The objective of reconciliation is to match the transaction and balances between the ledger and the bank statement and pick up data entry errors. You can either select the cleared transaction one at a time based on the statement sequence or selecting all transactions first and then unchecked those uncleared transactions. Use whichever method works better for you, but the latter is less common as it may prompt to mistake (e.g. same payment amount but for a different person or company).
However, if you still prefer to select all transactions and unchecked those uncleared transactions can do so by selecting the first radio button (on top of the first transaction). QuickBooks will prompt you to confirm your option; click on the ‘Yes, select all’ button to continue selecting all transactions.
This method could be workable if most of the transactions are electronically transferred (e.g. PayNow) and only have a handful of cheques to monitor, or in a scenario whereby you are rushing to clear the backlog.
MoneyWorks uses the reverse sales invoice (negative invoice) method to record a credit note. It converts the sales invoice into a credit note by clicking on the reverse button on the sales invoice transaction.
Upon converting, it changes the quantity into a negative value, multiplying the unit price to derive a credit amount (negative) if you are using products or services (A negative net amount if you are using a ledger account instead). Of course, you can also manually enter a negative quantity instead of clicking the reverse button to create a credit note.
The credit note debits the sales and credit accounts receivable, which later offset the outstanding invoice.
You have an option of offsetting the credit note with an invoice from the Command menu (via a contra method) or when receiving payment from the customer. Both work, but offset during received payment is preferable (The contra feature is not for contra between a creditor and a debtor owing, but the credit note and outstanding invoice of the same debtor).
Credit Note (a.k.a. negative invoice) shared the same running sequent number as the sales invoice. You may manually change the reference number but try keeping the system-generated number to reduce confusion or mistake.
You can use the invoice form to print the Credit Note by amending the formula of the form tile from a simple text field to an if( ) statement:
It prints as a ‘Credit Note’ when the invoice gross is smaller than $0 and ‘Invoice’ when it is $0 or greater. It helps reduce the number of forms you require to manage, ease the operation and reduce mistake made.
MoneyWorks, as a hybrid system, allows sharing of data in the cloud and uses its feature-rich desktop app. Book a demo to find out how to use MoneyWorks to manage your business finance.
The overseas supplier, who are not GST registered trader, will not have the GST charges on the invoice. The Customs (or the forwarder may pay on your half) will impose the GST on the imported goods when goods arrived in Singapore.
The exchange rate used in the supplier invoice could be different from the Customs’ exchange rate. You may have received the supplier invoice before receiving goods and could have entered using your in-house exchange rate. Whereas you paid the GST based on the Customs’ exchange rate, convert upon goods arrived in Singapore.
Assuming you paid $700 GST to the Customs based on $10,000 worth of goods. The payments entry in MoneyWorks:
First detail line: Account: Cost of Goods Sold Net: 10,000 GST Code: IM (import GST code) GST amount: 700 Second detail line: Account: Cost of Goods Sold Net: (10,000) GST Code: OP (or *) GST amount: 0.00
(**Check with your accountant on the GST code use).
The Cost of Goods Sold used in the Payment transaction is a dummy account to facilitate the tax calculation. The taxable amount reversed on the second detail line to give a net (tax amount) of 700, which will then capture in the GST report.
The journal for the payment will be: DR. Cost of Goods Sold DR. GST Input CR. Cost of Goods Sold CR. Bank
MoneyWorks is a hybrid accounting system. You can purchase MoneyWorks Data centre and install the software on to your in-house or cloud server, or subscribe to MoneyWorks Now and host the data on MoneyWorks’ cloud server. Contact us to find out more.