The overseas supplier, who are not GST registered trader, will not have the GST charges on the invoice. The Customs (or the forwarder may pay on your half) will impose the GST on the imported goods when goods arrived in Singapore.
The exchange rate used in the supplier invoice could be different from the Customs’ exchange rate. You may have received the supplier invoice before receiving goods and could have entered using your in-house exchange rate. Whereas you paid the GST based on the Customs’ exchange rate, convert upon goods arrived in Singapore.
Assuming you paid $700 GST to the Customs based on $10,000 worth of goods. The payments entry in MoneyWorks:
First detail line: Account: Cost of Goods Sold Net: 10,000 GST Code: IM (import GST code) GST amount: 700 Second detail line: Account: Cost of Goods Sold Net: (10,000) GST Code: OP (or *) GST amount: 0.00
(**Check with your accountant on the GST code use).
The Cost of Goods Sold used in the Payment transaction is a dummy account to facilitate the tax calculation. The taxable amount reversed on the second detail line to give a net (tax amount) of 700, which will then capture in the GST report.
The journal for the payment will be: DR. Cost of Goods Sold DR. GST Input CR. Cost of Goods Sold CR. Bank
MoneyWorks is a hybrid accounting system. You can purchase MoneyWorks Data centre and install the software on to your in-house or cloud server, or subscribe to MoneyWorks Now and host the data on MoneyWorks’ cloud server. Contact us to find out more.
Posted onOctober 6, 2020|Comments Off on Setup inter-company in QuickBooks Online (QBO)
Although you can create multiple receivable accounts in QuickBooks Online Singapore version, the receivable field is not available in the sales invoice form. The intention ‘could be’ trying to simplify the process by having one receivable for each currency to prevent a mistake in the classification of account. For those who are using multiple receivable accounts in QuickBooks Desktop may take note of the differences.
Some user may create the subsidiary as a customer or supplier in QuickBooks. You can print a standard Profit & Loss or Balance Sheet report and set the column to display either by customer or supplier. You do not require any additional setting but have to separate the customer and supplier into two difference report. It’s workable but maybe a little tedious to some accountants.
How about using the class feature?
QuickBooks Online manages the class slightly different from the Desktop version. The class selection is only available for the detail line of the transaction, but not for the transaction header account such as a bank, receivable or payable. For example, you can select a class for the expense account but not the payable when entering a bill. You can have a Profit & Loss with the column by the class report, but not an accurate Balance Sheet by Class.
Consider location instead.
QuickBooks introduces the location feature in the Online version to categorise the data from multiple warehouses, branches, or inter-companies. The usage is similar to the class feature, but it affects both header and detail line accounts when a location has tagged. You can prepare column by location for both Profit & Loss and Balance Sheet, which helps the accountant prepare contra during consolidation.
Try location feature if you haven’t done so. Let us know how you managing inter-company billing in QuickBooks Online 🙂
Comments Off on Setup inter-company in QuickBooks Online (QBO)
Posted onSeptember 29, 2020|Comments Off on How to use the contra feature in MoneyWorks accounting system?
The contra feature in MoneyWorks is not to offset between customers owing or between the outstanding of a customer and a supplier. A contra, in MoneyWorks accounting system, is to knock off the credit note of the same customer or supplier with their invoice.
Let’s say you received a credit note of US$414.30 from a foreign currency supplier and going to use it to offset the outstanding purchase invoice of $41,430.
The first method is to select the credit note while making a payment to the supplier. This method may be more “controlled’ to some users as you can dictate the bank account, date, and credit amount to use.
Another method is to use the contra invoice feature from the command menu to offset the credit note against the invoice. Highlight the available credit note and follow the contra invoice wizard to select the invoice to offset. It’s simple and easy.
However, this method does not have an option of changing the contra date and credit amount used. A dummy bank account, which is the bank account used in your last transaction, will add to the contra payment transaction. Since the dummy bank account is the account used in the previous transaction, and there is no accounting impact; therefore, whether the currency matches the transaction currency or not is immaterial.