Articles Blog

MYOB – Creating Purchases and Applying your Supplier Credit Notes (Debits)

Details

Published on Monday, 19 August 2013 12:39

There are four main activities when accounting for supplies to your business –

1. Entering purchases/bills
2. Paying the Purchase
3. Entering credits/returns to the supplier
4. Applying/Settling credits

Entering purchases/bills

In the Purchase Command Centre click Enter Purchases

First choose the status and layout for the purchase. The default layout displayed in the Purchases window is determined by the selections made when you set up purchase details (using the Purchases Easy Setup Assistant) or when you created the supplier’s card.

1. Check whether the default layout is appropriate. There are four layouts to choose from: service, item, professional and miscellaneous. To change the default layout: a Click Layout. The Select Layout window appears. B Choose the layout you want to use and click OK.
2. Select the status from the list in the top left corner of the window: Quote, Order, Receive Item or Bill. Note that Receive Item only appears for the Item layout.

After entering the supplier, date and Supplier Invoice number, you will see in the middle of the Purchases window is where you enter details of what you are buying. Depending on the Layout chosen, this area will either allow written lines, or require items. The fields that appear in the scrolling list differ according to the type of purchase you are creating (Item, Service, Miscellaneous etc).

In this area, you will enter item numbers, descriptions, account numbers (or account names, depending upon your selection in the Preferences window) and other information about your transaction. Each row in the list is one line item of the transaction. You can enter as many line items for a purchase as you want.

You can add lines, headers and subtotals to purchases to make it easy to separate and subtotal different groups of line items on one bill.

Record the purchase. To record the purchase without printing it, click Record.

If you can record the purchase and print, send or save it as a PDF, click one of choices at the Print Icon in the lower section.

Paying the purchase

Once you have recorded a purchase, you pay the supplier in the Pay Bills window. In this window you can record the payments to one or more of your outstanding bills.

You can also make payments to suppliers in the Bank Register window. Paying bills through the Bank Register window can save you time if you have several purchases to pay and do not need to record detailed information (such as discounts and finance charges) for each payment. When you use the Bank Register window for making supplier payments, the entire payment is automatically allocated to the oldest purchase first.

Note - You can pay several outstanding bills at once in the To Do List window.

If you pay your suppliers electronically, that is, by sending an electronic payment file (ABA file) to your bank for processing, you need to complete the electronic payment setup tasks for MYOB to create the ABA file, and choose the Electronic Payments account instead of the bank account.

Entering Credits/Returns to the Supplier (is a debit to you)

1. Go to the Purchases command centre and click Enter Purchases. The Purchases window appears.
2. In the Supplier field, type the supplier’s name or select it from the list.
3. Select Bill from the list in the top left corner of the window.
4. Click Layout and select Miscellaneous.
5. In the Description field, type the reason for the supplier debit.
6. In the Acct # field, type the account number to be debited or select it from the list. This is normally an expense account called Purchases Returns.
7. In the Amount field, type the amount of the debit as a negative amount.
8. Click Record. A supplier debit appears in the Purchases Register window.          

If using Item Layout, enter the a NEGATIVE number for the item quantity

Applying/Settling Credits

You can either apply the debit to unpaid invoices or record a cheque if the supplier issues you with a refund cheque.

To apply the debit -

1. Go to the Purchases command centre and click Purchases Register. The Purchases Register window appears.
2. Click the Returns & Debits tab.
3. Locate and select the debit you want to apply and click Apply to Purchase. The Settle Returns & Debits window appears, listing all open purchases that you have made from the supplier.
4. Type the amount you want to apply to a purchase in the Amount Applied column. If the Apply Supplier Payments Automatically to Oldest Purchase First preference is selected in the Preferences window (Purchases view), amounts will appear next to the oldest purchase in the Amount Applied column. However, you can apply the debit amount to one transaction or you can split it over any of the transactions in the list. Remember that the total amount you apply in the Amount Applied column must equal the amount that appears in the Debit Amount field.
5. If you want to apply part of the supplier debit to unpaid finance charges you may have accrued, enter an amount in the Finance Charge field.
6. Click Record to apply the supplier debit.

If the transaction is unbalanced, that is, if the total amount entered in the Amount Applied column doesn’t equal the amount displayed in the Debit Amount field at the top of the window, a message appears. Click OK to close the message and then check that the amounts you have applied to the various transactions are correct.

To enter a refund cheque –

1. Go to the Purchases command centre and click Purchases Register. The Purchases Register window appears.
2. Click the Returns & Debits tab.
3. Locate and select the debit that is being refunded and click Receive Refund. A refund cheque for the amount of the supplier debit appears in the Settle Returns & Debits window.
4. Select a payment method in the Payment Method field and click Details. The Applied Payment Details window appears.
5. Enter the details and click OK.
6. Click Record to record the refund cheque.

Get Your FREE “Avoid these GST mistakes”

There is 18 that the Tax Office see regularly – get them right!

Need help? Not sure? Call for a FREE 30min Advice / Strategy session today!

Call 0407 361 596 Aust

• < Prev
• Next >