Tag Archives: QuickBooks Singapore

Year-end home currency revaluation

Software: Intuit QuickBooks accounting software

Home Currency Revaluation is a task which you have to do during financial year-end closing. It revalues the foreign currency bank balances and any outstanding foreign currency’s receivable and payable.

You should not record any more foreign currency transactions in the year-end closing period once revaluation has done.

The home currency revaluation process includes:
– Set the year-end closing exchange rate
– Print a Unrealised Gains and Losses report
– Process home currency adjustment
– Reverse the home currency adjustment journal on the following period.

The Unrealised Gains and Losses report is in the Company & Financial, a sub-menu of the Reports menu. This report shows the gains and losses of each foreign currency account and will use as a supporting document for the adjustment.

You can find the Home Currency Adjustment feature under the Manage Currency, a sub-menu of the Company menu. Set the adjustment date and change the exchange rate if required, then select the accounts/names (you can click the Select All button at the bottom to select all foreign currency accounts) and hit the Save & Close button to proceed with the home currency adjustment. An exchange journal will create automatically to debit/credit the foreign currency account and credit/debit the exchange gains/losses account.

QuickBooks Home Currency Adjustment

QuickBooks captures the realised exchange gains or losses when the payment or receipt of the outstanding bill or invoice has recorded; therefore, the unrealised exchange journal which created during the home currency revaluation has to reverse on the first day of the following period. QuickBooks Premier and Enterprise Desktop version have a Reverse feature which located at the top of the journal, just click the Reverse button of the exchange journal to reverse it.

Discuss with your accountant to find out more about home currency revaluation if you are not sure about it.

 

Contra QuickBooks’ Credit Memo with Sales Invoices

Software: Intuit QuickBooks Desktop accounting software

Credit Memo (aka Credit Note or Adjustment Note) is an accounting document given by the seller to the buyer for goods or services returned. A refund of the credit amount can be given or offset against the future purchase.

Use the “Create Credit Memo/Refund” feature in QuickBooks to record the return of goods/services from a customer. QuickBooks gives the user an option to retain as an available credit to offset against the future purchase, give a refund immediately, or apply to an invoice when the credit memo saved. Among the three options, “Retain as an available credit” is most commonly used.

quickbooks-credit-memo

“Retain as an available credit” is use to contra the credit memo against the future purchases. Let’s say you have issued a credit memo and some invoices for a customer. When making payment, the customer can opt to apply the credit memo to the outstanding sales invoices. In the QuickBooks’ Receive Payment transaction, click the “Discount & Credit” button after you have highlighted the sales invoice and apply the credit memo to an invoice accordingly.

Join my QuickBooks training class to explore how QuickBooks can help in your business.

Define Fields in QuickBooks Desktop accounting software

Software: Intuit QuickBooks Desktop Accounting Software
Data field is a place, a container, in a database which stores information. For example, when recording a contact in QuickBooks, the Company, Phone, Address, etc. are data fields.

QuickBooks allows the user to define up to 7 Custom Fields in Name (Customer, Vendor, and Employee) and 5 in the item (The item such as Inventory, Service, Inventory Assembly, etc.). You can insert the Name’s Custom Fields in the Header section of an invoice form and the Item’s Custom Field in column section of the template. The Custom Fields are non-calculative, it is a text field for inputting static information.

define-fields

For example, you require a field to capture since when the contact starts buying from you. You may add a Custom Field in the Name and label it as “Customer Since”. Whenever you create a customer, add the date in it. You can use the Custom Field in the item to capture information such as size, colour, product measurement, etc.

Besides inserting the custom field into a template, you can pull it out to the relevant reports or use it in the Find function.

Although QuickBooks has limited custom fields available, it should be enough for most of the small businesses to manage their accounts.