Tag Archives: Setup

MoneyWorks | Setting Up Of Document – The Closing Stock

Software: MoneyWorks accounting software

If your company require to keep track of inventory, then one of the things you require to do in setting up of the Document (company file) in MoneyWorks accounting software is updating of the closing stock as of your cutoff date (cutoff date refers to the date you cutoff from the existing accounting software, it could be your year end closing date).

From the “Setting up” navigation page of the MoneyWorks accounting software, step 6 “Enter Items” will bring you to the Items list to create your products. You should consider entering the average unit cost (or the unit cost which you derived your stock value on hand as of your cutoff date) into the “Buy Price” field from the Buying Info tab of the product profile. MoneyWorks will be using the “Buy Price” to multiply by the stock count to derive the stock value of the item. You should also check the checkbox for “Update price whenever purchased” so upon next purchase, MoneyWorks will update the latest buying price into the “Buy Price” field.

Setting up - The Stock

When you are ready to record the closing stock quantity, you click on the “Enter Stocktake” button, step 7 of the Setting Up navigation page, to get into the stocktake page.

In the stocktake page, click the “Start Stocktake” button and start recording the stock counts.

Start Stocktake

Enter your closing stock quantity into the Counted column.

Entering stock counts

Once you have entered the stock counts, you go to the Edit menu and select the “Select All” function to highlight all the items in the Stocktake list, and follow by clicking the Finish Stocktake button to commit the stocktake.

In the Commit Stocktake window, the Date will be your cutoff date and Stock Adjustment account will be the SETUP account. Lastly, click on the Commit button to commit your changes.

Commit stocktake

A “Create Journal” will be posted automatically in MoneyWorks to update your stock quantity and value on hand.

The Create Journal

The double entry for this journal transaction will be :

Debit Stock On Hand account (Inventory asset)

Credit Setup account.

The Setup account is a temporary account, which will be zeroed once all the closing balances as of your cutoff date of the Balance Sheet accounts is entered.

Set your expectation right

I did a QuickBooks consultation for a customer. They were using ACCPAC DOS version accounting software, looking forward to downgrade to QuickBooks.

They didn't intend to continue using ACCPAC accounting software as they felt that their accounts was not so sophisticated that require ACCPAC accounting solution. Besides, the budget for new accounting software was another consideration.

Are you ready to downgrade your accounting solution?

QuickBooks is an entry-mid range (lower price value) accounting software; ACCPAC is a mid-high range (higher price value) accounting solution. To a layman, you can treat them like cars. They are different types of car, you can't compare an entry level car to a mid range car with a higher cc.

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QuickBooks: Opening Bal Equity Account

Last week, I did a QuickBooks implementation for one of my client. I discovered that they had an amount in the Opening Bal Equity account. According to the user, this amount was there since she took over the account two months ago.

We traced back the amount and discovered that this amount was in the book since 2006 as an Opening Balance for a Bank account. The Balance Sheet report consisted of only Bank and Opening Bal Equity account. The double entry was debit Bank account and credit Opening Bal Equity account. So now, the questions are:

  • Why was there an amount in the opening balance of the bank account?
  • Why there were no other opening balances of the balance sheet accounts such as Assets, Liabilities and Equity accounts?

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