The Create Journal

Software: MoneyWorks accounting software

Create Journal is a stock related journal in MoneyWorks accounting system, which uses to increase the stock quantity such as manufactured or the existing product. For example, you discovered that Product_123 has ten pieces instead of nine, you may use a Create Journal to increase the stock on hand of Product_123 instead of a full stocktake process. Use a relevant Cost of Sales or Expense account as a contra account if you are using a Create Journal instead of inventory assembly feature to increase the stock on hand of the manufactured product.

Create journal

Change the contra account to SETUP if you are using the Create Journal instead of a stocktake to record the ‘opening stock’. The SETUP account is an account used in MoneyWorks to store all the opening balances of your file.

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QuickBooks Chart of Accounts

Software: QuickBooks Desktop Accounting Software

The Chart of Accounts in an accounting system is a list of accounts, which categorised into Incomes, Cost of Sales, and Expenses to form the Profit and Loss statement; and Assets, Liabilities, and Equities of the Balance Sheet.

The Accountant has to create the chart according to the organisation requirement and comply with the accounting standard.

QuickBooks Account

The Chart of Accounts is under the Lists menu of the QuickBooks Desktop accounting software. Click the Account button at the bottom of the list window to add, edit, or delete an account. You can also use the ‘Subaccount of’ feature to group accounts; for example, you can group Basic Salary, Bonus, Overtime Pay, and CPF to the Payroll expense account. This ‘subaccount of’ feature allows you to expand or collapse the accounts within the Profit & Loss or Balance Sheet report.

Expand view:

Payroll
– Basic Salary 10,000
– Bonus 5,000
– Overtime Pay 3,000
– CPF 3,600

 

Collapse view:

Payroll 21,600

For those who prefer to work with an account number, it can be turned on from the Preferences (under the Edit menu). QuickBooks account number support up to 7 characters, which should be sufficient for most of the small businesses. However, you should not use account number feature if your computer has turned on non-English languages such as Chinese, Japanese, Thai, etc. For example, a ‘?’ will be inserted between the account number and account name, and cause an error when the Chinese language has turned on.

Consult your accountant if you have a problem in organising the Chart of Accounts.

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GST on imported goods

Software: MoneyWorks accounting software

Oversea suppliers are not supposed to charge GST if they are not a GST registered trader. The GST is paid to the Custom or a forwarder (if they paid the GST on your behalf) when goods arrived.

You can use the cost of goods sold or an expense account as a dummy account in the account tab of a payment transaction to record the GST paid. For example, you paid $700 GST on goods purchased; the entry will be:

Detail line 1:
Account: Cost of Goods Sold
Taxable amount: 10,000
Tax Code: IM
GST: 700

Detail line 2:
Account: Cost of Goods Sold
Taxable amount: -10,000 (negative)
Tax Code: OP (or *)
GST: 0

Imported GST

The Cost of Goods Sold contra off with each other and left the GST paid.

Due to differences between the internal exchange rate and the rate used by the Custom, the taxable amount could be different from the purchase value in Singapore dollar.

Note: You are supposed to record the import permit number in either Transaction user field 1, 2, or 3 on both purchase invoice and the GST payment, which will use in the IAF (Iras Audit File) report later if required. The Transaction User field label can be renamed to ‘Permit No’ from the Document Preferences to ease the data entry.

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