Tag Archives: Year-End-Closing

Year-end stocktaking

Software: MoneyWorks accounting software

A stocktake is a physical count of your inventoried items and is necessary on a periodic basis, no matter how careful you are, the actual stock on hand may differ from the record in MoneyWorks accounting software.

The steps taken are:

  • Enter and post all stock related transactions in MoneyWorks.
  • Backup company file.
  • Click the start stocktake process button.
  • Print the stocktake list report from the reports menu for the physical stock count.
  • Enter the stock count into the count column.
  • Highlight all the items and click the finish stocktake button to finalise the stocktake.
  • Print the stock valuation report.
  • Lock up the financial period.

MoneyWorks create a snapshot of the current stock on hand once you clicked the start stocktake process button. Any stock related transaction posted after the start stocktake process will not affect the snapshot quantity, and the calculation of the quantity differences are between the quantity count and snapshot. It’s important to hit the start stocktake button on or before the financial year-end to allow the accounting software to capture an accurate quantity on hand, although you may not enter the count quantity immediately.

stocktake

MoneyWorks will prompt to record a stock journal once you have finished the stocktaking, it will debit/credit from the inventory asset to the stock adjustment account stated in the journal. Then, print a stock valuation report and lock the financial period after completing the stocktake.

Stocktaking is an important process, consult your MoneyWorks consultant if you have doubt.
Reference: page 348 of the MoneyWorks version 8 User Guide, Stocktaking

 

 

Financial year-end

Software: MoneyWorks accounting software

Financial Year (aka Fiscal Year) consist of financial periods used to calculate annual income statement for businesses. If you are following the Calendar month, then your financial year-end closing is December.

During financial year-end closing, besides preparing the accounting schedules and post all transactions, you have to do a stocktake, bank reconciliation and set a closing exchange rate.

Do a backup before you start a stocktake process from the command menu of the MoneyWorks accounting software. You have to do the stocktake process before your new financial year. Once the stock count has entered, complete the stocktaking process by activating the Finish Stocktake from the Command menu (ensure dated as the start stocktaking date). Then, print the Stock Valuation Report (usually I will keep a PDF copy as well) and backup your company file.

stocktake

You should reconcile your banks that are in foreign currency before set the exchange rate for the year-end closing. Once you entered the exchange rate, MoneyWorks will automatically generate unrealised exchange gain/loss journal to adjust the banks, accounts receivable and accounts payable which are in foreign currency.

Backup and lock the period once you have completed the financial year-end closing to prevent other users from recording transaction into the wrong period.

Merry Christmas!

MoneyWorks | The Routine Stocktake

Software: MoneyWorks accounting software

Stocktaking (or inventory checking) is a process of verifying the stock (inventory) physically. It’s a process to check the quantity and verify the condition of the stock you have on-hand.

Before doing the regular stocktaking in MoneyWorks, you should post all the stock related transactions and make a backup of your document (company file).

Select the Items list from the Show menu. Highlight the Stocktake function and click the Start Stocktake button to start the stocktaking process. MoneyWorks will create a “Snapshot” of your current stock quantity on hand, if there is any stock related transaction after the Start Stocktaking process has been activated, the snapshot quantity will not be affected.

You can print a Stocktake list report from the Reports menu to do a physical stocktake.

Stocktake list

Once you have completed the physical stocktake, go back to the MoneyWorks’ stocktake window and enter the stock count into the Count column.

Stock count

After you have entered the stock count, go to the Edit menu and select the “Select All” function to highlight all the items. Then, click the Finish Stocktake button to complete the stocktake process (Note: you may use “Commit Selected” function if you prefer to complete the stocktake partially). In the Commit Stocktake window, enter the stocktake date into the Date field and use the Stock Adjustment expense account for the Stock Adjustment A/C field.

Commit Stocktake

Once stocktake has committed, a stock journal (create journal) will be automatically posted into the MoneyWorks document.

Stock Journal

Print a stocktake report from the Report menu as a reference and use it as a supporting document for your audit.

Stock Adjustment Report Setting

The stocktake report will show a comparison (quantity and value) before and after the stocktaking.

Stock Adjustment Report

Once the stocktake has been done, backup the document (company file) for future reference, and you may continue with your daily stock related transactions thereafter.