Software: Intuit QuickBooks 2015 accounting software Due to the differences in exchange rate, the amount received in the home currency bank, which has transferred from a foreign currency bank account, could be different from the amount recorded in the QuickBooks accounting software. Assuming you transferred USD15,000 from a US dollar bank account, which is a […]

Software: Intuit QuickBooks accounting software The Accounts Receivable, Accounts Payable, Bank and Credit Card account allow setting with a foreign currency.  From the Modify Report wizard of the list report such as General Ledger, Journals, Customer or Supplier Detail report, you can pull out foreign currency related fields such as Foreign Amount, Currency or Exchange […]

Software: QuickBooks accounting software You can classify an item in QuickBooks as a Service, Inventory or Non-Inventory type. When an inventory item is purchased, QuickBooks will debit the Inventory Asset account and credit the Accounts Payable. Only when the item is sold, QuickBooks will then debit the Cost of Goods Sold account and credit the […]

Software: Intuit QuickBooks Premier 2015 accounting software Unlike the Accounts Receivable module, Accounts Payable module does not have a “Record Bounced Cheque” feature. To record a returned cheque, which has issued to a vendor, a General Journal is needed. You may consider using a Void Cheque feature, but if the cheque is returned at a […]

Software: Intuit QuickBooks accounting software The Tax Agency Detail Report in Intuit QuickBooks accounting software consist of four parts: Sales Purchases Tax on Sales Tax on Purchases The Sales Invoices (income) show under the “Sales” section and the expenses show under the “Purchases” section of the report. The “Amount” in both the Sales and the […]

Software: Reckon Accounts 2015 In the earlier version of Reckon QuickBooks (now know as Reckon Accounts), users managed the GST on the imported goods, which was usually paid on behalf by the forwarder, via an Enter Bill transaction. Two entry lines were used when recording an import GST bill from the forwarder. The first entry line will be the taxable amount with an appropriate GST code and another line with a negative taxable amount without any tax code or a non-taxable tax code associated. This will give a net tax paid on behalf. Assume the taxable amount is 1000.00 and the tax is 70.00, the double entry of the bill is: Debit COGS 1000.00 Debit Tax Payable 70.00 Credit COGS 1000.00 Credit Accounts Payable 70.00 However, in the newer version of Reckon Accounts (2015), this method seems no longer usable when involving a foreign currency. A Credit Note has to be used to less off the taxable amount from the bill instead of entering a negative value in an Enter Bill transactions. That is, use an Enter Bill for the taxable amount with an appropriate GST, then follow by a Credit Note to write off the taxable amount. Based on the above example, the double entry of the bill is: Debit COGS 1000.00 Debit Tax Payable 70.00 Credit Accounts Payable 1070.00 And the double entry of the Credit Note is: Debit Accounts Payable 1000.00 Credit COGS 1000.00 The net effect of the bill and the credit note are the tax and an Accounts Payable of 70.00. We tested the above on a foreign currency transaction, do let us know if the base currency transaction has a similar issue.