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Deleting an invoice that was processed from Sales Order

Software: MoneyWorks accounting software

Sometime, we processed the Sales Order to Invoice, and realized that we made a mistake after we had posted the processed invoice. Although we may cancel this processed invoice (Posted), the Sales Order’s  “Ship Quantity” and “Backorder Quantity” do not revert accordingly.

How to amend the Sales Order after processed invoice was cancelled?

Scenario ONE: Short deliver

Assuming the Sales Order’s order quantity is 100 pcs and you processed an invoice with 10 pcs. After posted the invoice, you discovered that you should process 20 instead of 10 pcs.

To resolve this:

1. Cancel your processed invoice, which had a wrongly processed quantity of 10.
2. From Sales Order, process a new invoice (second invoice) with quantity 10. Do NOT post this invoice.
3. Go to the Sales Invoice; amend the quantity of this invoice to 20 pcs. You may post the invoice after amendment.

Now, your Sales Order should have a ship quantity of 20 and backorder quantity of 80. Your total quantity invoiced will be 20.

Scenario TWO: Over deliver

Assuming the Sales Order’s order quantity is 100 pcs and you processed an invoice with 10 pcs. After posting the invoice, you discovered that you should process 3 pcs instead of 10 pcs.

To resolve this:

1. Cancel your processed invoice, which had a wrongly processed quantity of 10.
2. Go to your Sales Order; change the Order quantity from 100 to 110. In this case, the backorder quantity will be back to 100 instead of 90.
3. Add an additional line item in your Sales Order for the item that was wrongly processed. The Order quantity for this item will be -10. Now, the total ordered quantity for this sales order will be back to 100 (110 – 10).
4. Process your Sales Order with the correct quantity of 3.

Assuming now you need to process the remaining 97 pcs. You process your Sales Order as:

Item          Order Qty      Ship Qty        

Item 1             110                     97

Item 1             -10                       0

Leave the ship quantity 0 for the negative order quantity item. Once Sales Order’s backorder quantity is fall below zero, the Sales Order will be closed and transferred to the Sold transaction.

Alternately, you may process every item (including the negative order quantity), but don’t post the invoice during process of Sales Order.  Go back to the processed invoice and remove the additional negative quantity from the invoice.

 

 

Receipts-for-Banking Holding Account

Software: MoneyWorks accounting software

For some businesses, such as retail business, you have lots of cash or credit card payment received daily.

It may not be practical for you to record as deposit for each receipt into the actual bank account, since you will only do a banking-in at the end of the day or once every few days. Hence, Bank Statement will show a lump sum rather than individual transacted amount of the receipt. If every cash receipt were to record into the actual bank account, then, you may have to do a manual calculation to total up the receipts in your MoneyWorks bank account so to check against the actual deposited amount in the Bank Statement during the Bank Reconciliation.

To resolve this, you can set a “suspense” Bank account to temporary hold the cash received and do a banking-in (lump sum) upon actual depositing of cash into the actual bank. In this case, the amount show in the MoneyWorks bank account will be same as the Bank Statement.

How to set a “Suspense” bank account?

From Show menu, select accounts. Then, click the “New” button to add a new bank account (example: Cash in transit, bank account type).

Next, go to the Bank Settings tab of the newly added bank account, example: Cash in transit, select the checkbox for “Receipts-for-Banking Holding Account”.

Reference: Page 38 of MoneyWorks User Guide, Bank Setting – Receipt-for-Banking Holding Account 

Assuming you created a new bank account, Cash in Transit, to receive all the cash from sales. You received two payments from credit customer, S$2,000.00 for payment one and S$3,500.0 for payment two. You deposited these two payments into Cash in Transit account.

The double entry for these two transactions will be:

Debit: Cash in Transit account

Credit: Accounts Receivable

Assuming, on the following day, you deposited the $5,000.00 of the cash received into our Actual Bank and remainder $500.00 will keep it as a Petty Cash.

Reference: Page 105 of MoneyWorks User Guide, The Banking Command

From the Command menu, select Banking. In the Banking Window, select Cash In Transit account from the “Deposit from” drop down list. Highlight the receipt you wanted to deposit, the total amount to be deposit will show in the “Amount Selected” field.

To split your selected amount into two accounts, Petty Cash and Actual Bank, you select the first “Transfer” checkbox and enter [ 500.00 ] into the entry box next to the first “Transfer” checkbox. Next, select the “Petty Cash” account from the “of cash to” drop down list.  In this case, you do not have any Bank Service Charge or Surcharge; so, leave the second checkbox unchecked. MoneyWorks will automatically update the “Net Deposit” to $5,000.00. Simply select your Actual Bank account at the “to”drop down list.

You may consider clicking the “Print” button to print your Deposit Slip. If not, click the Deposit button to save your transaction.

On the next window, MoneyWorks will prompt you to record your Transaction Date, Period, Description, and Analysis information (if any).

This transaction will be recorded as a Journal transaction type (Fund Transfer). The double entry for this transaction will be:

Debit: Actual Bank account

Debit: Petty Cash account

Credit: Cash in Transit account

This method is useful for user who needs to record lots of Cash or Credit Card transactions daily.

Join our training class to have a better understanding on how to apply MoneyWorks accounting software for your business.

 

 

Advance Payment to Supplier

Software: MoneyWorks accounting software

 

For those users who use the Purchase Order function in MoneyWorks, can select “Pay Deposit for Order” during process of Purchase Order to pay a deposit (advance payment) to your supplier.

As for those users who didn’t use Purchase Order function can consider to use the Payment method to pay a deposit (advance payment) to supplier.

Assuming you need to make an advance payment of $1,000.00 to ABC company from your Main Bank Account.

From MoneyWorks accounting software, create a new Payment transaction to ABC Company for the amount of $1,000.00 from the Main Bank. In this payment window, don’t select any account, item or invoices from Payment on Invoice tab.

When you try to save this payment transaction, MoneyWorks will prompt to enter Overpayment detail. You can use a Current Asset account (usually I will use Advance to Supplier account) to record this transaction. This is a suspense account that temporarily store the transaction.

 

There will be three transactions created:

 

Transaction One:

            Debit Accounts Payable:                               1,000.00

                        Credit Advance to Supplier:                         869.57

                        Credit GST Paid:                                            130.43

 

Transaction Two:

            Debit Advance to Supplier:                          869.57

            Debit GST Paid:                                             130.43

                        Credit Accounts Payable:                             1,000.00

 

Transaction Three:

            Debit Accounts Payable:                               1,000.00

                        Credit Main Bank Account:                          1,000.00

 

Transaction one and two are Purchase Invoice type, which are auto generated by MoneyWorks. Transaction Three is a Payment type, which you have created. GST Paid account was used because GST code was used in the Advance to Supplier account (Current Assets account).

You will see this Advance to Supplier transaction (as a Overpayment item) in your payment transaction window when you are making payment to your supplier. Thus, you can knock off this advance to supplier (deposit) with your actual bill received from this supplier or paid together with the balanced amount.

 

 

QuickBooks Payroll

Software: QuickBooks Canadian version

For Singapore user who uses the QuickBooks Canadian version, you can’t use the Intuit Payroll services (for Canada only).

However, if you only have a handful of staffs, you may consider using the Journal method which I mentioned in my earlier blog post or using the same method which I used in MoneyWorks accounting software. That is, using a Write Cheque method.

Example:

If John Tan’s salary is $2,000.00 per month, CPF Employer contribution is 16%, CPF Employee deduction is at 20% and CDAC deduction is $1.00 per month.

Then, in your Write Cheque window, Expenses tab:

Account	Amount
Salary (Expense)	2,000.00
CPF Employer Contribution (Expense)	320.00
CPF Payable (Current Liability)	-721.00

CPF Payable account is consist of 320.00 (CPF Employer at 16% of the salary), 400.00 (CPF Employee deduction at 20%) and CDAC deduction of $1.00 from the employee.

A negative value is needed in CPF Payable account for this case; this is to deduct the cheque amount and to credit the CPF Payable account.

The double entry for this case will be:

Debit Salary expense account at 2,000.00

Debit CPF Employer Contribution expense account at 320.00

Credit CPF Payable current liability account at 721.00

Note: QuickBooks is based on transaction date to update the account; you need to ensure the cheque payment date to staff is fall on the same month as the salary expense. If accrual is needed, then, Journal will be required to accrue the expenses to your current liability account.

When preparing cheque payment to CPF board, you will be using CPF Payable account. This will debit the CPF Payable account and credit the Bank account.