Tag Archives: business

Refund a deposit paid

Software: MoneyWorks accounting software

A deposit received is a part payment from the customer to the business for goods and service which not yet fulfilled.

A deposit received from a customer (current liabilities) can process from a sales order or record via a sales invoice. A receipt recorded automatically into MoneyWorks once deposit processed from the sales order; both methods credit the deposit account. A refund can process via a payment transaction but has to first enable the customer as a creditor or cash only supplier (from the name profile).

Another method which commonly used by small businesses is creating a full invoice with all the products and services sold for collecting partial payment from the customer. In this case, a credit memo has to record to offset partially with the sales invoice and then use the ‘Send Refund to Debtor’ feature to record a payment for the balanced credit amount.

Assuming you issue a sales invoice of $100,000 to a customer for goods and services which you are going to deliver within the same financial month, and the customer made a partial payment of $10,000. You cannot use a payment method to refund the deposit paid as what we have discussed earlier when the order has cancelled.

There are still an outstanding of 90,000 after the deposit of 10,000 has collected. A credit memo of 100,000 has to record to offset against the outstanding receivable. Then, use the ‘Send Refund to Debtor’ feature from the command menu to clear off the 10,000 credit balance.

Send Refund to Debtor

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How to record JSS (Job Support Scheme) payout?

JSS (Job Support Scheme) is a cash grant given by the government to offset part of the local employee wage costs during the outbreak of COVID-19.

If you are using MoneyWorks accounting software:

There are two income account types (Sales and Income) in MoneyWorks. The Sales account type is a trading income, whereas the Income account type is for capturing non-trading income such as interest income or cash grant received. The Income account (a.k.a. Other Income) presented after the gross profit of the Profit and Loss report (You can have a custom report if you prefer to change the default presentation).

Create an Income account and name it as JSS (or Job Support Scheme if you preferred). Then, use a receipt transaction to record the cash grant received from the government (IRAS), the entry debits the Bank account and credit the JJS income account.

if you are using QuickBooks accounting software:

QuickBooks uses the Income account type for trading income and Other Income account type for capturing non-trading income such as the interest income mentioned earlier. The Other Income presented at the bottom of the Profit and Loss report after the expenses.

Create JSS as an Other Income account type and use a Make Deposit feature or a General Journal to record the cash grant received, it debits the Bank and credits the JSS income account.

Stay safe and healthy.

How to import a product list?

Software: MonwyWorks accounting software

When migrating from one accounting software to another, you have an option of manually entering the product into the new system or import the list if you have lots of products. Before import, do some housekeeping by removing those unwanted or duplicated products from the old system.

Import file

The import file (spreadsheet) needs to have essential information such as product code, product name, type, sales account, cost of goods sold account, inventory account, selling price, cost price, unit of measure for both selling and buying, and the conversion factor between the selling and buying unit.

The maximum number of character for MoneyWorks product code is 31. It should not have any space in between or after the product code; and if possible, no special characters or symbol.

The maximum number of character for the product name (the product description) is 255. Trim the text to prevent truncated product description imported.

Use ‘P’ if you are importing a product item type. You require to have the account code for sales, cost of goods sold, and inventory account. In my sample import file, 1100 is my account code for sales account and 2000 is for COGS.

Selling price is optional. You need to have a buy price if you intend to enter the opening balances. Enter the average unit cost into the buy price field. The system multiplies the buy price with the opening quantity entered to derive the valuation cost of the item.

Set up the unit of measure (UOM) for sell and buy, the UOM such as ea, pcs, roll, box, bot, etc., and also set the unit of conversion from buy to sell. For example, if both buy and sell unit are each (ea), then the Unit of Conversion is ‘1’. If one box (box) has ten pieces (pcs), then the conversion factor is 0.1 (1/10).

import map

Save the import file into a text format (txt) once completed and import it from the File menu, or you can copy and paste into the item list window, and an import wizard will pop up allows the user to map the fields accordingly.

importing

MoneyWorks will start importing the item when there is no error found.

imported

Do a stock take to record the stock on hand quantity. Use ‘Setup’ account for opening balance; it debits the inventory assets and credits the setup account.

That’s it! Your product has migrated.