MYOB Accounting(Plus) vi 6, Premier vi 0, Enterprise v4

Table of Contents
The Manual Bookkeeping Process
(Principles of Accounting)
1 Accounting & Small Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
l. l. The role of accounting in small business .............................................................4
1.2. Computerised and manual accounting: Why learn both ......................................... 5
1.3. Business ownership types ................................................................................ 6
1.4. Accounting entity vs legal entity ....................................................................... 7
1.5. Accounting and reporting periods ...................................................................... 8
1.6. Goods and Services Tax (GST) .......................................................................... 9
l.7. Accrual and cash-based accounting ................................................................. 13
2 Legislation & Statutory responsibilities for small businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
2.1. Trade Practices Act ....................................................................................... 16
2.2. Privacy regulations ....................................................................................... 21
2.3. Occupational Health and Safety laws .............................................................. 23
3 Double-Entry Accounting Terms & Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
3.1. Account classifications ................................................................................... 26
3.2. Chart of Accounts ......................................................................................... 28
3.3. Accounting equation ..................................................................................... 29
3.4. Statement of Financial Performance (Profit and Loss Statement) .......................... 30
3.5. Statement of Financial Position (Balance Sheet) ................................................ 31
3.6. Rules of double-entry accounting .................................................................... 33
3.7. Business transactions in the accounting system ................................................. 36
3.8. Transaction analysis chart .............................................................................. 37
4 Business Transactions & Source Documents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.1. Cash and credit transactions .......................................................................... 42
4.2. Overview: business and source documents ....................................................... 43
4.3. Source document: Sales invoice (tax invoice) .................................................... 45
4.4. Source document: Adjustment note ................................................................. 47
4.5. Source document: Cheques and cheque butts ................................................... 48
4.6. Source document: Bank deposit slip ................................................................ 50
4.7. Source document: Receipts ............................................................................ 51
4.8. Record keeping ............................................................................................ 53
4.9. The accounting process ................................................................................. 55
5 Journals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59
5.1. About journals ............................................................................................. 60
5.2. Sales journal .................................................................... ; .......................... 61
5.3. Sales returns and allowances journal ............................................................... 63
5.4. Purchases journal ......................................................................................... 65
5.5. Purchases returns and allowances journal ......................................................... 67
5.6. Cash receipts journal .................................................................................... 70
5.7. Cash payments journal .................................................................................. 74
5.8. General journal ............................................................................................ 78

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6 Posting Transactions to the General Ledger ....................................................... 81

6.1. General ledger ............................................................................................. 82
6.2. Columnar ledger accounts .............................................................................. 83
6.3. Posting the sales journal to the general ledger .................................................. 84
6.4. Posting the sales returns and allowances journal totals to the general ledger .......... 85
6.5. Posting the purchases journal to the general ledger ........................................... 86
6.6. Posting the purchases returns and allowances journal to the general ledger ........... 87
6.7. Posting the cash receipts journal to the general ledger ....................................... 88
6.8. Posting the cash payments journal to the general ledger ..................................... 90
6.9. Post the general journal to the general ledger ................................................... 92
6.10. The general ledger: putting it all together ....................................................... 93
6.11. Trial Balance .............................................................................................. 95
6.12. Profit and Loss Statement ............................................................................ 96
6.13. Balance Sheet ............................................................................................ 97
7 Subsidiary Ledgers: Debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
7.1. Control accounts and subsidiary ledgers ......................................................... 100
7.2. Preparing the debtors' subsidiary ledger ......................................................... 101
8 Subsidiary Ledgers: Creditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105
8.1. Preparing the creditors' subsidiary ledger ....................................................... 106
9 Bank Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109
9.1. Bank statements ........................................................................................ 110
9.2. Reconciling your cash at bank ...................................................................... 111
9.3. Reconciling transactions not recorded by the bank ........................................... 114
9.4. The bank reconciliation statement ................................................................. 116
Getting started with MYOB
(Setting up your company file and accounts)
10 Using MYOB accounting software . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
10.1. Starting MYOB business management software .............................................. 122
10.2. The MYOB accounting software window ........................................................ 124
10.3. The Menu bar ........................................................................................... 125
10.4. Navigation tools ....................................................................................... 126
10.5. The command centres ............................................................................... 127
10.6. The command panel .................................................................................. 131
10.7. Using online help ...................................................................................... 133
10.8. Closing MYOB accounting software .............................................................. 137
11 Creating a Company File . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
11.1. Requirements for setting up a company file ................................................... 140
11.2. Case study introduction ............................................................................. 141
11.3. Creating a company file ............................................................................. 142
11.4. Setting preferences ................................................................................... 147
11.5. Tax codes ................................................................................................ 156
11.6. Creating a tax code ................................................................................... 158
11.7. Deleting tax codes .................................................................................... 160

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12 Setting up an Accounts List . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 163

12.1. Components of the accounts list .................................................................. 164
12.2. Changing account information ..................................................................... 169
12.3. Setting up bank account details .................................................................. 171
12.4. Creating a new account ............................................................................. 173
12.5. Moving accounts to different levels .............................................................. 176
12.6. Deleting an account .................................................................................. 177
12.7. Linked accounts ........................................................................................ 178
12.8. Deleting a linked account ........................................................................... 180
12.9. Entering account opening balances .............................................................. 183
12.10. Printing a Trial Balance report ................................................................... 185
13 Debtors & Creditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 189
13.1. Overview ................................................................................................. 190
13.2. Accounts receivable accounting: Setting up credit policy and terms ................... 191
13.3. The Invoice .............................................................................................. 193
14 Setting up for Accounts Receivable: Accounts, Preferences and Customers . . . 195
14.1. Sales linked accounts ................................................................................ 196
14.2. Setting up the sales preferences ................................................................. 197
14.3. The Card File Overview .............................................................................. 200
14.4. Creating a card for a customer .................................................................... 201
14.5. Deleting a card ......................................................................................... 207
14.6. Entering historical balances for sales ............................................................ 208
15 Setting up for Accounts Payable: Accounts, Preferences and Suppliers . . . . . . . . . . 213
15.1. Purchases linked accounts .......................................................................... 214
15.2. Setting up purchases preferences ................................................................ 215
15.3. Creating suppliers ..................................................................................... 218
15.4. Setting up to pay suppliers electronically ...................................................... 223
15.5. Entering historical balances for purchases ..................................................... 226
16 Creating Items . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231
16.1. MYOB inventory overview ........................................................................... 232
16.2. Item linked account options ........................................................................ 235
16.3. Creating inventory items ............................................................................ 236
16.4. Creating service items ............................................................................... 241
16.5. Entering inventory opening balances ............................................................ 243
16.6. Using items in sales .................................................................................. 247
Accounts Receivable
(Sales and Debtor Management)
17 Processing Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 253
17.1. Overview: Quotes, Orders and Invoices ........................................................ 254
17.2. Sales layouts ........................................................................................... 255
17.3. Creating a service invoice .......................................................................... 258
17.4. Creating item quotes ................................................................................. 263
17.5. Emailing Quotes ....................................................................................... 265
17.6. Creating orders ........................................................................................ 267
17.7. Changing the status of sales ....................................................................... 269

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17.8. Creating item invoices with headers and subtotals .......................................... 273
17.9. Viewing your sales information .................................................................... 277
18 Managing your Debtors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283
18.1. Managing debtors ..................................................................................... 284
18.2. Bad and doubtful debts .............................................................................. 286
18.3. The debtor management checklist ............................................................... 288
18.4. Analysing your receivables: finding out what you are owed .............................. 289
18.5. Invoice and Activity Statements .................................................................. 292
18.6. Using the Contact Log and To Do List to track debtor contacts ......................... 296
18.7. Using mail merge to distribute collection letters ............................................. 300
18.8. Review customer credit terms and place customer on credit hold ...................... 303
18.9. Reporting on doubtful debts to management ................................................. 304
18.10. Handing a bad debt to a debt collection agency ............................................ 306
19 Recording Customer Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 309
19.1. Overview ................................................................................................. 310
19.2. Checking cheques before processing ............................................................ 311
19.3. Recording customer payments .................................................................... 312
19.4. Recording partial customer payments ........................................................... 316
19.5. Print receipts for your customers ................................................................. 317
19.6. Reviewing customer payments in the Transaction Journal ................................ 319
19.7. Correcting processing errors ....................................................................... 321
19.8. Recording M-Powered customer payments .................................................... 325
19.9. Checking the Bank Register for
M-Powered transactions ................................................................................. 329
20 Adjusting Invoices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331
20.1. Overview ................................................................................................. 332
20.2. Processing returns on unpaid invoices .......................................................... 333
20.3. Processing partial returns by manually creating adjustment notes ..................... 337
20.4. Writing off bad debts by creating adjustment notes ........................................ 340
Accounts Payable
(Purchases)
21 Purchasing from Suppliers: Quotes and Purchase Orders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 347
21.1. Overview: Supplier quotes, orders and bills ................................................... 348
21.2. Purchase layouts ...................................................................................... 349
21.3. Creating service quotes ............................................................................. 350
21.4. Creating purchase orders ........................................................................... 352
21.5. Emailing purchase orders ........................................................................... 354
21.6. Printing/emailing purchase orders in batches ................................................. 357
22 Purchasing from Suppliers: Bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 361
22.1. Checking invoices received from suppliers ..................................................... 362
22.2. Converting orders and quotes to bills ........................................................... 364
22.3. Converting customer orders to invoices once goods are received into stock ........ 366
22.4. Creating service bills ................................................................................. 367
22.5. Dealing with partially filled purchase orders .................................................. 368
22.6. Viewing your purchases ............................................................................. 370

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23 Analysing Payables: finding out what you owe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 373

23.1. Overview ................................................................................................. 374
23.2. Analysing your payables: finding out what you owe ........................................ 375
23.3. Using reports to view amounts owing to suppliers .......................................... 377
24 Recording Supplier Payments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 379
24.1. Overview: recording supplier payments ........................................................ 380
24.2. Payment methods overview ........................................................................ 381
24.3. Using the Pay Bills window to make supplier payments ................................... 383
Banking
25 Spending and Receiving Money in Banking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 389
25.1. Spend Money overview .............................................................................. 390
25.2. Entering spend-money transactions ............................................................. 391
25.3. Splitting spend-money transactions ............................................................. 393
25.4. Receive Money overview ............................................................................ 395
25.5. Entering a receive-money transaction .......................................................... 396
25.6. Splitting receive-money transactions ............................................................ 398
26 Dealing with Petty Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 403
26.1. Setting up a petty cash system ................................................................... 404
26.2. Handling petty cash claims ........................................................................ 407
26.3. Recording, reconciling and reimbursing petty cash in the Spend Money window .. 409
27 Using the Bank Register ................................................................................ 413
27.1. Banking Register overview ......................................................................... 414
27.2. Viewing previous transactions in the Bank Register ........................................ 415
27.3. Entering a spend-money transaction in the Bank Register ............................... 417
27.4. Entering a receive-money transaction in the Bank Register .............................. 419
28 Preparing and Making Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 423
28.1. Preparing a bank deposit ........................................................................... 424
28.2. Customising and printing the deposit slip ...................................................... 427
28.3. Banking security ....................................................................................... 432
29 Bank Reconciliation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 435
29.1. Bank Reconciliation overview ...................................................................... 436
29.2. Option A: Manually reconciling using the bank statement ................................ 437
29.3. Option B: Automatically reconciling by downloading the bank
or credit card statement ................................................................................. 444
29.4. MYOB M-Powered bank statements .............................................................. 449
29.5. Displaying a reconciliation report ................................................................. 450

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End of Financial Year

(Printing financial reports and rolling over to a new financial year)
30 Financial reporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 455
30.1. Overview ................................................................................................. 456
30.2. Index to Reports window ........................................................................... 457
30.3. Filtering reports ........................................................................................ 458
30.4. Viewing the Receivables Reconciliation report ................................................ 461
30.5. Viewing the Payables Reconciliation report .................................................... 462
30.6. GST [Summary Accrual] report ................................................................... 463
30.7. Balance Sheet report ................................................................................. 464
30.8. Profit & Loss report ................................................................................... 466
30.9. Statement of Cash Flow report .................................................................... 467
31 File Maintenance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 469
31.1. Backing up a company file .......................................................................... 470
31.2. Verifying your company file ........................................................................ 473
31.3. The Data Optimisation Utility ..................................................................... 474
32 Starting a new financial year ......................................................................... 477
32.1. Overview ................................................................................................. 478
32.2. Locking the previous financial year .............................................................. 479
32.3. Sending information to your accountant ....................................................... 480
32.4. Entering end-of-year adjustments ............................................................... 481
32.5. Start a new financial year .......................................................................... 483
33 Appendices . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 487
33.1. Using Hot Keys ......................................................................................... 488
33.2. Which tax codes do you need for your business? ............................................ 490

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