Please Note: From a support point of view it is our goal to provide a reasonable level of resources to assist everyone get to grips with the accounting fundamentals but there is a line we must draw to preserve the boundary between teaching everyday accounting tasks and taking over your accountant's position.

To preserve the relationship between you and your professional accountant we have established a boundary that we cannot help you in unless your accountant is involved.

Such boundaries include:

• Setting up your General Ledger
• Converting to GST on an Invoice Basis
• Managing an overseas currency account
• Processing Accrual Journal Entries
• Auditing your Accounts unless for a security reason.

In addition to this mandate we also recognize that if you are processing a complex transaction you should be in consultation with your accountant as their advice is invaluable.

Disclaimer
Any accounting advice, information derived, or procedure suggested should always be confirmed by your accountant. SoEasyAccounting.com Ltd nor any of its staff or associates accept any responsibility for inaccuracies in the information provided at any time and any advice should be used as a guideline only for discussion with an appropriate accounting professional.

• The Cash Book

When a payment or receipt is made in the Cash Book, the gst component is captured and provided on the GST Reports. This is a relatively simple GST reporting system as most people need only reconcile their cash book with their bank statement and achieve a relatively accurate result.

GST on an Invoice Basis

• Debtors ledger
• Creditors ledger
• Cash Book
• General Ledger Entries

Transaction in these four areas accumulate into the Accrual General Ledger and provide the reporting capabilities for reporting GST on and Invoice Basis.
 

Your Administration Staff should attend one of our certified courses on the Accrual System to gain a grounding in the subject. (Select here for details and booking)

If you are on GST on an Invoice Basis it is very important that you get your accountant involved in helping you set up your system appropriately as our general support staff are not qualified to assist you in this manner. We do have Accountants who can brief your accountant on the subject and there are accountant's web pages available for them to gain information from. Any assistance to set up the Accrual General Ledger is charged for separately.

By setting your system as NOT REGISTERED for GST, gst will not be calculated on any transactions entered into the system.

Non Tax Entities

All Tax references are eliminated from documents such as Quotations, Invoices and Statements.

Debtors

How to charge interest

Recommended Procedure

1. Find the client in the database
    
2. Select the Receipts Tab
    
3. Make sure you are on the client's account details
    
4. Make a journal entry

e.g.

and select OK

This charge will now appear on their next statement

You can also set this number, if no invoices/Quotes/Credit Notes have been created yet by going into Platform - Set up - Invoices - and select the button '1st Invoice Number'.

After this number is set, all numbering of Quotes, Invoices, and Credit Notes will be sequential.

Yes if you have not deleted the invoice (See 'Setting a different client for an Invoice')

No is all other circumstances. We keep all Invoice numbers as an audit history. There are Audit Trails so that all charge events can be traced.

When creating an Invoice, enter your manual Invoice number in the field identified as the hand written invoice.

SoEasyAccounting will still issue a unique Invoice number but the written Invoice number will also appear on the Invoice notes and on the client's statement.

We then sold it to a client

The situation is that you would have paid for the compressor through the Cash Book (or Creditor's ledger) and assigned it against a account code i.e. A-ASSETS

Solution

1   Create a GST invoice for the client for the compressor.
     Add the item as a NSI (Non Stock Item)

2   Close the Bill

3   Receive the payment when money received

4   Go to the Cash Book - Cash Account

5   Add the following transaction through the Cash-Book, Cash Account, to remove the asset value from the asset register

6  Add the following transaction through the Cash-Book, Cash Account, to transfer the asset to the Purchases account

This should now show your sales reduce because the original invoice increased sales and would be incorrect to leave it in this position, and you Long Term Assets reduce to reflect the sale of the item.

The transaction at step 5 would have increased the balance of the Cash on Hand account and then at step 6, it would have returned to the original value it was before these transactions were entered effectively creating a Journal Entry.

At the end of the year, when you print off reports for your accountants, the Asset report will show them the details of the asset sale and they will be able to process it accordingly.

1. Invoice yourselves for the item/s at nothing less than the normal cost price. This is a normal GST transaction.
    
2. Receive a payment on the invoice or if closed, through the normal receipting process, for the full amount.
   Payment in Cash to the Cash on Hand account.
    
3. Close the Invoice if not already closed
   This will identify where the stock item went and deduct the item/s from stock on hand. It will also place the cash on hand account in credit which must be resolved.
    
4. Cash on Hand Transactions required
   These transactions will depend upon the use that the items are being put to in your business:
   
   Consumables (e.g. Stationery)
   
   Long Term Asset (e.g. Car purchase)
    

This should now show your expenses/assets increase to accommodate for the acquisition, and your cash account reduce back to zero.

If you have actually paid the money to the creditor then there is nothing you need to do other than resolve the issue with the creditor either by a refund or just being in credit.

If you have not actually paid the amount then:

• Reduced the amount owed to the Creditor

• Reduced the Bank
• Reduced the Accounts Payable Account
• GST = increased the claim for GST

• Reduced the Bank
• Reduced the Accounts Payable Account
• GST = No effect

1. Make a new payment as follows:

• In the Creditors Module, select 'make a payment' as follows
• Amount = negative value of original payment e.g. -$2000.00
• Method = Cash
• Statement details = "Reversal of incorrect payment"
• Date = same as the original incorrect payment

2. The Cash Book will now have two entries.
No further action need be taken with them but be aware of them when performing your reconciliation of the bank accounts.

2. You could set up an account code for each staff member in the Cash Book, Accounts section or just one global account for WAGES such as A-WAGES.

example of an account created for each staff member

3. In the Creditors Module, for each staff member, set the standard account code to either the individual staff's account abbreviation (e.g. A-WAGPB) or if using one global account the appropriate account (e.g. A-WAGES)

4. Now load in the amounts due into the Creditors Module as if the Staff member was a creditor. IMPORTANT Make sure GST is set to NO for each entry. You will be prompted about the GST issue if you make a mistake.

5. When paying the staff member, be sure to pay them through the creditors module

Some improvement could be to add specific accounts in the Cash Book, Accounts section.

e.g.

Then load the amount due in the Creditors module as per the Wages section above.
If loaded in this manner make sure that when you pay the staff member their holiday pay that you pay it through the Creditors Module and do not just enter it into Cash Book.

You will still be able to Invoice new jobs for April but you will not be able to:

• Close new financial year invoices
• Add new financial year creditors
• Receive or pay new financial year transactions

 until the rollover is done.

If it is more than a few cents perform the following:

1. Go to The Cash Book Main Menu and select the Set up button
    
2. Select Test Data
    
3. Run the Check of System Stage 1 procedure
    
4. Once the procedure has checked all transactions you will be asked
   "Do you want me to Recalculate Account Values?"
   Select Yes
    
5. An analysis report will be offered. If any issues were found please print off the report
    
6. Reprint the Trial Balance report and see if it now balances

If the Trial Balance still does not balance please select this link contact us.
A consultant will be in touch to help you resolve the problem.

1. Take a backup
    
2. Print off the Debtors Aged Report
    
3. Print off the Creditors Report
    
4. Roll over your accounts

You will be able to re open your previous year's cash book, reconcile the accounts, and produce the EOY Reports by:

1. Go to Cash Book Main Menu
    
2. Select 'Set up'
    
3. Select 'Years'
    
4. 'View a Different Financial Year'
    
5. When asked to type in a password, use the one displayed
    
6. You can now edit the Cash Book

When complete, simply exit SoEasyAccounting. When you return you will be in the current year's transactions.

You can go into previous years Cash Book transactions at any time.

You will not be able to change any entries inside Platform whilst you are in a previous financial year.

Important!

A) The old year will no doubt create new closing balances that will need to be entered into the new year's (current year) opening balances.
 

procedure

Cash Book -Set up - Open balances - Select this button to load balances

B) If following this technique do not roll over the previous years accounts again.
 

• Open SoEasy and go into Cash Book
   
• Now select the close X button on the top right which will close the program down.
  Note: This is not the way to normally close the program.
   
• Go back into SoEasy and the values should be correct

When you crash out of SoEasy in this manner and go back in, the Bank Account values are all re-calculated. The EOY process can sometimes store the wrong opening balance values during the procedure and this technique resolves the issue.
We are looking into this.

The solution to this problem is:

1. Download the latest version so that it does not happen again

2. Open the Cash Book - Daily Entries screen

3. Select the Filter button (just next to the month selection buttons

4. In the dialog that appears set the filter as:

• Option = Un presented transactions
• Bank account = All accounts
• Period = April to March (or what every your financial period is)

5. Select OK

This will display all the un presented items.

6. Select each unpresented transaction with your mouse and select OK
    This will automatically correct the transaction.

7. When complete select a Month and the Main bank account buttons to reset the screen filter.

The overall result of this issue only affected the Bank Reconciliation report so no other changes are required.

The Bank Reconciliation is an independent audit of your accounts and when it looks for un presented items, it looks for anything that is un presented where as other reports only recognise an item as being un presented if it is a cheque.

1. Go to Cash Book - Set up - Years
2. At this screen you can select a Year
3. Make sure you select the right year you wish to review
4. When selected you will be asked if you want to edit the data.
5. If yes you must type in the displayed password

This function only allows you to view the cash book until you exit the program.

When you re enter SoEasy it will automatically revert to the current year,

1. Add the employee to the database as a client (or use Cash Sales)
2. Make up a GST Invoice for the vehicle.
3. Add a NSI Item to the Invoice for the vehicle.
4. Make the cost of the vehicle the book value at the time of sale
5. Make the RRP the price sold to the employee.
6. Treat the rest of the transaction as per a normal sale.

The effect of this is to increase sales.

Keep a copy of the invoice and present it to your accountant at the end of the year.
We will soon have the ability for you to post the transaction in the Accrual General Ledger but this is a complex transaction that should be left for a qualified accountant to process.

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