A Step by Step Approach to Maintaining Asset and
Inventory Records using MYOB AccountRight Plus v19
and MYOB AssetManager Pro v3.5
Copyright Notice:
Copyright ©2010 Software Publications Pty Ltd. All rights reserved.
No part of this material may be reproduced or copied in any form or by any means (graphic, electronic or
mechanical, including photocopying or by information retrieval systems) without permission in writing
from Marian Brown.
Originating Author:
Marian Brown Dip T [Commerce], MICB
BAS Agent
Cert IV Workplace Training and Assessment, Cert IV in Financial Services [Bookkeeping]
MYOB Certified Consultant for 15 years, BAS Agent
MYOB Accredited Author, MYOB Publisher, MYOB Accredited Trainer
MBS Training Services Pty Ltd
[email protected]
www.mbsts.com.au
Revised August 2010:
Cindy Drew, Dip Teach, B Ed., MICB
BAS Agent
Cert IV in Financial Services [Bookkeeping]
MYOB Certified Consultant 10 years
MYOB Accredited Trainer
MYOB Developer
Training and Business Services Pty Ltd
www.tabs.com.au
Publishers:
Software Publications Pty Ltd [ABN 75078026150]
Head Office – Sydney
Unit 10, 171 Gibbes Street
Chatswood NSW 2067
Phone:
Web address:
1 800 146 542
www.softwarepublications.com.au
ISBN 978-1-921780-03-5
Printed September 2010
FNSACCT406B Maintain asset and inventory records
© Software Publications Pty Ltd 2010
A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB AccountRight v19 – Table of Contents
i
Copyright/Trademark Information:
MYOB®, MYOB AccountEdge®, MYOB AccountRight Standard™, MYOB AccountRight Plus™, MYOB
BusinessBasics™, MYOB FirstEdge®, MYOB M-Powered®, MYOB M-Powered Services™, MYOB M-Powered
Bank Statements™, MYOB M-Powered Invoices™, MYOB M-Powered MoneyController™, MYOB M-Powered
Payments™, MYOB ODBC Direct™, MYOB PowerPay®, MYOB AccountRight Premier® and MYOB AccountRight
Enterprise® and MYOB AssetManager Pro, are registered trademarks or trademarks of MYOB Technology Pty Ltd and
their use is prohibited without prior consent. Ceedata, Solution 6 MAS and Xlon are registered trademarks or
trademarks of Solution 6 Holdings Limited, a member of the MYOB group.
Bpay® is a registered trademark of Bpay Pty Ltd, ABN 69 079 137 518.
MasterCard® is a registered trademark of MasterCard International Inc.
Microsoft, Access, Excel, Internet Explorer, Office, Outlook, Smart Tags, Windows and Word are registered
trademarks or trademarks of Microsoft Corporation in the United States or other countries.
VISA® is a registered trademark of Visa International Service Association.
Other products mentioned may be service marks, trademarks or registered trademarks of their respective owners.
Screen captures from MYOB AccountRight Plus v19 reproduced with permission.
Limitations of Liability:
This material is designed to provide basic information on how to use MYOB AccountRight Standard/AccountRight
Plus v19. Because business circumstances can vary greatly, the material is not designed to provide specific GST or
business advice for particular circumstances. Also, because aspects of the GST are complex and detailed, the material is
not designed to comprehensively cover all aspects of the GST. Further, the laws implementing GST and rulings and
decisions under those laws may change.
Before you rely on this material for any important matter for your business, you should make your own enquiries about
whether the material is relevant and still current, and whether it deals accurately and completely with that particular
matter; and as appropriate, seek your own professional advice relevant to that particular matter.
This information is for the general information of MYOB clients and is not to be taken as a substitute for specific
advice. Consequently Software Publications Pty Ltd will accept no responsibility to any person who acts on information
herein without consultation with Software Publications Pty Ltd.
The information in this book is relevant to MYOB AccountRight Plus v19 and AssetManager Pro v3.5. Earlier or later
versions of MYOB software could change the instructions in this workbook.
Please note:
The information in this workbook is accurate at the time of revision [August 2010] only. Because legislation and
associated websites are constantly changing, url’s and screen dumps of websites in this workbook may have changed.
ii
Table of Contents – A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB AccountRight v19
© Software Publications Pty Ltd 2010
Notes on Stock Cards
In a manual accounting system, each inventory item will have a separate “Stock Card” [or “Inventory
Ledger Card”].
In this workbook, you will keep the Stock Cards for the following items.
44
Unit 3 Stock Cards – A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB v19
© Software Publications Pty Ltd 2010
! Setting up a Stock Card and entering the opening balance
Printed below is a Stock Card which you will use in this workbook.
Stock Item Number:
PSPAC3
Unit Quantity:
Location: [could be entered]
Purchases
Date
Stock Item Name PALER Accounting V3
Each
Cost of Goods Sold
Balance
Details
Unit
Unit
Cost
Total
Cost
Unit
Unit
Cost
Total
Cost
Unit
Cost
Unit
Total
Cost
Details of Columns:
Date:
Date of Transaction
Details:
Purchase, Sale, Return or Adjustment
Unit:
No of items purchased, sold or balance on hand
Unit Cost:
Cost per unit [excluding GST] of the purchase, sale or balance.
Total Cost:
Number of units multiplied by unit cost.
Opening Stocktake figures: 1/month
Item Number:
Number on Hand:
Cost ex GST:
PSPAC3
1
$325.00
The above stock figures will be entered on the above stock card like this:
Purchases
Date
Units
1 Month
Cost of Goods Sold
Balance
Details
Balance
© Software Publications Pty Ltd 2010
Unit
Cost
Total
Cost
Units
Unit
Cost
Total
Cost
Unit
Cost
Units
1
325.00
A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB v19 – Unit 3 Stock Cards
Total
Cost
325.00
45
Entering transactions on this Stock Card
Transaction:
6 month
Bought 5 PALER Accounting V3 @ $325.00 plus GST each.
Your Stock Card would now look like this:
Cost of Goods Sold
Purchases
Date
Balance
Details
Unit
Cost
Unit
2 Month
Balance
6 Month
Purchases ex
GST
5
Total
Cost
325.00
Unit
Cost
Unit
Total
Cost
Unit
Cost
Unit
1,625.00
Total
Cost
1
325.00
325.00
6
325.00
1,950.00
You now have 6 on hand @ $325 each.
Transaction:
8 month
Sold 2 PALER Accounting V3 @ $400.00 plus GST.
Your Stock Card would now look like this:
Purchases
Date
Cost of Goods Sold
Unit
Cost
Unit
2 Month
Balance
6 Month
Purchases
8 Month
Sales
5
Total
Cost
325.00
Unit
Cost
Unit
Total
Cost
2
325.00
Transaction:
650.00
Total
Cost
1
325.00
325.00
6
325.00
1,950.00
4
325.00
1,300.00
You now have 4 on hand
10 month
1 PALER Accounting V3 was returned. Credit for $400 plus GST
was given.
Your Stock Card would now look like this:
Purchases
Date
Unit
Cost
Unit
1,625.00
This column records the COST of the item sold, NOT THE
SELLING PRICE.
Cost of Goods Sold
Balance
Details
Unit
Cost
Unit
Total
Cost
Unit
Cost
Unit
2 Month
Balance
6 Month
Purchases
8 Month
Sales
2
325.00
10 Mth
Return
-1
325.00
TOTALS
5
325.00
Total
Cost
Total
Cost
325.00
325.00
6
325.00
1,950.00
650.00
4
325.00
1,300.00
-325.00
5
325.00
1,625.00
1,625.00
$1,625.00
Unit
Cost
Unit
1
$325.00
This column records the COST of the item returned, NOT
THE CREDIT GIVEN.
46
Balance
Details
Unit 3 Stock Cards – A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB v19
$1,625.00
You now have 5 on hand
© Software Publications Pty Ltd 2010
Entering the transactions in the General Ledger
You will now look how these transactions would be recorded in your General Ledger.
Transaction:
1 month
Opening Balance – 1 PALER Accounting V3 @ $325.00.
Transaction:
6 month
Bought 5 PALER Accounting V3 @ $325.00 plus GST each on credit.
Transaction:
8 month
Sold 2 PALER Accounting V3 @ $400.00 plus GST each on credit.
Transaction:
10 month 1 PALER Accounting V3 was returned. Credit for $400.00 plus GST.
In a manual General Ledger, the above transactions would be entered as follows during the month.
Trade Debtors
Date
Month
Particulars
Ref
8 Sales
10 Return
Debit
Credit
Balance
880.00
880.00
440.00
440.00
Inventory Account
Date
Particulars
Month
Ref
1 Opening Balance
6 Purchases [5 @ 325.00 ex GST]
Debit
Credit
Balance
325.00
1,625.00
30 Total cost of sales on Stock Card
325.00
1,950.00
325.00
$1,625.00
Trade Creditors
Date
Particulars
Month
Ref
Debit
6 Purchases [5 @ 325 plus GST]
Credit
1,787.50
Balance
$1,787.50
GST Collected
Date
Month
Particulars
Ref
8 Sales
10 Return
Debit
Credit
Balance
80.00
80.00
$40.00
40.00
GST Paid
Date
Month
Particulars
Ref
6 Purchases
Debit
Credit
Balance
162.50
$162.50
Sales Account
Date
Month
Particulars
Ref
8 Debtor [ex GST]
10 Return [ex GST]
Debit
Credit
Balance
800.00
800.00
$400.00
400.00
At the end of the month, the Cost of Sales column on the Stock Card would be totalled and entered
in the General Ledger [PRINTED IN BOLD]
Cost of Goods Sold Account
Date
Month
Particulars
30 Total cost of sales on Stock Card
© Software Publications Pty Ltd 2010
Ref
Debit
Credit
Balance
325.00
A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB v19 – Unit 3 Stock Cards
$325.00
47
Trial Balance would look like this:
TRIAL BALANCE
As at end month
Trade Debtors
Inventory
Trade Creditors
GST Collected
GST Paid
Capital [opening stock figure]
Sales
Cost of Sales
Debit
440.00
1,625.00
Credit
1,787.50
40.00
162.50
325.00
400.00
325.00
$2,552.50
$2,552.50
The Profit and Loss would look like this:
PROFIT AND LOSS STATEMENT
For the month of ?
Sales
400.00
Less Cost of Sales
325.00
Gross Profit
$75.00
The Balance Sheet would look like this:
BALANCE SHEET
As at ??
Assets:
Trade Debtors
Inventory
440.00
1,625.00
Less Liabilities
Trade Creditors
GST Collected
GST Paid
1,787.50
40.00
-162.50
Net Assets
Owner’s Equity:
Capital
Plus Net Profit
48
2,065.00
1,665.00
$400.00
325.00
75.00
Unit 3 Stock Cards – A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB v19
$400.00
© Software Publications Pty Ltd 2010
! Stock Card exercise 1
You are required to enter the following transactions on the Stock Card below.
Transaction:
1 month
Opening Balance – 8 PALER Accounting V3 @ $400.00.
Transaction:
3 month
Sold 3 PALER Accounting V3 @ $700.00 plus GST each.
Transaction:
8 month
Bought 5 PALER Accounting V3 @ $400.00 plus GST each.
Transaction:
10 month 1 PALER Accounting V3 was returned. Credit for $700.00 plus GST
given.
Purchases
Date
Cost of Goods Sold
Balance
Details
Unit
Unit
Cost
Total
Cost
Unit
Unit
Cost
Total
Cost
Unit
Unit
Cost
Total
Cost
Assigning Cost of Stock
Suppose the following transactions happened.
Transaction:
12 month
Bought 3 PALER Accounting V3 @ $380.00 plus GST each.
[Different buying price]
Transaction:
15 month
Sold 12 PALER Accounting V3.
You now have the problem of “What is the Cost Price?”, when the buying price is different.
AASB 102 (paragraph 9) states that “inventories shall be measured at the lower of cost and net
realisable value”. Net realisable value is the estimated selling price less any estimated selling
expenses necessary to make the sale.
When accounting for imports, the purchase price of the items should also include customs duty,
wharfage, freight and associated costs. [Paragraph 11]
@
Go to www.aasb.com.au and search for “AASB 102 Inventories” and print a copy.
© Software Publications Pty Ltd 2010
A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB v19 – Unit 3 Stock Cards
49
Assigning Cost of Stock [continued]
“AASB 102 Inventories” permits the following cost formulas for assigning cost:
1
Standard Cost is primarily used by manufacturers who set a predetermined price for
inventory items. This price must be reviewed often. [PARAGRAPH 21]
2
The Retail Method is often used in the retail industry for measuring inventories of large
numbers of rapidly changing items with similar margins for which it is impracticable to use
other costing methods. [PARAGRAPH 22]
3
Specific identification where each individual item of inventory is identified with its
specific cost. For example a car sales yard can identify the cost of each car and can
therefore assign the specific cost when the car is sold. [PARAGRAPH 23]
4
First in – first out [FIFO] where items of inventory that were purchased first are sold first
and consequently the items remaining in inventory at the end of the period are those most
recently purchased. [PARAGRAPH 25]
5
Weighted Average where the cost of each item is determined from the weighted average
of the cost of the item at the beginning and the cost of the item purchased.
[PARAGRAPH 25]
! Using FIFO and Weighted Average cost formula
You will now enter the 2 transactions on the previous page using FIFO and Weighted Average to
demonstrate how these methods work.
Transaction:
12 month
Bought 3 PALER Accounting V3 @ $380.00 plus GST each.
[Different buying price]
Transaction:
15 month
Sold 12 PALER Accounting V3.
USING FIFO COST FORMULA
Purchases
Date
Unit
Cost
Unit
1 Month
Balance
3 Month
Sales
8 Month
Purchases
10 Month
12 Mnth
Cost of Goods Sold
Balance
Details
Total
Cost
3
5
400.00
-1
3
380.00
400.00
Total
Cost
1,200.00
2,000.00
Return
Purchases
Unit
Cost
Unit
400.00
-400
1,140.00
Unit
Cost
Unit
Total
Cost
8
400.00
3,200.00
5
400.00
2,000.00
10
400.00
4,000.00
11
400.00
4,400.00
11
3
400.00
380.00
4,400.00
1,140.00
When FIFO is the cost formula used, the Balance column must list all the values eg the
business has 11 on hand @ 400 and 3 on hand @ 380
15 Mnth
Sales
11
1
400.00
380.00
4,400.00
380.00
2
380.00
760.00
When FIFO is the cost formula used, you must sell the oldest item first ie sell the 11 @ 400
first, then sell 1 @ 380 – first in – first out.
50
Unit 3 Stock Cards – A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB v19
© Software Publications Pty Ltd 2010
USING WEIGHTED AVERAGE
Purchases
Date
Unit
Cost
Unit
1 Month
Balance
3 Month
Sales
8 Month
Purchases
10 Month
12 Mnth
Cost of Goods Sold
Balance
Details
Total
Cost
3
5
400.00
-1
3
380.00
400.00
Total
Cost
Unit
1,200.00
2,000.00
Return
Purchases
Unit
Cost
Unit
400.00
-400
1,140.00
Unit Cost
Total
Cost
8
400.00
3,200.00
5
400.00
2,000.00
10
400.00
4,000.00
11
400.00
4,400.00
14
395.71
5,539.94
When using weighted average the new cost price is calculated like this:
On hand
Purchased
11
3
Total
14
x
x
400.00
380.00
= 4,400.00
= 1,140.00
?
= 5,540.00
Weighted average = 5,540 divided by 12 = 395.71 [rounded to 2 decimal places]
15 Mnth
Sales
12
395.71
4,748.52
2
395.71
791.42
When WEIGHTED AVERAGE IS USED, a new weighted average is calculated when the
items are purchased and put into stock. When an item is sold, the weighted average cost is
used.
.
SUMMARY AFTER TRANSACTIONS
Cost Formula
Cost of Sales of 12 PALER Accounting
Stock on Hand after Sale
FIFO
$4,780.00
$760.00
Weighted Average
$4,748.52
$791.42
The inventory method used in MYOB Accounting is “WEIGHTED AVERAGE”.
This method cannot be changed.
In MYOB Accounting, the cost here is ALWAYS “WEIGHTED AVERAGE”.
More expensive accounting packages allow the user to choose either “Weighted Average” or “FIFO”.
© Software Publications Pty Ltd 2010
A Step by Step Approach to Maintaining Asset and Inventory Records using MYOB v19 – Unit 3 Stock Cards
51