Tag Archives: Cloud-Based accounting systems

Why can’t I open a new period?

MoneyWorks allows the user to open up to 90 opened financial periods. Once the maximum number of periods has reached, the user has to close some of the older periods to open up a new period.

For those users who have started using MoneyWork in May or June 2014, you may have already reached a maximum number of open periods. You cannot open a new period unless you close some of the older periods. The New button in the Open/Close period window is grey off and not allowed to click.

It’s time to close some periods.

Assuming you have started using MoneyWorks from June 2014 and wish to close some older periods until December 2014. First, print those reports as of December 2014 if you have not done so. Then, do a backup before proceeding in closing periods.


  1. You should post any transaction in those periods you wish to close and reconcile the bank and finalise GST if you have not done so.
  2. For those bank account that you do not require to perform reconciliation (such as contra or transition bank account), you may consider unchecking the “Bank account must be reconciled” checkbox from the Bank setting tab of the account profile. These will ease the purging later if you wish to do so.
Close financial periods
Close financial periods


  1. Go to the Command menu and select Open/Close period.
  2. Then, highlight the last period which you wish to close until (that is December 2014 in this case), and
  3. Click the “CLOSE” button to close the periods until December 2014.

That’s it. You can now proceed to open a new period.

The transactions are still in the MoneyWorks database even though the periods have been closed. You can still print the data using “By date-range reports”, such as Sales or Profit & Loss Report by Date Range.

The current version of the MoneyWorks accounting software is 9.0.5. Download a trial to test drive if you like to find out more or book a demo to see how to use MoneyWorks to manage your business finance.

Those users who are using MoneyWorks Now and require to access your MoneyWork company file while working from home can download the software from the Cognito website. Install it into your home computer (either macOS or Windows) and access it with the same MoneyWorks ID and password as you log in from the office. That’s the beauty of cloud-based computing; accessing your data anyplace, anytime.

Profit and Loss by Date Range

Cognito has released the MoneyWorks 9.0.4 updates.

Besides bug fixes and improvements, Cognito added a new Profit and Loss by Date Range report.

Why needs a Profit and Loss by Date Range?

By Date Range means you can print the report within the specific date range instead of the usual financial period, such as from 1st to 15th January, instead of period January which will be from 1st to 31st January.

Profit and Loss by Date Range report
Profit and Loss by Date Range print wizard

This report also come in handy when printing the profits and losses of the closed period. MoneyWorks period list shows up to a maximum of 90 periods. Although those transactions beyond the 90-period range are still in the database, you cannot print them since you cannot select the period from the report wizard’s period dropdown field. With the Profit and Loss by Date Range, you can set the date range and print (e.g. from 1st January 2013 to 31st December 2013).

Profit and Loss by date range Report

Visit the Cognito website to find out more about the change history for v9.0.4.

Product costing

The buying price is the raw cost of the product. Product costing gets complicated when involving landing costs (e.g. insurance and freight), labour, other costs such as certification.

Assuming you imported a new electrical product, which involved landing cost and a certification cost for testing the product to ensure it’s safe for local usage. If the product buy price is $100 per unit and you bring in 1000 units. Let’s say the landing cost for the batch is $10,000 and a certification cost is $5,000.

Besides entering the transaction according to the bills received, you may consider adjusting the buy price to reflect the “actual” cost of goods or using a plussage feature to determine the selling price. It depends on your business and accounting process to adopt a costing method.

Method One: Enter according to the bill information.

Enter the three transactions as:

  1. Supplier bill for the product: $100 x 1000 units = $100,000
  2. Forwarder bill: $10,000
  3. Payment for the certification: $5,000

The journal behind these transactions are:

Supplier bill:
    DR. Inventory Assets (BS): 100,000
        CR. Accounts Payable (BS): 100,000

Forwarder bill:
    DR. Freight (PL): 10,000
        CR. Accounts Payable (BS): 10,000

Payment to Certification Board:
    DR. Certification Expense (PL): 5,000
        CR. Bank (BS): 5,000

Now, if you sell ten units of the product at $200 per unit, the journal for the sales invoice:

    DR. Accounts Receivable (BS:) 2,000
        CR. Revenue (PL): 2,000
    DR. Cost of Goods Sold (PL): 1,000
        CR. Inventory Assets (BS): 1,000

The cost of goods sold picks up the raw buy price of the product, which is $100 per unit, without considering the landing and certification cost. Although the expenses record correctly, the cost of goods sold does not reflect the “actual” costs. It may be difficult for the business owner to analyse or adjust the markup when the related costs increase.

Method Two: Increase the buy price.

To reflect a realistic product cost, you may enter the supplier bill as:

Product: 1000 ea at 115,000 (increase from 100,000 to 115,000)
Landing Cost: -1 ea at -10,000
Certification Cost: -1 ea at -5000

Although the buy price increased, the dummy landing and certification cost offset the increased buy price, and the amount owing to the supplier remains as 100,000. This method increases the unit cost from 100 to 115.

Purchase invoice

The journal for the supplier bill:

    DR. Inventory Assets (BS): 115,000
        CR. Accounts Payable (BS): 100,000
        CR. Landing Cost (PL): 10,000
        CR. Certification Cost (PL): 5,000

The landing and certification cost will be zero once you enter the forwarder bill and payment made to the appropriate certification board. The entry for the:

forwarder's bill:
    DR. Landing Cost (PL): 10,000
        CR. Accounts Payable (BS): 10,000

And the payment to the certification board:
    DR. Certification Cost (PL): 5,000
        CR. Bank (BS): 5,000

Assuming you sell ten units of the product at $200 per unit, the journal for the sales invoice will be:

     DR. Accounts Receivable (BS): 2,000
        CR. Revenue (PL): 2,000
    DR. Cost of Goods Sold (PL): 1,150
        CR. Inventory Assets (BS): 1,150

The gross profit dropped from 1000 (2000 – 1000) to 850 (2000 -1150).

Although this method gives the business owner a better overview of its gross profit and more “accurate” costing for analysis and commission calculation, the entry can be tedious. Assuming multiple products with different gross weights and packing sizes in one shipment, it’s time-consuming to allocate landing costs to each product.

Method three: Isolate the product costing from financial accounting.

Plussage feature could be a better option if your objective is to calculate the margin (or markup) without affecting the account. Plussage is an additional cost over the original buy price.

Assuming the landing cost is fixed at $15 per unit. An estimated value determine a reasonable markup to derive a selling price, which you can adjust according to cost changes.


Based on the above example, you sell ten units of the product, the cost of goods sold remains as $1,000 ($100 x 10), it will not consider the plussage value in financial accounting. However, you can use the built-in reporting tool in the MoneyWorks accounting system to customise a sales report to include the plussage value (below is a sample report did by our programming team).

Sales Report

You can get a MoneyWorks consultant to customise a report (or purchase a ready-made) if you do not wish to spend time do it yourself.

The beauty of MoneyWorks, compared with other small business accounting systems, besides having both local server and cloud-based, it has a powerful reporting tool allowing the user to extract data from the accounting software for further analysis or interchange data with another system via API (Application programming interfaces).

Download a trial to test drive or book a demo to find out more about MoneyWorks accounting software.