- Created by admin, last modified by AdrianC on May 03, 2016
https://help.myob.com/wiki/x/FAic
ANSWER ID:9274, 1712
If you sell goods using lay-by, it's easy to track these sales in AccountEdge. Just create a lay-by stock item for the goods being sold, create a sales order for the goods, then apply payments against that order until the lay-by is paid off.
The example we'll use is selling a bicycle on lay-by, but the same approach can be used for most lay-by scenarios.
We'll also step you through what to do if a lay-by is cancelled.
To track the quantity and value of stock on lay-by, you need to create a lay-by item and an associated asset account.
Here's how:
- Create an asset account to track the value of lay-by stock (Accounts > Accounts List > Asset tab > New).
- Set the Account Type to Other Asset.
- Enter an Account Number that suits your account list.
- Enter a suitable Account Name, such as Layby Inventory.
- Create an inventory item for the stock being put on lay-by (Inventory > Items List > New).
- Add "LB" to the Item Number to distinguish it from other stock items.
- For the Asset Account for Item Inventory, select the Layby Inventory asset account created earlier.
Transfer stock from the trading stock item to the lay-by stock item.
Use the Build Items function (Inventory > Build Items).
Enter a positive Quantity for the lay-by stock item. This increases the stock quantity for this item.
Enter a negative Quantity for the trading stock item. This decreases the stock quantity for this item.
Enter the Unit Cost for the lay-by item (to match the trading stock item).
You're now ready to create a sales order for the lay-by (Sales > Enter Sales).
- Select Order as the Sales Type.
- Select the Customer.
- Select the lay-by item and specify the Ship quantity and Price.
Lay-by terms
You might want to change the terms for this order to reflect the date the lay-by needs to be picked up.
When a lay-by payment is made
Record the payment against the sales order (Sales > Receive Payments).
- Select the Customer to display their lay-by order.
- Enter the payment in the Amount Received and Amount Applied fields.
After the final lay-by payment is made
When the lay-by is paid off, change the order to an invoice to provide to the customer.
- Find the order (Sales > Sales Register > Orders tab).
- Click the order then click Change to Invoice.
- Check the details of the invoice then click Record.
Cancelling a lay-by
Typically when a lay-by is cancelled, the customer's payments are refunded and a lay-by cancellation fee is charged.
When processing the cancellation in AccountEdge:
- the cancellation fee is applied to an income account
- the refund is paid to the customer, and
- the lay-by stock item is returned to normal trading stock.
Let's use the example where a $300 lay-by is cancelled after $100 has been paid against it. A $20 cancellation fee is charged and $80 is refunded to the customer.
Here's how you set up an income account and inventory item to cater for the cancellation fee.
- Create an income account to which you can allocate cancellation fees (Accounts > Accounts List > Income tab > New).
- Set the Account Type to Income.
- Enter an Account Number that suits your account list.
- Enter a suitable Account Name, such as Layby Default Charge.
- Create an inventory item for the cancellation fee and link it to the income account (Inventory > Items List > New).
- Enter a suitable Item Number and Name.
- Select the option I Sell This Item.
- For the Income Account for Tracking Sales, select the Layby Default Charge income account you just created.
Refunds are processed by creating a customer credit, then refunding that credit. When creating the credit you can deduct the cancellation fee.
Here's how:
- Record an invoice to create a customer credit (Sales > Enter Sales).
- Select the Customer being refunded.
- On the first line of the invoice, enter the Layby Default Charge item with a Ship quantity of 1 and the Price of the fee.
- On the second line, enter the lay-by item with a Ship quantity of -1 and the Price of the item. This results in a negative Balance Due (the credit amount).
- Apply the credit to the customer's lay-by order.
- Go to Sales > Sales Register > Returns & Credits tab.
- Click the customer's credit then click Apply to Sale.
- Enter the credit amount in the Amount Applied field. This should match the Credit Amount.
Recording this will create a new credit for the amount to be refunded to the customer. - On the Returns & Credits tab, click the credit created in the previous step then click Pay Refund.
- Check the details of the refund and click Record.
Because the lay-by is now cancelled, you need to transfer the lay-by item back into trading stock.
Use the Build Items function (Inventory > Build Items).
Enter a negative Quantity for the lay-by stock item. This decreases the stock quantity for this item.
Enter a positive Quantity for the trading stock item. This increases the stock quantity for this item.
Enter the Unit Cost for the lay-by item (to match the trading stock item).
FAQs
The GST rules for lay-by sales vary depending on your country and GST accounting basis.
In Australia |
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In New Zealand | Regardless of your GST accounting basis, GST is realised upon the final lay-by payment when the goods are invoiced and delivered. |