Let's work through the Westpac bank transactions together.
By linking your bank accounts, you don't need to manually enter all your bank transactions. If you track sales and purchases you still need to record the invoice and bill transactions.
But you can then automatically record the payments you make and receive when they hit your bank. You can also set up rules to automatically record transactions that occur regularly like your rent or bank charges.
How often you receive real bank data is dependent on your bank. It may be each working day, weekly or monthly.
Just check the transactions when they come in and tell MYOB AccountRight what to do with each transaction.
Add it, match it or approve it? Let's take a look at working with IckyLeaks real bank data from the Westpac Bank Account.
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Using your real bank data:
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Before we start the banking transactions we can recap what we have just done, to remind us about the invoices that are owing by our customers
Maybe use Business Insight and see the panel - customers who owe us money so you can easily identify all the open invoices, or Suppliers I need to pay (to see all the bills you need to pay)
This might make it easier to explain the NEW options - receive payments and pay bills as opposed to Receive Money and Spend Money
Need to get all 3 files into the online file from the beginning of the course
(unlike Essentials you can’t just import .qif file we need to have the transactions already input)
Closing Balances as at 31/4/2015
Bank feed transactions | Linked to : | Closing Bank Balance |
AU_Westpac.txt | 1-1110 Westpac Bank Account | $8,269 |
AU_Savings.txt | 1-1120 Savings Account | $12,000 |
AU_Visa_CreditCard.txt | 2-1110 Visa #1 | $2,410 |
Before we start the banking transactions we can recap what we have just done, to remind us about the invoices that are owing by our customers
In this example we are going to use the Bank Feed Transactions info to create the transactions from scratch. If you had already entered them then AR would have matched the BF transactions to your existing AR transactions.
You can sort this window by clicking on each of the columns by Date, All the Withdrawals or Deposits etc.
Work through each of the transactions and use the New Function to add.
Bank Feed Transaction | Function | Action: |
Discuss how to sort in this window Followed by options available Start with a Withdrawal and explain the difference between the Spend Money and Pay Bills function | ||
OfficeMax | New>Spend Money | 1-2210 Office Equipment at Cost Tax Code: CAP (AU) S15 (NZ) |
Plumbing Galore | New>PayBills | Choose Supplier and apply to bill *note to update payment in bank feed to be 3,450 and then closing balance will alter as well |
Also point out that as you record the transaction it’s added and match to the Bank Feed - it’s reconciling as you go…. | ||
Cash Deposit | New>Receive Money | Discuss splitting to multiple income accounts |
Focus Hair Salon | New>Receive Payments | Choose Customer and apply to the open invoice |
Ask class about the next 2 transactions - what would they use? | ||
Spark phone bill | New>Spend Money | 6-2900 Telephone Expenses |
Rent | New>Spend Money | No rent account - add or rename 6-2000 to Rent May want to add more to the memo like which month the rent is for? |
What about when we transfer money between accounts then use the Transfer option | ||
Savings for GST | New>Transfer Money | From 1-1110 Westpac to |
when you have one off customers you probably wouldn’t bother setting up rules, but if in your business you deal with the same customer on a regular basis (like we do with Kingston & Co Developments) then consider setting up rules - let’s see why | ||
Kingston & Co | New>Invoice Rule | Create an invoice rule Explain the rule details Explain the rule being applied and possible matches displayed. If it was for only one invoice it would have applied it automatically but when it’s for multiple invoices you need to select which invoices to apply it to. This payment from the customer is for 2 invoices - apply and match it to the first 2 invoices listed. Also point out where rules are stored |
Activity - ask students what they would do with the next transaction - get students to create an invoice rule for Uptown Beauty or use Receive Payments | ||
Uptown Beauty | Possible options: New>Invoice Rule New>Receive Payment | |
A bill rule is similar to an invoice rule but it’s got to do with matching payments to Supplier bills. So if you have suppliers that you constantly deal with and you enter the bill into the system then set up a rule and let AR give you the possible matches… And then flow into Transaction rules that can create transactions for common transactions that continually appear on your bank statement like Bank charges and Interest | ||
Hire The Works | Possible Options New>Bill Rule | |
Account Fee | Possible Options New>Transaction Rule New>Spend Money | Allocate to 6-1300 Bank Fees |
Drawings SD | New>Spend Money | Allocate to 3-2000 Owner’s Drawings and maybe suggest to add more to memo |
Interest | Possible Options New>Transactions Rule New>Receive Money | Allocate to 8-1000 Interest Income |
I have run through the NZ File for AccountRight, just a couple of suggestions.
1. Under Credit Card, you have a countdown transaction remove the different tax codes as not applicable here.
2. Would love to see an overpayment in the main account (but the minute we include this we will need to talk to Customer Returns - whereas if time doesn't permit to cover this topic i have suggested to move it and be part of "Do more"
3. Also I think clients might find it confusing when you have a supplier invoice $3450.00 and a customer one for $3450.00 as only 1 transaction between and if they are still processing the first on in their heads these being the same and on the different sides may confuse them a little.