- Created by admin, last modified by AdrianC on Nov 16, 2015
You are viewing an old version of this page. View the current version.
Compare with Current View Page History
« Previous Version 4 Next »
https://help.myob.com/wiki/x/C4Ki
ANSWER ID:11168
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.
This support note assumes a GST rate of 10%.
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.
| 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 Accrual method.
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. E.g. 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 package.
| 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 | To record the money received whereby the income is recognised immediately. Example: a product at a tax inclusive cost price of $110 and tax inclusive selling price of $165:
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. There is no transaction recorded in the accounting program when a lay-by is created. The GST is reportable on the total lay-by when the last payment has been made and the goods have left the store. | |||||||||||||||||||||||||||||||||||||||||||||
| Recording a lay-by payment | The example below is an initial payment of $50 on a lay-by of $200.
| |||||||||||||||||||||||||||||||||||||||||||||
| Recording the final lay-by payment (Item collected) | This is the final payment where the sale is recognised as income.
To record the cost of a sale: Example: a tax inclusive product cost price of $110
| |||||||||||||||||||||||||||||||||||||||||||||
| Account Sales | To record income owed by a customer: Example: An account sale for $165 including tax.
To record the cost of a sale: Example: a tax inclusive product cost price of $110 and tax inclusive selling price of $165.
| |||||||||||||||||||||||||||||||||||||||||||||
Debtor Payment | To record money received as a debtor payment: Example: Debtor Payment of $100.
| |||||||||||||||||||||||||||||||||||||||||||||
| Credit Notes | Negative sale recorded to create the Credit Note. This will result in an Inventory Adjustment to reverse the initial Cost of Sales: Example: a tax inclusive product cost price of $110 and tax inclusive selling price of $165.
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 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. |