Spending Money. Chapter 6

Transcription

1 Spending Money Chapter 6 The Banking module is very useful in MYOB. Many businesses use the Banking module for all their financial transactions, without ever using the Sales or Purchases area. Businesses that use cash accounting, ie record sales when they receive payment and record expenses when they pay for them can use Banking for all their transactions. They record business transactions through the Banking module as though they were keeping a manual cashbook. Businesses that do use the Sales and Purchases area will still use the Banking area for simple expense payments, such as rent, paying for postage, purchasing staff amenities items at the supermarket, ie any expenses that are not invoiced. It can also be used for direct debits from the bank account such as bank charges, lease payments and insurance payments. Eftpos transactions are also dealt with in the Banking. Many businesses use only the Banking module for recording expenses without venturing into the Purchases area. Click on the Banking in the Command Centre You can use the Banking area to Spend Money, Reconcile your Bank Accounts, record Deposits to your bank accounts. MYOB also has the facility to print cheques directly onto special stationery. It will also record electronic payments. Banking Microstar Publishing Pty Ltd

2 Introduction to MYOB 15 Objectives In this chapter you will Record Cheques Apply GST Tax Codes Enter Personal Cheques Write Cheques for Direct Debits and Eftpos Transactions Save and Use Recurring Cheques Find a Cheque Allowing Post Dated Entries and Editing of Transactions To make your learning easier we will set the system so transactions can be edited. We will also set the system so it will not display a warning when a post-dated cheque is entered. Click on Setup Preferences in the Menu bar Click on the Security tab Security Click here to remove tick...and here to remove tick Click on OK 6-2 Microstar Publishing Pty Ltd 2005

3 Spend Money 6 Spend Money Click on the Spend Money link in the Banking area. The Spend Money window looks very similar to the layout of a normal handwritten cheque. The Balance of the Cheque Account is also displayed so at any time you know what is available for writing cheques (providing you keep up to date with data entry). Cheque Account Balance Cheque No The Cheque number will update automatically for each new cheque you write and so when the cheque window is opened the focus is on the date of the cheque. However for the first cheque you have to enter the correct cheque number. Click the Tax Inclusive box until a tick appears Click on the Cheque No field and type 101 then press the [Tab ] key to move the focus to the Date field The current date of the computer system will be automatically entered in the cheque. You can change this to be whatever the date is for the cheque you are entering. MicrostarPublishing Pty Ltd

4 Introduction to MYOB 15 Type 2/7/04 in the Date box then press [Tab ] to move the focus to the Amount box Type 80 for the Amount of the cheque ( you do not need to type the $ sign or the 00 s for a round dollar amount) then press [Tab ] The focus is now on the Card field which you may or may not use. For a bill such as a telephone bill there is really no need to use it because the expense account lists all the bills you have paid anyway. You use a supplier Card if you want to keep track of cheques paid to a particular supplier. Type Telstra then press [Tab ] Card Date Amount Memo A Card list will appear because Telstra is not currently entered. Click on New - click on the Card Type and click on Supplier Click on OK the details for this Supplier can be added later New Press the [Tab ] key until the focus is on the Memo field. This field is useful for entering extra details about the purpose of the expense, eg July account Type July Account then press [Tab ] 6-4 Microstar Publishing Pty Ltd 2005

5 Spend Money 6 The focus is now on the Expenses area of the cheque. This area must be filled in. It is the same process as when you fill in the column data in a manual cash book to allocate the cheque amount to an expense column. You can simply type in the Expense account number if you know it. Or if you press [Tab ] the list of accounts will appear so you scroll through until you find the correct account. Press the [Tab ] key to display the list Type 6 for Expense account (this will move you down the list to the Expense accounts) Scroll until you see the account Telephone Click on Telephone Click on the Use Account button The number and name of the expense account appears in the cheque as shown below. The full amount of the cheque will be automatically entered in the Amount column of the Allocation area. Check that the GST tax code appears in the Tax column Use Account The Tax Code is entered automatically because we applied it to the Telephone Expense Account back in Chapter 4. MicrostarPublishing Pty Ltd

6 Introduction to MYOB 15 The presence of GST in the Tax column reduces the Amount in the Allocation line by the proportion going to Tax Don t click on Record yet You can check the results of the transaction before recording. Click on Edit Recap transaction in the Menu bar The value of Tax, $7.27 on the cheque is recorded in the GST Paid account. The actual expense of $72.73 is recorded in the Expense account for Telephone. This amount will be used to calculate the Profit and Loss report. The balance of the Cheque Account is reduced by the total $ Click on OK to close the Recap Transaction window Check that the Tax is $7.27 Click on Record to complete the recording of the cheque 6-6 Microstar Publishing Pty Ltd 2005

7 Spend Money 6 A blank Spend Money window will appear with the next cheque number already entered and the same date as the previous cheque. The next cheque is for the same date so press [Tab ] to move the focus to the Amount box Type then press [Tab ] Type The Office People in the Card box then press [Tab ] The Select from List box for Cards appears because The Office People are not in the list Click on New A new Card will appear for The Office People as shown on the following page. New MicrostarPublishing Pty Ltd

8 Introduction to MYOB 15 Click on the Card Type box and click on Supplier for the Card Type Click on OK because we can enter the Supplier s details later (See the Chapter on using the Card File) Card Type Press [Tab ] button until you get to the Memo box Type Stationery supplies then press [Tab ] Type 6 then press [Tab ] Scroll until you see Office Supplies, click on it and click on Use Account Check that the Tax column has GST then click on Record 6-8 Microstar Publishing Pty Ltd 2005

9 Spend Money 6 Practice : Writing Cheques Enter the details for this cheque taking care to enter the correct Date, Amount and Allocation Account and don t forget the GST! Enter this cheque to pay for a tune up for the Van MicrostarPublishing Pty Ltd

10 Introduction to MYOB 15 Enter the following cheque Click on Record Repeat the process to enter a Cheque for a payment of a total of $ Microstar Publishing Pty Ltd 2005

11 Spend Money 6 Entering a Cheque for a GST Free Purchase Your business may purchase an item that while taxable for income is GST free. For example, Pete attends a training course at the local TAFE which is a GST Free course, but it is also a business expense. FRE is the tax code for GST Free transactions. All details are entered as usual but with FRE in the Tax column Click on Record when all details are entered Record this cheque to pay for a follow up course which is also deemed GST free take special note of the Cheque No and Date MicrostarPublishing Pty Ltd

12 Introduction to MYOB 15 Writing a Cheque for GST (Non-Registered) A business owner has the option to not register for the GST if their business turnover is less than $50,000 per year. In this case they will not charge you GST, even for products that are normally subject to GST. In this case you will not be able to claim a GST Tax Input Credit, because you haven t paid any GST. (Note: The business must still have an ABN) You can use the Tax Code FRE for GST (Not Registered) transactions. Pete purchases some cleaning supplies from Mrs Pinkwhistle. She runs the business part-time so her turnover is small, so while she does have an ABN, she hasn t registered for the GST. Enter the following cheque using FRE in the Tax column Click on Record NOTE: Even though there is no tax component you must still enter a tax code so the amount of the business expense will be included in the Sales Tax report from which you take data for the Business Activity Statement 6-12 Microstar Publishing Pty Ltd 2005

13 Spend Money 6 Withholding Tax for no ABN Business to Business transactions require the supplier to quote an ABN whether or not they are registered for GST. If no ABN is quoted then the purchasing business is required to withhold 48.5% tax from the payment and forward it on to the ATO. A subtle way of encouraging all businesses to register for an ABN. Pete has purchased some shampoo from a supplier for $699. They are very disorganised and do not yet have an ABN. Pete has to withhold 48.5% tax from the payment. Also if they do not have an ABN then they are not registered for GST, and so have not applied the GST and therefore you cannot claim any GST credits There are a few steps involved here so PAY ATTENTION! Please. Follow the numbered boxes 5. Click on the Tax inclusive check box so it is clear 2. Enter a Memo No ABN Quoted 7. Click on the Amount for the Cheque - $360 will be entered automatically 1. Enter the Cheque No and Date 3. Enter as the Account 6. Click on the Amount column and type Click on the Amount column again and type Click on the tax column and type ABN Click on Record MicrostarPublishing Pty Ltd

14 Introduction to MYOB 15 Cheques for Private Drawings by the Owner or Shareholder It happens quite often in small business that the owner will draw money from the business account for personal use. This is handled by using an equity account such as Owner s/shareholder s Drawings rather than an expense account when allocating the cheque. Enter the details as shown below using the Equity account Owner s/shareholder s Drawings Enter the following cheque for another personal expense 6-14 Microstar Publishing Pty Ltd 2005

15 Spend Money 6 Entering Multiple Accounts There will be times when a cheque is attributable to more than one Expense account. To accommodate this in MYOB you simply use a line for each Expense account in the Account Allocation area. (As you would use more than one column in a manual cashbook). Pete is charged $46.30 for fuel and $25 for oil. These are the total charges. He knows the GST for both is $6.48. Make sure there is a tick in the Tax Inclusive box Enter the details as shown below This will compute the correct amount of tax and what the actual amount for expenses should be claimed. Click on Record MicrostarPublishing Pty Ltd

16 Introduction to MYOB 15 Multiple Lines Part Expense Part Private Some expenses may involve a business expense and also a private expense. You should record each portion using the relevant Tax Code for the business part and N-T for the Private portion. The total bill was for $439.48, 50% of this is $ Check that Tax Inclusive has a tick in it Enter the details as shown below Notice that the tax is only $ This is because the Private portion is not recording any Tax Credits. Click on Record Click on Cancel to close the Spend Money window 6-16 Microstar Publishing Pty Ltd 2005

17 Spend Money 6 Dealing with Direct Debits In these modern times many expenses can be paid directly from the bank account without even writing a cheque. Debits such as bank charges are the perfect example. Other payments, usually periodic, such as lease payments, Yellow Pages advertising, Insurance etc can also be directly debited. These are dealt with the same way as a normal cheque. The only difference is the use of a cheque number which is now just entered as dd or bc or anything you would like to use for your own information. Click on the Spend Money button of the Banking area Click in the Cheque No box and type dd Enter the rest of the details as shown (adding Silver Lining Pty Ltd as a new Supplier) Click on Record Enter two more direct debits of the insurance payments, for the same amount as above, on 7/8/04 and 7/9/04 NOTE: Take care with insurance payments as there may be parts that are not subject to GST the example above is simply to show you how to enter a payment which is directly debited from your bank account. MicrostarPublishing Pty Ltd

18 Introduction to MYOB 15 EFTPOS Transactions EFTPOS transactions can also be catered for in the Banking area. It is simply a matter of writing a code such as eftpos in the Cheque number field. Click on the Spend Money button in the Banking area Click in the Cheque No field and type eftpos Enter the remaining details as shown below Click on Record Click on Cancel 6-18 Microstar Publishing Pty Ltd 2005

19 Spend Money 6 Capital Acquisitions Capital purchases have to be listed separately on the Business Activity Statement. Capital assets are pieces of equipment, machinery, buildings etc, anything you use for more than a year to run your business. Pete buys a new doggy washer for $2200. This would be a Plant and Equipment asset. When purchasing assets you do not use an expense account. An asset account is used to record the value of the asset. Click on the Spend Money button Enter the details for the cheque as shown below using the CAP tax code Click on Record Click on Cancel to close the Spend Money window MicrostarPublishing Pty Ltd

20 Introduction to MYOB 15 Saving Recurring Cheques Many payments are periodical, occurring each month or week. For example the monthly rent, monthly bank charges, monthly lease payments etc. Instead of entering all the details for these each month you can save the details then each month simply use the saved setup just changing the date or sometimes the amount. Pete rents an office to do his bookwork and store stock and equipment. He pays a fortnightly rent of $220. Click on the Spend Money button of the Banking area Click on the Cheque No and type 115 then press [Tab ] Type 25/7/04 in the Date field then press [Tab ] Type 220 in the Amount field then press [Tab ] Type City Realty in the Card box then [Tab ] Click on New then OK Press [Tab ] until the focus is on the Memo field Type Office Rent and then press [Tab ] Type 6 then press [Tab ], scroll and click on Rent Click on Use Account and check that GST appears in the Tax column The trick here is to click on Save Recurring instead of Record Save Recurring Click on Save Recurring to open the dialogue box as shown on the following page Microstar Publishing Pty Ltd 2005

21 Spend Money 6 The Save Recurring Transaction dialogue box shown below is used to record a name for the values entered on the cheque. The default setting is for a monthly transaction. Click on the Frequency box and click on Fortnightly Leave today s date in the Starting on box ordinarily you would click in the Starting on box and type the date of the next transaction which must be on or after today s date, however because in this example we are working in the 2005 financial year the date will be before the current date which MYOB will not allow In the Alert section click on the to record this transaction and select on its due date box In the Transaction section check that Use the next sequential number as the Cheque# is selected Click on the Save button to record the settings and return to the Spend Money window where the details are still displayed, the actual cheque has not yet been recorded. Click on Record in the Spend Money window to record this actual cheque Click on Cancel to close the Spend Money window MicrostarPublishing Pty Ltd

22 Introduction to MYOB 15 Using Recurring Cheques Once you have saved the setup of Recurring payments it is simply a matter of calling up these settings and recording them. Click on the Spend Money button of the Banking area A blank cheque will appear with the next cheque number appearing automatically as well as the most recently used date. Use Recurring Click on the Use Recurring button A list of the Save Recurring cheque templates will appear. Click on Office Rent if necessary Click on Select 6-22 Microstar Publishing Pty Ltd 2005

23 Spend Money 6 The details we entered before will appear in the cheque. However it will probably need to be adjusted slightly to enter the correct date and cheque number. Click on the Cheque No field and type 116 if necessary Click into the Date field and type 27/7/04 Check that all other details are correct Click on Record Repeat the process to enter the rent payments with the given Dates and Cheque numbers 117 August August September September 21 MicrostarPublishing Pty Ltd

24 Introduction to MYOB 15 Practice: Recurring Cheques For example Pete makes a monthly lease payment on his van of $425 dollars. This payment is debited directly from his bank account on the last Monday of each month. Enter the details shown here but do not click on Record Click on the Save Recurring button and make the settings shown on the following page 6-24 Microstar Publishing Pty Ltd 2005

25 Spend Money 6 Click on the Name box and type Van Lease Payment Check that Monthly appears in the Frequency box Click on Perform this # of times and type 36 then press the [Tab] key Click on the to record this transaction and select on its due date box Click on Use the following as the Cheque #... and type DD in the box as this is a direct debit Click on Save Click on Record to record the direct debit of the lease payment from the Cheque account Click on Cancel to close the Spend Money window Repeat the process to use the recurring transaction for Van Lease Repayments for 25/8/04 and 25/9/04 - remember they are direct debits so don t use a cheque number, just DD which should appear automatically When finished recording the last cheque click on Cancel to close the Spend Money window MicrostarPublishing Pty Ltd

26 Introduction to MYOB 15 Editing a Recurring Transaction The details saved in a recurring transaction will remain the same until you edit them, so if for example the rent goes up you should edit the saved transaction to show the new rent cost. Click on Lists Recurring Transactions in the Menu bar Click on Office Rent and click on Edit Click in each Amount box and type 275 Click on Save this will save the recurring transaction template it does not record a new transaction The next time you use a recurring transaction the new details will appear Microstar Publishing Pty Ltd 2005

27 Spend Money 6 Recurring Transaction Options You have used two ways of setting up the recurring transaction but there are several other setting combinations you could use. Schedule Frequency a range of options for how often the transaction occurs sets the due date based on the starting date and the frequency Starting on this date must be on or after the current date on the computer and used to indicate the next due date Continue indefinitely The transaction will continue until you delete/modify it Continue until this date This option allows you enter an end date for the transactions Perform this # of times This setting is useful for a set number of repayments Alerts Remind to record this transaction When you start MYOB and open your data file a list of reminders will automatically appear for the setting. You can choose never or set a date suitable for you requirements you might find a reminder a few days before useful if you have to send a cheque Automatically record this transaction..- use this for direct debits or if you print cheques after recording the transaction will be recorded on the due date Transaction Use the next sequential number as the Cheque# - you can still change the cheque number if you hand write cheques Use the following as the Cheque# - use this if the transaction is a direct debit MicrostarPublishing Pty Ltd

28 Introduction to MYOB 15 Recurring Transaction Reminders When you start MYOB and open your data file a list of reminders will automatically appear for the setting. Depending on the settings you made you can just record the transaction. Click on the zoom arrow to edit the transaction In practice you can edit the transaction and enter the correct cheque number if you hand write cheques then record. Note: Clicking on either Record button will record the transaction Microstar Publishing Pty Ltd 2005

29 Spend Money 6 Credit Cards Many businesses use credit cards for many business transactions. There are two ways you can deal with credit cards. Enter all transactions onto the cheque that pays the credit card Enter transactions individually Either way it is important to enter your credit card transactions which relate to the business so that expenses can be included in the Profit and Loss report and the GST tax payments are included in the GST reports. Enter all transactions onto the cheque that pays the credit card in full Tally up the expenses into the various accounts, eg total petrol purchase together, office supplies etc and private expenses Click on Spend Money and create a cheque entering the totals of each as shown below Total all private purchases and enter using the N-T tax code Enter all Credit Card charges under Bank Charges using the Tax Code FRE FRE Click on Record MicrostarPublishing Pty Ltd

30 Introduction to MYOB 15 Enter transactions individually Alternatively you can use the Spend Money function to enter Credit Card transactions individually. This will particularly be the case if you use the Credit Card to pay Bills you enter in the Purchase area. Click on the Pay from Account drop list button and click on Visa Click on Use Account Pay from Account list Enter the details as shown below for a payment of a telephone bill with the Visa card there is no need to enter a Cheque no so just leave as 1 Click on Record 6-30 Microstar Publishing Pty Ltd 2005

31 Spend Money 6 Enter the following payments using the Visa card MicrostarPublishing Pty Ltd

32 Introduction to MYOB 15 Paying a Credit Card with a Cheque If you use your Cheque account to pay off the Credit card you should then use the following steps. Click on the Pay from Account list and double click on Cheque Account Enter the details for the cheque using the account for the Visa card in the Allocation area Cheque Account Click on Record Click on Cancel to close the Spend Money window Note: The tax code is N-T as the GST for the transactions on the Visa card was recorded when the Visa transactions were entered Microstar Publishing Pty Ltd 2005

33 Spend Money 6 GST Exclusive Amounts A supplier of Pete s issues their Tax Invoices with each item at a GST Exclusive price with the GST separately totalled at the end of the docket then the total charge. To split up each expense into the appropriate accounts would require the calculation of the GST inclusive charge of each item. However in MYOB you can simply clear the Tax inclusive box. This means when you enter the GST exclusive charge, the GST amount will be calculated and entered. Pete has an invoice that has a postage charge of $125 (GST exclusive) and office supplies of $56, again GST exclusive. Pete knows the total GST is $18.10 but he doesn t want to calculate it himself. Click on the Spend Money button Click on the Tax Inclusive box so it is clear Enter the details as shown below GST Exclusive amounts Total GST Tax amount The GST tax is calculated and added to the GST Exclusive amounts, so the Total GST Inclusive charge is $ Click on Record MicrostarPublishing Pty Ltd

34 Introduction to MYOB 15 Pete has an expense for Office supplies which is listed separately on the invoice exclusive of tax. Part of the invoice was for personal items. Enter the following cheque for $60.35 check that the tax is only $4.00 Record the cheque Click on Cancel to close the Spend Money window 6-34 Microstar Publishing Pty Ltd 2005

35 Spend Money 6 Creating Reports: The Cash Disbursements Journal Report One of the most terrific features of MYOB is its reporting capabilities. Now you can instantly see reports on the profitability of the business, accounts receivable and others. Click on the Reports Index to Reports in the menu bar The Index to Reports will be displayed. There is a separate tab for each area on the Command Centre. Click on the Banking tab to display that category of reports Scroll down and click on Cash Disbursements Click on the Customise button Customise Each report has its own set of possible filters. A Filter determines which data is used to create the report. For example, the particular dates used or the specific customers, suppliers or employees. Click on the Transaction Date box and type 1/7/04 then click in the To: box and type 31/7/04 as shown below Date Filters Display Click on Display to display the report as shown on the following page MicrostarPublishing Pty Ltd

36 Introduction to MYOB 15 The report appears on the screen. It displays all disbursements between the dates entered. You will need to scroll around the report to see it all. Click on Print to print the report The Print dialogue box appears which enables you to check the printer and the number of copies you want printed of the report. Click on Print Enter No. of copies here Print Click on Close to close the report Click on Close to close the Index to Reports 6-36 Microstar Publishing Pty Ltd 2005