Plumbing ......................... 153 Creating an Invoice for Domestic Plumbing ..................... 154 Sales Reports ........................................................ 159 Entering an Adjustment to an Invoice............................ 162 Settling an Adjustment Against the Original Invoice ........... 163 Questions to Answer ................................................ 163 Finding Information ................................................. 165

UNIT 7 RECORDING CUSTOMER PAYMENTS ........................... 167

Find Out How Much Your Customers Owe You .................. 169 Business Insights ..................................................... 169 Aged Receivables Reports .......................................... 172 Recording Full Customer Payments ............................... 173 Recording Partial Customer Payments ........................... 175 Reviewing Customer Payments .................................... 176 Sales Register ........................................................ 178 Print and Email Statements........................................ 181

UNIT 8 BANK RECONCILIATION ......................................... 185

Preparing A Bank Deposit .......................................... 186 Viewing the Bank Deposit Report ................................. 187 Viewing Transactions in The Bank Register ..................... 189 View Transactions in The Receipts Transaction Journal ...... 190 Bank Account Reconciliation ...................................... 191 Reconciling Your Cheque Account with Your Bank Statement 191 Printing A Reconciliation Report .................................. 195 Undo Bank Account Reconciliation ............................... 196

UNIT 9 MORE REPORTS AND DEBT RECOVERY ....................... 199

Learning Outcomes ................................................. 199 Collecting Debts and Disputes ..................................... 200 Makka’s Plumbing – Account Application ........................ 205 Research – Appropriate Conduct Involved in Debt Collection 206 Debt Collection Recovery Steps ................................... 207 Reconciling Accounts Payable to General Ledger .............. 209 Question to Answer ................................................. 213 Placing A Customer on Hold ....................................... 214 Writing off A Bad Debt ............................................. 217

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Print Profit and Loss Report ....................................... 219 UNIT 10 GENERAL JOURNAL ENTRIES .................................221

Learning Outcomes .................................................. 221 The Accounting Cycle ............................................... 223 Creating Manual Journals to Correct Errors ..................... 224 Add a New Account to The Accounts List ........................ 225 Entering a General Journal Entry ................................. 225 View the Accounts for The Reallocation of Funds .............. 226 Printing a General Journal Entry .................................. 227 Trial Balance Report ................................................ 228

UNIT 11 Consolidation Exercise Accounts Receivable .............233 Appendix A Elements of Competency and

Performance Criteria ...................................247 Appendix B Solutions to User Guide ...................................253 Appendix C Solutions to Accounts Payable

Consolidation Exercise .................................275 Appendix D Solutions to Accounts Receivable

Consolidation Exercise .................................287

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Purchasing from Suppliers

© Copyright 2018 OfficeLink Learning 27

Unit 2


Learning outcomes

By the end of this unit you will be able to:

view Purchases Preferences

enter Account Opening Balances

enter Supplier Opening Balances

view and add Supplier Cards

identify the different types of Purchase Transactions and Layouts

create and email a Purchase Order

convert a Purchase Order to a Bill

create an Item Bill

create a Service Bill and create a new Supplier

view purchases in the Purchases Register

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42 © Copyright 2018 OfficeLink Learning

Setting up a company file password

To protect data, the AccountRight company file should have a password to open the file.

1. Click on File Open in the menu bar.

2. Now open Makkas Plumbing v2017 2018.myox, the file you have been using in this workbook.

3. In the Sign on window, select Change Password.

4. In this workbook leave existing password blank as there is not one

5. In New Password, type in myob.

6. In Confirm Password, type in myob.

7. Click on Record and OK to save the password.

You will now have to enter this password to open your company file. In your business, you would select a password that other people cannot guess. Do not select the names of your children, partner, pets, etc. Choose some other password. Make sure you record it somewhere safe in case you forget it.

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Viewing Purchase Preferences

To view Purchase Preferences

1. Go to the Setup menu and choose Preferences.

2. Click the Purchases tab to display the Purchase Preferences and ensure the following purchases preferences are selected:

3. Remove the tick beside Warn if Supplier Does Not Have an ABN for Purchases Greater than $75 Tax Exclusive.

4. Click OK.

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Adding Supplier Cards

1. Click on the Card File, and then choose Cards List.

2. Click the Supplier tab.

3. Click the New button.

3. Add details here for Ryce Plumbing by referring to the Account

Application form completed on page 29.

5. Click on the Buying Details tab.

6. In the Purchase Layout field, select Item.

7. In the form Layout field, select Plain Paper P.O.

Cards List

Card File

Supplier

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8. Link the Expense Account to be 5-1000 Materials at Cost.

9. Check the following payment details:

Terms: Day of Month after EOM – no discounts – Balance Due Date EOM

Credit Limit: Enter Credit Limit listed on application.

Payment Details: Enter Payment Details for Ryce Plumbing’s bank account.

10. Click OK and then click Close to return to the Command Centre.

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Note: A Supplier must inform the buyer of their ABN (Australian Business Number) and their invoice must indicate if they are registered for GST by supplying a Tax Invoice. It is not law that the ABN be recorded in your accounting software but the ABN must be on file.

If an ABN is not quoted, the buyer must deduct 47% Withholding Tax from the payment of an invoice over $75 ex GST.

@ To check the validity of an ABN and if this ABN is registered for

GST go to www.abr.business.gov.au and use the ‘ABN Lookup’.

Please note that the ABN used in this workbook does not belong to any business.

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http://www.abr.business.gov.au/

http://www.abr.business.gov.au/



Search and Find

AccountRight offers in-depth searching of the cards.

1. From the Card File command centre, click Cards List and then the All Cards tab.

2. Click on Advanced

3. Enter 2026 in the Postcode From and To fields and click OK.

This will show all cards with the Postcode 2026.

4. To clear the search, go back to Advanced, remove the postcode

range and click OK.

5. Stay in the Card List menu area for the next topic.

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Deleting a Card

You can only delete a card from your card file if the card fits one of the following criteria:

• The card has never been used in a transaction.

• The card has never been used in a quote or an order.

• None of the recurring transactions is linked to the card.

In the following example, Betty Smith’s card is to be removed.

1. In the Cards List window, click the Supplier tab to display the list of suppliers.

2. Click the zoom arrow for Smith, Betty or double-click the line to display the Card Information window.

3. Click on the Edit menu at the top of the screen and click Delete Card.

4. Click OK.

5. Click Close to close the Cards List window.

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Activity Task – Adding Supplier Cards

1. Enter the following New Supplier cards to the company file. You will be required to make up the contact details for each.

Supplier Name Scott Hardware TradeLink Supplies

GST Reporting Reports GST Reports GST

Purchase layout Item Item

Linked Account 5-1000 Materials at Cost 5-1000 Materials at Cost

Terms 30 days 30 days

Credit Limit $5000 $5000

Supplier Name Wayne Judge Mark Smith

GST Reporting Reports GST Reports GST

Purchase layout Service Service

Linked Account 5-2000 Contractors at Cost

5-2000 Contractors at Cost

Terms 7 days 7 days

Supplier Name Chris Hagen

GST Reporting Does not report GST and does not have an ABN. Set his tax code to be ABN and ensure you tick Use Suppliers Tax Code on the buying details tab.

Purchase layout Service

Linked Account 5-2000 Contractors at Cost

Terms 7 Days

2. Once the cards have been created, click Close to return to the Command Centre.

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Account Opening Balances

When the company file was created the Account Opening Balances for Makka’s Plumbing were zero, as they had been working on a manual bookkeeping system prior to commencement of the AccountRight software.

Makka wants to be able to use accounting software to process all the customer and supplier transactions along with reconciling the bank account to produce financial reports.

1. Click on Setup in the Menu bar.

2. Click on Balances Account Opening Balances.

3. Click into NAB Cheque Account and type 20000.

4. Click into Trade Debtors and type 19400.

5. Scroll down to Trade Creditors – type in 7500.

6. Scroll down to Capital and type in 31900.

7. Check that Amount left to be allocated is 0.00

This is a very simple start to Opening balances. Ordinarily in a month not at the start of financial year there would be many more account balances to enter if you were creating a new company file – however we are focusing just on accounts payable and receivable in this guide.

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Entering Historical Supplier balances for Purchases

To set up the Supplier opening balances, we need to enter the historical bills still unpaid for each supplier. Therefore, purchases that were made before the conversion month of October that are still outstanding are entered into the system waiting for payment.

The total of all your historical purchases should be the same as the amount that is entered as the Opening balance of the Trade Creditors account, $7,500.

Supplier Date Historical Balance

Supplier Inv No.

P/O No.

Ryce Plumbing 1/9/2018 $3750 456 1

TradeLink Supplies 1/9/2018 $1293 235 2

Wayne Judge 17/9/2018 $880 67 3

Scott Hardware 21/9/2018 $1142 2365 4

Mark Smith 17/9/2018 $435 78 5

1. Click on Setup menu and choose Balances, then Supplier Balances.

The Supplier Balances window appears.

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2. Click the zoom arrow next to Ryce Plumbing.

3. Click the Add Pre-Conversion Purchase button. The Pre-Conversion Purchase window appears.

4. In the Date field, enter 12/9/2018, then TAB to the Supplier Invoice No. and type 456.

5. TAB to the total Including Tax field and type 3750.

Your window should now look like the following:

6. Click Record.

7. Click OK at the alert.

Notice the Out of Balance Amount is now $3750.

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8. Click on Add Pre-Conversion Purchase to add another

outstanding bill.

9. Click on the Supplier Name drop list button and double click on Tradelink Supplies

10. Continue to enter the historical balances for the following

suppliers:

Supplier Date Historical

Balance

Supplier

Inv No.

P/O

No.

TradeLink Supplies 1/9/2018 $1293 235 2

Wayne Judge 17/9/2018 $880 67 3

Scott Hardware 21/9/2018 $1142 2365 4

Mark Smith 17/9/2018 $435 78 5

If you have entered all the historical balances correctly, the Out of Balance amount will be $0.00.

11. Click OK, OK again and then click Close.

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Supplier Payments and Reports


Unit 3


Learning outcomes


work out what is owed

use the Pay Bills option to record Supplier Payments

record Supplier Payments

export Reports to Microsoft Excel

reconcile Accounts Payable to the General Ledger

prepare Reports

setup Linked Banking Accounts

process Electronic Payments and Reporting

report GST for the Reporting Period

enter a Supplier Adjustment Note

settle a Supplier Adjustment Note

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Payables Procedures

Makka’s Supplier Payment Procedures

1 Upon receipt of an invoice, the validity and accuracy of the invoice must be checked before entering into the AccountRight company file.

2 Statements received are reconciled with invoices received.

3 Due Dates of supplier invoices are monitored, using the To Do List.

4 Accounts due during the month are usually paid by direct deposit or cheque. All cheques are accompanied by a Remittance Slip.

5 Before payment is made by the bookkeeper any invoices for expenses incurred e.g. office supplies must be authorised by Makka. He must sign the original bill and stamp approved.

6 The bookkeeper is authorised to pay accounts by direct deposit or electronic transfer and sign cheques.

7 At the end of the month, a Payables Reconciliation report is printed to make sure the Payables Ledger and General Ledger reconcile. This report is exported to Excel and reviewed by Makka who authorises on the Excel printout the accounts to be paid by the bookkeeper.

8 Monthly accounts are usually paid by electronic transfer and authorised by Makka before the bookkeeper transfers the file to the bank.

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Working out what is owed The Accounts Payable (A/P) can be viewed from the To Do List or via the Business Insights tool.

Both tools will display your creditors aged over 30, 60, 90 and 90+ days.

When purchase transactions have been entered into AccountRight or any payments have been made, it is necessary that the original documents are batched together and filed for possible future reference. This could include remittance advices or reports from electronic Bank transfers.

Method (a) Business Insights

The Business Insights tool provides detailed information about how much you owe suppliers, with data aged over 30, 60, 90 and 90+ days and provides a supplier purchase history.

1. Click on Setup Preferences then the Reports & forms tab

You can nominate to analyse your payable via months or number of days.

2. Click on OK

1. From the Purchases Command Centre, click on Business Insights

and select the Supplier Analysis tab. The Aged Payables window shows all money owed to suppliers, totalled by supplier.

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2. Scroll down the list of suppliers and click the zoom arrow next to Ryce Plumbing to view all the money that you owe this supplier.

Note: The suppliers that are shown with overdue payments and the ageing of purchase orders will depend on the current system date on your computer.

3. Click the zoom arrow next to the transaction assigned to

Bill No.1105 to view the detail of this bill. Click on Cancel to close.

4. Click Close to return to the Purchases Command Centre.

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Method (b): Payables Reports

There are four reports which can display receivables data aged over 30, 60, 90, 90+ days.

Aged Payables [Summary] Payables Reconciliation [Summary]

Aged Payables [Detail] Payables Reconciliation [Detail]

1. From the Command Centre, click the Reports icon and click the Purchases tab.

2. At the top of the list of Purchase reports in the Payables section click on Aged Payables [Summary].

3. In the As of field set the date to 31/10/2018.

4. Click Display Report to view the data.

5. Click on Close and Close again

Note: The difference between the Aged Payables reports versus the Reconciliation reports is that the Reconciliation ones show whether the Purchase ledger balances.

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Method C: Purchases Summary for the month

This report displays a summary of purchases, the ex GST amount, the amount of GST, Due Date and Status.

1. In Reports, select the Purchases tab.

2. Under the Supplier heading, select Purchases [Supplier Summary].

3. Set the report dates to be 1/10/2018 to 31/10/2018

4. Click Display Report.

PRINTOUT 2A - Purchases Summary for the month

This current month’s report does not include the historical transactions.

5. Print a copy of the report and then return to the Command Centre.

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Finding information in your file

Find the following information in your company file.

1. How much is owing to Ryce Plumbing for October? ................

2. When is the Bunning’s Hardware bill due for payment?

..............................................................................

3. How much has been spent on Materials (excluding GST) during the

month? ....................................................................

4. What is Ryce Plumbing’s address?

..............................................................................

5. When is the ABN Tax Code used? ......................................

..............................................................................

6. When is the GNR Tax Code used? .....................................

..............................................................................

7. When is the CAP Tax Code used? ......................................

..............................................................................

8. Ryce Plumbing rang Makka in relation to their Invoice Number 4478. Use Find Transactions, to find this invoice. Your window will look like this:

9. What did Makka’s Plumbing buy on this invoice? ..................

...................................................................................

Change PO No. to Supplier Invoice No. here. Sam

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Cheque Requisition forms

Sometimes businesses require a Cheque Requisition form to be completed in order to generate the payment and approval of bills. Here is a completed example.

Dale has approved for Wayne Judge to be paid.

CHEQUE REQUISITION SLIP I certify that the services described on the attached tax invoice are accurate and price has been agreed to.

Reason for expenditure Supplier of contracting services at Bondi.

General ledger allocation A/c following policies and procedures of the organisation

Cost of Sales - Contracting services

Amount $......880.00.... GST FRE ANR

Signed by: Bookkeeper’s Name

Authorised by: Dale McKay

Entered in AccountRight by: Bookkeeper Date Entered: 17/9/18

Date of Payment: Payment Ref: Entered in AccountRight by: Bookkeeper Date Entered: 24/10/18

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Recording Supplier Payments

You can make payments in the following ways; using the Pay Bills or Purchase Register windows and paying straight from your bank account or by grouping your payments to pay your supplier electronically. Dale has authorised you to make the following payments.

When you make supplier payments they can be a:

• Full payment of all bills

• Payment of specific bills

• Partial payment of a specific bill

There are two methods to Pay Bills:

(a) Pay Bills

(b) Purchase Register

To make a Supplier Payment from the Pay Bills window

In the following example we will make a payment of $880.00 to Wayne Judge’s account to settle purchase Bill No. 3 using the Pay Bills window.

The Wayne Judge’s account was due on the 24th of the month.

1. A cheque will be written out to pay the above account.

2. On 24 October 2018 complete the cheque below to pay Wayne Judge. (This topic should have been covered in previous units studied.)

Date …………………….. Pay ……………………… Details ………………...... …………………………….

FWD This Cheque

Balance 001001

WBC Bank Plumbsville QLD 4350 001001 Date:

……………………….. Pay ……………………………………………………………….. OR BEARER The sum of ………………………………………………………

……………………………………………………………………… $........................ DRAWER Makka’s Plumbing

001001 014'667: 1245784

3. The cheque would be signed by bookkeeper or Makka. (Just indicate bookkeeper will sign here.)

4. The cheque would be sent with a Remittance Slip at the bottom of Wayne Judge’s bill.

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Enter the payment into AccountRight

1. From the Purchases Command Centre, click Pay Bills. The Pay Bills window appears.

2. In the Pay from Account field, check that the 1-1110 NAB Cheque Account is displayed. In practice if you were using your credit card to pay your supplier, this should be a credit card account.

3. In the Supplier field, click the search icon , select Judge from the list displayed.

Note: Default entries are displayed in the Cheque Number and Date fields. These can be changed.

4. Click into the Cheque No. field and type 147591.

5. Tab to the Date field and enter 24/10/2018.

6. Tab to the Amount field and enter 880.00.

7. Amounts owed to the Supplier are displayed in the scrolling list in the middle of the window. Next to the open bill for $880.00 (purchase 3), click in the Amount Applied column.

8. $880.00 should appear automatically – press TAB and check that Out of Balance reads 0.00

9. Check that Remittance Advice… is To be Printed

10. Click Record to record the payment.

11. Click Cancel to return to the Purchases Command Centre.

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Processing Sales


Unit 6

Processing Sales

Learning outcomes


view Sales Preferences

have an overview of GST Rules on Invoices and Tax Invoices

view customer Opening Balances

view different types of Sales Transactions and Layouts

create Service Invoices

create Sales Reports

enter a Sale Adjustment Note

settle a Sale Adjustment

find information

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Processing Sales


Overview

In this section of the user guide, whenever you are asked to print any reports or listings, you will be required to name them AR1. for example:

Printout AR1 – Accounts Listing

The three types of sales transactions that can be entered in your AccountRight software are Quotes, Orders and Invoices. These transactions are entered through the Sales Command Centre. Before you record any sales transactions, let us understand our Government’s rules on GST and Invoices.

GST and Invoices Cash or Accrual Reporting

As of 1 July 2010, major changes came into action in the GST system regarding invoices. Invoices are an integral part of the GST system. A GST registered entity is only entitled to claim a GST credit if it is in a possession of a valid tax invoice at the time it lodges its Business Activity Statement (BAS). As well as being in possession of a valid tax invoice, the rules for attributing GST collected and GST credits to a period depend on whether you account for GST on a cash or accruals basis.

When you report GST on a Cash basis, the business must make purchases in the tax period in which it pays for those purchases. If it pays only part of the cost of a business purchase in a tax period and has a valid tax invoice, it will only be able to claim GST credits for the part payment made in the tax period. The business must hold a copy of a valid tax invoice and only claim the GST amount listed on the tax invoice. The same applies on the sale side.

When you report GST on an Accruals basis, this means you account for the GST when the invoice is issued or when you receive payment for the goods or services sold. Similarly, GST payments made on purchases can be claimed or if a tax invoice is issued. You can only claim the credit on purchases if the tax invoice is received at the time of lodging the Business Activity Statement. Meaning the actual date of issuance for an invoice is when it is sent, for example:

• Electronically transmitted • Posted • Couriered • Hand delivered.

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Processing Sales


Payment Method Considerations

Understandably there can be some confusion around the payment date and when the credit can be claimed (also referred to as the ‘consideration’). The GSTR 2003/12 clarifies when the ‘consideration’ is deemed:

Method of payment When consideration takes place

Cash When the payment is tendered (i.e. when it is handed over).

Cheque For the payer, when the cheque is posted or handed to the payee. for the payee, when the cheque is received.

Credit Card For the payer and payee: • Where payment is made in person, when the

docket is signed authorising the transaction • Where payment is made remotely (i.e. phone

or internet), when the payer submits the credit card number and other details.

Direct Credit For the payer, the date of the transaction is authorised to take place via BPAY or EFT or Bank Transfer. For the payee, when the payment is credited to the supplier’s bank account or credit card.

If you buy taxable goods and services that cost more than $82.50, your supplier must provide you with a tax invoice within 28 days after you request one. Tax invoices that contain incorrect or incomplete information are not valid.

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Processing Sales


Attributes to Invoices and Tax Invoices

There are key differences between Tax invoices and Invoices.

• A person/entity who has an ABN number but does not report GST

will supply an Invoice.

• However, a person/entity who has an ABN and does report GST

will supply a Tax Invoice

The table below will assist you but more information can be located at

the ATO website www.ato.gov.au and search for the Rulings GSTR

2000/34 and GSTR 2013/1 in the legal database.

Attributes Invoices (GST)

Tax invoices (Supplies less than $1000)

Tax Invoices (Supplies

more than $1000)

Tax invoice is stated X X

Date of issue X X X

Name of supplier X X X

ABN of supplier X X

Name of recipient X X

Address or ABN of the recipient

X

Brief description of goods or services

X X

Quantity of goods or services

X

GST Inclusive price X X X

GST portion X X

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http://www.ato.gov.au/

http://www.ato.gov.au/

Processing Sales


Entering Customer Cards and Opening Balances

When this file was set up $19,400 was entered as a balance for outstanding customer invoices: Trade debtors owed $19,400. You still need to enter these invoices so when they are paid the money received can be applied.

Customer Invoice No. Invoice date Amount inc GST

Joes Carpentry 640 1/9/2018 11,000.00

AJ Construction 658 28/9/2018 2,200.00

Townsend General Store

659 28/9/2018 6,200.00

Total 19,400.00

First, we will add the Customer cards.

1. Open the company file Makkas Plumbing v2017 2018.myox.

2. Click on Card File in the Command Centre.

3. Click on Cards List

4. Click on New and enter the following details for Joes Carpentry

5. Under Selling Details link his card to the income account 4-1100

Service and Repairs General and set his payment terms to 7 days.

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Processing Sales


5. Enter a Card for Townsend General Store. Link their income account to 4-1100 and set the payment terms to 7 days.

6. Enter a Card for AJ Construction. Link their income account to 4-1100 and set the payment terms to 7 days.

6. Enter one more card for Ray Thompson Real Estate. Set the payment terms to 7 days. The income account will be allocated when invoices are entered.

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Processing Sales


Enter Customer Historical Balances

1. Select Setup in the Menu Bar.

2. Select Balances

3. Select Customer Balances. The following window is displayed.

4. Click on Add Pre-Conversion Sale at the bottom of your window.

5. Enter the following information to record the unpaid invoice before the commencement of this file.

Just start to type in Jo and press TAB to move to the next field.

Enter 00000640 for the Invoice number

Date is 1/09/2018

Enter full amount of invoice and make sure GST is displayed

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Processing Sales


6. Click on Record and OK (just read the warning).

One down, two to go. Notice that the Out of Balance Amount is now $8,400.

7. Click on Add Pre-Conversion Sale again.

8. Enter the details for AJ Construction then Record and OK

9. Click on Add Pre-Conversion Sale again and enter the details as tabled above for Townsend General Store

10. Click on Record

Notice that Out of Balance Amount is 0.00.

11. Click on Close to return to the Command Centre.

Customer Invoice No. Invoice date Amount inc GST

AJ Construction 658 28/9/2018 2,200.00

Townsend General Store

659 28/9/2018 6,200.00

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Processing Sales


Sales Transactions

A Quote enables you to record estimates of your items or services. A quote does not impact your stock levels. A quote can be converted into an order or invoice.

An Order is where no items or service have actually been completed or sold. If the order includes a deposit then a transaction will appear in the Sales Journal. Item orders will appear in the Analyse Inventory window showing committed stock numbers.

An Invoice can be created before or after the goods or services are delivered. Stock levels and Accounts will be updated, including debtors.

Open – invoice is not paid in full.

Closed – invoice is paid in full.

Sales Layouts

AccountRight provides a number of sale transaction layouts from which you can choose.

The sale layout you use will be determined by the type of business you have (for example, manufacturing, retail, service), and whether a printed invoice is required. There are five types of sales layouts you can use: service, item, professional, time billing and miscellaneous.

The three commonly used ones are described in the following pages.

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Processing Sales


Service

A service layout has a free-form layout so in the description area when

you sell goods or services that are not part of your inventory you can

type unique data.

Item

Use the item layout for the sale of goods or services in the items list,

e.g. inventory items or non-inventory items (labour charges).

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Processing Sales


Professional

This layout is similar to a service layout; except that some industries

need to record the date when the service happened so a date column

has been made available.

To change the Layout of an Invoice, Order or Quote

1. In the Enter Sales window, click the Layout button. The Select

Layout window appears.

2. Select the type of layout you want and click OK. The layout type

is indicated on the menu bar of the Sales window.

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Processing Sales


Set Sales Preferences

1. Click on Setup Preferences in the Menu bar The Preferences window appears.

2. Click the Sales tab to display the Sales Preferences.

3. Ensure that the following Sales preferences are selected:

4. Click on the Terms button – these are general terms that will automatically be applied to each new customer. These can be customised for each customer via their customer card.

5. Click Close and OK

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Recording Customer Payments


Unit 7


Learning outcomes


find out how much your customers owe you

record Full Customer Payments

record Partial Customer Payments

find, display and receive Payments

print and email Statements

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Overview

Upon receiving money from customers it needs to be applied against the open invoice(s). Money can be received from your customers in full or partial payments. You can group your customer payments, by selecting an option to post all your customer receipts to account 1-1210 Undeposited Funds or a Clearing Account in the Receive Payments window.

At any time AccountRight is able to show what is owed to you by using the Business Insights or by viewing the Aged Receivables Reports.

Important: DO NOT use Receive Money in the Banking Command Centre to record money received from a debtor because this will not allocate the receipt to the individual debtor’s account. This will cause your debtor balance to be out of balance.

PAYMENT OF CUSTOMER ACCOUNTS PROCEDURES

1 Under the Privacy Act 1988, details kept must be accurate and not given to any person without the consent of the customer.

2 Payments in the form of cash and cheques are processed immediately upon receipt, stored in the safe during the day, and allocated to undeposited funds in AccountRight. A receipt is written out for accounts paid in cash over the counter.

3 Any payment resulting in an overpayment is recorded as a credit and applied to a future invoice.

4 Bank Deposit Slips are printed and submitted to the bank with a credit summary slip when cash and cheques are banked.

5 Cheques are only accepted from long-term customers. On receipt of the cheque, the date, payee, amounts and signature must be checked.

6 Monthly statements are printed by the 5th of the following month.

7 Full payment is required by the end of the following month. A 5% cash discount may be allowed to high volume customers for payment within 14 days.

8 At the end of each month a Receivables Reconciliation report is printed to identify overdue accounts and the accuracy of the ledgers.

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Find out how much your customers owe you

Business Insights

The Business Insights, Customer Analysis window provides detailed information about how much your customers owe, and the data is aged according to settings in Preferences. This is a system wide setting. If you prefer them to be 7, 14 and 28 days, for example, then you must alter the setting.

2. Click on Setup Preferences then the Reports & Forms tab.

You can nominate to analyse your payable via months or number of days.

2. You would enter 7, 14 and 28 in the 1st, 2nd and 3rd boxes respectively

3. We will leave the ageing as 30, 60 and 90 days.

Now let’s look at the Customer Analysis in the Business Insights area.

1. In the Sales Command Centre, click Business Insights and then select the Customer Analysis tab.

The Customer Analysis shows all money owed by customers, a sales history graph and summary by customers.

Note: Your customer analysis will very likely be different from that

shown in the screen shot overleaf as the customers shown to owe money and the ageing of invoices will depend on the current system date on your computer.

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2. Under the Aged Receivables find Joes Carpentry.

3. Click the zoom arrow next to Joes Carpentry to view all the money they owe.

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4. Click the zoom arrow next to Invoice No. 663.

This view provides details on the one sale- Any payments that have been applied would be displayed here as well.

5. Click Cancel and Close to return to the Sales Command Centre.

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Aged Receivable Reports

There are four reports which can display receivables data aged over 30, 60, 90 and 90+ days.

• Aged Receivables [Summary] • Receivables Reconciliation [Summary]

• Aged Receivables [Detail] • Receivables Reconciliation –[Detail]

1. From the Sales Command Centre, click the Reports icon and select Sales.

2. At the top of the list of Sales reports, select Aged Receivables [Summary].

3. In the As of field set the date to 31/10/2018

4. Click Display Report to view the data.

The difference between the Aged Receivables reports versus the Reconciliation reports is that the Reconciliation ones show whether the Sales Ledger balances.

5. Close to return to the Command Centre. Sam

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The following cheque was received from Joes Carpentry on 8/10.

Eastpac Bank Bondi NSW 2026 001100 Date:

8/10/2018 Pay Makka’s Plumbing OR BEARER The sum of Eleven thousand dollars------------------ ………………………………………………………………………-

$11,000-00

DRAWER Joes Carpentry

J Verdi

001100 084'222: 12478945

Check the cheque details for accuracy.

(a) Is the cheque dated correctly i.e. less than15 months old or

dated ahead? …………………….

(b) Do the words and figures match? ……………………………...

(c) Is the cheque made payable to the business? ………………

(d) Is the cheque signed? ………………………

(e) Are all the details correct? ………………………

Recording Full Customer Payments The Receive Payments function is used to apply a customer’s payment against an open sales invoice. When receiving customer payments, we are going to deposit them into the Undeposited Funds account as this will provide one total for the amount being banked rather than all the individual amounts. It will make reconciliation of the bank statement faster and easier.

Cheque Number BSB Account Number

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To record a full customer payment

1. Go to the Sales Command Centre and click Receive Payments.

2. Make sure that the Group with Undeposited Funds: 1-1210 option is selected.

3. In the Customer field start to type Joes then press TAB. A list of Joes Carpentry outstanding invoices appears.

4. The ID No. field displays the default number for the cash receipt. You can change this number if you wish. for now, we will use the default number.

5. In the Amount Received field, enter $11000.

6. In the Date field, ensure it is 8/10/2018.

7. In the Payment Method field, ensure Cheque is displayed. Then click onto the Details button and type the following cheque information:

8. Click once in the Amount Applied column for invoice number 640 and TAB.

Note: Make sure that you allocate the payment to the relevant invoice. It may not be the first invoice on the list.

9. Click Record.

Note: You can now Print receipts for your customers. to do this, go to the Sales Command Centre and click Print Receipts.

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Recording Partial Customer Payments

To record a Partial Customer Payment

1. In the Receive Payments window, ensure that the Group with Undeposited Funds: 1-1210 option is selected.

2. In the Customer field, press TAB or click the search icon , select AJ Construction from the list displayed.

3. In the Amount Received field, enter $1500.

4. In the Payment Method field, ensure Cheque is displayed and you will need to make up the cheque details.

5. In the Date field, ensure 8/10/2018 is entered.

6. Click once in the Amount Applied column to display the $1500 paid against Invoice No. 658. Your window should now look like the following:

7. Click Record, then click Cancel.

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Elements of Competency and Performance Criteria


Appendix A

Elements of Competency and

Performance Criteria

This User Guide maps to the following Financial Services Unit FNSACC312 Administer subsidiary accounts and ledgers.

Element Performance Criteria Mapping

1 Review accounts receivable requirements

1.1 Check receipts entered into manual accounts receivable system for accuracy, consistency and completeness

Units 7, 11

1.2 Identify and make record of incorrect entries according to type and source of receipt

Units 6, 7, 8, 9, 10, 11

1.3 Identify and investigate discrepancies between monies owed and monies paid according to organisational policy, procedures and guidelines

Units 7, 8, 9, 11

1.4 Amend receipts entered into manual accounts receivable system according to established procedures

Units 7, 8, 11

2 Identify bad and doubtful debts

2.1 Review debtor ledger according to organisational policies and guidelines to identify outstanding monies and seek further information where required

Units 9, 11

2.2 Verify bad or doubtful debt status through liaison with debtors

Units 9, 11

2.3 Complete reporting procedures and required documentation for bad and doubtful debts according to organisational policies and guidelines

Units 9, 11

3 Review compliance with terms and conditions and plan recovery action

3.1 Identify clients in default of trading terms according to organisational credit policies and operating procedures

Units 9, 11

3.2 Contact identified clients and promptly and courteously make satisfactory arrangements for payment of outstanding monies

Units 9, 11

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3.3 Action organisational policy and procedures for monies owing that constitute breaches of organisational credit policy

Units 9, 11

3.4 Review previous activities and communication with clients to establish adequacy of follow-up procedures, and determine whether usual organisational recovery avenues have been exhausted

Units 9, 11

3.5 Develop plans to pursue debt recovery or to initiate legal action with measures completed in line with organisational policies, guidelines and timeframes

Units 9, 11

4 Prepare reports and file documentation

4.1 Prepare reports that document accounts receivable, debt recovery type and cause and debt recovery plan

Units 9, 11

4.2 Distribute reports to supervisors, managers and other designated parties

Units 9, 11

4.3 File documentation in according to organisational policy and procedures

Units 2, 3, 6, 9, 10

5 Distribute creditors invoices for authorisation

5.1 Identify, investigate and rectify invoice discrepancies and encode and record invoices correctly

Units 2, 3, 5, 6, 7, 8, 10, 11

5.2 Request authorisation for payment from designated personnel

Units 2, 3, 5

6 Remit payments to creditors

6.1 Draw up and ensure authorisation of cheque requisition

Units 2, 3, 5,

6.2 Collect and record data relating to creditor details and amounts paid according to organisational guidelines, and prepare report for ratification by management

Units 2, 3, 5, 9

6.3 Prepare creditor payment in line with organisational requirements

Units 2, 3, 5,

6.3 Prepare journal to record payment Units 3, 5, 10

7 Reconcile outstanding balances

7.1 Obtain statements of outstanding balances from suppliers where required

Units 3, 5,

7.2 Reconcile balances outstanding to invoices received

Units 3, 5, 9

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This User Guide maps to the following Financial Services Unit FNSACM301 Administer financial accounts.


1 Allocate customer payments

1.1 Allocate payments correctly to appropriate customer accounts and bank receipts according to organisational policy and procedures

Units 7, 8, 11

1.2 Serve customers promptly and complete and process documentation quickly and accurately to maximise customer satisfaction

Units 6, 7, 11

2 Reconcile accounts

2.1 Respond to customer billing or account queries and apply billing adjustments accurately, if required

Units 6, 7, 9, 11

2.2 Respond to customer complaints promptly in accordance with organisational policy

Units 6, 7, 9, 11

3 Maintain customer details

3.1 Maintain accurate and up-to-date details on customer account files

Units 6, 7, 9, 11

3.2 Check sources of customer details for reliability and verify where necessary

Units 6, 7, 9, 11

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This User Guide maps to the following Financial Services Unit FNSACM302 Prepare, match and process receipts.

Element Performance Criteria Mapped

1 Receive, identify and record receipts

1.1 Check receipts against remittance documentation in accordance with established procedures

Units 7, 8, 11

1.2 Record and allocate receipts accurately in accordance with organisational policy and procedures

Units 7, 8, 11

1.3 Complete batching in accordance with organisational systems and operating procedures, and advise relevant departments of total daily receipts

Units 7, 8, 9, 11

2 Match receipts to documentation

2.1 Check and match receipts to documentation accurately and promptly, and maintain documentation securely to protect interests of all parties to transaction

Units 7, 8, 9, 11

2.2 Note unmatched receipts for follow up or referral in accordance with organisational, industry and legislative requirements

Units 7, 8, 9, 11

3 Enter data to systems

3.1 Record and allocate receipts to appropriate chart of accounts in timely and accurate manner in accordance with organisational policy and procedures

Units 7, 8, 9, 11

3.2 Match receipts accurately to system debit, and promptly identify data and allocation discrepancies for follow up

Units 7, 8, 9, 11

3.3 Seek advice on source of and solution to discrepancies, where necessary, to solve outstanding problems

Units 6, 7, 8, 9, 11

3.4 Update related systems, complete reconciliations and resolve discrepancies between general ledger and sub-systems

Units 8, 11

4 File documentation

4.1 File documentation promptly in accordance with organisational policy and procedures

Units 6, 7, 8, 9, 11

4.2 File documentation in location that is accessible and easily traceable

Units 6, 7, 8, 9, 11

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This User Guide maps to the following Financial Services Unit FNSACM303 Process payment documentation.

Element Performance Criteria Mapped

1 Enter data to system 1.1 Enter data into systems without error and within time requirements in accordance with organisational policy and procedures

Units 2, 3, 5

1.2 Allocate data to correct systems and accounts, and update related systems

Units 2, 3, 5

1.3 Maintain system controls to ensure integrity and security of customer and payee database

Units 2, 3, 5

2 Create payment facility 2.1 Process payment facility accurately in accordance with organisational policy and procedures

Units 2, 3, 5

2.2 Maintain documentation in secure manner to protect privacy and interests of all parties

Units 2, 5

3 Verify payments against documentation

3.1 Confirm payment authorisation, with information on payment facility matching approved documentation

Units 3, 5

3.2 Identify discrepancies and follow up promptly

Units 2, 3, 5

4 Effect payments 4.1 Make payments within agreed credit arrangements in accordance with organisational policy and procedures, and industry and legislative requirements

Units 2, 3, 5

4.2 Ensure payment instruments are signed in accordance with relevant authority levels, and related systems updated promptly to ensure that integrity of accounting systems is maintained

Unit 3, 5

4.3 Cancel or note primary documentation associated with payment to ensure multiple payments are not made

Units 2, 3, 5

5 File documentation 5.1 File documentation promptly in accordance with organisational policy and procedures

Units 2, 3, 5

5.2 File documentation in location that is accessible and easily traceable

Units 2, 3, 5

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Documents

FNSACC312 Administer Subsidiary Accounts and Ledgers MYOB … · This course has been designed for users of the MYOB product AccountRight Plus AU (Education) 2017.1.1. Mac users will