Category Archives: Accounting Software Singapore

Shall I set up the inter-company receivable as an account receivable type?

An account receivable account adds to the account list when you create a company file in MoneyWorks. The amount owed by the customer, for goods and services sold on credit, get updated in accounts receivable account. Renamed the accounts receivable to trade debtors (or trade receivable) if you prefer to separate trade from non-trade. Then, add other debtors or inter-company receivable to the list for tracking non-trade debtors or subsidiaries.

Accounts receivable
accounts receivable

Each debtor (the name) links to a receivable account. Whether it is a trade, non-trade, or subsidiary, the receivable account field of the name has to tag to an account receivable account to use it in invoices. The ageing process kicks in when an invoice posted.

link subsidiary to an inter-company receivable
link subsidiary to an inter-company receivable

Since a name has to tag to a receivable account, invoices to the subsidiary may have to do it outside the system if the inter-company receivable is a current asset type instead of an account receivable. The function is different, although accounts receivable is part of the current assets category. It is workable, but maintain the outstanding in foreign currency may be time-consuming.

You can set the bank, accounts receivable, and accounts payable with a foreign currency. These accounts get revaluated once new exchange rate entered. If inter-company receivable has set up as a current asset type; then, the exchange gains or losses have to record via a general journal if the outstanding is in foreign currency. It could be tedious when there are lots of entries.

Invoice subsidiary for expenses paid on behalf

Assume you have paid $10,000 to XYZ supplier, which inclusive of $2,000 worth of services on behalf of your subsidiary ABC.

As mentioned earlier, you can invoice the subsidiary when the name has tagged to a receivable account. Create an invoice to the ABC subsidiary from MoneyWorks for $2,000 and add the expense which you use for paying XYZ supplier at the detail line of the invoice. The invoice posted debit the inter-company receivable and credit expense account, which will then reduce the expense from the original $10,000 to $8,000.

The above example is for illustration, the account used may vary.

Both methods have advantages and shortfall. Consult your accountant and try out on a sample file with your existing data and compare the result before adopting either.

Note: Some accountant may name it as Intercompany or Interco instead of Inter-company.

What do you need to know when switching from Reckon Accounts to Intuit QuickBooks Desktop?

Reckon Accounts formerly known as Reckon QuickBooks or QuickBooks Asia; it’s a desktop accounting software with thousands of users in Singapore and Malaysia. There are some differences in GST between Reckon and Intuit QuickBooks; the user should take note of when switching over to Intuit QuickBooks Desktop. These include setting up of GST, recording a general journal with GST, and GST reporting.

Setting up of GST in Intuit QuickBooks Desktop

Set up the GST account after you have turned on the GST feature from the Preferences. The choice is yours, whether to have:

  • a single GST account for both input and output GST,
  • a current asset account for the input GST and current liability for output GST, or
  • a GST control account with subaccounts for both input and output GST, which all three GST accounts are current liabilities.

I prefer the last method, to have a control account and subaccounts for input and output, it allows me to glance the net GST payable or receivable from the Balance Sheet instead of relying on the GST report.

Next, create a vendor and set it as a sales tax agency. Name the vendor as Comptroller of GST and link GST output account to the track tax on sales field, and GST input to the track tax on purchases.

Create the tax item from the items list. Every tax item consists of a tax rate, such as 0% or 7%. Then, link the Comptroller of GST to the Tax Agency field and set the Sales Tax Return field to either Tax on Purchase or Tax on Sales.

GST item

Example, create two tax items for the standard-rated GST, one for the output and another for the input:

  • 7P – for standard-rated 7% GST Input
  • 7S – for standard-rated 7% GST Output

The GST item code, 7P and 7S, is for illustration; you can create your preferred code such SR7 for standard-rated 7% GST Output and TX7 for standard-rated 7% GST Input.

GST Code

The sales invoice, sales receipt, write cheque transaction uses tax code on each detail line (either item or GL account). Each tax code linked to either one or two tax item depending on the nature of the GST code. For example, standard-rated 7% GST uses in both sales and purchase; then, linked 7P (which we have created earlier) to the tax item for purchase and the 7S to the tax item for sales field. On the other hand, if you only use Deem Supplies tax code in rental income (GST output); then, you only need to set the Deem Supplies tax item to the tax item on sales field.

How does it work?

When you enter a bill with a standard-rated GST code:

  • It links to the tax item for purchases set in the tax code.
  • The tax item, which has a tax agency tagged, update the tax on purchases section of the GST report.
  • Then, at the same time, the tax amount updates the GST Input account, which has set up in the tax agency profile, of the Balance Sheet.

General Journal

A general journal is for adjusting the business accounts, such as recording of depreciation or accruals into the system. GST item can only tag with the GST Input or GST Output account in General Journal, but not with other P&L or Balance Sheet accounts.

General Journal
You cannot tag a GST code to an expense account in a General Journal

Consider using Enter Bill or Write Cheque transaction instead of a General Journal if you are trying to record an expense with GST.

File Tax Return

The GST report consists of sales, purchases, tax on sales (output), and tax on purchases (input). Export to Microsoft Excel feature is available in QuickBooks Desktop for you to filter, sort, and analyse before filing GST Form 5 via IRAS website.

GST Report
Require to File Tax Return

Intuit QuickBooks Desktop requires to process GST (by clicking the File Tax Return button at the top of the GST report). The process transfers the GST amount in the Input and output account to the accounts receivable or payable.

You can view the GST payable from the AP ageing report or receivable from the AR ageing report after you have done the File Tax Return process. Then, do a Pay Bill when GST is due for payment, or Receive Payment transaction when you have received the refund from the Comptroller of GST.

Book a demo to find out more if you are considering switching from Reckon Accounts to Intuit QuickBooks (either QuickBooks Desktop or QuickBooks Online).

POS receipt

It’s not a POS system!

MoneyWorks is accounting software; it’s not a POS (Point-of-Sales) system where you connect with a cash register, customer display, credit card machine, etc. Of course, that doesn’t stop the user from using the receipt feature, occasionally, recording cash sales transaction (walk-in customer).

You can use the sales invoice form for the receipt. That is, print the sales receipt with an invoice form on a standard office printer in A5, A4, or Letter size, etc. You have to customise the template with a report format (*.crep) instead of a form format (*.invc) if you prefer to print the sales receipt on a receipt printer, those small dot matrix or thermal printer used by the retail shop with a paper roll.

POS Receipt

Format

The default invoice form store at Forms folder (under MoneyWorks Custom Plug-in folder), but to store report-formatted form templates, you have to create two additional sub-folders (Plains and Invoices folder). The Invoices folder (keep all the report-formatted form) is a sub-folder of Plains, and the Plains folder is the sub-folder of Forms folder. The structure of the folder:

MoneyWorks Custom Plug-ins
— Forms
——Plains
———Invoices (save the template in this folder)

The width of a standard receipt printer’s paper roll is 80cm. Depending on the printer driver installed, you may have to change the width to 100cm if that’s the minimum paper width you can use and adjust the print area accordingly. 

Design

Customising a report is more technical than to customise form; you need coding knowledge. You can refer to the MoneyWorks User Guide or engage a MoneyWorks consultant if you have difficulty customising a report.

Report Writer
MoneyWorks Report Writer

A receipt template breaks into three sections:

  • Header
  • Body
  • Footer

The Header consists of the company name, address, tax reference, opening hours, etc. Of course, you can move some of the information like the support hotline or opening hours to the footer.

The Body of the receipt shows the item, quantity, price, etc. Try not to have too many columns as the paper roll width is only 80cm. In my case, I put most of the information in the description column.

The footer is the last part of the receipt consist of the total amount payable, tax, and a thank you note, etc. 

Formula
Formula used on each cell

I start the report-formatted form with a For Each (row 001) to set the data parameter to print from the transaction. An If condition (row 004) to pick up the sales invoice (DI) and receipt (CR). And lastly, another For Each (row 009) to print the detail line from the selected transaction.

Print Receipts

That’s it! Save and use the template (don’t forget to sign and upload the template for multiple users access).