Prem ier
M YOB Asia Sdn. Bhd.
Website: http:/ / www.m yob.com .m y/ M YOB Singapore Pte Ltd
Website: http:/ / www.m yob.com .m y/
© M YOB Technology Pty Ltd 2005 All rights reserved.
Disclaimer
Information supplied by the member companies of the M YOB group (w hether in user documentation and other literature, video or audio m aterial, training courses, w ebsites, advice given by staff, or provided by other m eans) is intended only to illustrate general principles, and m ay not be com plete, accurate or free of error. As accounting standards, taxation requirements, legislation and the circumstances of individual businesses vary w idely, this information cannot be considered authoritative and may not apply to your specific situation. You should obtain com petent advice from a qualified accounting, taxation, information-technology or legal professional before acting on such information. To the extent perm itted by law, member com panies of the M YOB group are not liable for any special, consequential, direct or indirect dam ages arising from loss of function, profits or data resulting from your application of such inform ation. In the event that any of the above lim itations are found to be unenforceable, the M YOB member company's liability is limited to the return of any fees or monies paid for the purchase of the product or service.
Trademarks
M YOB®, M YOB Accounting™, M YOB BusinessBasics™, M YOB ODBC DeveloperPack™, M YOB ODBC Direct™,
M YOB Prem ier™, BusinessBasics™, ODBC DeveloperPack™ and ODBC Direct™ are tradem arks or registered trademarks of M YOB Technology Pty Ltd and their use is prohibited w ithout prior consent.
Adobe®, Acrobat®, Acrobat Reader®, Adobe Reader®, PDF™, and PostScript® are tradem arks or registered
trademarks of Adobe System s Incorporated.
QuickTime® and the QuickTim e logo are registered tradem arks of Apple Computer, Inc.
Brio Intelligence and Hyperion Intelligence are trademarks or registered tradem arks of Hyperion Solutions Corporation.
Crystal Reports® is a registered trademark of Crystal Decisions, Inc. in the United States or other countries.
M asterCard® is a registered trademark of M asterCard International Inc.
M icrosoft, Access, Excel, Internet Explorer, Office, Smart Tags, Windows and Word are registered trademarks or trademarks of M icrosoft Corporation in the United States or other countries.
Quicken® and QuickBooks® are registered tradem arks of Intuit Inc.
VISA® is a registered trademark of Visa International Service Association.
Other products mentioned m ay be service marks, trademarks or registered trademarks of their respective owners.
Writers
3
User GuideM YOB Licence Agr eem ent
IM PORTAN T–READ THIS CAREFULLY BEFORE USE. This is t he Software Licence Agreement (Agreem ent). As you have purchased the Product (consisting of the User Docum entation and the inst allat ion CD or other media containing t he Software), follow ing notification of the Licence you are now legally bound by its conditions. HOWEVER, if the Licence Agreem ent contains anything of which you were not aware prior to purchasing the Product or do not agree to be bound by, DO N OT IN STALL THE SOFTWARE but return t he Product to the reseller in its entirety and a full refund of the purchase price will be made. By installing the Software and keeping the Product you are confirming that you have purchased t he Product subject to this Licence and are bound by its provisions.
TRIAL VERSION SOFTWARE LIM ITATION. If you use t his Softw are on a trial basis prior t o purchase, then additional restrict ions govern its use. The Trial Version is intended to be used only for evaluat ion purposes and whilst you may creat e your own company data files (“ Company Files” ) you w ill have access to your Com pany Files only for a period of 30 days from the date of creation of each Company File. Thereafter, you will be able to access the Company Files created by you only upon your purchase of the full version of the Software product licence. Upon your purchase of the full version of t he Software product licence, the restrict ions in this paragraph (Trial Version Software Limitation) shall no longer apply, but you acknowledge that your use of t he full version of the Software product licence will be conditioned on your agreeing to the t erm s of the Software Licence Agreem ent accompanying the full version of t he Software product licence.
1 Scope of Licence
M YOB Technology Pty Lt d (the Publisher), through it s local publishers and dist ribut ion agents, hereby grants to you, the original purchaser, a paid-up, personal, non-exclusive and non-t ransferable Licence t o use t he Software and the User Docum entation only in the region, t erritory or count ry specified on t he packaging, or in all count ries in Asia except Hong Kong and China, subject t o t he terms and conditions of t his Agreem ent .
a Activation You m ust regist er the Soft ware and activat e t he com pany files you creat e w it h M YOB. You may only access each com pany file you create for 30 days w ithout regist ering t he Softw are and act ivating t he file. After 30 days the com
-pany file will becom e read-only until you regist er and act ivate the com -pany file. You are ent itled t o act ivate up t o five (5) com pany files. If required, you can obtain addit ional act ivations by contacting M YOB Asia Sdn. Bhd..
b Number of Users If you have purchased:
i) a Single User Software Licence then you m ay use the Software on only one com put er that you ow n or operat e at a single physical location in respect of com pany files you have act ivated. You m ay transfer the Softw are from one such com put er to another that you ow n or operate provided that you do not use or perm it t he usage of t he Soft ware on m ore t han one com puter or com -puter term inal at a tim e. In the eventt of an upgrade or Product exchange the Licence hereby granted is autom atically transferred t o t he new version or Products.
ii)a M ulti-User Software Licence then you m ay use t he Softw are on only one com put er net w ork that you ow n or operat e at a single physical location and only then in respect of com pany files creat ed and act ivated by you or by another licensed user. You m ay transfer t he Software from one com puter t o another that you ow n or operate on t his net w ork provided t hat you do not use or perm it the usage of the Software on m ore than the licensed num ber of com put ers or com puter term inals at a tim e, nor perm it the usage of the Soft-w are on m ore t han one net Soft-w ork at any one t im e, nor perm it t he Soft Soft-w are t o be used in respect of com pany files t hat you have not act ivated or have not been creat ed by you or by another licensed user.
c Upda tes and Upgrades In the event of an upgrade, updat e or product exchange, the Licence hereby grant ed is aut om at ically t ransferred to t he new version or product. All right s in respect of t he original Product shall lapse and no furt her use of these shall be perm itt ed.
the Soft w are. You m ay m ake copies of the User Docum entation up to but not exceeding t he num ber of mult i-user Licences you have purchased.
e Tra nsfers You may not sub-license, lease, rent or lend t he Software or t he User Docum entation or otherwise transfer any of your right s under this Agreem ent . Subject to the prior writt en consent of t he Publisher and t he agreem ent of the transferee to be bound by the t erm s of t his Agreem ent, you m ay perm anently transfer t he Software (t ogether wit h any backup copies you have m ade) and t he User Docum ent ation. However, you m ay not ret ain any copies of either the Soft-ware or the User Docum ent at ion.
f Term The Licence granted in this Agreem ent is effect ive until term inated. You may term inate it at any time by dest roying the Softw are and User Docum ent a-tion, t ogether wit h all copies, or by returning them t o t he Publisher. If you fail t o com ply wit h any t erm or condition of t his Agreem ent , this Licence will t erm inat e and, upon any such term ination, you agree to destroy the Softw are and User Docum entation, together w ith all copies, or t o return them to t he Publisher. Ter-mination of this Licence shall be in addition t o and not in lieu of any other rem e-dies available t o t he Publisher.
g Protection and Security You agree to use your best endeavours and t o t ake all reasonable st eps to safeguard the Softw are to ensure that no unauthorised per-son has access t o the Product and t hat t here is no unaut horised copying or dist ri-bution of the Soft w are or User Documentation.
2 Limited Warranty & Disclaimer
The Publisher w arrants that the m edia on w hich the Soft w are is recorded and the User Docum ent at ion provided with it are free from defect s in materials and w orkm anship under norm al use for a period of 30 days from the date of your original purchase. Except for t he lim it ed warrant y described above, t he Software is sold ‘as is’, and you are assuming t he entire risk as t o its quality and performance. It is your responsibilit y to verify the result s obt ained from t he use of the Soft ware. If during the 30-day lim ited warranty period, you discover physical defects in the m edia on which the Soft ware was recorded or in the User Documentation, t he Publisher will replace t hem at no charge t o you, provided you ret urn the item to be replaced w ith proof of purchase t o the Publisher. THIS IS YOUR SOLE REM EDY. IN
IN DIRECT, SPECIAL, IN CIDEN TAL, CON SEQUEN TIAL OR SIM ILAR DAM AGES, EVEN IF THE PUBLISHER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAM AGES. Som e jurisdict ions do not allow t he exclusion or lim itation of im plied warranties or of liability for incident al or consequent ial dam ages, so t he above lim itations or exclusions may not apply t o you. This warranty gives you specific legal rights and you may also have ot her right s t hat vary from jurisdict ion to jurisdict ion. In t he event t hat any of the above lim it at ions or exclusions are held to be unenforceable, t he Publisher’s tot al liability shall not exceed t he am ount of t he Licence fee you paid.
3 Entire Agreement
5
Contents
1:
Introduction
9Learning t ools . . . 9
W here t o st art . . . 11
Navigat ing your M YOB account ing sof t w ar e . . . . 12
2:
Creat ing and act ivat ing company files
15 Cr eat ing a com pany f ile . . . 15Act ivat ing a com pany file . . . 18
3:
Set t ing up your company file
23 Overview . . . 23Set t ing up pref erences . . . 24
Set t ing up account s . . . 25
Set t ing up sales det ails . . . 29
Set t ing up purchase det ails . . . 31
Set t ing up t ax codes . . . 33
Set t ing up it em s . . . 34
Set t ing up bank account s . . . 37
Set t ing up cat egories and jobs . . . 39
4:
Receiving and spending money
43 Receiving m oney . . . 43Preparing a bank deposit . . . 45
Spending m oney . . . 46
Ent er ing t r ansact ions in t he Bank Regist er . . . . 48
Tr ansf er ring m oney bet w een account s . . . 49
Im port ing st at em ent s . . . 50
Tr acking pet t y cash expenses . . . 51
Credit card pur chases and paym ent s t o credit card pr oviders . . . 52
Recor ding m iscellaneous t ransact ions . . . 53
5:
Sales and payments
55 Ent er ing sales . . . 55Changing t he st at us of a sale . . . 59
Review ing your sales inf orm at ion . . . 60
Receiving paym ent s . . . 61
Print ing paym ent receipt s . . . 63
Credit cont rol . . . 64
Creat ing cust om er cr edit s . . . 67
6:
Purchases
71Ent er ing pur chases . . . 71
Changing t he st at us of a purchase . . . 74
Review ing your pur chase inf or m at ion . . . 76
Paying bills . . . 77
Creat ing supplier debit s . . . 79
Adding f inance charges paid . . . 81
7:
Managing your invent ory
83 Basic invent ory t asks . . . 83M aking adjust m ent s . . . 83
Tr ansf erring invent ory . . . 85
Building it em s . . . 85
Recor d invent ory . . . 87
Review ing your invent or y inf orm at ion . . . 88
Set t ing it em prices . . . 90
Cust om ising invent or y . . . 91
8:
List s
95 Adding a record . . . 95Finding a recor d . . . 98
Changing a r ecord . . . 98
Inact ivat ing or react ivat ing a r ecor d . . . 99
Delet ing a record . . . 99
9:
Transact ions
101 Finding a t r ansact ion . . . 101Changing or delet ing a t ransact ion . . . 104
Reversing a t r ansact ion . . . 105
Recurr ing t ransact ions . . . 106
10: Billing for t ime
111 Set t ing t im e billing pref erences . . . 111Set t ing billing r at es . . . 112
Cr eat ing act ivit ies . . . 113
Cr eat ing act ivit y slips . . . 115
W orking w it h act ivit y slips . . . 117
Cr eat ing t im e billing invoices . . . 117
W ork in pr ogr ess . . . 119
11: Int ernat ional t ransact ions
121 Set t ing up m ult iple currencies . . . 121Exchange rat es . . . 124
Tracking cur rency gains and losses . . . 124
M iscellaneous t r ansact ions . . . 126
12: Print ing and cust omising report s
129 Quick St art . . . 129Pr oducing report s . . . 130
Pr int ing report bat ches . . . 131
Content s
7
User Guide
13: Forms
137Finding f orm s . . . 137
Sending f orm s . . . 138
Cust om ising f orm s . . . 141
Adding and edit ing elem ent s . . . 143
14: End-of-period procedures
147 M ont h-end t asks . . . 147Year-end procedures . . . 154
15: Managing user account s and
company files
159 M anaging user account s . . . 159Backing up and rest oring com pany f iles . . . 161
Conf irm ing act ivat ed com pany f iles . . . 163
Servicing your com pany f ile . . . 165
Special considerat ions f or net w orked com pany f iles . . . 167
A: Import ing and export ing dat a
171 Expor t ing dat a . . . 171Im port ing dat a . . . 172
B:
M ore t ools
175 M or e t ools f or m anaging your business . . . 175C:
Set t ing up a company file f or m ult iple
users on W indow s
177 Preparing com pany f iles f or m ult iple user s . . . . 177Set t ing up t he net w or k hardw are . . . 178
Set t ing up a com pany-f ile f older on a W indow s host . . . 178
Accessing t he shared com pany f ile f rom W indow s w orkst at ions . . . 182
Glossary
1859
1
Introduction
Before you begin, invest some time in finding out about the many inform ation resources available to you. You w ill also benefit from learning about the many aids to navigation and transaction entry that are built into the software.
Learning tools
M YOB is com mitted to developing accounting softw are that is easy to use. To that end, you have com prehensive information resources to help you learn the softw are, and support you as you set up your records and enter transactions.
Print ed m anuals
New users receive two printed m anuals: a Gett ing Start ed guide and a
User Guide (this publication).
M anuals available as PDF files Each printed m anual is also available as a PDF file1 on the installation CD. This enables you to print extra copies of the manuals. It also gives users upgrading a copy of the up-to-date
User Guide.
To access PDF m anuals:
1 Insert the installation CD into the CD drive.
2 When the Flash w indow appears, navigate through the pages until you see the Library option.
3 Click Library.
4 Click the nam e of the m anual you want.
User Guide
This User Guide introduces the principal features, functions and capabilities of your M YOB accounting software. It is designed to be used as a reference for everyday transaction entry and periodic tasks, such as issuing invoices, making payments and end-of-period processing.
This guide is intended for use with M YOB Accounting and M YOB Prem ier on the Window s operating systems. If you purchased M YOB Accounting, som e of the features in M YOB Prem ier that are described in this guide—for example, Tim e Billing—will not be available to you. In this case, you can simply skip these sections.
This guide covers use of the software in the Asia region, including M alaysia, the Philippines and Singapore, but excluding Hong Kong. It em ploys British English, for example, cheque rather than check, and financial not fiscal. You can view a list of often used and technical terms and their definitions in the glossary starting on page 185.
This guide is not intended to be exhaustive and is complemented by the online help, which covers all the functions, including those infrequently used.
M YOB Help
M YOB Help is a comprehensive online resource that com plements the User Guide by addressing all functions and features, including those used infrequently. It also includes troubleshooting information for comm on book-keeping problems.
To display M YOB Help:
z In any window, press the F1 key, or click the Help button ( ) and choose Help for This Window, or
z choose M YOB Help from the Help menu.
The help menu bar in the topic that appears always includes these menus: Topics, Site Tools and Search.
Topics menu Here you will find the procedures for setting up the program , m anaging com pany files and user accounts, doing daily and end-of-period tasks, generating reports and form s, and importing and exporting data.
Site Tools menu Select this to learn how to use M YOB Help m ore effectively or locate overviews of all the functions of the software.
Search menu Select this menu to locate topics by keywords. Searches can be as widely or as narrow ly defined as you like. The Search window contains full instructions.
W indow s help
Opening M YOB Help from a w indow accesses descriptive or procedural topics relevant to that window. Click the Help button ( ) at the bottom
-Troubleshooting or Search the Help. (Instead of choosing Help for This Window, you can press the F1 key or go to the Help menu and choose M YOB Help.)
Help for This Window This option displays a description of the window in the Overview tab, which includes links to m ore detailed descriptive and procedural topics. The Fields tab displays a description of each field and control in the window. The Tips tab displays links to topics that give you tips, that describe solutions to comm on problems or that direct you to other sources of help.
Tell M e How This option displays a list of procedural topics that tell you how to perform various tasks in the window, or other related tasks.
Tips & Troubleshooting This option displays the Tips page for the help relating to the window.
Search the Help This option opens the Search w indow. It is an
alternative to going to the Help menu and choosing Search the Help, or clicking the Search menu in the m enu bar of any help topic.
Com m and cent res help
Where to start
1 1
User Guide
When you click the help icon ( ), M YOB Help displays a description of the com mand centre you are in and its various functions.
Get t ing St art ed guide
The Gett ing St art ed Guide provides information on how to install the software and how to register your ownership of the software; it also details the various technical support options available.
Ot her resources
There are various web-based resources available at
http:/ / www.m yob.com .m y/ For example, you can check for product updates, access a database of frequently asked questions or find the location of your nearest M YOB Certified Consultant. You can also access these resources from the M YOB com mand centre by choosing Additional Resources on the Web fromthe Help m enu.
Where to start
When you start your M YOB accounting software, a welcom e w indow displays the follow ing options:
z Open your company file—use this option to open your com pany file once it has been created.
z Create new company file—create a company file for your business. See
Chapter 2, ’Creating and activating company files’, starting on page 15. z Explore the sample company—experim ent w ith a sample company’s
data and learn how to use your M YOB accounting software. z What’s New in this version—learn about the new features in this
version of M YOB accounting software.
z Exit M YOB accounting software—close your M YOB accounting software.
Experiment w it h a sam ple company’s dat a
Before you create a new com pany file, w e recomm end that you experim ent w ith a sample com pany’s data.
To explore t he Clearw at er com pany f ile
Start M YOB accounting softw are and, in the w elcome window that appears, click Explore the sample company. A Command Centre window appears.
A Command Centre window is alw ays displayed on your computer screen when a com pany file is open. N otice that the nam e of the sam ple com pany, Clearw ater, appears at the top of the window.
Navigating your M YOB accounting software
You should becom e fam iliar with the following aids to using M YOB accounting software:
z ‘Com mand centres’ below
z ‘Calendar’ below
z ‘Calculator’ on page 13
z ‘Zoom arrow s’ on page 13
z ‘Search icons’ on page 13
z ‘Select columns’ on page 13
z ‘M ouse shortcuts’ on page 13
Comm and cent res
There are seven com mand centres in M YOB Prem ier and six in M YOB Accounting. The following is an illustration of the Sales comm and centre.
Each comm and centre contains a row of icons in the top section of the w indow. These icons allow you to quickly switch betw een command centres.
The highlighted icon represents the current command centre, and the flowchart displayed below the icons illustrates the major tasks associated
highlighted, tasks such as Enter Sales and Print/ Email Statements—typical tasks you would complete in relation to sales—appear in the comm and centre’s flowchart.)
The following m enus appear at the bottom of all com mand centres:
z To Do List You can use To Do List to view the tasks that you have recorded as needing to be done.
z Find Transactions You can use Find Transactions to view sum mary inform ation about your accounts, sales, purchases, cards and jobs. z Reports You can use Reports to view a list of the available reports. z Analysis You can use Analysis to analyse a number of key aspects of
your business.
There are two w ays of selecting an option:
z Click the name of the menu to display the window relevant to the com mand centre you are in.
z Click the down arrow ( ) to the right of the name and select from a list of the available options for all comm and centres (not just the comm and centre you are currently in).
Calendar
Navigating your M YOB accounting software
1 3
User Guide
selected date appears in the date field. Press ESC to close the calendar without selecting a date.
Calculat or
A pop-up calculator is available to simplify calculating and entering numeric data, including m oney am ounts, item quantities and units. The calculator is available from every window where you enter numeric data. Pressing the SPACEBARwhen the cursor is in a num eric data field displays the calculator. In the calculator, enter your calculation and then press ENTER. The result appears in the num eric data field. Press ESC to close the calculator w ithout entering numeric data.
Zoom arrow s
Zoom arrows, displayed next to various fields, allow you to display m ore detailed information about a specific entry such as a transaction or customer record.
A white zoom arrow ( ) indicates that you can display more detailed inform ation about a transaction and m ake changes to or delete the transaction.
A greyzoom arrow( ) allows you to display more detailed inform ation about a transaction, but the inform ation is read-only. If you want to change the information, you need to reverse the transaction and re-enter it (see ‘Reversing a transaction’ on page 105). Alternatively, you can change your security preference selection to make all transactions changeable (see ‘Setting up preferences’ on page 24).
Search icons
Search icons ( ) displayed next to various fields allow you to open selection lists containing records that you have previously entered, such as customers and delivery m ethods, or records provided by default.
Select colum ns
Select columns allow you to select item s from a list. Select columns are indicated by a select icon ( ) located at the top of the column. You select a required item by clicking in the select column next to it. You can select all listed items by clicking the select icon at the top of the column and clear all selected items by clicking the select icon again.
M ouse short cut s
You can right-click in a window to open a shortcut menu with options relevant to the window and to the location of the pointer.
1 5
2
Creating and activating company files
M YOB accounting software stores your financial data in a com pany file. You m ust create this file before you begin recording transactions. When you create a company file, you initially specify the business nam e, registration details, company or business num ber, address and contact details, and the accounts to be included in your accounts list (also known as a chart of accounts). You must specify the month in w hich you intend to begin using the software and the current financial year.
Finally, you must activate your company file so that it is identified as belonging uniquely to the installation of M YOB accounting software running on your com puter.
Creating a company file
When you m ake entries using the software, that information is stored in one file called a company file. If you are setting up your business for the first time, we strongly recom mend that you consult your accountant or an M YOB Certified Consultant to help set up your software correctly.
Before you begin
NOTE:Simultaneous access to company files If you are using M YOB Premier and m ore than one user needs t o sim ultaneously access a com pany file, set up a shared folder for t he com pany file on a host com put er that all w orkstations can access—see Appendix C, ‘Sett ing up a company file for mult iple users on Windows’, starting on page 177. Before you create a new company file, you need the following inform ation: the last m onth in your financial year, the current financial year and your conversion month.
What is your current financial year? In M YOB accounting software, and according to the standard used by m ost accountants, your current
financial year takes the name of the calendar year in w hich your financial year ends. For example, your financial year might run from July 2005 to the end of June 2006. Since the end of the financial year falls in 2006, the financial year is referred to as the 20 06 financial year. M ake sure you choose the correct financial year. If you are unsure, check with your accountant.
W hat is the last month of your financial year? The financial year of m any businesses ends in Decem ber, but if your com pany has a financial year like in the example above, you’ll need to select another m onth, such as June.
determines the opening balances you will enter when you set up your company file.
Using t he New Company File Assist ant
The New Company File Assistant is a series of w indows that guide you through the process of creating a new com pany file.
When using the New Company File Assistant, remem ber that, in m ost instances, you can return to previous w indows to review (and som etimes change) the entries you have m ade. You can also quit the New Company File Assistant while you are in any window that has a Cancel button. If you quit the New Company File Assistant, you will need to start from the beginning again.
To creat e a new company file
1 Start your M YOB accounting software and click Create new company file in thewelcome window that appears. The New Company File Assistant w indow appears.
2 Click Next. Complete the fields in this window using the following table as a guide.
A Serial N umber Type the 12-digit serial num ber found on the M YOB accounting software CD envelope.
B Company Name Type the official name of your business.(a)
a This information can be included on invoices, purchases, statements and other forms and reports.
C Tax and company numbers
Type your tax inform ation and com pany registration num bers, if required.(a)
D Address Type your office or m ail address.(a)
E Phone and Fax Number
Type your office phone and fax num bers.(a)
F E-mail Address Type your office em ail address.(a) A
B C D
Creating a company file
1 7
User Guide
3 Click Next. Enter information about your financial year and conversion month.
z Current Financial Year Rem ember that the current financial year is not necessarily the same as the current calendar year.
z Last M onth of Financial Year Choose the last month of the financial year.
z Conversion M onth Choose the earliest m onth in the financial year for which transactions are to be recorded.
CAUTI ON :Choose the conversion month carefully You will not be able to enter t ransactions t hat occurred before the conversion m onth.
z Number of Accounting Periods Choose the preferred num ber of accounting periods: 12 or 13. A 13th month is a notional period in which you can make end-of-year adjustm ents. If in doubt, choose 13 periods.
NOT E:Thirteen accounting periods When entering end-of-year adjust m ent s, you m ust include an ast erisk before the date t o signify t hat it is an ent ry in the 13t h account ing period. For exam ple, the dat e you enter m ay be *31/ 12/ 05.
4 Click Next.
5 On the Please confirm your accounting information page, check the financial year and conversion month. Then click Next to continue or Back to revise these values.
6 Specify how you would like to build your accounts list and click N ext.
If you selected:
z I would like to start with one of the lists provided by M YOB accounting software, go to step 7.
z I would like to import a list of accounts provided by my accountant…, go to step 9. Your com pany file is created with a minim al default accounts list that allows you to import the accounts list (chart of accounts) that your accountant prefers you to use.
z I would like to build my own accounts list…, go to step 9. Your com pany file is created w ith a default accounts list.
a On the Select your accounts list page, select the type of industry that best m atches your business from the Industry Classification list. b Select the type of business that best m atches your business from the
Type of Business list. For example, if you offer cleaning services, your business would be in the Service classification and the nearest similar business would be Dry Cleaners.
A suitable accounts list appears. Later you will be able to tailor this list to meet the exact needs of your business.
c If you w ant to print your accounts list, click Print. 8 Click N ext. The Create your company file page appears.
9 Accept the defaults or change the nam e or location of your com pany file and click N ext.
HINT : Storing the company file on a shared public folder If you are using M YOB Prem ier and mult iple users will be accessing t he new com pany file sim ult aneously, you should save it to a shared public folder on a host com put er t hat is accessible to everyone who will be using M YOB accounting soft w are. For instructions on how t o create a shared public folder, see Appendix C, ‘Set ting up a com pany file for m ultiple users on Windows’, st art ing on page 177.
a If you w ant to change the nam e or location of the company file, click Change.
b In the New window, navigate to a new location, type in a new file nam e if necessary, and click Save. M YOB accounting software creates a new com pany file.
10On the Congratulations! page, choose one of the following options: z Click the Setup Assistant button—this is the recomm ended
option—to display the Easy Setup Assistant. At this point, the new com pany file doesn’t contain m uch inform ation about your com pany. Continue w ith Chapter 3, ’Setting up your company file’, starting on page 23.
z Click the Command Centre button.The Command Centre window appears. You can begin entering transactions right aw ay. See
‘Com mand centres’ on page 12 for m ore inform ation.
11If you chose to import an accounts list in step 6 on page 17, contact your accountant to obtain an accounts list file and then continue with ‘To im port data’ on page 172.
NOTE: Trial mode and activation The new com pany file can be used for 30 days before it needs t o be act ivated. During t his period, you can ent er transactions and perform all other tasks. When t he 30-day period ends, you must act ivate the com pany file t o continue entering data int o it —see
‘Act ivating a com pany file’ on page 18.
Activating a company file
After creating a com pany file, you can open it to enter transactions and perform any other tasks for 30 days in trial m ode. After the trial period expires, the company file becomes read-only. You will be able to view transactions, print reports and export data, but you will not be able to enter data until you act ivat e the company file.
Activation is a process that verifies that you have a legal installation of M YOB accounting softw are and allows you to continue entering
Act ivating a company file
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User Guide
Philippines). Each additional licence extension allows you to activate a further five files.
NOT E:Activating after purchasing additional workstation licences
When you purchase M YOB Prem ier, the licence allows one user t o access a com pany file during t he trial period. If you extend your licence to support additional sim ultaneous users, you m ust activate your company file again. See also ‘To obt ain additional workstation licenses (M YOB Premier only)’ on page 161.
NOT E:Frequent requests to confirm Under norm al circum stances, confirm at ion occurs once or tw ice a year. If after activat ing a com pany file, you are asked w ithin a short tim e to confirm it, cont act Technical Support . Som e reasons why t his m ight happen are explained in ‘Troubleshoot ing activat ed com pany files’ on page 165.
When files do not have to be activated You only need to activate or confirm com pany files which are still in use, that is, you enter transactions into them . Any files you are no longer entering transactions into do not need to be activated. This applies to copies and closed files from previous financial years.
Since you should not be adding new transactions to historical com pany files anyway, you do not need to activate them . Rem ember that you can alw ays open any file, w hether it has been activated or not, in read-only mode. Unactivated files still allow you to view transactions, print reports and export data—which for historical files is usually sufficient.
If you are using M YOB Premier and m ultiple users will be accessing a com pany file simultaneously, you only have to activate the com pany file from one w orkstation.
If you restore a currently activated file from a backup file which is also activated, the file does not need to be activated again. If the backup file was not activated, you w ill have to activate after restoring it if you w ant to be able to add transactions to it.
Activation and confirmation options You can activate and confirm your com pany file m anually—either online via the Internet or over thephone. You can also set up autom atic confirm ation.
z To activate a com pany file online, below
z To activate a com pany file by telephone, page 20
z Confirming activated com pany files, page 163
To act ivat e a company file online
NOTE:Not registered yet? You need t o regist er your softw are before you can act ivate your company file. To regist er, refer t o your Get ting Start ed guide.
1 Ensure you are connected to the Internet.
2 Start M YOB accounting software and click Open your company file in the welcom e window that appears.
3 In the Open window, select the com pany file to be activated and click Open.
The Company File Activation window appears.
5 Click I want to activate my company file online and click Continue. The Company File Activation – Online window appears.
6 In the Company File Activation – Online window, type the serial number in the Serial N umber field if it is not already displayed, and press TAB. The code in the Company File Code field is generated autom atically.
7 Click Continue. The serial number and the company file code are sent to the M YOB activation server, which returns a confirm ation code and activates the com pany file.
9 Respond to subsequent windows as you wish until the Command Centre window appears. You can now set up the company file and enter transactions.
10If you want to activate another company file:
a Go to the File m enu and choose Open. The Open window appears. b Select the company file to be activated and click Open.
c Continue from step 4.
To act ivat e a com pany file by t elephone
NOTE: Not registered yet? You need to register your soft w are before you can act ivat e your com pany file. To register, refer to your Get ting St arted guide.
1 Start M YOB accounting software and click Open your company file in the welcomewindow that appears.
2 In the Open w indow, select the com pany file to be activated and click Open.
Act ivating a company file
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User Guide
The Company File Activation w indow appears.
4 In the Company File Activation window, click I want to activate my company file by phone and click Continue. The Company File Activation – By Phone window appears.
5 In the Company File Activation – By Phone w indow, type the serial number in the Serial Number field if it is not already displayed, and press TAB. The code in the Company File Code field is generated autom atically. 6 Call M YOB on the telephone num ber displayed under the Company File Code field and follow the instructions to receive your confirm ation code. 7 Type the confirm ation code in the Confirmation Code field and click
Continue.
NOT E:Confirmation code used only once After you act ivate your com pany file, the confirm ation code cannot be used to activat e or confirm this or any other company file again. You must get a new confirm ation code from M YOB each tim e confirm (unless you set up autom atic confirm ation).
8 In the Company File Activation – Activated window, click OK.
9 Respond to subsequent w indows as you wish until the Command Centre window appears. You can now set up the com pany file and enter transactions.
10If you w ant to activate another com pany file:
a Go to the File menu and choose Open. The Open window appears. b Select the company file to be activated and click Open.
2 3
3
Setting up your company file
This chapter show s you how to set up your preferences, accounts, sales, purchases, items, tax codes and jobs. You don’t need to set up all the features at once; if you prefer, you can just set up the m inim um for your business and set up the other areas later.
The m ore accounting inform ation you have when you set up, the easier your transition will be. Ideally, you should have the following inform ation on hand:
z a list of your accounts with their balances z a detailed list of your receivables
z a detailed list of your payables
z a bank account balance and list of uncleared cheques and undeposited receipts as at your conversion date z a list of the inventory you sell, their selling price, and if they attract tax or are tax-free
z an inventory valuation.
Think carefully about what accounting transactions you want to track. For exam ple, if you sell books, you m ay want separate incom e and cost of sales accounts for your fiction and non-fiction book sales. If you run a petrol station, you may want to track petrol sales separately from oil and consum ables. If you need a m ore com plex accounts list, you can alw ays add accounts later to track transactions in greater detail.
Overview
Before you start entering transactions, you need to set up your com pany file. The following checklist distinguishes the setup tasks you can complete with the Easy Setup Assistant from those you must perform in windows outside the assistant.
Easy Setup Assistant for guided setup tasks From the Easy Setup Assistant you can start these assistants:
z Custom ise Easy Setup Assistant for program preferences—see
‘Setting up preferences’ on page 24.
z Accounts Easy Setup Assistant for creating accounts and entering opening balances—see ‘Setting up accounts’ on page 25.
z Sales Easy Setup Assistant—see ‘Setting up sales details’ on page 29. z Purchases Easy Setup Assistant—see ‘Setting up purchase details’ on
page 31.
z Setting up tax codes, page 33
z Setting up items, page 34 (optional) z Setting up bank accounts, page 37
z Setting up categories and jobs, page 39 (optional)
To st art t he Easy Set up Assist ant
1 In the final step of the N ew Company File Assistant (see page 18), click Setup Assistant,
or
Go to the Setup m enu and choose Easy Setup Assistant. The Easy Setup Assistant w indow appears.
2 Continue with ‘Setting up preferences’ on page 24.
Setting up preferences
There are num erous preferences that you can set to customise the way the program operates. The Easy Setup Assistant will guide you through setting up some of them.
Click Customise in the Easy Setup Assistant window. The Customise Easy Setup Assistant appears. Each window in the assistant contains a list of preferences that you can set by m arking the checkbox next to the preference.
Click N ext to m ove through the w indows and click Close w hen you have finished. Then continue with ‘Setting up accounts’ on page 25.
The following are some of the preferences you can set with the Easy Setup Assistant.
z Use Easy-Fill When Selecting From a List. You can use the Easy-Fill feature to quickly enter account names or numbers, item nam es or num bers and card names that you enter frequently. Easy-Fill will recognise the entry you are making and automatically fill in the rest of it.
z Use Expanda ble Data Entry Fields in Windows. If you enter long descriptions on invoices and purchases, you can view those descriptions in their entirety w henever a Description field is active.
z Select and Display Account Na me, Not Account Number. If you find it easier to find your accounts by their names rather than by their numbers, you can set up the program so you can enter account names. With this preference set, accounts are sorted alphabetically based on nam e.
Setting up accounts
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User Guide
Set t ing ot her preferences
You can set the preferences not covered by the Easy Setup Assistant (and change those that are) in the Preferences w indow. To display the Preferences window, choose Preferences from the Setup menu.
Some of the preferences include:
z Use Audit Trail Tra cking. Set this preference to activate a tracking system to record and report details of transactional, tax, account and system changes m ade in your com pany file.
z Wa rn if Customer has a n Outstanding Credit Before Applying a Payment. You can set this preference if you’d like to be notified that a custom er has an existing credit whenever you apply one of the custom er’s payments to a sale.
z Tra nsactions CAN’T be Changed; They M ust be Reversed. Set this preference if you want to keep a comprehensive history of the transactions you’ve entered. You w ill not be able to edit or delete incorrect transactions, but will have to cancel them with reversing transactions.
z Wa rn Before Recording Post-Da ted Tra nsactions. Set this preference if you want to be notified whenever you enter a future date as a transaction date.
z Prompt for Backup When Closing. Set this preference if you w ant to be reminded to back up your com pany file w hen you close it.
Setting up accounts
The second step in setting up your com pany file is to set up your accounts. This includes:
z reviewing and, if necessary, modifying your accounts list z entering your account opening balances.
The Easy Setup Assistant will help you complete these tasks quickly. Click Accountsin the Easy Setup Assistantw indow. The Accounts Easy Setup Assistant appears.
Review your account s list
In the Accounts Easy Setup Assistant, click Next to go to the Set up the Accounts List to meet your business needs w indow. This w indow
displays the list of accounts you selected when you created your company file with the N ew Com pany File Assistant (see page 16).
There are eight account classifications in the accounts list—Assets, Liabilities, Equity, Income, Cost of Sales, Expenses, Other Income and Other Expenses.
All accounts are assigned a level, which indicates their location in your accounts list hierarchy. The eight classifications listed above, are the only accounts that can be Level 1. Other accounts can be assigned Levels 2, 3 or 4.
z change its type (if it is an asset or liability account) z change its number
z change its name z give it a description
z add bank details (if it is a bank or credit card account).
As you review your accounts, you m ay realise that you need additional accounts, or that you can delete som e accounts you’ll never use.
You can also import accounts if you’ve been using another com puterised accounting system . For detailed instructions on how to im port accounts, see ‘To im port data’ on page 172.
To creat e a new account
1 Click N ew. The Edit Accounts window appears.
2 In the Profile tab, specify whether the account is a header account or detail account.
If you are creating your accounts list from the beginning, it m ay be easier to enter all your header accounts before entering your detail accounts. z Header a ccountsgroup related detail accounts. The balance of the
account is the sum of the balances of the grouped detail accounts. Header accounts appear in bold type. You cannot post a transaction to
z Detail accounts are accounts you can post transactions to. They are the accounts that appear in the accounts selection list in transaction window s.
3 Select the account type from the Account Type list. The Account Classification field changes according to the selection you m ake, as sum marised in this table.
Account
Classification Account Type Description
Asset Bank M oney in the bank, for exam ple, in a cheque or savings account.
Accounts Receivable
M oney owed to you by others.
Other Current Asset
Assets that can be turned into cash within a year. These m ay include your term deposits and petty cash. Current assets usually do not significantly lose their value in the short term .
Fixed Asset Assets which have a long life, for exam ple, buildings, cars and com puters. Fixed assets are usually depreciated; that is, they lose som e of their value with age and use.
Other Asset Any other assets that are tangible or physical item s, such as loans m ade to others, and intangibles, such as goodwill.
Liability Credit Card Repayments required to service credit card debt.
Accounts Payable M oney you ow e to others.
Other Current Liability
M oney owed by you that is due in less than a year, for exam ple, tax.
Long Term Liability M oney owed by you that is due in m ore than one year, for example, an outstanding m ortgage.
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4 Enter a num ber for the account in the Account Number field. You can enter any four digit number you like. N ote that the prefix to the account number is determined by the account classification: 1- for asset accounts, 2- for liability accounts, 3- for equity accounts and so on.
5 Press TAB and type a name for the account. You can give an account any nam e you like.
NOT E:Account opening balances When creating or edit ing an account , you are not required to ent er opening balances. This is done later in t he setup—see ‘Ent er your account opening balances’ on page 28.
6 Click the Details tab.
7 If you w ant, type a brief description of the account in the Description field.
8 In the Tax Code field, select the tax code that you use m ost often w ith transactions that will be posted to this account. For more information on tax codes and how to assign them to accounts, see ‘Setting up tax codes’ on page 33.
9 If you are creating a detail balance sheet account, select an option from the Classification for Statement of Cash Flows list.
Classifying the accounts allows you to generate a statement of cash flows. This report shows how your cash position has changed over time, profit earned, where you received additional cash, and where your cash was spent. Once accounts are classified, they are displayed in the section of the report you specified. If you’re unsure about which classification to use, consult your accountant or an M YOB Certified Consultant.
10If you enter transactions in m ultiple currencies (M YOB Premier only), type or select the currency for transactions that w ill be posted to this account in the Currency field. You will need to have indicated that you deal in multiple currencies in your preferences. See ‘Setting up preferences’ on page 24.
Equity Equity The business’s net worth, that is, its assets m inus its liabilities. Com m on equity accounts are current year earnings, retained earnings and shareholders’ equity.
Income Income Revenue from the sale of goods or services.
Cost of Sales Cost of Sales Represents the cost of buying raw m aterial and producing finished goods. This includes the raw materials, and labour inputs and business overhead related solely to the production and storage of the goods. The cost of sales is subtracted from your incom e to calculate gross profit. Your expenses are subtracted from your gross profit to produce net profit.
Expense Expense The day-to-day expenses of running your business, for exam ple, utility bills, em ployee wages and cleaning.
Other Income Other Incom e Other revenues, for exam ple, interest earned on savings and dividends paid from shares.
Other Expense
11 If you selected Bank or Credit Card in the Account Type list in step 3 and you w ant to keep a record of your bank account number and bank account name, click the Banking tab and enter the details in the Account N umber and Account Name fields. Copy this inform ation exactly as it appears on your bank statem ent or chequebook.
12 If you want to set up a budget—for exam ple, for an incom e or expense detail account—click the Budgets tab and com plete the Budget column. 13 If you want to enter historical balances, com plete the Last FY column on the History tab. That way you can compare the year's monthly account balances with those of the corresponding months last year.
14 Click OK when you have finished. The account you created will now appear in your accounts list.
15 When you have finished reviewing your accounts list, click Next to enter your opening balances.
Ent er your account opening balances
Unless you are just starting a new business, m ost of your accounts probably already have balances. For example, you’ve made sales, paid suppliers, deposited m oney in your business’s bank account and conducted a variety of other business activities that affect your account balances. In this step, you will enter those balances.
To properly assign opening balances to accounts, you need to enter the balance of each of your accounts as of the first day of your conversion mont h.
z If your conversion month is the first month of your financial year1 (for example, if your financial year runs from April to M arch and your conversion month is April), enter the opening balances of your asset, liability and equity accounts only. (The opening balances of your income, cost of sales and expense accounts m ust be zero.)
z If your conversion month is not the first month of your fina ncial yea r (for example, if your financial year runs from April to M arch and your conversion month is August), enter the opening balances of all your accounts.
To ent er opening balances
1 Enter the opening balances of the relevant accounts in the Opening Balance colum n.
NOTE: You should enter opening balances as positive numbers Don’t , for example, enter your liabilit y account balances as negative numbers. Enter negat ive am ount s only if accounts truly have negat ive balances. As a rule, t hese will be asset accounts that record accum ulat ed depreciation.
2 Check the Amount left to be allocated field at the bottom of the w indow. z If this field displays $0.00, the total of the opening balances you
assigned to your asset accounts equals the total of opening balances of your liability and equity accounts. Proceed to step 3.
z If this field displays an amount other than $0.00, check your opening balances again. This value indicates that your opening balances are either incom plete or incorrect.
Setting up sales details
2 9
User Guide
why the accounts don’t balance, click the Help button and choose Help for This Window.
3 Once you have entered your account opening balances, click Nextand then click Close to close the Accounts Easy Setup Assistant.
You have completed setting up your accounts. If you want to m ake changes to or delete any accounts later, you can do so from the Accounts com mand centre. See ‘Changing a record’ on page 98 or ‘Deleting a record’ on page 99.
Setting up sales details
In the Sales Easy Setup Assistant, you can set up information about your customers and sales.
Before you begin using the Sales Easy Setup Assistant, you m ay find it helpful to gather a list of your custom ers, along with their addresses, phone numbers and so on. Also gather a list of all the sales you’ve made to customers that haven’t yet been fully paid.
Click Sales in the Easy Setup Assistant window. Work your way through the Sales Easy Setup Assistant, entering the required information in the appropriate windows.
Set up a default layout
In the Welcome to theSales Easy Setup Assistant window, click N ext to go to the Choose sale layout window. Choose the sale layout that you expect to use most often. For example, if you have a wholesale business, choose the Item layout since this is designed for item sales. This layout will be assigned to all new custom er cards, but you can change the sale layout for your custom ers at any tim e, either on the custom er’s card or when recording a sale m ade to that custom er.
When you have finished, click Next.
Set up default selling det ails
In the Decide on selling details w indow, choose an income account and credit lim it.
If you are using M YOB Premier and sell item s at different price levels, you can set the most frequently used price level.
Rem ember that you can change these selections for any of your custom ers at any time.
When you have finished, click Next.
Select default t ax codes
In the Assign tax codes to your customers window, select the tax codes that you use m ost often with sales and freight. For more information on tax codes and how to assign them to your custom ers, see ‘Setting up tax codes’ on page 33.
When you have finished, click Next.
Set up a default paym ent met hod and credit t erm s
Enter the credit terms you generally extend to your custom ers and the default paym ent m ethod. These entries will be used as the default w hen you create new custom er cards, but you can change them any tim e. When you have finished, click Next.
Set up linked account s for sales
If you want to use a different linked account than the one displayed, click the search icon ( ) next to the current linked account and select another account from the list that appears. The account you select must be a bank account.
When you have finished, click Next.
Creat e cust om er cards
In the Build your customer list window, enter inform ation about each of your current or likely customers. You need to create a record for each customer, but you can choose to enter as little or as m uch inform ation as you like in these records. Note that any information you enter on a customer card takes precedence over sim ilar inform ation entered in earlier steps in the Sales Easy Setup Assistant.
If you’ve kept custom er inform ation in another software program, you can im port that inform ation. For detailed instructions on how im port custom er cards, see ‘Importing data’ on page 172.
To creat e a cust om er card
1 Click N ew. The Card Information window appears.
2 Enter details about a customer. You don’t have to complete all the tabs in this window. You can fill in the Profile and Selling Details now and complete the others later from the Card File comm and centre. See
‘Changing a record’ on page 98.
3 Click OK when you have finished to return to the Sales Easy Setup Assistant. The card you created now appears in the custom er list. 4 Repeat from step 1 for each custom er card you want to create.
When you have finished creating your custom er list, click Next.
Ent er your hist orical sales
Historical sales are those sales you’ve m ade that haven’t been paid, as of the first day of your conversion month.
1 In the Enter historical sales for your customers window, click the Add
A Selling inform ation The selections you make here will be used, by default, on quotes, orders and invoices that you create for this custom er. You can override these selections when recording the sale.
B Credit term s The credit term s you entered earlier appear here by default. You can override them here
C Tax inform ation The custom er’s tax inform ation is entered here. If the customer’s tax status takes precedence over that of the item or service being sold, mark the Use Customer’s Tax Code checkbox. For m ore inform ation, see ‘To assign tax codes to cards’ on page 33.
A
B
Setting up purchase details
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User Guide
2 Type or select the name of the custom er and press TAB. 3 Enter the details of the outstanding invoice.
4 Click Record.
When you have finished, click Next.
Click Close to close the Sales Easy Setup Assistant.
Setting up purchase details
In the Purchases Easy Setup Assistant, you can set up your supplier inform ation and other inform ation related to purchases. You’ll find these steps very sim ilar to those you com pleted for your custom ers and sales.
Click Purchasesin the Easy Setup Assistant window. Work through the Purchases Easy Setup Assistant, entering the required inform ation in the appropriate window s.
Set up a default layout
In the Choose purchase layout w indow, choose the purchase layout you expect to use most often. For example, if you have a wholesale business, choose the Item layout since this is designed for item purchases. This layout will be assigned to all new supplier cards, but you can change the purchase layout for a supplier at any tim e either the suppliers card or when recording a purchase made from that supplier.
When you have finished, click Next.
Set up default buying det ails
In the Decide on buying details window, select the expense account to which your purchase transactions will be most often posted. If you intend to use m ultiple accounts for purchases, leave this field blank.
Enter the credit limit your suppliers set most often for you.
Rem ember that you can change these selections for any of your suppliers at any time.
When you have finished, click Next.
Select default t ax codes
In the Assign tax codes to your suppliers window, select the tax code that is most often applied to purchases from your suppliers. If you pay tax on freight, select the tax code that is m ost often applied. Your selections here will appear as the defaults in the Buying Details view of new supplier cards you create.
For m ore information on tax codes, see ‘Setting up tax codes’ on page 33. When you have finished, click Next.
Set up default credit t erm s
In the Set up payment information window, enter the credit term s that your suppliers generally extend to you and the default paym ent m ethod. When you have finished, click Next.
Set up t he linked account for purchases
In the Select the account to pay your supplier bills w indow, review the default account that will be used to pay bills from your suppliers. If you want a different linked account than the one displayed, type or select another account fin the Account for Paying Bills field. The account you select must be a bank or credit card account.
Creat e supplier cards
In the Build your supplier list window, enter information about each of your current or likely suppliers. You need to create a record for each supplier, but you can choose to enter as little or as much information as you like in these records. Note that any information you enter on a supplier’s card tales precedence over similar inform ation entered in earlier steps of the Purchases Easy Setup Assistant.
If you have kept supplier inform ation in another software program, you can import that inform ation. For m ore inform ation on how to im port cards, see ‘Importing data’ on page 172.
To creat e a supplier card
1 Click N ew. The Card Information window appears.
2 Enter details about a supplier. You don’t have to com plete all the tabs in this window. You can fill in only the inform ation in the Profile and Buying Details tab now, and com plete the others later from the Card File comm and centre.
3 Click OK when you have finished to return to the Purchases Easy Setup Assistant. The card you created now appears in the supplier List. 4 Repeat from step 1 for each supplier card you want to create.
When you have finished creating your supplier list, click N ext.
Ent er your hist orical purchases
Historical purchases are those purchases that haven’t been paid in full as of the first day of your conversion month.
1 In the Enter historical purchases for your suppliers w indow., click the Add Purchase button. The Historical Purchases window appears. 2 Type or select the name of the supplier and press TAB.
3 Enter details of your outstanding purchase. 4 Click Record.
When you have finished, click Next.
Click Close to close the Purchases Easy Setup Assistant.
A Buying inform ation The selections you m ake here will be used, by default, on quotes, orders and bills that you create for this supplier. You can override these selections when recording the purchase. A
B
C
B Credit term s The credit term s you entered earlier appear here by default. You can override them here for this supplier.
Set ting up tax codes
3 3
User Guide
Setting up tax codes
Tax codes are used to track tax paid to and by your business. Each tax code represents a particular type of tax, which is used to calculate tax on your transactions.
To creat e a t ax code
1 Go to the Lists menu and choose Tax Codes. A list of tax codes appears. 2 Click New. The Tax Code Information window appears.
3 In the Tax Code field, type a tax code (up to three characters) and press TAB.
4 Complete the fields in this w indow.
To assign t ax codes t o account s
You can assign a tax code to each account in your accounts list.
The tax code you assign to an account will appear as the default tax code in a transaction where you allocate a deposit, cheque, or a non-item sale or purchase to this account.
For example, you have assigned the tax code to your Electricity expense account. When you write a cheque to settle your electricity bill in the Spend M oney window and allocate it to this account, the tax code w ill appear in this window by default.
You can allocate a tax code to a account in the Edit Accounts window. You can display this window by going to theAccounts com mand centre, clicking Accounts List, and double-clicking the required account from the list.
Assigning t ax codes t o it em s
When you set up your item s, you must assign a tax code to each of them . You can assign a tax code to be used when you sell an item and a tax code to be used when you buy an item. That tax code will appear as the default in sales and purchases of that item unless you have specified that the customer’s or supplier’s tax code be used instead (see ‘To assign tax codes to cards’ below).
Tax codes are assigned to item s in the Buying and Selling tabs of the Item Information window. For m ore inform ation, see ‘To create an item’ on page 34.
To assign t ax codes t o cards
You can specify a default tax code for a custom er or supplier. You would only need to specify a default tax code if the custom er’s or supplier’s tax status takes precedence over that of the item or service being sold or purchased.
A Enter the tax code description, type and rate.
B Specify the linked account for tax collected or paid. This field is only available for som e tax types.
A
When you create a quote, order, or invoice, the tax code assigned to the customer is used as the default. This tax code will override the item’s tax code in an item sale, and the allocation account’s tax code in a non-item sale. Tax codes are assigned to customers in the Selling Details tab of their Card Information window.
M ake sure you m ark the Use Customer’s Tax Code checkbox. (If this checkbox is not m arked, the customer’s tax code will not be used, even if one has been assigned.)
Similarly, when you create a quote, order or purchase, the tax code assigned to the supplier as the default is used. This tax code will override
the item’s tax code in an item purchase, and the allocation account’s tax code in a non-item purchase.
Tax codes are assigned to suppliers in the Buying Details tab of their Card Information w indow.
M ake sure you mark the Use Supplier’s Tax Code checkbox. (If this checkbox is not m arked, the supplier’s tax code will not be used, even if one has been assigned.)
Setting up items
An it em describes:
z a physical unit that your com pany may buy, sell or inventory z a service that your company w ants to include on item invoices, for
example, Shipping, Handling, and so on. There are two steps to setting up items: 1 Creating the items (see below ).
2 Entering the opening inventory-on-hand quantities and values (see
page 36).
To creat e an it em
1 Go to the Inventory comm and centre and click Items List. The Items List w indow appears.
2 Click N ew. The Item Information window appears.
3 In the Item Number field, type a un
