Lynley Averis
Author Archives: Lynley Averis

RetailManager – Sales Orders and Deposit Video Tutorial

This video show you how to enter a sales order and take a deposit using MYOB RetailManager. We use Sales Orders when we are out of stock of a product we usually stock. We ask the customer to make a deposit then order the goods. Once the goods are fully paid for, we recognise the sale and the sales order is closed.

For more MYOB RetailManager “How To” video tutorials please visit our YouTube MYOB Training Channel. If you require one-on-one training please contact us

Debtors Out of Balance and customer deposits

This problem is a common one and compounded by the fact that recorded entries can’t be fixed. All we can do is get it right for future entries. The error is compounded further if a journal entry is posted by your accountant to align the debtors list with the debtors control account at year end as the debtors Out of balance (OOB) should fix itself as described below.

Assume on 30/6/12 the Debtors ledger balances to Debtors control account (OOB = $0)

The file will be out of balance by $450 due to the credit to debtors control on the 9th. Once these entries take place they can’t be deleted, reversed or re-dated. The OOB will eventually come right by itself. If it doesn’t, another problem exists which will cause an OOB. Based on these events an Out of Balance will exist from 9/7/12 to 15/7/12. On the 15/7 the OOB come back to $0 as no prepayment exists.

See the effects of the entries on the following reconciliation reports:

However, if the order turned into an invoice after the payment date which is logical then no Out of Balance will exist. After all, surely the invoice date would always be a future date?

Tax on KiwiSaver (ESCT)

The monthly IRD reports are causing some confusion for clients running a computerised Payroll program. The schedule doesn’t include a column for the ESCT tax but the remittance advice does.

The Employer monthly schedule (IR348) prints figures for Gross Earnings, PAYE, SL, and KiwiSaver. It doesn’t show the tax (ESCT) on the Employer contribuion.

See the screen below (click on the image to enlarge)



The Remittance advice (IR345) prints all figures (including the ESCT tax). You must pay the amount circled in red. See the screen below:



It is very important you print and use both forms above. Some employers are just printing the IR348 and underpaying the IRD by the ESCT (the IRD don’t like that..!)


Landed Cost Procedure for Importers

Your MYOB software cannot automatically apportion landing costs to individual line items. This procedure is a workaround to ensure that:

  1. Stock on Hand is valued at full landed cost
  2. Cost of Sales reflects landed cost of stock sold
  3. Actual landed costs can be easily identified

Please follow these instructions to set up

Setup Steps

  • Set up cost of sales accounts list as per the example:

Other actual landed costs accounts may be set up if required.

Set up stock items as normal as per the example:

Set up a Landed Cost Adjustment item as follows:

Steps to be completed for each shipment that arrives

Complete an Excel spreadsheet for the imported shipment to allocate the landed costs to the individual items.


Formulas in the above spreadsheet:

In your MYOB software, enter a purchase from the supplier for the items at full landed cost, and on the last line enter a negative Landed Cost Adjustment


There may be a rounding amount as in this case ($0.19), just leave as is.

As invoices are received for actual landed costs, enter these using service purchases and code to respective cost of sales accounts.
(Remember that Customs GST does not form part of the cost of the goods and should be coded to a separate GST Liability Account!)


How do deal with the tax on a Bonus?

How do I pay staff a bonus and deal with the tax?

Bonuses are commonly used as staff incentives; however there is often confusion about the tax on bonuses paid.

There are two types of bonuses:

  1. Regular bonuses

Ones that are paid periodically and should be included in the employee’s gross earnings.

These must be set up as Gross Earnings pay codes. For the tax on a regular bonus, refer to the IRD website or your tax tables.

Note: All amounts paid to employees as part of their agreements or paid periodically must be included in their Annual Leave and Holiday Pay calculations.

  1. Gratuitous or “one-off” bonuses

These amounts would not be included in the employee’s Annual Leave and Holiday Pay calculations. These bonuses need to be set up as a Taxable Allowance pay code. To tax the bonus correctly, use the Tax Override button, enter the bonus amount and then choose the Tax code appropriate for that employee (see screen below)

Tax Code – Annual income from all sources is likely to be:

$14,000 or less                      10.5%  – Use SB
$14,001 or $48,000                   17.5% – Use S
$48,001 to $70,000                  30.0% – Use SH
More than $70,000                   33.0 % – Use ST

How do I handle GST paid to NZ Customs for imported goods?

When importing goods from overseas, GST is calculated at 15% 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.

prepare GST return

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.

customs purchase

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.

Health check of your MYOB AccountRight file..

One of the time consuming activities of MYOB consulting is digging for dirt and uncovering entries which have gone astray in clients data files. Just because something is entered, allocated and now out of sight doesn’t mean it’s right. An MYOB accounts person should take a half day out every year to to the following check up.Health check

Follow the steps below..

  1. Bank reconciliations: have you been doing reconciliations on every single bank, savings and credit card and loan accounts? Do you have an undeposited funds or electronic clearing account with a balance of thousands when it should be $0? Do you have PAYE payable with a debit balance when it should be credit.
  2. Again on the subject of bank reconciliation – look at all entries that are more than 6 weeks older than your last bank rec. date. These are called stale transactions. Investigate each one and sort it out. Are there duplicate entries? Are they genuinely un-presented by your supplier, is the cheque lying in your drawer, is it an accountants end-of-year adjustment, did you pocket the cash or what? Find the culprit, delete, reverse or correct.
  3. Bank Feeds: Check all of your bank feed entries have been dealt with. They should either have been allocated or matched. If there are old entries there and you have reconciled then hide the bank feed entries.
  4. Post-dated transactions; Review the Transaction Journal (All) from today’s date to 31/3/2040 or find the equivalent report under exceptions reports. Are there any transactions which are future dated (we regularly find entries dated 20 years in the future!) Find them, re-date them watching for unclaimed GST and/or an income tax deduction.
  5. Prepaid Transactions:  Go to Reports, Account, Exceptions, Prepaid Transactions report. Run for your current financial year e.g 1/4/16 – 31/3/17. If you have any on the list then these have payment dates before the invoice date. Shouldn’t happen and gives you an out of balance if the entry is over financial year-end.. Kick the habit or if you really do have payments before order then start putting your payments against sales orders or purchase orders as opposed to invoices.
  6. Debtor and Creditor balances: Run the Receivables, Reconciliation Detail report (dated today) and check each amount is still unpaid. It is easy to confuse ‘Receive Money’ instead of ‘Receive Payments’. On the creditors side, run the Payables, Reconciliation Detail  Report and check each amount is still unpaid. The likely scenario is to use ‘Spend Money’ and not ‘Pay Bills’. Open the invoice and either delete, reverse or correct.
  7. Run the General Ledger Detail report for all Profit and Loss accounts for the current financial year. Check the contents of each account. Are entries in the right account?

Give yourself a pat on the back. This is a big job but someone has to do it….you!


Debits and Credits Rule

Some of you have taken formal accounting courses and know the debit/credit rules backward, forward & inside out. But the bulk of you have “fell into” a bookkeeping role when your real profession was a butcher, baker or a candlestick maker.

Quite simply there are 5 account types and each one can go up or down as follows.

Account Type      To increase this account       To decrease this account

Asset                                                                  Debit                                        Credit

Liability                                                              Credit                                       Debit

Equity                                                                 Credit                                       Debit

Income                                                               Credit                                       Debit

Expenses                                                            Debit                                        Credit

Or use the cheats guide to debits and credits

D E A D   C L I C

This acronym stands for Debit Expenses, Assets and Drawings, and Credit Liabilities, Income and Capital.

You apply this DEAD CLIC rule if an account goes up in value. If an account goes down value, you apply the opposite. In other words, if an expense increases in value, then you debit the account (because the DEAD CLIC rule says to Debit Expenses). If an expense decreases in value, then you credit the account.

Remember also that every transaction affects two accounts, one is a debit, the other a credit. This is why we call it double entry (not single entry) bookkeeping.

Do you need to know this stuff? Well not if you use MYOB software. Does it help to know – most certainly it does even if it means just having a better understanding of what your accountant is preaching on about.