MYOB EXO Business EXO Training EOFY Good Practice Momentum Software Solutions support@momentumss.com.au Momentum provide Support for all MYOB EXO Business and Employer Services modules Suite 22, Ocean Central, 2 Ocean Street, Maroochydore, 4558 +617 5479 1877 +617 5345 5267
Momentum Software Solutions Customer Support As a valued customer of Momentum, we provide support for all MYOB EXO Business and Employer Services modules. You can lodge a Support Request. Via email:- support@momentumss.com.au Via our website:- http://www.momentumsoftwaresolutions.com.au/support Or contact our Help Desk:- 07 5479 1877 There is easy access to information on hardware, network and operating system requirements for efficient operation of MYOB EXO Business software. You can download minimum hardware and network requirements from our website at:- http://www.momentumsoftwaresolutions.com.au/products
Table of Contents OVERVIEW... 2 End of Period Checklist... 3 End Of Financial Year... 8 Payroll EOFY... 8 Information & FAQ s about End of Year in EXO Business... 15 APPENDIX A: How to perform reconciliations using MYOB EXO Payroll... 16 EXO EOFY Good Practice Momentum Software Solutions Page 1
OVERVIEW This document is intended as a guide for MYOB EXO Business users running end of year procedures in MYOB EXO Business Software. The end of year process in MYOB EXO Business is a very straight forward process. This paper sets out the steps required to achieve a successful year end procedure. Even though this paper talks about the Year End process it should be noted that once the Year End Process is complete the user can still post transactions to the previous financial year. Rolling over the year end still gives the user access to the previous year s transactions for reporting and for data entry. NB: MYOB and Momentum recommend that a database backup is completed and verified before performing the year end roll over procedure. Verification involves checking that the backed up database can be read. EXO EOFY Good Practice Momentum Software Solutions Page 2
End of Period Checklist In order to be able to create transactions in the NEW Month, you must Roll End of Period (from End of Month Menu). As much as possible, try to arrange your processing so that you can complete all outstanding transactional processes for the month, in particular the allocation of Payments and Receipts and posting of Banking Batches. If you require additional advice to help your regular transaction processing, please contact Momentum support. If you transact in Foreign Currencies, you must run the Exchange Rate Variance Calculator from within Month End. It is important to have updated your exchange rates first and allocated all payments and receipts. Print the reports and Post to General Ledger. NOTE : Only do this ONCE. It will create AUTO REVERSING JOURNALS for unrealised foreign gains and losses and should only be run immediately prior to rolling month end. Before rolling, take a backup of your data using the Momentum Easy Backup Tool. 1. Update Exchange Rates You can maintain exchange rates at EXO Business Config > Administration > Finance > Currencies Exchange for all currencies except the local currency can be edited directly on the Current Rates tab. The Buy Rate for each currency is the exchange rate used when purchasing from Creditors; the Sell Rate is the exchange rate used when selling to Debtors. The Local Curr Val Buy and Local Curr Val Sell values show the inverse values of the Buy Rate and Sell Rate respectively. It is expected that users will update currency exchange rates frequently. When editing rates, users are warned if they attempt to change rates by more than a pre-defined limit (set by the % Change Alert property on the Details tab). To edit all properties of an existing currency rate, double-click on it or select it and click Edit. The Details tab is displayed: EXO EOFY Good Practice Momentum Software Solutions Page 3
The Details tab also contains a history of all rate changes for the currency. 2. Process Foreign Currency EXO EOFY Good Practice Momentum Software Solutions Page 4
Click the Reports > Detailed Report option to generate a detailed report that shows the allocation of payments to invoices in each ledger, with the adjustment made to take up the difference. Because allocation of payments is all-important in the calculation of variances, the Unallocated Payments Report highlights unallocated payments so that these can be redressed prior to recalculation and posting. NOTE: The Exchange Rate Change History, Exchange Rate Debtor Gains and Exchange Rate Creditor Gains reports are available as standard Clarity reports. 3. Complete Customer Invoicing 4. Allocate Unallocated Payments and Receipts A Debtors Payment Listing can be printed showing only Unallocated Payments. This will highlight any payments that should be allocated. 5. Post Ledgers to GL All three source ledgers (Debtors, Creditors and Stock) can be posted at the same time. One batch is created for each ledger. Batches are created on combination of Period and ledger ie one for each period and ledger combination. The Description filed for the batch indicates the ledger for which the batch has been created. 6. Post any Unposted Banking Batches 7. Run Debtors Aged Balances report 8. Run Debtors Reconciliation report 9. Run Creditors Aged Balances Report 10. Run Creditors Reconciliation Report 11. Run Stock Valuation Report (if running periodic stock method) 12. Post Closing Stock to GL Periodic EXO EOFY Good Practice Momentum Software Solutions Page 5
13. Run Reconcile Inventory report 14. Run WIP Valuation Report (if applicable) 15. Post Closing WIP to GL Periodic 16. Print Debtor Statements This Period 17. Run (and save) a Stock Valuation Report If you have inventory EXO Business standard reports does not have a Stock Valuation Report that can be run retrospectively. We recommend you run this report at year-end (once you ve completed entering stock transactions (sales, purchases, adjustments) and print or save to PDF. The report is often requested by Accountants at tax time. NB: Momentum have developed a Custom Stock Valuation (Retro) report. Contact Momentum if you re interested in this report. 18. Roll End of Period Note: don t forget to tick the End of Financial Year button 19. Print Debtor Statements Last Period if not already printed. 20. Process accrual journals 21. Enter all Expenses (Cashbook) 22. Enter any Creditor invoices received post Month-End Roll 23. Complete Bank Reconciliations To ensure the accuracy of your business records, you should have your bank reconciliation completed for the month, so that you know your bank account balance is matched up with your bank s records. 24. Run Month End Reports 25. General Ledger Trial Balance Use this report to identify incorrectly entered amounts. When reviewing this report, check for: Entries that seem unusually large or small for the account. Debit balances for accounts that normally have credit entries, and vice versa. Unusually high or low balances. Unusually high or low number of entries for a specific account. EXO EOFY Good Practice Momentum Software Solutions Page 6
26. Profit and Loss Displays your profit and loss figures. 27. Balance Sheet Lists account balances as at the end of the selected month, along with the budgeted amounts for them. If changes need to be made to the amounts you ve budgeted for the coming months, adjust your budget. 28. Other Processes Perform End of Year in Fixed Assets Module (if installed) NOTE:- If you are using FIXED ASSETS you must also run a YEAR END ROLLOVER in this module. This process must be done after the Depreciation for the end of the last period in the financial year has been run and before processing depreciation for the first period of the new financial year. Setup New Year & Periods in EXO Analytics (Management Report) If you use EXO Analytics you will need to setup the new Year, Months, Day Plan & Budgets. Go to EXO Analytics -> Setup Note: The setup can also be done in the EXO Configuration Module. Go to ExoConfig -> Admin -> Analytics You will also need to complete this step if you use Sales Budgets in EXO CRM EXO EOFY Good Practice Momentum Software Solutions Page 7
Hints Print Reports to File and then save to disc (as doc or pdf files) it s quicker, can be emailed to your accountant, is backed up, saves paper and printing ink so saves $. Arrange your workflow in a systematic way so that your processes match your business activity eg Pay your suppliers each week on a certain day of the week. ie do four payment runs a month on Tuesdays. This helps with cashflow, suppliers know not to call you before Thursday as they get used to being paid on Tuesday. Debtor collections each Monday, Bank reconciliation every day (or at least every week), Purchasing each Friday, Payroll each Thursday. Golf on Wednesday. Use your TEST SYSTEM to work through problems. Backup your live data to TEST using EasyBackup and test your process. End Of Financial Year 1. Reconcile GST Accounts 2. Reconcile Clearing Accounts 3. Reconcile your payroll to the general ledger ie, wages expense, tax, super liability accounts. 4. Enter EOFY Adjustments Note: It is advisable to run EOM reports at month end, save all to pdf and file on server in a separate folder for each month. Payroll EOFY 1. Complete the final payrun of the 2013 year. 2. Reinstate Terminated Employees Reinstate any employees that were terminated during the Financial Year for whom you need to load Reportable Fringe Benefits and require payment summaries. 3. Loading Reportable Fringe Benefit Amounts Reportable Fringe Benefits are loaded into the system by means of a One-Off Pay. EXO EOFY Good Practice Momentum Software Solutions Page 8
To load Reportable Fringe Benefit Amounts a. From the Pay menu, select One-Off Pay b. The Fringe Benefit Tax Year is from April 1 the previous year to March 31 the current year. The Pay Period End Date and Physical Pay Date should therefore be no later than March 31 of the current year. If either of these dates are after March 31, the Reportable Fringe Benefit will not appear in the correct Fringe Benefit Year. Example: c. As this pay will only contain the Reportable Fringe Benefit Amounts, select No from the Copy Standard Pay dropdown list. d. Click on the Make One-Off Pay button to create the pay. e. A message will appear, asking if you wish to pay all the employees that are in this pay frequency. It is unlikely that you would be entering Reportable Fringe Benefits for all your employees. Click on No. f. Click on the Calculate Pay button. g. Click on the Find button to select the employee for whom you need to load Reportable Fringe Benefit Amounts. h. A message will appear, stating that the employee is not currently in this pay. This message will appear if you chose not to include all the employees in the One-Off Pay. Click on Yes to include the employee in the One-Off Pay. i. Click on the Non-Cash Benefits button. j. Click on the Add button or press F4. EXO EOFY Good Practice Momentum Software Solutions Page 9
k. in the Code field, enter the Code assigned to the Reportable Fringe Benefit pay item, e.g. 999. l. Enter the appropriate Amount. m. If you did not assign a Cost Centre when you set up the Non-Cash Benefit, you should assign the appropriate Cost Centre. n. 14 Click on Save or press F10. o. Click on Save or press F10 again to return to the employee s One-Off Pay. The One-Off Pay for the employee should not show any values as Non-Cash Benefits are not physically paid to the employee. p. To load a Reportable Fringe Benefit Amount for another employee, click on Find or press F9 to select another employee. Repeat steps 5 though 15. q. Click on the Save button or press F10 to save this pay and return to the One-Off Pay screen. r. Click on the Print Reports button and print a Non-Cash Benefit History report. Use this report to check that you have entered the correct values for the appropriate employees. s. Click on the Finish One-Off Pay, Backup button to complete and update the t. One-Off Pay. u. A message will appear, asking you to confirm that the pay is correct and that all reports are printed. Click on Yes. v. 21 You will be prompted to do a backup. Click on Backup. w. 22 Once the backup is completed, a message will appear, confirming that the pay has successfully been updated. Click on Ok. EXO EOFY Good Practice Momentum Software Solutions Page 10
4. Install software upgrade and Load new Tax Tables During the life of your Employer Services products, MYOB will release updates and new versions. It is recommended that you install new updates and versions when they become available. EXO Payroll requires that you use the tax tables applicable to the current financial year. New Tax Updates are made available as an electronic download only. Downloading updates NB If you are access payroll via a Terminal Server connection (or if you are unsure), please do not download the update from the internet, contact Momentum Support for assistance. Whenever an update is available for your Employer Services products (including new tax tables), it will be made available via download. To update your software: 1. Ensure that all other users have exited all MYOB Employer Services products. 2. From the Help menu, select Upgrade Software Online. Do not upgrade on-line if you are running payroll on Terminal Server. Please contact Momentum Support for assistance. Note: An Internet connection is required to download the latest tax tables. Ensure you have an active internet connection before proceeding. 3. MYOB Employer Services will automatically exit and the Employer Services Update utility will start. 4. Follow the on-screen instructions to download and install the latest tax tables. 5. Once the process is complete, click on the Close button. 6. MYOB Employer Services will automatically start up again. 7. You may be prompted to upgrade your data to the latest version. Follow any on-screen instructions. 5. Manage Payment Summaries Your employees may fall into two employment categories for the purpose of Payment Summaries. 1. Employees 2. Contractors Each employment category requires a different Payment Summary to be printed. Employees For employees, you must print the Individual Non-Business Payment Summary. To print Individual Non-Business Payment Summaries 1. From the Reports menu, select Print Reports. 2. Select the Payment Summaries tab. 3. Select the report Individual Non-Business and click on Select. EXO EOFY Good Practice Momentum Software Solutions Page 11
4. In the Date range, enter the dates for the financial year (01/07/2012, 30/06/20139). 5. You are not required to enter any other Selection Ranges as the system will automatically include the relevant employees and Fringe Benefits, etc. 6. Enter your Contact Name, Contact Number and Brand Number (if applicable) in the Addition Input section. 7. Set your Destination to Printer and select the appropriate printer. 8. Click on the Print button or press F9 to print your Individual Non-Business Payment Summaries. Contractors For contractors, you must print the Voluntary Agreement Payment Summary. To print Individual Voluntary Agreement Payment Summaries 1. From the Reports menu, select Print Reports. 2. Select the Payment Summaries tab. Select the report Voluntary Agreement and click on Select. EXO EOFY Good Practice Momentum Software Solutions Page 12
3. In the Date range, enter the dates for the financial year (01/07/2012, 30/06/2013). 4. You are not required to enter any other Selection Ranges as the system will automatically include the relevant contractors. 5. Enter your Brand Number (if applicable) in the Addition Input section. 6. Set your Destination to Printer and select the appropriate printer. 7. Click on the Print button or press F9 to print your Voluntary Agreement Payment Summaries. 6. Terminated employees terminated. Terminate employees who were previously terminated for whom you have loaded Reportable Fringe Benefits. 7. Create electronic ATO file Once you have printed your Payment Summaries, you are also required to create your electronic lodgement file that is to be sent to the ATO. This file can be sent one of two methods: 1. Sending the file via the mail (disk) 2. Sending the file electronically Creating The Electronic File Irrespective of the method you will use to send the lodgement file to the ATO, follow these steps to create the electronic file. 1. From the Reports menu, select Print Reports. 2. Select the Payment Summaries tab. 3. Select the report Electronic File and click on Select. EXO EOFY Good Practice Momentum Software Solutions Page 13
4. In the Date range, enter the dates for the financial year (01/07/2012, 30/06/2013). 5. You are not required to enter any other Selection Ranges as the system will automatically include the relevant employees and Fringe Benefits, etc. 6. Enter your Contact Name, Contact Number and Brand Number (if applicable) in the Addition Input section. 7. The Destination will default to EMPDUPE. In the File Name field, you can specify the location where the file should be created. Click on the button to browse for a location. 8. Click on the Create File button. If you are sending the file on disk, copy the EMPDUPE.A01 to disk. Complete the the Magnetic Media Form and include that with the disk. If you are sending the file electronically, browse for the EMPDUPE.A01 file to upload it. EXO EOFY Good Practice Momentum Software Solutions Page 14
Information & FAQ s about End of Year in EXO Business In addition to the normal End of Month procedures, MYOB EXO Business will also perform the following: Zeros off the Profit & Loss accounts and posts the resulting Profit or Loss to the retained earnings account as defined in the GL Control account screen. Copies This Year total to the Last Year total on all debtor accounts Zeros This Year totals on all debtor accounts Copies This Year total to the Last Year total on all creditor accounts Zeros This Year totals on all creditor accounts Copies This Year totals to the Last Year total on all stock items Zeros This Year totals on all stock items The system will still allow you to post transactions into the previous financial year just like any other month but in addition it will Create an End Of Year Adjustment for any transactions that will change the previous Year Profit figure. Note: Normal end of year adjustments to Balance Sheet accounts do not create an adjustment entry. Q) Can I roll the ledgers separately? A) No, we strongly recommend all ledgers be rolled simultaneously. Financial integrity issues can occur if they are not. Q) Can I roll the June Period now, and the year later? A) No, You cannot process July transactions in the new financial year unless you roll the financial year. If you attempt to do so, financial integrity issues can occur. Q) Can I process transactions back into June or prior months? A) Yes, EXO will allow that, and will post adjustments to the End of Year profit figure where appropriate. We recommend this be monitored carefully, and periods should be locked once reconciliations are complete. Q) My Accountant doesn t complete my year end journals until months from now. What happens with those? A) That s OK. Transactions can be processed into the Prior Financial Year, and if they effect profit EXO creates an Adjustment to the profit figure that was created when you rolled. EXO EOFY Good Practice Momentum Software Solutions Page 15
APPENDIX A: How to perform reconciliations using MYOB EXO Payroll Overview These checks should be completed monthly, finding any discrepancies as they arise. If you are not reconciling monthly (highly recommended), do a reconciliation at the end of April or May. Doing this in April or May gives you time to investigate any imbalances found without the pressure of June 30 looming. Also at June 30, you will only have one or two months to reconcile. Print payroll reports Print the following payroll reports: Trial Balance Detail report Pay Summary Allowance History report without detail Deduction History report without detail Superannuation Summary PAYG for BAS Print maintenance reports for Allowances, Deductions and Superannuation It s best to print all reports with a date range and pay number range and select Physical Pay Date EXO EOFY Good Practice Momentum Software Solutions Page 16 Lvl 1 59 The Esplanade Maroochydore 4558 PO Box 808 Maroochydore 4558 P + 617 5443 4988 F +617 5443 4977 support@momentumss.com.au ABN 60 026 933 895
Verify A quick check of details on these reports will enable verification that the Payroll contains all relevant data, correctly assigned to the Payment Summaries. Verify Tax: PAYG for BAS = PAYG from Trial Balance + Extra Tax Deduction(from Deduct History) ensure this is the amount of PAYG Tax remitted to the ATO, there would also be additional amounts remitted for ETP Tax if applicable(these can be verified from the Deduction History Report). Verify RESC: RESC on Pay Summaries = Sal Sac Super + Employer Additional Super. Note these can be verified individually if necessary, it is recommended that a review of the Maintenance report for Superannuation should confirm the RESC setting for each super item. Verify Gross: Gross Taxable = Gross Pay on Pay Summary Report less any Pre Tax Allowances where Payment Summary Type = Work-Related plus any Post Tax Deductions which are set as Payment Summary Type Deduction. Pay Summary/Trial Balance Gross Amount should equal the value in the Wages / Salary general ledger expense account. Verify Super: Superannuation Summary Total should equal the value in the Super general ledger expense account Verify General Ledger liability accounts: Any balance in the General Ledger Liability accounts eg PAYG, Super, Child support etc, should only be the amounts yet to be paid to those entities. If you are only doing a reconciliation at the end of April or May, and discrepancies are found, you may wish to print the Payroll reports month by month and reconcile each month individually. EXO EOFY Good Practice Momentum Software Solutions Page 17