Category Archives: Accounting Software Singapore

Undo Bank Reconciliation in MoneyWorks accounting systems

A bank reconciliation is a process of reconciling the Cash Book account (GL) with the Bank Statement. It is a process of picking the discrepancy between the two, such as omission error, typo error, duplicated transactions, etc..

Bank Reconcile

Occasionally you may make a mistake when reconciling and require to revert the processed reconciliation. To do it, you have to click the ‘Load Old’ button from the Reconciliation window of the MoneyWorks accounting system and select the month of reconciled data to clear. Assuming you have reconciled five months from Jan to May, it will undo the reconcile from March to May if you selected March from the reconciled list. Once the reconciled detail loaded, click the gear icon and select ‘Clear all reconciliations from this month’ option. Proceed to reconciliation again once wrongly reconciled data has cleared.

 

 

Malaysia scrapping GST from June 2018

Malaysia new government has decided to scrap GST (Goods and Services Tax) from June 2018; the standard rated GST is going to reduce from the 6% to 0%. What are those setting which you need to change in MoneyWorks accounting system?

Unlike some other software which requires you to create a new GST code to cater for the rate change, MoneyWorks allows you to set a new GST rate at a specified changeover date within the tax code profile. First, change the default tax rate (Rate 2) of tax code such as G GST Code (for SR and TX GST code) from 6% to 0%, then enter the old rate (6%) in Rate 1 field and set the changeover date to 1 June 2018.

Malaysia scrapping GST

Once the tax rate changed, any transaction which uses the amended GST Code will be 0% automatically.

Go through the list of GST code from the Tax Rate table (under the Show menu) and amend those codes which require changes. You may have to consult your accountant or tax department as the changeover could be complicated especially regards to those bad debts recovered or capital goods acquisition/disposal transactions.

You are still required to process the finalisation of GST at the end of each GST cycle although the rate has changed from 6% to 0% as the GST system is still in place and MoneyWorks is still actively tracking the GST of each transaction.

The newer version of MoneyWorks is v8, contact us if you require upgrading your existing version.

 

 

 

Home Currency Adjustment on Reckon QuickBooks

Reckon introduced multiple currencies feature in QuickBooks* version 2003, which is much earlier than intuit QuickBooks US and QuickBooks Canadian version but slightly after Intuit QuickBooks UK.

Although all are ‘QuickBooks’, the multiple currencies feature are different. There is a Home Currency Adjustment wizard built-in in Intuit QuickBooks but not the Reckon version. You have to use a home currency adjustment journal to revalue the foreign currency accounts in Reckon Accounts (aka Reckon QuickBooks).

Assuming the home currency is Singapore dollar and you have a foreign receivable of US dollar 33 thousand at an exchange of 1USD:1.38SGD and the rate has changed to 1USD:1,35SGD at the end of January. The Singapore dollar receivable value has dropped from 45,540 to 44,550, which gives an exchange loss of Singapore dollar 990.

Instead of manually calculating the exchange gain/loss adjustment, you can print an Unrealised Exchange Gain/Loss report from the Reports menu (under the Multicurrency report section) to find out the unrealised gains and losses to adjust.

QuickBooks unrealised exchange report

Then based on the Unrealised Exchange Gain/Loss report, record a home currency adjustment journal into QuickBooks.

The Unrealised Exchange Gain/Loss report shows only the total Singapore dollar value of each foreign currency account instead of each foreign currency debtor or creditor. Therefore, you need to create a dummy receivable and payable for each foreign currency. For example, you create a dummy debtor, USD AR Adjustment, and use it to adjust the US dollar accounts receivable account.

From the Company menu, select Make General Journal, check the Home Currency Adjustment checkbox at the bottom of the journal and record the journal in Singapore dollar. On the first line of the journal, select foreign currency accounts receivable account, enter the loss of 990 under the credit column and select USD AR Adjustment in the name column. Next, debit 990 to the Exchange Gain/Loss Unrealised account and save the journal.

QuickBooks home currency adjustment journal

You need to reverse the Home Currency Adjustment journal on the following month to allow QuickBooks to calculate the exchange gain/loss between the invoice and payment when payment received. You can either manually pass a reverse journal or open up the home currency adjustment journal which you did earlier and click the Reverse button located at the top of the journal. From the monthly Profit & Loss report, a positive value indicating a loss in exchange unrealised in January; and a negative in February reversing the January adjustment.

QuickBooks Reverse Journal

QuickBooks Profit and Loss

The latest version of Reckon Accounts is 2018, contact Reckon or us if you like to upgrade your existing Reckon QuickBooks or Reckon Accounts.

 

*Reckon Accounts is formerly known as Reckon QuickBooks.