This page provides instructions on how to setup existing Account customer balances (also known as Trade Debtors or Receivables) in RetailManager. This will assist anyone who has been tracking their Trade Debtors in another program, for example MYOB accounting software, and need to transfer the balances of those customers to RetailManager.
The method used is to sell a special type of stock item to your customers using the 'Account' payment type, which in turn will establish their opening balance.
It is important to be aware that you cannot replicate the ageing of your Trade Debtor balances when you begin using RetailManager. RetailManager is a Point of Sale program that does not allow for back-dating sales or entering historical transactions. This means all of your Trade Debtor balances will appear as 'current' when they have been entered into RetailManager.
Each sale that is created in RetailManager cause a double entry for the amount of the balance. As a result, we also need to make sure that we close off these balances in your MYOB accounting software. We close off these balances by manually creating a Credit, which is used to pay out the balance.
After the Accounting Export process has been finalised, all information will be correct for reporting.
Before you begin
- Your Trade Debtor balances are current and up to date.
- You have setup your RetailManager shopfront with relevant Customer and Product information.
- You have backed up your MYOB accounting software & MYOB RetailManager data.
To view your current debtor balances
Using your existing Accounting or Point of Sale software, run a report that shows all of your customers outstanding invoice totals.
- In MYOB accounting software, go to the Sales command centre and click Sales Register.
- Click the Open Invoices tab to view your open invoices. See our example below.
For each customer we now need to work out the total owing based upon the items on the invoices, the tax codes used and income allocation accounts.
- Select a customer from the Search By field. This is to display invoices for a specific customer to ensure we do not mix up customer invoices.
Setting up your MYOB accounting software
Before you set opening debtor balances, you first have to set up your MYOB accounting software with credits for all of your customer outstanding balances, invoices still outstanding, and partly paid invoices still outstanding. Then, you will need to apply the credit for all Customers outstanding invoices. See below for more details.
For each account customer (trade debtor) we need to create a credit that we can use to cancel the outstanding amount owing in MYOB Accounting. These amounts will be entered later in RetailManager and transferred over to MYOB Accounting to once again balance your chart of accounts.
This step can become tricky as we will be looking at the outstanding balances of current invoices and taking into account the items and tax codes used on each outstanding invoice.
Where an invoice has been part paid, we also need to calculate the remaining income and tax break down for the outstanding amount.
For invoices still outstanding in full
Simply create the credit with a line for each tax code that has been used on the original invoice. The sell price will be the sum of all items sale amounts with the same tax code. for example If all four (4) items on the original invoice attracted GST, the credit would only need one (1) line with the sell price being the total sale value of the original invoice.
For part paid invoices still outstanding
We need to apply a formula to calculate the outstanding portions of income and tax.
We will work through an example where we have an invoice that has been part paid and contain items with various taxes.
Below is the invoice which original sale total is $150, the invoice contains two items, each with a different tax codes. So far we have received $75 in payments.
We know that there is $75 outstanding to be paid on this invoice, but, what portion is unpaid for the Food Mixer which attracts GST and for the Bread Mix that is GST free?
To work this out, we need to apply the following rule:
(Payments made)/(Total sale amount) = x
x * item extended total = Outstanding Item Amount.
Using our example above, our formula would look something like this:
$75/$150 = 0.5
With item 1 (a GST item)& and item 2 (a GST Free item)
0.5 * $110 = $55 0.5 * $40 = $20
Now that we know the amount outstanding against GST and FRE taxes, we can create the Credit transaction in MYOB Accounting, and use it to close of the invoice. This information is also required later when we create the invoice within RetailManager.
We create the credit by processing a Service type, sales invoice. The reason we use a service type invoice instead of item is that we do not want any adjustments to your inventory balances.
When creating a Service type sale you must specify an Allocation account. We suggest to use the same account number as you have specified in your RetailManager chart of Accounts. Income will balance once the RetailManager Accounting Export has been complete.
The credit we create requires two lines, one to record an income with GST, the other for FRE income. We already know that GST income has an outstanding value of $55, whereas FRE income is $20 outstanding.
So let s create the credit in your MYOB accounting software. Our example appears in the following image.
Remember that the credit must:
- Be a Service type Sales Invoice
- Have one line per tax code used
- Specify the relevant Allocation Account
- have the amounts entered as Tax Inclusive. Remember to select the Tax Inclusive option at the top right of the invoice.
Commit the transaction. To view the Credit that we have just created, go to the Sales Register > Returns & Credits tab.
Now that all the relevant credits have been created for each customer, we can apply the credit to the original invoice to close it off.
- Within the Sales Register, click the Returns & Credits tab. The credit we have created appears and the amount of the credit will display as a negative amount. See our example below.
- Click to highlight the credit then click Apply to Sale. The software will then display the Settle Returns & Credits window.
- Click into the Amount Applied column in the grid area against each listed invoice. The amount outstanding will populate automatically.
- Once this is complete, the Out of Balance amount will show $0 as shown below.
- Click Record.
Setting up RetailManager
Next, you need to set up RetailManager is new customer records, and then create opening balance stock items.
RetailManager allows you to create two types of customers. The first are regular 'cash' customers, who pay for goods as they purchase them. The others are 'Account' customers, who buy items on credit terms.
- Account customers can be created in RetailManager within the customer window which is accessed via the Information menu. It is important to specify the 'Account Details' in this window. Please refer to the RetailManager User Guide for detailed information on creating customer records and assigning Account Details.
- Customer records can also be imported from another source (such as your previous Accounting / Point of Sale software) using the Import / Export utility.
You must create a Static Quantity stock item to sell to your Account customers to establish their opening balances. Static quantity items are items which do not adjust your 'Cost of goods sold' or 'Inventory' value when they are sold.
You may prefer to create a separate stock item for tax code you need to use to help ensure the correct taxes are being tracked.
To create a Static Quantity item:
- Go to the Information menu and choose Stock.
- Create a new stock item.
- Make the description of the item 'Opening Balance'.
- Select the Static Quantity option.
- Select the relevant tax code for the item. See our example below.
- Click Commit or press F10.
- Click Yes when asked to approve the transaction.
I've created my Account Customer records and a Static Quantity item. What do I do next?
The next steps involve processing a 'dummy' sale to each of your Account Customers and performing the cashup end of day routine.
Process 'dummy' sales
The item being sold to them is the 'Opening Balance' stock item we created previously. The Sell price and Tax code of this item should be modified with each sale so that it matches that customer s outstanding balance.
Repeat this process for all of your Account Customers. Using the same 'Opening Balance' stock item, modify the Sell price and Tax code to match that Account Customers outstanding balance.
Therefore, in RetailManager, the invoice we need to create is as follows:
Performing the cashup end of day routine
Perform the cashup end of day routine:
- Go to the Reconciliation menu and choose Cashup / End of Day.
- Enter your Staff number.
- Click Commit or press F10.
- Click Yes to the questions that appear, then click OK.
What we have done is isolated all Opening Balance sales transactions into one 'Cashup' session. This will make it easier to keep track of the Opening Balances in the future.
No. RetailManager will take over the processing of sales, printing of invoices and statements and will store all the detailed information regarding your Account Customers. Your MYOB accounting software will only display your Trade Debtor balance as a total, and will not record any detailed information on your Account Customers any longer.
Be aware that the current debtor balances will still show as outstanding in your MYOB accounting software.
Exporting information from MYOB RetailManager to MYOB accounting software will include the opening debtor totals, effectively doubling up the Trade Debtor balance in the MYOB accounting software.
Once this export has occurred, we need to close off all outstanding invoices in MYOB Accounting. This is done for two reasons, firstly to correct the double up effect, and secondly to stop these invoices appearing as outstanding in your MYOB accounting software.