Tag Archives: Cloud-Based accounting systems

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.

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Monitor funds allocation in accounting software

Software: MoneyWorks accounting software

Monitoring of fund allocation is never easy, especially when there are multiple funds and projects. A school may receive funding from MOE (Ministry of Education) to upgrade the computer lab, pocket money fund for the children, or allocate a fund internally to maintain the canteen. An easy way of tracking the funding is using the job feature in MoneyWorks, create a job code for each funding and tag it to a ‘client’, the organisation that giving the fund. Assuming you received a few funding from MOE in the year 2018, you may use a job code such as MOE1801, MOE1802, etc. to differentiate it.

Job Code

Use a Receipt transaction to record the fund received and tag it to the job. The entry debits the bank and credits the income account. Then, use the job code in payment or purchase invoice transaction when there are expenses related to the job. Next, use the Job Allocation report, a new report in MoneyWorks version 8.1.5, to monitor how the fund has used once related entries have recorded.

tag transaction to job

Unlike external funding, internal funding requires to move the fund out from the bank and receiving back to indicate as a fund ‘received’ for the project. In the payment transaction, issue the fund out from the bank to a Fund Received income account, and then use a negative value on the second detail line to move the money back to the bank and tag it to the job. The payment debits the Fund Received and credits the Bank, and then debits the Bank and credit back to the Fund Received account. The transaction gross is zero as these are memo entries, you will see a deposit and a withdrawal when reconciling the bank which you can knock off without affecting the book. Similar to the external funding, you record the project related expenses via the payment and purchase invoice transaction and tag it to a job; then use the Job Allocation report to monitor the fund.

Internal funding

Job Allocation report helps monitor fund received and expenditures of both related expenses and assets purchased. Do consider upgrading to version 8.1.5 if job tracking is your priority.

Job allocation report

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.