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Fixed Assets account

Software: MoneyWorks accounting software
When purchasing an asset in foreign currency, you need not convert manually into a home currency value before recording it into the MoneyWorks accounting software.

The currency type of the Bank, Accounts Receivable and Accounts Payable account can be in foreign currency. Therefore, when you record a purchase invoice with a supplier that has a foreign currency set as a transaction currency, MoneyWorks will convert to a home currency value based on the exchange rate set.

For example, you purchase a machine at US$60,000. You record the purchase invoice into MoneyWorks at an exchange of 1 Singapore dollar to 0.74 US dollar. The double entry will be:

Debit Machinery 60,000.00
Debit Machinery 21,081.08
Debit GST Input 5,675.68

Credit USD Accounts Payable 64,200.00
Credit USD Accounts Payable ~~ Del 22,556.76

fixed-asset-entry

S$81,081.08, the Machinery cost, will print on the Balance Sheet report. The USD Accounts Payable will follow the rule of the exchange gain/loss, whereas the fixed asset will maintain in home currency.

How do the “Balance Due” field works in the QuickBooks accounting software?

Software: Intuit #QuickBooks #accounting software

The “Balance Due” in the Sales Invoice is referring to an outstanding amount of a sales invoice after knocking off the payment received. It is useful for project-based business to show the balance due of a sales invoice when an advance payment has collected.

The Balance Due in QuickBooks accounting software

You can use the Make Deposit or a General Journal in QuickBooks to record an advance payment received from the customer. The journal of the transaction debits the Bank account and credit the Refundable Deposit Received account (an Other Current Liability account type).

If you are a Singapore GST register trader, you may have to issue a Sales Receipt to record an advance payment received with GST from the customer. If the deposit is a part payment, GST applied. If you are not sure in GST management, it is better to consult your accountant first before you record the entry.

When the Sales Invoice issued, it will debit the Accounts Receivable and credit the Sales account. Then, you pass a journal or use an Adjustment Note to reverse the refundable deposit received, which you have recorded earlier. You credit the Accounts Receivable and debit the Refundable Deposit Received account. This General Journal will contra off the refundable deposit that you have received and reduce the outstanding amount of the customer. Next, knock off the General Journal with the Sales Invoice, this process is to tag the payment to the invoice. The outstanding amount of the invoice will be captured in the Balance Due field, which you have inserted in the invoice form.

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