Cancel Transaction and Credit Note are both reverse entry but use differently. You use Cancel Transaction for correcting duplicated entry, and a Credit Note for adjusting the account.
It does not delete when you cancel a transaction; instead, it creates a reverse entry to correct it and forms an audit trail for the accountant. Unlike Credit Note, both the cancelled and cancellation transaction does not show on the GST report; therefore, you should not use Cancel Transaction as a shortcut for adjusting the account.
Although the journal behind the Cancellation and Credit Note is the same, the GST treatment is different. Consult your accountant if you are not sure of the method used. Use a Credit Note instead of a Cancellation if you are uncertain.
MoneyWorks is a hybrid accounting system that gives the accountant the flexibility of working remotely and enjoying the rich feature of a desktop application. Sign up for a demo to find out more.
Posting is a fraud control feature in MoneyWorks to prevent editing once the account has finalised. You cannot modify the transaction once posted. However, you can use the Cancel Transaction feature (from the Command menu) to correct the error.
By cancelling, it does not delete the transaction. Instead, it creates a reverse entry to correct the mistake.
For example, you entered a purchase invoice twice. You can use the cancel transaction method if the error is still within the current period. What the system does is that it creates a reverse transaction to correct the duplicate error.
However, if the mistake is fall in the past period, then you should consider entering a credit note or journal in the current period to correct an error made in the past.
QuickBooks Online (QBO) is a cloud-based accounting system, using a web browser to access your accounting data. No software program installed on your local computer, and the data (company file) hosted in Intuit’s secure cloud server.
The advantage of using a cloud-based system is that you do not need to invest in a computer server to host your data; it is a cost-saving, especially for a new startup.
You always have the updated software version, do not need to worry about compatibility, or migrate the database from one version to another.
You can access your account anywhere, anytime. Be it at home or office, either using a Windows or macOS, open up a web browser, go to the QuickBooks Online (QBO) sign-in page, enter your ID and password. That’s it!
Remotely accessible is essential these days when working from home is the norm.
A browser-based software solution is simple to use and convenient to access, but password alone is not safe! Anyone with your credentials can access your account and make unauthorised changes. Scary.
To protect you from password thieves, you can and should set up two-step verification.
What is two-step verification?
Two-step verification is an extra security layer on top of your usual sign-in ID and password. A one-time security code will send to your mobile phone number whenever you sign-in to QuickBooks Online.
How to set up two-step verification?
Click on the User Profile icon (at the top-right corner of the QBO page) after signing into QuickBooks Online with your credentials.
Click on the Manage Your Intuit Account link.
Select Manage Sign In & Security option from the User Account page.
Check! Ensure you have entered your mobile phone number correctly.
Switch on Two-step verification.
Select Text Message in ‘How should we contact you?’ option (you can opt for Voice Call if that is better for you).
Close and exit your setting.
How does two-step verification work?
On the subsequent sign-in to QuickBooks Online, you will receive a 6-digit security code via SMS message or voice call depending on your setting. Then, enter the 6-digit security code into the Verification Code box shows on the web browser to continue accessing your QBO file(s).
Two-step verification protecting your account by making sure it is you that sign in to QuickBooks Online; an extra layer of protection you should set it up to safeguard your valuable financial data.