Please find attached an article to help those of you on payments or hybrid basis complete the GST adjustment form.
GST Assistant (NZ users)
Best run the Assistant when you have completed all invoicing for September but can be run earlier as long as you take care with entries.
Ensure you have the logged onto your PC and your MYOB program as the Administrator.
Allow plenty of time for the update, particularly if you have lots of items/cards. Some updates are taking 1-2 hours due to the size of the database and/or speed of your computer. You could run after work hours to minimize disruption.
If you have a large stock list (4000+items) try a workaround – export items to Excel, change the GST code to S15 and import back in. This may also apply to customers and suppliers. Backup before you import anything at all.
Upgrading database/MYO file when not on the local PC. Best to run the Assistant on the computer which contains the company file, eg, if you use a server, then run the assistant from the server itself.
Missing buttons on GST assistant (as in NO buttons) – makes it hard to press “next”: Use the keyboard shortcut for “next” which is ALT-X. Then you continue past the welcome screen. If you minimise and maximise the window, buttons reappear.
The Assistant uses the ODBC driver. Make sure you have the ODBC 9 driver installed and remove earlier versions of the ODBC driver via add/remove programs.
Once the Assistant has run, take care that entries dated Sept use old GST code “S” and entries for Oct use GST code “S15”. When Sept bank reconciliation is completed, remember to Lock your period
(Choose Setup, Preferences, Security tab – tick disallow entries prior to 1 Oct 2010)
Check the GST assistant works by looking over your data (accounts, cards, items and activities). Remember it doesn’t actually update your orders or recurring entries – these will still show GST of S.
How do I handle GST paid to NZ Customs for imported goods?
When importing goods from overseas, GST is calculated at 12.5% of the landed-cost of the goods and is payable to the Customs agent, not your overseas supplier. The GST paid to Customs needs to appear in Box 13 of the GST return. Therefore, you need to create one Purchase order (bill) to record the overseas purchase and another Purchase order (bill) to record the costs associated with the import.
A Customs agent is usually employed to handle the costs associated with the import. Generally, the Customs agent will arrange payment for, and collection of, the goods on arrival in New Zealand, and may pay your customs duty, freight, insurance and GST liability. Therefore, you will need to either ‘Spend Money’ or ‘Enter Purchases’ then ‘Pay Bills’ to the customs agent for these costs.
To Set Up
Create a Liability Account for Customs GST (2-XXXX). This account will hold the GST paid by you to the Customs agent and will be reflected in Box 13 of the GST return.
This account should be the linked account in your GST return.
Go into the ‘Accounts’ command centre.
Select ‘Prepare GST return’
Select the ‘GST Input Tax Adjustments’ account in Box 13.
Once this account has been setup, record the transaction as pictured below using
Enter Purchases.
1. Using the Purchases command centre, record a transaction from your overseas Supplier as normal, excluding the GST.
2. Use Enter Purchases to enter the Import Agent’s Customs’ charges, taking care with the GST for each cost.
3. On another line, enter the value of the total GST on the Import, using the Customs GST Code.
4. For the import duty charged by the customs agent use the cost of sales accounts
5. For any other expenses the Customs agent may be charging you, (for example, overseas freight and/or insurance) enter as below, selecting the applicable cost of sale account.
This transaction will increase costs and include customs GST on the GST return.
Save the entry as a recurring transaction so you can use it again.
A GST return prepared from the Accounts command centre should now show the value above in Box 13.
PS this method is the most common adopted by NZ importers – other methods exist and can be used provided the accounting entry is correct.#adp01
Out with the old year . . . in with the new
When you finish off the books for the year in MYOB and hand over your work to the accountant, you want to be confident that you’ve done the best job possible, right? Follow our step-by-step guide and you won’t miss a beat:
1. Complete every transaction up to the last day of the financial year
MYOB software lets you record transactions in the 2011 year without having to finish recording transactions in the old. You’re fine to keep entering sales, purchases, customer payments and other everyday stuff in the new year, and take a few weeks to make sure that all transactions are spot on in the old year.
2. Check your work for the previous 12 months.
- Reconcile all your bank, credit card HP and loan accounts – deal to any ‘stale’ cheques
- Run the GST detail report with a view to finding coding errors. Run the GST reports again for the previous 12 months and check they still agree to that filed. You can still declare unclaimed GST.
- Run the receivables reconciliation report and check the list is correct. Bad debts need to be written off.
- Run the receivables reconciliation report and check you have statements/invoices for each balance.
- Run the inventory reconciliation report. Make inventory adjustments to correct the list.
- Note: The 3 reconciliation reports above must have an out of balance of $0 – check.
- Scrutinize every transaction through your income and expense accounts looking for coding errors.
3. Run your Profit & Loss and Balance Sheet reports for the last 12 months – do they make sense?
4. Make a backup.
5. Supply the accountant with all the information they need.
Different accountants want different stuff and most give you a questionnaire to follow. As an MYOB user, chances are that the company file is all they need which, depending on file size, you can either email or burn onto a CD. Don’t forget to give them a logon ID and password so they can work directly in your file.
If your accountant uses MYOB Accounting Office then you can send the .mye file which allows them to load the full years’ transactions into their program so they can complete your tax return.
6. Protect last year’s data so that you can’t inadvertently make any changes to the year just gone. This is one of the most infuriating things you can do (the punishment is worse than death, that is finding which entries you have added or changed).
7. Wait a few weeks or months for your accountants completed financial reports, then figure out what adjustments you need to make, to your current data. To line up your MYOB to your accountants reports, I would recommend you seek the assistance of an MYOB Certified Consultant.
8. Do a final backup and label it “ABC Ltd 2010.myo”
9. From MYOB, choose [File] Start a New Year. Read each screen carefully before clicking Continue. When MYOB asks about keeping transactions from the previous year, I recommend you say Yes.
10. Whew, all done. Pop the champagne bottle — you’re done!
Final note: If you’re new to MYOB software and some of these points fall into the too-hard-basket, then seek help from your MYOB consultant. If you don’t have one, we can help.