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Creating Supplier Debits in MYOB Premier

MYOB allows you to create supplier debits which represent amounts owed to you by your supplier.  If you have setup the account for which you are going to record your suppliers’ debit transactions, there is no need for you to create an account for this.  Otherwise, you need to create an account to link when entering supplier debit transactions.  These debits may represent the following:

  1. Purchase returns and allowances.
  2. Debits for damaged item deliveries.
  3. Other expense accounts, like cost of shipping damaged items to the supplier and the like.

In recording supplier debits, you have the following options to record adjustments for your purchases transactions with your suppliers:

  1.  Reverse the entire purchase transaction if the adjustment or debit pertain to the total amount of purchases.  To do this, go to the Purchases Register window and click on bills.  Select the purchase you want to delete by clicking on the purchase and then, go to Edit and choose Reverse Purchase and click on Record Reversal in order to save the reversal entry.  Please take note that transaction reversal option is activated only if you have setup in Preferences under the Security tab that “Transactions CAN’T be Changed; They Must be Reversed (System-Wide)” as per discussed in previous topic.  See screenshot of the window that appear below:

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 2. Prepare a manual debit entry if the amount for debit is just a portion of your purchase transaction with the supplier for item purchases.  To do this, click on Enter Purchases with Bill status.  Make sure you have set the bill layout to Item.   Fill in the necessary information on the bill for the supplier, date as well as the items for return.  However, you have to enter the quantity of the item as negative number.  After you have indicated the necessary fields to complete the supplier debit and click on Record to save.

Recording Supplier Debit for non-item Purchase transaction

If you are recording other transaction for supplier debit, like charging of a mailing account to your supplier, go to the Enter Purchases option of the Purchases main command centre and click on status as Bill.  Set bill Layout as Miscellaneous as per screenshot below:

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You have to choose the Miscellaneous layout to enable you to make account entries or account entries for which to charge the non-item supplier debit against your supplier.  Screenshot for the window is shown below:

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Clicking on the Miscellaneous layout allow you to enter Account to charge the supplier debit.  Click on Record to save the Miscellaneous bill entry.

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Take note that it is best practice to first confirm with your supplier or verify the existence of agreement with regards to purchase returns and allowances, miscellaneous expense charges to be charged against your supplier’s account.  Otherwise, recording those charges that are still subject to dispute, only to be waived in favor of the supplier would only mean time and effort wasted in recording these charges since you will end up making adjustment entries or reversing entries previously recorded to recognize the supplier debit.*

 

Paying Bills in MYOB Premier

In paying your supplier bills for inventory items purchases (those that you have inventoried for tracking purposes), you can use the following options to pay your supplier bills as follows:

1)    Pay Bills option under the Purchases main command centre to make the payment.  Once your supplier have billed you and you have accordingly entered the bill in the Purchase status, MYOB require you to use the Pay Bills option if you have recorded a bill. This feature enables you to apply payments to one or more outstanding bills.

2)    Bank Register option to pay one or more of your supplier’s bills.  However, you cannot record detailed information on this window for each payment you are going to make. Take note that entire payment is automatically matched and allocated against the earliest due bill when you use the Bank Register window to make supplier payments.

3)    To Do List window also allow you to pay one or more outstanding bills with just one click.

Paying Supplier Bills using Pay Bills Window:

Go to the Purchases main command centre and choose Pay Bills. Screenshot appear below:

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After clicking on the Pay Bills feature, the following screen appears before you have indicated the Supplier

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Once you have clicked on the Pay Bills feature, you have the option to change the memo, payment date and other fields as you may find necessary.  In the scroll list, you can find which bill or bills you want to apply the payment and select on the applicable bill/bills.  For the Amount Applied column, you indicate the amount of payment applied. Take note that when you are entering Pay Bills to record cheque payment and the check is already written and issued, you have to choose the Cheque Already Printed option which is located in the lower left hand corner of the Pay Bills window.

Paying Supplier Bills by using Bank Register Window

To pay one or more supplier bills using the Bank Register window, click on Banking main command centre and click on Bank Register.  Screenshot for the window appear below:

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Take note that in the Bank Register window the pay bill option is found in the lower left hand portion in the Type field. Screenshot of the window below shown for your reference:

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Choose the correct Type = Pay Bill.  Then indicate the name of the Supplier.  Once you indicate the supplier’s name in the drop-down arrow, the Outstanding A/P Balance amount automatically appear and select the applicable bills due to the supplier. If you are going to pay the amount as indicated in the Outstanding A/P Balance, indicate the amount of payment in the Amount field and fill in the other necessary information in its corresponding fields as follows:

Cheque No. – in case you have not activated automatic sequence of the cheque number or you are using another cheque number series, you need to manually indicate in this field.

Date – the date payment is made and this will also be the cheque date that will appear in the printing of the cheque.

Memo – if you are going to choose Type as Pay Bills, the memo field appear as “Payment; Supplier Name” otherwise, you have to change this field to suit the information you want to indicate other information you want to indicate.

Click on Record to save the Pay Bill transaction you have entered.

This pay bill transaction will now appear in the Bank Register window’s upper portion as per screenshot below:

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When you click on the white or grey zoom arrow beside the transaction, you are directed to the Payment details as follows:

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To print the cheque, click on the Print option on the bottom left portion of the Pay Bills window and choose the option that you want to print based on the available forms and format you want the cheque printed as taken up in the topic “Forms in MYOB Premier”.

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If you already have made and written the cheque to your supplier either manually or its done by your bank through check issuance arrangements and other options that don’t require you to print the cheques you have drawn and written and you are entering the Pay Bills transaction just to record it in MYOB, you have to indicate in the above window that “Cheque Already Printed”.

If you want to print remittance advice, click on Print Remittance Advice Pay Bills.  If you want to print the remittance advice in batch, you have to indicate in the field

Paying Multiple Bills using To Do List

MYOB allows you flexibility and powerful time-saving tool by allowing you to pay more than one bill at the same time for the same supplier in the To Do List window.

To do this, go to the To Do List which you can locate in the lower portion on any main command centre and then click on A/P option as per screenshot below:

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After clicking on A/P tab, details of the Outstanding Bills for the supplier will appear on the screen.  To apply the amount you are going to pay against the Bill, you click on the right-hand portion beside the Balance Due to indicate checkmark as per screenshot below:

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After indicating the bills you want pay, click on Pay Bills.  The next screen will prompt you to confirm the date of the transaction as per screenshot below:

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Click on OK to proceed or you may change the date to indicate the correct date then click OK.  The pay bills transaction is now recorded under one journal entry and you can view the transaction in the Bank Register window as follows:

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Now, you are able to know how enter multiple supplier bills with just a click away with MYOB Premier.

 

Changing Purchase Status in MYOB Premier

As mentioned in previous topics, MYOB Purchases feature give you flexibility and power-saving tool thus, designed to enable you to change from one status to another until such time that the final status- which is Bill is completed.  The Purchase status as follows:

  1. From a purchase quote to an order or bill
  2. From an order to a bill

As previously discussed in Purchases topic, entering and recording a purchase quote or an order does not generate or trigger a financial transaction in MYOB.  Thus, you need to convert a purchase status into a Bill in order to result in a payable transaction and an inventory transaction to be recorded in your MYOB company file.

Changing Purchase Quotes to Order or Bill

Go to the Purchases Register window of the Purchases main command centre and click on the Quotes tab.  In the Quotes tab, select the quote you want to change status.  If you are going to change the quote to an order, click on Change to Order.  If you are going to convert the quote in a bill, click on Change to Bill.  See screenshot below for your reference:

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If you are going to change status of a quote to an order, you can change the information contained like the unit cost, date and other necessary information to be modified and click on Record to save the changes.  See screenshot below for sample quote being changed into an order:

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If you want to change Quotes status to bill, go to the Quotes tab and click on Change to Bill as per screenshot below:

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Changing Purchase Order status to Bill:

MYOB also allows you to convert purchase order to a bill.  To do this, go to the Purchases main command centre and click on Purchases Register and choose Orders tab.  See screenshot below for the tab that appears:

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In the Bill window, you can make changes to other information fields like Date, Price, and other information. Click on Record  to save the changes and the Bill.

To Change Several Purchase Orders to Bill

As per previous topics, you can change Purchase status using the Purchases Register feature.   This time, you are going to use the To Do List window which is located in the lower portion on any main command centre.  See screenshot below for your reference:

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On the fields shown above, choose Orders tab.  Clicking on this field displays all the purchase orders placed with your supplier.  From among the orders displayed, select on the orders you want to change to bill by clicking on the right field beside the Amount column, just below the checkmark as shown per screenshot below:

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After you have selected the orders you want to convert into a Bill, click on Record as Actual.

When you click on Record As Actual, screen prompt will appear to confirm or change the date of the transaction as per screenshot below:

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After you have confirmed or changed the transaction date as you stated above click on OK to save the change from Order to Bill.

 

Receive Items while Creating Order and Creating Purchase Order from a Sales Quote or Order

You can enter or create an order while in the process of entering Receive Items if the items you receive previously have no quote or order previously entered.  To do this, you go to the Purchases command centre and choose Enter Purchases.  Now, in the Enter Purchases window, choose the status Receive Items and select the item you wish to receive.

In the Receive Items window, fill in the following fields:

1)    Purchase Date – the date of the purchase

2)    Order Number – enter the order number as new order number on this field.

3)    Ordered – in this field, indicate the quantity of the item you have entered which can be more than the item received.

4)    Received – in this field, indicate the quantity of the item you have received

5)    Item Number – select the item number from your existing item list by hitting right click and choose the item number.

6)    Location – if you have setup multiple inventory location, when you are doing purchase or sales for an item, location field automatically appear in the Purchases or Sales window.  Thus, you have to indicate the location of the items being received.

7)    Price – enter the actual or estimated price for the items.

After entering the necessary field information and items that need to be revised, click on Record.  As a result, inventory quantities are recorded and at the same time, purchase order has been created equivalent to the number of items received.  By the time you receive the supplier’s bill, you need to convert the order to a bill which is taken up in the next topic.

How to Create a Purchase Order from a Sales Quote or Sales Order

MYOB allows you to create a purchase order out of the sales quote or sales order you have previously recorded.  This being another powerful time-saving tool for you having to create a purchase order with the same details from the sales quote for the item to be ordered. This feature can also mean it allow you to “clone” your sales quote or sales order into a purchase order.  This is especially applicable if the item or items in the quote or order have low stock inventory level.  To start creating a purchase order from a sale document, go to the Sales Register feature of the Sales main command centre.  Screenshot of the screen appear below:

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If you are going to select from among the quotes, select the Quotes tab and choose the quote from which you are going to make a purchase order.  If you are going to select from among the orders, select the Orders tab and choose the order for which you are going to create a purchase order.  Screenshot of the Sales Register window below:

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For illustration purpose, assuming you are going to create purchase order from sales quote no. 001 previously entered for Customer Company for 1,000 units and for which the customer have confirmed in writing to proceed with the sale and you are running low on stock and would like to purchase from your supplier the same items you are going to sell for the same quantity in order to maintain the desired inventory balance.  Please take note that you have the option to change quantity of purchase order once you have created purchase order from your sales quote.

To create a purchase order from your previously recorded sales quote, click on Create PO after you have selected the sales quote for which you are going to create a purchase order which is located on the lower portion in the Quotes tab as per screenshot below:

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The Purchases window with Order status appear below:

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In the Purchases window field, the Purchase with Order status detail is automatically copies/cloned from the information you entered in your Sales window except for the supplier which will automatically appear if you have setup the supplier in the Item inventory detail.  You can also change information on the Purchase Order like the quantity of the item, any change on unit price, date of the order.

In case you have setup Multiple Inventory Location for your inventory items, you need to indicate the Item Location.  Otherwise, MYOB will prompt you to indicate location.  After you have made changes in the line items information, you proceed to save the new purchase order by clicking on Record.

Take note that a new purchase order document is created in this and the original sales quote remain as it was previously entered without any changes due to ‘cloning” or creating the purchase order using the previously entered sales quote.

 

 

Receipt of items or Receive Items without Supplier Bill or Invoice

Normally, suppliers send and deliver your purchased items together with a Bill or Sales Invoice.  However, if you have not yet received the Invoice but you have received the items, you need to record the receipt of the items if you keep track of the inventory and when you now need to sell the received items.  In this instance, you may or may not know the actual amount payable to the supplier but do need to record the receipt of the items to make them available for sale.  When there is no way for you to know how much is the amount of the received items, MYOB allows you to record the receipt of these items using a purchase transaction with a Receive Item status by entering an estimated purchase amount and the accounts payable linked to a temporary accrual or separate payable account specifically created for, as example, you create account “A/P – Receipts with no Invoices”. This temporary account payable account will be closed out when you receive the Bill from the supplier and you record the Bill or Invoice against the order.  Entering of the bill will result to the Accounts Payable entry for the purchase amount per bill.

How to Setup an accrual account for items received without a supplier bill or invoice

Go to the Setup feature and choose Linked Accounts and choose Purchases Accounts.  See Screenshot below for your reference:

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Choose the field “I Can Receive Items Without a Supplier Bill” by clicking on the left tick box before this field and link to the Liability Account for Tracking Payables.  You may choose the account Accounts Payable-Accrual Inventory or other account name to best describe the liability account you specifically setup for those items received without a supplier bill or invoice. Take note that you have to create this account as taken up in the topic “How to Create Accounts List (Chart of Accounts) in MYOB Premier.  After indicating the Liability link account, click OK. The following screen appear for the Linked Accounts – Purchase Accounts window:

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Please take note that you can enter Receive Items against an existing order which you have previously entered in MYOB, or when you record items received.

To enter Receive Items against a previously entered order in MYOB, you to have match it against the existing order.  To do this, go to the Purchases Register of the Purchases main command centre and select Orders tab to show all the Orders that are entered in MYOB and highlight on the tab you are going to match .  Screenshot of the screen that appear below:

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Once you have matched the Order for which the Items Receive pertains to, click on the Purchase status box Receive Item status and fill in the following fields:

  1. Received field – indicate the quantity of items received.
  2. Location – indicate this field if you have activated the multiple inventory location as per taken up in the topic Creating Multiple Inventory Locations

Click Record to save the changes from Order to Receive Items.

 

 

Purchases and How to Enter a Quote in MYOB Premier

MYOB allows you to enter Purchases under the normal purchasing procedures without having to enter a separate transaction for each step by using Purchasing Status.

Below the various purchasing status in MYOB and how it affect your MYOB company file:          

Purchasing Document and MYOB Status

 What is it

Effect to MYOB Financial Records

Quote A quote or estimate contains the details on price/quantity, terms and other information from your supplier/s pertaining to items you are going to purchase No effect to Inventory Levels and no effect on financial information except to record the price quoted or estimated by the supplier for goods or services you may want to purchase.
Order An order is the document you submit to the supplier for placing an order but items or service on order are not yet received They are included in inventory reports as in transit goods and have no effect on financial information.  However, if a deposit have been made for the order, a financial transaction arise.
Receive Items The document created when items or services contained in the order are received but not yet billed for by the supplier. Effect on inventory reports resulting from addition of inventory arising from order receipts. Receive items are entered when bill or invoice is not issued by the supplier.  Receive Items are recorded against Order.  Thus, an order is changed into Receive Items.  You use the Enter Purchases function of Purchases main command centre or Receive Items in the Inventory main command centre.
Bill The document created when items or services contained in the order are received arising to liability to pay the supplier/s Recording a bill give rise to the payable amount due to the supplier for tracking purposes.  As a result, a bill cannot be changed into a quote or order.  Otherwise, you have to delete the sale or reverse it

 

Please take note of the following general rules in entering Purchases or Purchase Status in MYOB:

  1. Quote can be changed into an order or invoice.
  2. Order can be changed into a bill but not into a quote
  3. Bill cannot be changed into a quote or an order.

How to Enter a Quote:

Go to the Purchases main command centre and click on Enter Purchases as per screenshot below:

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On the Enter Purchases window, you choose which document you want to enter as follows:

Quote

Order

Receive Items

Bill

 

See screenshot below to see the purchase status available:

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If you are entering a quote, select Quote  fill in the following fields:

  1. Supplier – indicate the name of the supplier making the quote in this field.
  2. Ship To Address
  3. Terms – terms for the purchase as quoted by the supplier should be indicated in this field.
  4. Quantity – indicate in this field the unit measure of quantity in this field.
  5. Item Number – indicate the number that is quoted by the supplier.  Item description automatically appear once you click on this.
  6. Item
  7. Price – the price quoted by the supplier
  8. Discount – the percentage discount by the
  9. Job – indicate the applicable job the purchase is applicable, if any.
  10. Tax – indicate the applicable tax as indicated in the quote.
  11. Comment – you can include comments and create new ones to serve as quick-comment.
  12. Freight – indicate the freight charge for this, if any, per the quote submitted by the supplier.
  13. Ship Via – this includes the shipping mode for the purchase as indicated by the supplier, whether by air, sea or land and what specific courier, if any.
  14. Journal Memo – memo is automatically default to “Purchase; supplier name” unless otherwise you indicate a different journal memo.

 

 

 

 

 

Mailing Labels in MYOB Premier

You have learned how to create contacts in MYOB as taken up in the topic How to create Card File in MYOB.  Aside from using the card or contact created for recording sales and purchases, you can also use the Card main command centre to print mailing labels for your customers.  This being another powerful time-saving tool for you as part of your periodic sending of statement of accounts, accounts receivable or accounts payable confirmation and other forms of correspondence that would require use of mailing labels.  This, you can do in MYOB.  Just ensure that the Card file you have in MYOB are updated and contain the latest important information from your contacts, like address, contact person, telephone number and the like.  Also, proper classification of your card file is needed as well as assignment of identifiers so that you get the right information at the right time.

Periodic updating of your card file is very important to achieve reliability of the information contained in your MYOB file.  For example, your supplier have changed its address as well as its telephone contact numbers.  You have to update this in MYOB file immediately so that use of the Card file become very efficient and relevant.

To get started to printing mailing labels

Go to the Card File command centre and click on Print Mailing Labels

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Screenshot of the Print Mailing Labels window appear below:

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The Print Mailing Labels window have the following fields:

1.    Card Type to be printed – you have to indicate the category of the card if you are going to print for Customer, Supplier, Employee or Personal card, or All types of card.
2.    Print number of mailing labels per card
3.    Advanced Filters – this field allows you to further filter the mailing labels by indicating appropriate option as follows:

3.1.         Card type – this allows you to make further filters

3.2.        Identifiers

3.3.        Last Contact date made for the Card selection made

3.4.        Recontact On/Before

3.5.        Postcode

3.6.        Select Form for Mailing Labels:

3.6.1.     3 up Mailing Labels

3.6.2.     2 up Mailing Labels

3.7.        Print Alignment Forms

3.8.        Customise – this feature allows you to further customise the form according to your requirement, like the size of the mailing labels you are going to use and other specific requirement.  To be able to further customise the form, you have to use the Tool Palette as taken up in the topic Forms in MYOB.

If you are going to mail your invoices to customers, you can opt to print sales invoice and labels at the same time when you print a batch of invoices using the Print/Email invoices function in the Sales command centre.  In this option, you can select to print a label for each invoice by going to Advanced Filters and you select the size and layout that best match your label sheets on hand in the List of Selected Form for Mailing Label.  After indicating the necessary requirements in the Advanced Filters field, click OK.  Before proceeding to Print, make sure the mailing label sheets are properly setup in your printer, properly aligned.

 

 

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