- Created by admin, last modified by AdrianC on Dec 05, 2016
https://help.myob.com/wiki/x/hgmc
ANSWER ID:11390
The RetailManager accounting export creates a Retail.txt file containing transactional data in the form of journal entries to be imported into MYOB accounting software, such as AccountRight. These journals can at times be quite large and complex to understand. This support note attempts to translate the transactions processed in RetailManager into their basic journal entries as seen in the accounting export and MYOB accounting software.
RetailManager transactions, journals and GST
All transactions in RetailManager produce a journal entry which is created in the accounting export. As the exported journals are very comprehensive, they can often be quite complex and a little challenging to understand the effects on your MYOB Accounts and Balance Sheet.
In the sample transactions below, the effect of RetailManager transactions on the accounting export journals is fully explained in table format as debits and credits to various MYOB accounts.
Several options within RetailManager determine how these journals appear in the exported Retail.txt file (and how they appear in MYOB). One of the most important options determines how tax is reported and tracked through to MYOB accounting software. This is the Exporting Method option which can be set to either Cash or Accrual. In New Zealand, these are sometimes referred to as the Payments and Invoice basis.
| If reporting tax on | then... |
|---|---|
| a Cash basis | GST is reportable when payments are made or received by the business, regardless of whether the transaction is pending or finalised. |
| an Accrual basis | GST is reportable when the transaction is considered to be finalised, regardless of payments made or received by the business. |
This support note explains exported journals using the Cash method. Using the Accrual method?
Select your country to view the journal information.
In the examples listed below, all journals are shown in a tax inclusive format. The rate of each tax code is applied to the amount shown in the Dr or Cr column, and the calculated amount is then posted to the linked account associated to the tax code. For example an amount of $110 appears in the Dr column with a tax code of GST. This means that $100 is posted to the displayed account number and $10 (GST = 10%) is posted to the linked account for GST in your MYOB accounting software.
| Transaction | Details | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Goods Received | To record the value of the goods received and the amount of money owed to the supplier:
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| Returned Goods | To reduce the value of inventory and the amount owed to the suppliers:
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| Cash Sales | When a cash sale is made the income is recognised immediately. Example: a product is sold for $165 including tax, at a cost of $110, also including tax.
To record the cost of the sale:
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| Lay-by | RetailManager does not regard a lay-by transaction as income until the last payment has been made and the goods have left the store, so there is no transaction recorded in the RetailManager or the accounting program when a lay-by is created. (Without payment) The GST is reportable on the amount of the lay-by payments when they are made. | |||||||||||||||||||||||||||||||||||||||||||||
| Recording a lay-by payment | The example below is an initial payment of $50 on a lay-by of $200.
RetailManager debits the 'GST collected on sales' account to reduce it, and then it records the payment as a credit to the 'GST collected on sales' account with a GST tax code. This means MYOB Accounting will pick up only the lay-by payment when reporting on the cash basis. | |||||||||||||||||||||||||||||||||||||||||||||
| Recording the final lay-by payment (Item collected) | This is the final payment where the sale is recognised as income.
With Lay-bys under the Cash method, the GST is calculated on the payments. The 'GST Collected on Sales' account is debited for the full value of the lay-by (With the GST tax code) to reduce the GST that was calculated against the sales income account. The 'Lay-by Payments' account is credited with the value of the lay-by payment and is later debited to reduce the liability recorded. There is a Cash Tax Calculation to the ‘GST Collected on Sales’ account to post the GST on the payment received. | |||||||||||||||||||||||||||||||||||||||||||||
| Account Sales | To record income owed by a customer. Example: An account sale of $165 processed against a customer.
The total value of the account sale is debited to the trade debtor account. The value of the account sale is recorded against the income account with a GST tax code. However, since the GST is reportable on only the payments received, a Cash Tax Calculation is posted to the GST Collected on Sales account to reduce the GST liability reportable in the BAS period. | |||||||||||||||||||||||||||||||||||||||||||||
Debtor Payments | To record money received. Example: Payment of $65 on account sale $165
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| Credit Notes | To record a credit note created. Example: $165 cash received.
As credit notes are not income the GST collected only occurs when the credit note is redeemed. | |||||||||||||||||||||||||||||||||||||||||||||
Recording a sale paid by a customer’s existing credit note | Existing Credit Note value of $165.
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Cash Till Shortage | To record the expense incurred from a till shortage. Example: $500 worth of cash sales were made for the day. The cash drawer was $100 short.
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Cash Till Excess | To record the expense earned from a till excess. Example: $500 worth of cash sales were made for the day. The cash drawer was $100 over.
When the cash drawer is short, the shortfall is debited to the Till Shortage expense account. Alternately when the cash drawer is in excess, this excess is posted as a credit to the same Till Shortage account. (Negative expense) | |||||||||||||||||||||||||||||||||||||||||||||
Sales Orders | RetailManager does not regard a sales order transaction as income until the last payment has been made and the goods have left the store, so there is no transaction recorded in the accounting program when a sales order is created. | |||||||||||||||||||||||||||||||||||||||||||||
Sales order payments | When reporting GST on the cash basis, GST is reportable on the payments. Example: Sales order of $110 with a payment of $50.00. To record sales order payments:
| |||||||||||||||||||||||||||||||||||||||||||||
Sales order conversion | When all the payments have been received then RetailManager will convert the sales order and all its payments into a sale and record the value as income. Example: Final payment of $60 on sales order. The sales order is then converted to a sale at the total value of $110.
With Sales Orders under the Cash method, the GST is calculated on the payments. The 'GST Collected on Sales' account is debited for the full value of the Sales Order (With the GST tax code) to reduce the GST that was calculated against the sales income account. The 'Sales Order Payments' account is credited with the value of the Sales Order payment and is later debited to reduce the liability recorded. There is a Cash Tax Calculation to the ‘GST Collected on Sales’ account to post the GST on the payment received. |
In the examples listed below, all journals are shown in a GST inclusive format. The rate of each GST code is applied to the amount shown in the Dr or Cr column, and the calculated amount is then posted to the linked account associated to the tax code. For example an amount of $115 appears in the Dr column with a GST code of S15. This means that $100 is posted to the displayed account number and $15 (GST = 15%) is posted to the linked account for GST in your MYOB accounting software.
| Transaction | Details | |||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Goods Received | To record the value of the goods received and the amount of money owed to the supplier:
| |||||||||||||||||||||||||||||||||||||||||||||
| Returned Goods | To reduce the value of inventory and the amount owed to the suppliers:
| |||||||||||||||||||||||||||||||||||||||||||||
| Cash Sales | When a cash sale is made the income is recognised immediately. Example: a product is sold for $165 including tax, at a cost of $115, also including GST.
To record the cost of the sale:
| |||||||||||||||||||||||||||||||||||||||||||||
| Lay-by | RetailManager does not regard a lay-by transaction as income until the last payment has been made and the goods have left the store, so there is no transaction recorded in the RetailManager or the accounting program when a lay-by is created. (Without payment) The GST is reportable on the amount of the lay-by payments when they are made. | |||||||||||||||||||||||||||||||||||||||||||||
| Recording a lay-by payment | The example below is an initial payment of $50 on a lay-by of $200.
RetailManager debits the 'GST collected on sales' account to reduce it, and then it records the payment as a credit to the 'GST collected on sales' account with the S15 GST code. This means MYOB Accounting will pick up only the lay-by payment when reporting on the cash basis. | |||||||||||||||||||||||||||||||||||||||||||||
| Recording the final lay-by payment (Item collected) | This is the final payment where the sale is recognised as income.
| |||||||||||||||||||||||||||||||||||||||||||||
| Account Sales | To record income owed by a customer. Example: An account sale of $165 processed against a customer.
The total value of the account sale is debited to the trade debtor account. The value of the account sale is recorded against the income account with the S15 GST code. However, since the GST is reportable on only the payments received, a Cash Tax Calculation is posted to the GST Collected on Sales account to reduce the GST liability reportable in the period. | |||||||||||||||||||||||||||||||||||||||||||||
Debtor Payments | To record money received. Example: Payment of $65 on account sale $165
| |||||||||||||||||||||||||||||||||||||||||||||
| Credit Notes | To record a credit note created. Example: $165 cash received.
As credit notes are not income the GST collected only occurs when the credit note is redeemed. | |||||||||||||||||||||||||||||||||||||||||||||
Recording a sale paid by a customer’s existing credit note | Existing Credit Note value of $165.
| |||||||||||||||||||||||||||||||||||||||||||||
Cash Till Shortage | To record the expense incurred from a till shortage. Example: $500 worth of cash sales were made for the day. The cash drawer was $100 short.
| |||||||||||||||||||||||||||||||||||||||||||||
Cash Till Excess | To record the expense earned from a till excess. Example: $500 worth of cash sales were made for the day. The cash drawer was $100 over.
When the cash drawer is short, the shortfall is debited to the Till Shortage expense account. Alternately when the cash drawer is in excess, this excess is posted as a credit to the same Till Shortage account. (Negative expense) | |||||||||||||||||||||||||||||||||||||||||||||
Sales Orders | RetailManager does not regard a sales order transaction as income until the last payment has been made and the goods have left the store, so there is no transaction recorded in the accounting program when a sales order is created. | |||||||||||||||||||||||||||||||||||||||||||||
Sales order payments | When reporting GST on the cash basis, GST is reportable on the payments. Example: Sales order of $110 with a payment of $50.00. To record sales order payments:
| |||||||||||||||||||||||||||||||||||||||||||||
Sales order conversion | When all the payments have been received then RetailManager will convert the sales order and all its payments into a sale and record the value as income. Example: Final payment of $60 on sales order. The sales order is then converted to a sale at the total value of $110.
With Sales Orders under the Cash method, the GST is calculated on the payments. The 'GST Collected on Sales' account is debited for the full value of the Sales Order (With the S15 GST code) to reduce the GST that was calculated against the sales income account. The 'Sales Order Payments' account is credited with the value of the Sales Order payment and is later debited to reduce the liability recorded. There is a Cash Tax Calculation to the ‘GST Collected on Sales’ account to post the GST on the payment received. |