Tag Archives: business

GST on imported goods

Software: MoneyWorks accounting software

Oversea suppliers are not supposed to charge GST if they are not a GST registered trader. The GST is paid to the Custom or a forwarder (if they paid the GST on your behalf) when goods arrived.

You can use the cost of goods sold or an expense account as a dummy account in the account tab of a payment transaction to record the GST paid. For example, you paid $700 GST on goods purchased; the entry will be:

Detail line 1:
Account: Cost of Goods Sold
Taxable amount: 10,000
Tax Code: IM
GST: 700

Detail line 2:
Account: Cost of Goods Sold
Taxable amount: -10,000 (negative)
Tax Code: OP (or *)
GST: 0

Imported GST

The Cost of Goods Sold contra off with each other and left the GST paid.

Due to differences between the internal exchange rate and the rate used by the Custom, the taxable amount could be different from the purchase value in Singapore dollar.

Note: You are supposed to record the import permit number in either Transaction user field 1, 2, or 3 on both purchase invoice and the GST payment, which will use in the IAF (Iras Audit File) report later if required. The Transaction User field label can be renamed to ‘Permit No’ from the Document Preferences to ease the data entry.

Sign up a demo to find out how to use MoneyWorks efficiently to manage your business finance.

Auto reverse journal

Software: MoneyWorks accounting software

Assuming your fiscal year ended as at December and you have paid for insurance from October to March. The premium paid from January to March is not a current year expense which you have to reclassify it to a prepayment account when processing the year-end closing and then reverse it on the following year.

A prepayment is an advance payment for goods and services which you received later.

The reversal process can automate with the recurring feature. From the prepayment journal, click the ‘Setup’ button next to the ‘Make Recurring’ checkbox. Then, select ‘Once Only’ option from the wizard, enter a recurring date, and check the ‘Reverse’ checkbox to complete the reversal set up. A reverse journal will create when due.

Auto-Reverse Journal

The recurring feature helps reduce the tedious accounting task such as recurrent rent, payroll, depreciation, accruals, invoices for subscription and school fee; or use it as a reversal entry for prepayment or work-in-progress (WIP), etc.

Sign up a free demo to find out how MoneyWorks can help to manage your business finance efficiently.

MoneyWorks accounting software update version 8.1.5

Cognito has released MoneyWorks version 8.1.5 update. The complete change history (a list the bug fixes and improvements) of version 8.1.5 is available at Cognito website.

A project-based business may consider using the job tagging feature in MoneyWorks to track the profitability of each job. You can tag a job code to the income and expenses, and then use the new job allocation report which comes with the new 8.1.5 update to serve as cost control and monitor the profitability.

For a non-profit organisation such as charities and schools may use job tagging feature to track project like upgrading facilities or social works, and use the job allocation report to monitor how they have used the fund which given by the parent or government body.

Check with your MoneyWorks consultant on how to use the job tagging feature for your organisation.