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Creditors/Cashbook/GST
What do I use as my opening
Cashbook balance, and where do I enter this?
Your opening Cashbook balance is your bank balance at the date you wish to start using the Cashbook, less any unpresented cheques outstanding on that day, plus any unlodged deposits. Once you have established the opening balance, you need to enter this in section 8.14 (Setup Options). If the opening balance is in overdraft, you will need to enter a negative in front of the total. Enter the same total in both period and year fields. After you have done this, you will need to load your initial unpresented cheques in section 8.13.6 (Initial Unpresented cheque Setup), and your unlodged deposits in section 8.5 (Enter Unpresented Deposits). Then run the report 8.11.5 (Cashbook Summary) and check that your bank balance is the same as the opening balance on the bank statement you wish to start with, prior to making any entries in the Cashbook. If you are using the General Ledger module, we strongly recommend that you perform a General Ledger Interface of your Cashbook after establishing your opening balances on the system and prior to imputing your current period's transactions. How can I pay only part of a balance owing to a creditor?
In section 3.3 (Make Payments to Creditors), you can select which invoices you wish to pay to a creditor, and the amount of those invoices. Alternatively, you can place on hold those invoices which you don't wish to pay, in sections 3.1 (Maintain Creditors) and 3.4 (Edit Transactions). Remember that you can enter 0 beside any invoice you don't wish to pay. What does placing a creditor or
invoice on hold do?
This will stop you from paying this invoice or creditor (depending on whether an invoice or the whole creditor was placed on hold) until you have released the hold feature. This avoids having to remember each invoice you don't wish to pay due to an overcharge or similar. How do I put a creditor on hold?
You can place a creditor on hold when you are entering an invoice in section 3.2 (Enter Invoices/Credits), by entering Y in the hold field. Or you can place one or more invoices on hold in section 3.1 (Maintain Creditors), by entering the creditor code and selecting O for hold. You are then asked if you would like to change the hold flag for this creditor -- if you answer Y, you will place the whole creditor account on hold (or if it is already on hold, you will take it off hold). If you enter N, you will be taken to a screen showing you all unpaid transactions -- enter a Y beside all invoices you wish to place on hold. These will remain on hold until you change the Y to N. How do I enter credit notes?
You enter credit notes the same way as you enter credit invoices, in section 3.2 (Enter Invoices/Credits), except that the amount is negative. How can I ensure that all my
creditor invoices are processed as received when I still have the previous
month's invoices coming in?
On the first day of a new month, perform a Creditors Period End (section 3.15). This will result in your current period (0) being for all this month's invoices, and period 1 being for any invoices that need processing for the previous calendar month. This way you should never have a problem with unprocessed invoices. When I am looking for an invoice
in Creditors, how do I know whether to look under Transactions or History?
If an invoice is in the current period, or it is unpaid, it will appear under Transactions; when an invoice has been paid, it will appear in History. When paying by direct credit, do I
present the direct credit -- and if so, for what date?
When paying by direct credit you should present the direct credit at the same time, with the date being today's date, as you will be processing this with your banking software to be paid today. However, if you are doing a DC for processing to the bank at a future date, you may wish to leave the DC as unpresented and then present it on the actual day of payment. What should I do if I processed a
payment with the incorrect cheque number?
First, find out the cheque number you entered into the system in error -- look in section 8.4 (Maintain Creditors), or in section 3.1 (Maintain Creditors) under Cheques. Go into section 8.2 (Enter Non-creditor Payments/Receipts), and enter the creditor code, date etc. In the amount field, enter the amount you paid as a negative amount (e.g. -150.00). cheque `Y'es, description `to reverse for incorrect cheque number'. Change the cheque number to equal the same cheque as was incorrectly used when paying this creditor, and present this cheque. Enter the creditor code again (in non-creditor payment batch) and process as above, only with a positive amount (e.g. 150.00), cheque `Y'es. Enter the correct cheque number when required. Ensure that you have used the same Cashbook code as the previous negative payment. Then (to ensure your Cashbook balances), go into Present Cheques and present the first cheque that you originally processed incorrectly. The end result should be that the first cheque number (the incorrect one) has been processed as both a positive and a negative amount (of the same size), and both have been presented -- the net effect is zero; and the correct cheque number has been processed against the correct creditor. You can check this under 3.1 or 8.4 Maintain Creditors, Q for Cheques.
OR Delete the cheque under main option 8.13.13 or 3.13.13.
How can I analyse my creditor
invoices?
When you enter creditor invoices, you can analyse the total to several Cashbook codes (or General Ledger codes, if you have this module). In the main Setup, you are asked if you wish to be able to `Code to multiple Cashbook codes' -- answer Y to this question. Note: This option is only accessible from the main SETUP found under Main Option 14.14, password = SETUP. How can I analyse a non-creditor
cheque payment in the Cashbook?
Use section 8.12 (Enter Cheques). How do I present two or more
portions of the same cheque?
If you have used the same cheque number twice, you will need to present both portions of the cheque, e.g. the $40 and $60 parts in the example above. In section 8.3 (Present Cheques), enter the cheque number to present. The amount of the first portion of the cheque will display; press `P' to present it. Then enter the cheque number again; it will show as presented. Enter `N' for Next, and you will be taken to the second portion of the cheque; enter `P' to present it. Continue as required until all parts of the cheque are presented. What do I do if I can't get my
Cashbook to reconcile?
Good luck! What do I do if I have a bounced
cheque/receipt?
Firstly, you need to be aware of what you need to achieve:
Firstly, the Cashbook. Enter the amount of the bounced cheque in your receipt batch (8.2), as a negative receipt. This will reduce your bank balance, therefore making your reconciliation balance. It will also correct the Cashbook figure of Debtors banking. Then go into section 1.2 (Client Payments Received). You need to enter a negative payment received here, to bring the debtor's account balance back to what he/she actually still owes you. Note: At the end of every month, the debtor's banking in the Cashbook should equal the Client Payments Received in Debtors. Otherwise you have credited a debtor's account for money you did not actually receive, or banked money from a debtor and not reduced this amount accordingly. What do I do if I have a creditor
cheque written out for one amount, but it was processed as a different
amount?
After you establish that the cheque was written out for $60 instead of $50 in error (i.e. it was not a bank error), you need to process a payment to the creditor for the extra $10 to the same cheque number that you used. If you actually owe the creditor money, i.e. at least $10, then you are OK; however, if you do not actually owe them more than the $50 processed, you are not able to process a payment when there is no money owing. So, you need to enter a creditor batch in section 3.2 (Enter Creditor Invoices/Credits) and enter a `dummy' invoice for the amount you need to pay. You will also need to enter `dummy' credit for the exact amount. These two entries need to be coded to the same place, with N for GST. The net result of this is zero. Then you need to make a creditor payment through 3.3 (Make Payments to Creditors) for the $10, even though their balance says nil owing, as there are two entries unpaid -- one invoice, and one credit note. This will let you pay the invoice of $10, using the same cheque number as before. You will need to go into the Cashbook (8.3, Present/Delete Cheques) and present both portions of the cheque, i.e. the $50 and the $10. Present one, then call the same cheque up again -- enter `N' for Next and it will show you the second payment with the same cheque number; present that as well. Now your bank reconciliation should balance, and your creditor's account should also be correct. What do I do if I processed a
cheque for one amount, but wrote the cheque out for a different amount?
The creditor's account needs to be increased by $10; the bank balance needs to be decreased by $10. In the Creditors module,
through 3.2 (Enter Creditor Invoices/Credits), process a `dummy' invoice to
the creditor for the $10 underpaid. In
section 8.2 (Enter Non-creditor Payments/Receipts), enter in a negative batch
and payment for the creditor code used above, for the same amount as the
`dummy' invoice. Use the same Cashbook code as you did above, cheque `Yes',
and use the same cheque number as before. Finally, present both portions of the cheque, i.e. the $100 and the -$10. Now the creditor balance has increased by the underpaid amount, the Cashbook reconciles with your bank balance, and the dummy invoice and the negative cheque contra to nil. How do I cancel a Cashbook cheque?
You can delete the cheque under main option 8.13.13 or 3.13.13. What is the difference between GST
Payments basis and GST Invoice basis?
You need to ensure that your GST section is set up for the correct basis. Refer to your GST return for the correct basis for your firm. Payments basis This calculates your GST return
according to what you have received into your Cashbook (bank) and what you
have paid out of your Cashbook. Therefore, for every receipt or payment you
enter through the Cashbook, you must indicate the amount of GST on the
deposit; this will then put the transaction in the GST module. Any payments
you make via Creditors will also take the GST on the invoices you have paid,
and enter this as a GST transaction in your GST module. At the end of your
GST period, print out your GST Summary and Transaction report, then perform your GST Period End update. Invoice basis This method calculates your GST
according to what you charge out to clients and what you owe your creditors,
regardless of whether you have been paid by the client or have paid the supplier.
ReesEasy will calculate the GST on your invoices for the period, and will
enter this in your GST module when you perform your Debtors Period End
update. GST on supplier/creditor invoices is added to the GST module at the
Creditors Period End update. Non-creditor payments or receipts entered in the
Cashbook that are not from your Debtors banking, but that are subject to GST,
must be entered into the Cashbook with the GST module at your Cashbook Period
End. It
is important that you do not enter your Debtor receipts into your Cashbook
with a GST amount in the GST column, as the GST has already been calculated
on these via the Debtors module. At the end of your GST period you may need
to keep your GST module open for a few days in the next period, to ensure
that you pick up the supplier invoices that often arrive in the first week of
the new month. If you choose to do this you will not be able to do your
Creditor Period End, or perform any Cashbook transactions for the new period,
until these invoices have been entered. What do I do if I overpaid a creditor in error or prepaid a
creditor? How do I also deal with the
creditor refund?
If you need to
prepay a creditor, or have overpaid more than is owed to a creditor. Under 3.2 Enter
Creditor Invoices/Credits, against the creditor enter a dummy invoice and a
dummy credit for the amount prepaid/overpaid.
Code both transactions to the same cashbook/general Ledger code. Pay the creditor as normal, ensuring that
the dummy invoice is included in the paid amount, but not the dummy
credit. This will leave the creditor
with a credit balance. If the credit balance is later refunded,
when you receive the refund go into the creditor payment section (3.3 or 3.1
– a for Pay) and pay the dummy credit – this will create
a dummy credit payment. Present this
payment when it appears on the bank statement. (NB We recommend
that you always bank non-debtor receipts separately to other payments
received.) How does the Purchase
order module link to creditors?
When a purchase order is received the goods go into
stock, you can; with setting the option under 3.14 Creditors Setup Options;
select to also enter the creditor invoice into the system at the same time
using the purchase order receipt screen.
However if you don’t have the invoice or choose not to use this option
when a purchase order is receipted the system automatically creates an
unmatched packing slip against the creditor (supplier) for the amount of the
goods/services received. When the creditor invoice is received, you should
match the invoice to the unmatched packing slip in Rees2000. To do this you have select options, but the
most commonly used is to enter the creditor in 3.2 Enter Invoices/Credits and
enter a number, say 1, in the PO field, this will bring up all the unmatched
packing slips for this supplier. You
should be able to match the invoice to the packing slip concerned with no
dollar difference. If the amount of
the packing slip varies from that on the invoice, look at the order under
3.11.10 to investigate were the variance lies. Correct the stock cost, etc as necessary
when you have established whether the creditor invoice or the packing slip
was the correct record. How do I cancel a Cashbook cheque?
To cancel a cheque or delete an existing cheque that
was entered incorrectly, follow the exact steps you did to enter the cheque
in section 8.12 (Enter Cheques); except enter the amount as a negative in the
total column.. Make sure you enter the same Cashbook
code, and specify the payment as a cheque payment with the same cheque number
as before. Then present both portions of the cheque, i.e. the
positive and negative cheque amounts, in section 8.3 (Present Cheques).
This will not affect your bank balance, as the two amounts will cancel each
other out. To give a client a refund,
enter the refund as a negative payment in this section. i.e A
client’s account has a credit balance of $100, under 1.2 Client Payments
Received, in a batch, enter the client’s code, and in the amount field under
$-100.00, if you are refunding the money from cash in your till, enter pay
method 2 – Cash, if refunded by Cheque, pay method 9 Other. If the client you wish to refund does not have a
credit balance, then most likely you have no entered the client’s credit note
for returned goods etc under 4.1 Enter
Invoices/Credits. If the client refund is by cheque and you are using
the Cashbook module, process the cheque under 8.12 Enter Cheques/DCs
ensure the cheque is coded to the same cashbook code as your normal debtor’s bankings (usually Cashbook code 1). |
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