Tag Archives: item

GST-inclusive prices

Software: MoneyWorks #accounting software

The default setting of an item’s unit price in MoneyWorks is Tax-exclusive. For example, if $100 is the unit price, the tax will be $7 (7% GST on $100).

As stated in the IRAS e-Tax Guide “GST: Guide for Retailers”, you must show GST-inclusive prices on all your price displays to the public. As a retailer, to simplify the data entry, you can change the unit price of an item in MoneyWorks to be inclusive of tax.

The GST-inclusive price setting is under the selling info tab of an item, change the GST setting from “Tax Excl” to “Tax Incl” if you prefer to have GST-inclusive. For example, if you set the item selling price as $80.50 inclusive of GST, it will print as taxable amount $75.23 and GST $5.27.

amount-include-tax

 

A Product Sample

Software: Intuit #QuickBooks #accounting software

Businesses, especially when launching a new product, may give away product sample as a form of marketing.

Although you are not selling a product, to correctly capture the cost of goods sold and the inventory on hand, a sales invoice transaction is used to record the delivery of the product sample. In the sales invoice transaction, record the quantity delivered and leave the selling price as 0.00. Since the sales invoice has a gross of 0.00, there will not have any outstanding receivable in this case. The product sample has a cost, which will transfer from the inventory assets account to the cost of goods sold account when a sales invoice has recorded.

QuickBooks Product Sample

You may consider using an inventory adjustment to derive the similar result, but using a Sales Invoice or a Sales Receipt is a better choice as you can print a “delivery note” directly from the QuickBooks (Customise a “Delivery Note” form from an invoice template).

The Inventory Valuation Detail report provides a detail of who and when you sent the sample, and prints a full movement of the item.

Although you may manage a simple account manually or with a spreadsheet, an accounting software such as QuickBooks helps improve the productivity and provide the non-accounting trained management staff with useful information such as the stock status and customer buying history instantly.

Sign-up a demo (Singapore only), if you do not have a system or intend to change an accounting software, to have an understanding of how QuickBooks can help in your business.

Use an assembly item to bundle products

Software: MoneyWorks #accounting software

Often, the retailer creates a bundle to encourage sales, especially toward the end of the school holiday, The Great Singapore Sales or Christmas season. For example, the computer retailer may bundle the computer with a headphone or a wireless mouse; or a sports shoe seller may give away a sports shoe bag if the customer buys a pair of sports shoe from him.

You can create an assembly item, which consists of the bundled products (the Bill of Material, BOM), and uses it in the sales transaction. Since only the assembly item has picked instead of multiple bundled products, it reduces error and improves the Cashier’s productivity.

Assembly item

If you have set up the “Auto-Build Whenever Necessary” feature in the item profile, the assembly item automatically built and the products listed in the BOM (Bill of Materials) gets deducted whenever an assembly item has sold. The auto-build process, which is using a “Make Journal” moved the average cost from the BOM to the assembly item and charged it to the Cost of Goods Sold in the sale entry.