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SBSCC MYBOS
Accounting Software
Guides
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Contents
Table of Contents
Chapter 1: First Steps .........................................................................................................................................................................................7
Initial Setup .......................................................................................................................................................................................................7
Add a new business..................................................................................................................................................................................................................................7
Name or rename a business .................................................................................................................................................................................................................8
Enter business details ..............................................................................................................................................................................................................................9
Set base currency....................................................................................................................................................................................................................................10
Define foreign currencies.....................................................................................................................................................................................................................12
Set number format.................................................................................................................................................................................................................................14
Set date format........................................................................................................................................................................................................................................15
Set first day of week ..............................................................................................................................................................................................................................16
Backup, restore, import, and transfer businesses.......................................................................................................................................................................16
Remove a business.................................................................................................................................................................................................................................19
Users.................................................................................................................................................................................................................20
Create users ..............................................................................................................................................................................................................................................20
Summary .........................................................................................................................................................................................................23
Customize a business............................................................................................................................................................................................................................23
Simplify MYBOS.......................................................................................................................................................................................................................................28
Set reporting period ..............................................................................................................................................................................................................................30
Choose between accrual or cash basis accounting...................................................................................................................................................................30
Set and display account codes ..........................................................................................................................................................................................................32
Exclude zero-balance accounts from Summary page ..............................................................................................................................................................34
Clear transactions in Suspense account.........................................................................................................................................................................................34
Close an accounting period................................................................................................................................................................................................................38
Set lock date .............................................................................................................................................................................................................................................39
Chapter 2: Structuring Accounts ....................................................................................................................................................................41
Chart of Accounts...........................................................................................................................................................................................41
Design a chart of accounts..................................................................................................................................................................................................................41
Build a chart of accounts......................................................................................................................................................................................................................44
Add an account .......................................................................................................................................................................................................................................53
Delete an account...................................................................................................................................................................................................................................54
Set up accounts receivable .................................................................................................................................................................................................................55
Set up accounts payable......................................................................................................................................................................................................................56
Set and display account codes ..........................................................................................................................................................................................................56
Add custom control accounts............................................................................................................................................................................................................58
Capital Accounts.............................................................................................................................................................................................62
Set up and use capital accounts .......................................................................................................................................................................................................62
Use capital subaccounts.......................................................................................................................................................................................................................64
Common Business Situations........................................................................................................................................................................65
Simplify equity accounting for sole traders / proprietors.......................................................................................................................................................65
Set up business as a self-employed services provider .............................................................................................................................................................66
Tracking Codes ...............................................................................................................................................................................................72
Use tracking codes.................................................................................................................................................................................................................................72
Correct missing tracking codes .........................................................................................................................................................................................................74
Special Accounts.............................................................................................................................................................................................75
Use special accounts..............................................................................................................................................................................................................................75
Avoid automatic credit allocations with special accounts ......................................................................................................................................................79
Starting Balances............................................................................................................................................................................................82
Set start date ............................................................................................................................................................................................................................................82
Enter starting balances .........................................................................................................................................................................................................................83
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Chapter 3: Customizing a Business.................................................................................................................................................................90
Business Logo .................................................................................................................................................................................................90
Add or change a business logo.........................................................................................................................................................................................................90
Custom Fields..................................................................................................................................................................................................91
Use custom fields....................................................................................................................................................................................................................................91
Add an image to a custom field........................................................................................................................................................................................................96
Add custom fields for individual line items ..................................................................................................................................................................................96
Move a custom field on transaction forms...................................................................................................................................................................................99
Themes ..........................................................................................................................................................................................................101
Change the look of forms with themes .......................................................................................................................................................................................101
Customize themes ...............................................................................................................................................................................................................................106
Set a theme for customer or supplier statements...................................................................................................................................................................108
Change a form title..............................................................................................................................................................................................................................109
Change fonts in custom themes.....................................................................................................................................................................................................110
Include calculations in custom themes........................................................................................................................................................................................111
Add line numbers to themes ...........................................................................................................................................................................................................112
Add page numbers to PDFs of custom themes........................................................................................................................................................................114
Adjust recipient information to fit windowed envelopes .....................................................................................................................................................115
Include or exclude OVERDUE and PAID IN FULL stamps on sales invoices ...................................................................................................................115
Form Defaults ...............................................................................................................................................................................................116
Set form defaults..................................................................................................................................................................................................................................116
Chapter 4: Program Features ........................................................................................................................................................................120
Learn the Program .......................................................................................................................................................................................120
Experiment with a test business .....................................................................................................................................................................................................120
Common Procedures....................................................................................................................................................................................121
Create non-inventory items .............................................................................................................................................................................................................121
Use reference numbers......................................................................................................................................................................................................................124
Apply a discount to a line item .......................................................................................................................................................................................................125
Enter a discount as a separate line item......................................................................................................................................................................................126
Clone transactions and reports.......................................................................................................................................................................................................127
Use the Copy to function ..................................................................................................................................................................................................................128
Use HTML code in fields....................................................................................................................................................................................................................129
Perform calculations in number fields..........................................................................................................................................................................................130
Copy lists and reports.........................................................................................................................................................................................................................132
Use compact mode on small screens...........................................................................................................................................................................................133
Journal Entries ..............................................................................................................................................................................................134
Make journal entries ...........................................................................................................................................................................................................................134
Set up and manage recurring journal entries............................................................................................................................................................................136
Write off bad debts .............................................................................................................................................................................................................................138
Tax Codes ......................................................................................................................................................................................................141
Create and use tax codes ..................................................................................................................................................................................................................141
Choose between tax-exclusive and tax-inclusive prices .......................................................................................................................................................148
Work with multi-component custom tax codes.......................................................................................................................................................................151
Reverse charge VAT (Value Added Tax) ......................................................................................................................................................................................155
Archive tax codes .................................................................................................................................................................................................................................158
Adjust tax accounting for partial personal use .........................................................................................................................................................................159
Batch Operations..........................................................................................................................................................................................161
Use Batch Create and Batch Update functions.........................................................................................................................................................................161
Use the Batch Delete function.........................................................................................................................................................................................................164
Search and Sort.............................................................................................................................................................................................165
Search for records................................................................................................................................................................................................................................165
Sort lists and tables .............................................................................................................................................................................................................................169
Attachments..................................................................................................................................................................................................171
Attach supporting documentation................................................................................................................................................................................................171
Organize attachments with folders ...............................................................................................................................................................................................173
Standard Reports..........................................................................................................................................................................................177
Create reports........................................................................................................................................................................................................................................177
Collapse account groups in financial reports............................................................................................................................................................................180
Issue customer statements ...............................................................................................................................................................................................................181
Issue supplier statements..................................................................................................................................................................................................................184
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Create sales invoice reports .............................................................................................................................................................................................................187
Create a budget ....................................................................................................................................................................................................................................193
Prepare a quick profit and loss statement..................................................................................................................................................................................196
Custom Reports ............................................................................................................................................................................................201
Create custom reports........................................................................................................................................................................................................................201
Emails.............................................................................................................................................................................................................209
Email transactions and reports........................................................................................................................................................................................................209
Attach files to emails sent from MYBOS......................................................................................................................................................................................212
Use email templates............................................................................................................................................................................................................................213
View email...............................................................................................................................................................................................................................................215
Troubleshoot email issues ................................................................................................................................................................................................................216
PDFs ...............................................................................................................................................................................................................217
Create PDF files of transactions and reports .............................................................................................................................................................................217
Audit history .................................................................................................................................................................................................217
Audit transaction history...................................................................................................................................................................................................................217
Chapter 5: Cashbook......................................................................................................................................................................................220
Cash and Bank Accounts..............................................................................................................................................................................220
Set up a cash account.........................................................................................................................................................................................................................220
Set up a bank account........................................................................................................................................................................................................................221
Set up credit cards ...............................................................................................................................................................................................................................224
Reconcile bank accounts...................................................................................................................................................................................................................226
Use multiple currencies......................................................................................................................................................................................................................229
Convert a bank or cash account into the other type..............................................................................................................................................................231
Cash and Bank Transactions........................................................................................................................................................................234
Record a receipt....................................................................................................................................................................................................................................234
Record a payment................................................................................................................................................................................................................................237
Track cleared and pending status of bank transactions........................................................................................................................................................240
Import bank statements ....................................................................................................................................................................................................................242
Use bank rules to categorize imported transactions..............................................................................................................................................................245
Make cash sales (sell without sales invoices).............................................................................................................................................................................248
Make cash purchases (purchase without purchase invoices)..............................................................................................................................................249
Record customer deposits and advances ...................................................................................................................................................................................249
Record supplier deposits and advances......................................................................................................................................................................................251
Pay a refund............................................................................................................................................................................................................................................253
Exchange inventory .............................................................................................................................................................................................................................254
Find and recode receipts and payments.....................................................................................................................................................................................257
Record early payment discounts on receipts for sales invoices.........................................................................................................................................259
Record early payment discounts on purchases........................................................................................................................................................................262
Handle dishonored cheques............................................................................................................................................................................................................265
Create receipts or payments from customer or supplier statements...............................................................................................................................269
Inter Account Transfers ...............................................................................................................................................................................271
Transfer money between bank and cash accounts .................................................................................................................................................................271
Post inter account transfers from imported bank statements............................................................................................................................................273
Expense Claims .............................................................................................................................................................................................276
Use expense claims..............................................................................................................................................................................................................................276
Set up expense claim payers............................................................................................................................................................................................................281
Chapter 6: Accounts Receivable ...................................................................................................................................................................283
Customers .....................................................................................................................................................................................................283
Enter customers ....................................................................................................................................................................................................................................283
Edit or add customer information .................................................................................................................................................................................................285
Set starting balances for customers..............................................................................................................................................................................................287
Use customer codes............................................................................................................................................................................................................................288
Manage inactive customers .............................................................................................................................................................................................................288
Sales Quotes..................................................................................................................................................................................................289
Create sales quotes .............................................................................................................................................................................................................................289
Sales Orders ..................................................................................................................................................................................................293
Create sales orders ..............................................................................................................................................................................................................................293
Sales Invoices................................................................................................................................................................................................296
Create sales invoices ...........................................................................................................................................................................................................................296
Set up and manage recurring invoices ........................................................................................................................................................................................301
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Issue your first invoice to a customer...........................................................................................................................................................................................304
Offer early payment discounts on sales invoices.....................................................................................................................................................................309
Resolve overpaid status on invoices .............................................................................................................................................................................................310
Resolve issues with automatic credit allocations.....................................................................................................................................................................312
Account for withholding tax (tax withheld at source)............................................................................................................................................................315
Assess late payment fees ..................................................................................................................................................................................................................323
Refresh unit prices on sales invoices ............................................................................................................................................................................................327
Offset simultaneous sales and purchase invoices ...................................................................................................................................................................328
Credit Notes ..................................................................................................................................................................................................329
Use credit notes for customer returns and refunds................................................................................................................................................................329
Billable Time .................................................................................................................................................................................................332
Record billable time ............................................................................................................................................................................................................................332
Add billable time details with custom fields ..............................................................................................................................................................................335
Invoice billable time ............................................................................................................................................................................................................................335
Write off or write down billable time............................................................................................................................................................................................338
Billable Expenses ..........................................................................................................................................................................................339
Record billable expenses...................................................................................................................................................................................................................339
Invoice billable expenses...................................................................................................................................................................................................................341
Write off or write down billable expenses...................................................................................................................................................................................346
Chapter 7: Accounts Payable ........................................................................................................................................................................348
Suppliers........................................................................................................................................................................................................348
Enter suppliers.......................................................................................................................................................................................................................................348
Edit or add supplier information ....................................................................................................................................................................................................349
Set starting balances for suppliers.................................................................................................................................................................................................352
Use supplier codes...............................................................................................................................................................................................................................353
Manage inactive suppliers................................................................................................................................................................................................................354
Purchase Quotes...........................................................................................................................................................................................354
Create purchase quotes or requests for quotation.................................................................................................................................................................354
Purchase Orders............................................................................................................................................................................................357
Issue purchase orders.........................................................................................................................................................................................................................357
Purchase Invoices .........................................................................................................................................................................................360
Create purchase invoices...................................................................................................................................................................................................................360
Set up and manage recurring invoices ........................................................................................................................................................................................365
Add freight-in to inventory item costs.........................................................................................................................................................................................368
Account for withholding tax (tax withheld at source)............................................................................................................................................................372
Adjust rounding differences on purchase invoices.................................................................................................................................................................380
Resolve overpaid status on invoices .............................................................................................................................................................................................382
Resolve issues with automatic credit allocations.....................................................................................................................................................................384
Offset simultaneous sales and purchase invoices ...................................................................................................................................................................387
Debit Notes ...................................................................................................................................................................................................389
Use debit notes for supplier returns and refunds....................................................................................................................................................................389
Chapter 8: Inventory ......................................................................................................................................................................................392
Overview........................................................................................................................................................................................................392
Manage inventory - Part 1 Introduction......................................................................................................................................................................................392
Manage inventory - Part 2 Continuation ....................................................................................................................................................................................402
Manage inventory - Part 3 Conclusion ........................................................................................................................................................................................409
Inventory Items ............................................................................................................................................................................................415
Create and manage inventory items.............................................................................................................................................................................................415
Use inventory kits.................................................................................................................................................................................................................................418
Set starting balances for inventory items ...................................................................................................................................................................................420
Find and merge duplicate inventory items ................................................................................................................................................................................422
Inventory Transfers ......................................................................................................................................................................................424
Add inventory locations.....................................................................................................................................................................................................................424
Transfer inventory between locations ..........................................................................................................................................................................................425
Inventory Adjustments ................................................................................................................................................................................426
Write off inventory...............................................................................................................................................................................................................................426
Write on inventory...............................................................................................................................................................................................................................428
Delivery Notes ..............................................................................................................................................................................................430
Create delivery notes ..........................................................................................................................................................................................................................430
Goods Receipts .............................................................................................................................................................................................433
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Create goods receipts.........................................................................................................................................................................................................................433
Production Orders........................................................................................................................................................................................436
Use production orders to manufacture inventory items.......................................................................................................................................................436
Manage production stages ..............................................................................................................................................................................................................438
Understand insufficient quantity on a production order......................................................................................................................................................443
Use production orders for repairs, maintenance, or improvements ................................................................................................................................448
Chapter 9: Payroll...........................................................................................................................................................................................449
Employees .....................................................................................................................................................................................................449
Enter employees ...................................................................................................................................................................................................................................449
Pay employees.......................................................................................................................................................................................................................................451
Payslips..........................................................................................................................................................................................................454
Set up payslip items ............................................................................................................................................................................................................................454
Issue payslips .........................................................................................................................................................................................................................................458
Set up and manage recurring payslips ........................................................................................................................................................................................461
Chapter 10: Asset Registers...........................................................................................................................................................................464
Fixed Assets...................................................................................................................................................................................................464
Purchase fixed assets ..........................................................................................................................................................................................................................464
Expense fixed assets............................................................................................................................................................................................................................467
Depreciate fixed assets.......................................................................................................................................................................................................................469
Calculate depreciation automatically ...........................................................................................................................................................................................471
Dispose of fixed assets.......................................................................................................................................................................................................................475
Migrate fixed assets from prior accounting system................................................................................................................................................................476
Intangible Assets ..........................................................................................................................................................................................479
Purchase intangible assets................................................................................................................................................................................................................479
Amortize intangible assets ...............................................................................................................................................................................................................482
Calculate amortization automatically...........................................................................................................................................................................................484
Dispose of intangible assets ............................................................................................................................................................................................................487
Migrate intangible assets from prior accounting system .....................................................................................................................................................489
Chapter 11: Advanced....................................................................................................................................................................................493
Application Data...........................................................................................................................................................................................493
Manage application data folder contents ..................................................................................................................................................................................493
Reduce data file size............................................................................................................................................................................................................................493
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Add Business
Summary
Chapter 1: First Steps
These Guides will get you started, providing information on how to manage businesses and users, set initial preferences applying to all
businesses, and choose the functional modules and accounting method you will initially use. (You can always add more or change later.)
Guides about localizing MYBOS for your country are also found in this group.
Initial Setup
Add a new business
Adding a new business to MYBOS is simple. After you have downloaded, installed, and launched the program on your computer or
accessed it via a web browser, go to the tab, click , and select Create New Business in the dropdown box:
Enter the Business Name you want to appear in your list of businesses and click :
A page for your added business will appear. Four universal tabs will be activated, because all businesses need them:
Businesses
Add Business
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Businesses
Settings
Business Details
Note
When the data file of a business is opened directly in the desktop edition rather than by selecting the business in the
Businesses tab, that business is not added to the list. The list on the Businesses page contains only those
businesses stored in the application data folder. See this Guide for additional information.
Caution
MYBOS will not prevent adding or importing businesses with identical names. To avoid confusion, such as when
renaming and restoring a backup file by eliminating the date stamp, consider removing other businesses with the same
name from the Businesses tab first. (See instructions in another Guide.)
Caution
While matching names are often convenient, the business file name is not used by the program in the same way as the
business trading name. A properly entered business trading name will remain fixed through data backups, restorations,
and transfers. It will appear on transaction forms and reports no matter what business file name is used. The business file
name, however, changes when a backup is made, with addition of a date. This feature allows you to determine which
version of a business data file is in use.
Now you can:
• Customize capabilities to meet your needs
• Build a chart of accounts
• Use other features described in the Guides
Name or rename a business
You can name or rename a business for any reason, including:
• Initial setup
• Change of formal business name
• Change of trading name
• Removal of date stamps from backup files
There are two, independent aspects of naming:
• Setting the business file name that appears in MYBOS’s tab
• Setting the business or trading name on transaction forms, such as sales invoices, receipts, purchase orders, etc., and on statements
and reports.
Set the business file name
When a business is first added to MYBOS using the
button, a dialog box allows you to enter the business name under
which all data for the business will be accessible. You can enter the formal legal name, a trading name, or something short and convenient.
This name should be something that allows you to distinguish the business from others in the
Set the business trading name
tab.
Go to :
Add Business
Businesses
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Update
Update
Note
If no business trading name is entered, MYBOS will use the business file name as the trading name.
Note
Changing either a business file or business trading name affects no accounting data. Nor does it change data file names of
prior, existing backups or the trading names they contain.
Enter your desired name in the Business Name field:
Rename a business
The trading name of an existing business can be changed at any time following the same procedures described above for initial naming.
Click to save the new trading name.
A business file name, under which the business appears in the
name at the top of the MYBOS window:
tab, can be changed by clicking beside the business
Edit the business file name and click . This step has no effect on the trading name unless one has not been entered.
Enter business details
To customize sales invoices, cash receipts, purchase orders, and other transaction forms, click
in the tab:
Enter information you want to appear on transaction forms:
Businesses
Rename
Business Details
Settings
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Notes
If you included information in the separate Business identifier field of older versions of MYBOS, that content was not
discarded, even though the separate field no longer exists. The information was appended in the Address field and appears
on transaction forms in the same location.
The fields will accept HTML code. So you can modify the appearance of your form headers without creating a custom
theme.
Example
The simple use of the HTML <br> tag in the Business Identifier field of the illustration above adds a line break to what
would otherwise be a closely spaced entry. The address information shown on the left appears on transaction forms as at
the right:
• Business Name is the name you operate the business under. This does not necessarily need to be the same as your legal business
name. Nor does it need to match the business name used to identify your accounting file in MYBOS.
• Address will usually contain your address, phone number, email address, and so forth. It might also contain a business dentifier,
such as a tax identification number, banking number, or other type of information.
Set base currency
By default, MYBOS operates without any designated currency. No currency symbols are displayed on forms or reports. If your business
operates entirely in a single currency, this may be sufficient. You can, however, set a base currency. You must set a base currency if you will
designate foreign currencies for:
• Bank accounts
• Cash accounts
• Expense claims
• Customers
• Suppliers
• Employees
• Journal entries
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Settings
Base Currency
Update
Note
Many reports do not include currency designations to reduce clutter, because they are always presented in your base
currency.
Caution
Do not use the Decimal places field to control rounding preferences. Use it only to define characteristics of your base
currency.
• Special accounts
To set a base currency, go to the tab, then click :
Define your base currency:
• Code will be used to abbreviate the currency in various fields throughout the program where multiple currencies may be available.
Normally, this will be a three-letter standard code.
• Name is the full name of the currency.
• Symbol is the designator for the currency that will appear on completed transactions when viewed.
• Decimal places is prefilled as 2 by default. If your base currency uses more or fewer decimal places, change the number here.
Click to activate your base currency.
All existing accounts and subaccounts will automatically be denominated in the base currency. Transaction forms will now display the
appropriate symbol for the currency.
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Settings
Foreign Currencies
Note
Establishing or changing base currency has no impact on numerical values previously entered in MYBOS. No currency
conversions are computed.
Define foreign currencies
MYBOS allows you to define foreign currencies. These can include national currencies, cryptocurrencies, or customized forms of
exchange. (All are referred to as foreign currencies within the program and treated similarly. The terminology is used for all currencies that
are not the base currency.) Once a base currency and at least one foreign currency are defined, you can designate currencies for:
• Bank accounts
• Cash accounts
• Expense claims
• Customers
• Suppliers
• Employees
• Journal entries
• Special accounts
To define a foreign currency, go to the tab, then click :
Define the foreign currency:
Example
Brilliant Industries sets its base currency to the Australian dollar:
A representative transaction shows the result:
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Update
Caution
Do not use the Decimal places field to control rounding preferences. Use it only to define characteristics of the foreign
currency itself.
Example
Brilliant Industries sets its base currency to the Australian dollar. But it also defines the Euro:
A representative transaction shows the result:
• Code will be used to abbreviate the currency in various fields throughout the program where multiple currencies may be available.
Normally, this will be a standard, three-letter code.
• Name is the full name of the currency.
• Symbol is the designator for the currency that will appear on completed transactions when viewed.
• Decimal places is prefilled as 2 by default. If your base currency uses more or fewer decimal places, change the number here.
Click to activate the foreign currency.
For all transactions where the context makes it appropriate, the option will now exist to choose the currency. Transaction forms using it will
now display the appropriate symbol for the foreign currency.
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Preferences
Set number format
In MYBOS, you can set the number format to match your culture or local business practices. Number format options include digit
grouping, decimal mark, and group size.
In the tab, click Number format link:
Note
Establishing or changing a foreign currency has no impact on numerical values previously entered in MYBOS. No currency
conversions are computed.
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Update
Preferences
Update
Note
Number formats apply globally to all businesses created in MYBOS. In some previous versions of the program, they could
be set individually, by business.
In the dropdown box on the screen that appears, choose your format and click :
Set date format
In MYBOS, you can customize the date format to match your culture or local business practices. Date options include day, month, and year
format and order.
In the tab, click the Date Format link:
From the dropdown box that appears, choose your format and click .
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Update
Set first day of week
The first day of the week, as shown in pop-up calendars used to select transaction dates, due dates, and so forth, can be chosen to match
the usual practice at your location or your personal preference.
Click on the
heading:
tab at the top of the MYBOS window, then the day of the week currently in use under the First Day of Week
Select the desired day from the menu:
Click to save the change. Pop-up calendars will now display in the new format:
Backup, restore, import, and transfer businesses
Accounting data for businesses in MYBOS can be backed up, restored, and transferred using a backup file. A backup for a business stores all
information necessary to completely recreate its accounting records, including transactions, customer and supplier information, inventory
status, reports, attachments, as well as custom themes and settings. Using backups, you can:
• Recover data after it is lost, as when a storage drive fails
• Recover data from an earlier time, for example, before someone began making entry errors
Note
Date format is a global preference affecting all businesses. In some prior versions of the program, date formats could be set
individually, by business.
Preferences
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Businesses
Backup
• Transfer data between computers
• Build redundant data caches
• Migrate data to different editions of the program (desktop, server, or cloud)
A backup includes data of only one business. If you have multiple accounting entities, each must be backed up separately. If desired, these
backups can be to separate locations. And a single business can be backed up to multiple locations.
Making a backup
As long as new accounting data is being recorded, backups should be made frequently. A general guideline is to back up your data often
enough that you would be willing and able to re-enter recent data to bring your records up to date. For high-volume businesses, that
realistically means backing up at least daily. For lower-volume entities, weekly or monthly backups might suffice, as long as necessary
records would be available if data loss occurs.
Creating a backup file is very simple. Under the
unnecessary if you are already within the business.)
tab, click on the name of the business you are backing up. (This step is
Then click the button at the top right of the MYBOS window. The default backup will include all attachments, emails, and history
for the business. You will have the option to exclude any or all of these by unchecking boxes:
The backup file will automatically be assigned the name of the business as it appears on the Businesses page and will contain a date
stamp to indicate when the backup was created. This file name can be edited. Click Backup to save the business. Depending on your
operating system, the software will offer to save the backup file somewhere on your local drive. Generally, you should choose a different
location.
You should store backups separately from your computer. That way, if the computer fails, the backup will remain intact. Choose an
appropriate backup medium and location, considering cost, convenience, and the value you place on your accounting data (including the
effort required to recreate it). For protection from hazards or theft, the backup should aso be kept at a separate physical location. Some
possibilities include:
• USB flash drive
• External drive
• Network-connected drive
• Writable CDs or DVDs
• Cloud storage service (e.g., Dropbox, OneDrive, or iCloud)
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Note
The business name at the top of the MYBOS window retains the same date stamp as the backup file you imported. But
forms and reports in the data file keep the trading name entered at Settings
Business Details . This can be
useful for differentiating versions of restored businesses. If you do not want the date stamp to show, you can rename the
data file either before or after importing it to remove the date stamp.
Importing or restoring from backup
Import or restore a business from backup (there is no difference) under the
Import Business:
tab by clicking and selecting
To import a business, click
select the file:
, browse to the location of your stored backup or other business data file you want to import and
Click to complete the process. You will be returned to the tab listing your businesses. In this illustration,
a backup of Northwind Traders from 2016 has been imported:
Click on the imported business to open it so you can verify it was restored properly:
Businesses
Add Business
Choose File
Import Business
Businesses
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Add Business
Businesses
Remove Business
Remove Business
Caution
New versions of MYBOS can open files created by older versions of the program. But sometimes, in doing so, they modify
the data structure to incorporate new features. Therefore, older versions of the program cannot necessarily import and
open backups from newer versions of the program. Therefore, be sure all versions of the program on all machines
involved in data transfers are the same. And be aware, if transferring to or from the cloud edition, the cloud edition is
automatically updated.
When data files are very large, a progress bar shows the percentage of a file that has been imported.
Transferring data
A backup file can also be used to transfer accounting data between computers or editions of the program. The
exactly the same way on any platform. Follow these steps:
1. Choose a backup destination accessible to all computers involved in the transfer.
2. Back up the business to the backup destination.
button works
3. Install MYBOS on the computer to which the data is being transferred, or access the server or cloud edition of the program via a
browser on that machine.
4. Use the function to import the business to the new computer’s or browser’s list of businesses.
Remove a business
After terminating a business or restoring one from backup, redundant or unneeded business names may appear in the
tab.
These can be removed. Go to the tab and click :
Select the business to be deleted in the dropdown box and click :
Caution
MYBOS will not prevent adding or importing businesses with identical names. To avoid confusion, such as when
renaming and restoring a backup file by eliminating the date stamp, consider removing other businesses with the same
name from the Businesses tab first. (See instructions in another Guide.)
Backup
Businesses
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Users
New User
Examples
•
•
•
•
•
Accounting personnel might have full access to all tabs and functions.
Sales staff might only be able to create customers and generate sales quotes.
A production MYBOS might be able only to view inventory status and create production orders.
Only partners might be able to view Capital Accounts .
Human resources personnel might be given access only to
Employees .
Users
Create users
Users are discrete identities authorized to log into a business hosted in either the server or cloud editions of MYBOS. They are granted
permissions by an administrator consistent with their assigned duties.
Create an administrator user
Administrators have full access to everything. They can create new users, set permissions for existing users, enable new tabs, and adjust
settings. To set up a new administrator, go to the tab:
Click . Enter the administrator’s Name, Username, and Password. Select Administrator in the dropdown box for Role:
Note
Removing a business name does not delete the business, which is not stored in the application. It only removes its name
from the Businesses list. The business’ complete data file will remain in the application data folder. But, inside the
application data folder, it will be transferred to the Trash sub-folder. To completely eliminate the business, it must be
deleted from there.
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Create
Users
Click .
Create a restricted user
Restricted users have limited authority within a single business or multiple businesses. You can control not only what they can see, but also
what they can do, in great detail. Typically, you should create most new users as restricted users. When creating a restricted user, select
Restricted user in the Role field. Then select businesses they should have access to.
When restricted users are created, you will see them under the tab with the names of businesses they are allowed to see:
By default, restricted users will have full access to each business listed under their name. If you would like to restrict their access within a
business, click on the business name under their name and in the User Permissions field, change Full access to Restricted access.
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Reports
Settings
Note
MYBOS will not, in general, prevent an administrator from creating duplicate users. However, the program will highlight
duplicates in red to help find and correct problems:
This will reveal new options to further control what the user can do and see.
A Permitted Actions dropdown box will appear, offering a range of choices. Below the Permitted Actions field, tabs enabled for the
business will be listed. Check boxes to assign permissions:
If the tab is checked, a list of reports for active tabs will show. Check reports you want the user to see:
If is checked, a list of settings applicable to enabled tabs will appear. Choose those the user should be able to modify:
When a user logs in, she or he will only see tabs for which permission has been granted:
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Summary
Bank Accounts
Summary
Customize a business
MYBOS has capabilities for all types of business entities, including:
• Corporations (companies owned by shareholders, whatever they may be called)
• Partnerships (owned jointly by two or more, but without issued shares)
• Sole traders/proprietors
• Trusts
• Social clubs
Many of MYBOS’s capabilities are not needed by all users; nor are they necessary for every business model or operating approach. Select only
the capabilities you need by enabling functional tabs. Necessary entry forms, data fields, reports, and (in certain cases) built-in accounts
required to fully use enabled tabs will become available automatically. Things you don’t need won’t clutter your screen or the program.
Here are brief descriptions of MYBOS’s available tabs:
provides an overview of position and performance by displaying the Balance Sheet for the current date and the Profit and Loss
Statement for a selectable period. The display can be set for accrual or cash basis accounting.
is for setting up any form of monetary exchange managed by a financial institution, including bank accounts, credit cards,
online payment systems, and cryptocurrencies.
is where repositories for physical money are set up, including petty cash funds, cash boxes, and tills.
Cash Accounts
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Receipts & Payments
Inter Account Transfers
is where payments from and receipts to all bank and cash accounts are entered. All money entering or leaving the
business must be recorded in this tab.
is where transfers between bank and cash accounts are recorded. Both the originating and destination
accounts can be either bank or cash accounts. In an inter-account transfer, no funds enter or leave the business.
allows creation of reconciliation statements for bank accounts and attachment of supporting documents.
Bank Reconciliations
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Expense Claims
Customers
Sales Quotes
Sales Orders
Sales Invoices
records expenses incurred by people on behalf of the business. These include (1) actual expenses paid with personal
funds, which in other circumstances could have been purchased directly with company funds and allocated to appropriate accounts, and (2)
allowances based on rates rather than actual expenditures but deductible from income under local law.
is where you set up businesses, organizations, or individuals to whom you will sell on credit by issuing sales invoices. This tab
is not required if you plan to sell only to buyers who pay immediately. But it is necessary if you want to track transaction history with a given
customer.
lets you offer goods or services at defined prices and terms. Strictly speaking, sales quotes are not accounting transactions
and have no financial or inventory impact. So this is another optional tab. Sales quotes can be renamed as offers, estimates, proposals, pro
forma invoices, or anything else to fit practices in your industry.
provides an optional way to record orders from customers, usually for internal purposes. Sales orders do not involve actual
provision of services, movement of inventory, or payment of money. They can be used for a variety of purposes: internal manufacturing or
fulfillment planning, documentation of agreed pricing, customer communication, or as drafts of purchase or sales invoices.
is where you record the sale of goods or services to a customer and make demand for payment. Sales invoices increase
the balance of the customer’s subaccount in Accounts receivable and, therefore, are used when selling on credit. If all sales will involve
immediate receipt of money, this tab is not necessary.
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Late Payment Fees
Delivery Notes
Purchase Quotes
Purchase Orders
Purchase Invoices
Debit Notes
lets you record return of goods by a customer or a credit adjustment (refund) to a customer’s account for goods or
services previously delivered. It can be used only when the
been issued.
tab is enabled and usually only when a sales invoice has already
records fees automatically assessed on overdue sales invoices when those have been selected as an option. The tab
also allows direct, manual addition, editing, and deletion of late payment fees.
generates documentation to accompany delivered goods. Delivery notes can be used as packing lists, delivery route
instructions, or confirmations of receipt. It is also used to record movement of inventory when multiple inventory locations exist.
is where you set up businesses, organizations, or individuals from whom you will buy on credit using purchase invoices.
Subcontractors are included in this category. This tab is not required if you plan to pay immediately for all purchases, even if the seller sends
you a bill or invoice. But it is necessary if you want to track transaction history with a supplier.
lets you send unpriced requests for quotation to your suppliers and convert their responses to priced purchase quotes
prior to issuing purchase orders, entering purchase invoices, or creating goods receipts.
provides an optional method for ordering goods or services from suppliers. Purchase orders have no financial or
inventory impact. They do not involve actual provision of services, movement of inventory, or payment of money. They can be used for a
variety of purposes: internal requests for purchase authorization, documentation of order pricing, inventory planning, supplier
communication, or as drafts of purchase or sales invoices.
is where sales invoices received from suppliers are entered into MYBOS. Purchase invoices increase the balance of
the supplier’s subaccount in Accounts payable and, therefore, are used when buying on credit. This tab is not required if you pay fully at the
time of purchase.
allows you to record changes by suppliers to amounts you owe them as Accounts payable. The tab is unnecessary if
suppliers refund money directly to your business, only for account adjustments. Debit notes are not normally provided to the supplier. They
might be for: return of goods, adjustment (refund) of price for goods or services previously delivered, or overpayment of amounts billed.
Credit Notes
Customers
Suppliers
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Inventory Transfers
Production Orders
Employees
Payslips
Billable Time
Billable Expenses
helps track location of inventory enroute from suppliers or between warehouse locations of the business.
is used to identify, define, count, and manage physical goods or materials held by a business for sale or production.
can be used when a business has multiple locations for its inventory. It is not necessary when all inventory is stored
at a single location nor when knowledge of inventory location is unimportant.
is where you record loss, damage, or other non-revenue reductions of inventory.
helps track inventory during manufacturing by producing output inventory items from input inventory items. It also
helps establish the cost of manufactured inventory. This tab is not necessary if you buy all inventory from outside suppliers.
is the tab where you set up workers who will be paid by the business. If payroll functions are outsourced, this tab may not be
necessary, even if you have employees.
lets you record amounts earned by, owed to, withheld from, and contributed on behalf of employees. It does not generate
payments to employees. This tab may not be needed if you outsource payroll functions.
allows you to record time that will later be billed to customers at an hourly rate. It is not, however, a time clock and
cannot record attendance.
records expenses on behalf of customers for later invoicing and reimbursement. Expenses recorded in this tab do not
appear in expense accounts of the business, but are passed through to customers by invoicing. They also do not appear in income accounts
unless marked up for additional profit.
Goods Receipts
Inventory Items
Inventory Write-offs
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Fixed Assets
Capital Accounts
Special Accounts
Journal Entries
Attachments
is where you define tangible assets being capitalized, that is, whose costs are being recovered over an extended period
rather than entirely as current expenses. The tab calculates current book book value of fixed assets from acquisition cost and accumulated
depreciation.
is where current depreciation expenses of fixed assets are recorded.
records initial value and amortization of intangible assets being capitalized.
is where current amortization expenses of intangible assets are recorded.
is where partners, beneficiaries, owners, directors, or others having direct financial stakes in the business are set up
and their monetary interests are tracked. This tab does not record information about shareholders of public stock corporations.
allows you to create custom subsidiary ledgers, such as for landlord’s trust accounts or loans. Applications of special
accounts are fairly technical, so use of this tab is not common.
allows specialized entries with explicit identification of debited and credited accounts. It is used infrequently in
MYBOS, because most transactions are simplified in other relevant tabs. It is typically used for adjusting entries, earnings distributions, etc.
allows organization of electronic attachments stored in MYBOS to document or justify accounting records.
provides capabilities to search, view, and edit attachments to transactions or folders. Bulk deletion is also possible. Unlike
most tabs, this one does not allow creation of new attachments. They must be added to individual transactions or folders.
Depreciation Entries
Intangible Assets
Amortization Entries
Folders
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Reports
Settings
Note
Tabs that have never been used can be disabled if they turn out not to be useful. But once any record or transaction has
been entered in a tab, MYBOS will protect that data by not allowing the tab to be disabled. To disable a tab, all entered
data must first be deleted. Only data that has not been referenced by another transaction can be deleted, so disabling a tab
can be tedious. Think carefully before enabling tabs. They can always be added later.
stores MYBOS forms and documents sent to recipients by email.
lets you create, customize, store, view, and export reports to summarize, analyze, and present transaction data. Specific reports
are available only when relevant tabs have been enabled.
is the place to customize many small details in MYBOS. Depending on which tabs are enabled, you will have options to enter,
define, modify, customize, or list everything from base currency to capital account members to tax codes to overall appearance themes for
your documents and forms.
In summary, between and , you can make MYBOS as simple as possible for your form of organization and
business operations. But you can also add capabilities for more complex situations. This flexibility lets MYBOS grow and change with your
business.
Simplify MYBOS
Simplify left-pane navigation in MYBOS and reduce overall program complexity by enabling only those functional tabs you actually need.
Disable tabs you don’t need.
This simple change does more than reduce scrolling past unused tabs. It will also:
• Rid your balance sheet of automatically generated accounts you won’t use
• Limit options under and to ones related to transactions you actually enter
• Eliminate unnecessary check boxes, data fields, and dropdown menu choices as you make entries throughout the program
These benefits streamline your experience and lower training requirements for new users. For accounting newcomers, this change can mean
the difference between efficient, professional record-keeping and complete frustration.
Enabling tabs
When a new business is created in MYBOS, four tabs are enabled and visible in the left navigation pane by default. These cannot be
disabled, because they are needed by all businesses:
Emails
Customize
Settings
Settings
Reports
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Update
To add capabilities, click on the blue
desired tabs:
link pointed to by the red arrow. A list of available modules appears. Check boxes next to
Then click at the bottom of the page.
Active tabs will appear in the left navigation pane. The number of active records of each type will show in windows to the right of tab names:
Repeat the process at any time to add more tabs.
Disabling tabs
To disable an unused tab, click again, uncheck the tab’s box, and click . Entry forms, data fields, and reports
associated with that tab will no longer be visible.
Customize
Customize
Update
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Set reporting period
By default, account balances are shown for all transactions entered to date in MYBOS. This is generally what you need when starting a
business. But once you have used MYBOS for more than a single accounting period ( e.g., a financial year), you should customize the
reporting period so the Profit and Loss Statement reflects your current accounting period.
Click in the tab:
Check the box to Show balances for specified period. Select the reporting period for which you prefer to see figures in your
. Entering Today in the Until field produces a display that is always up to date, but other dates can entered by selecting Custom:
OR
Click
The
to apply changes.
tab will now show figures for the selected period:
Choose between accrual or cash basis accounting
An important decision for any business is whether to adopt accrual or cash basis accounting. In very simple terms, accrual basis accounting
records income when earned and expenses when incurred, whether or not accompanying receipts and payments happen at the same time.
(More technically, expenses are recorded during the period when the income they are associated with is earned.) Cash basis accounting
records income when money is received and expenses when money is paid out.
Note
Unwanted tabs can be disabled only if they contain no transactions or records. This restriction prevents accidental loss
of accounting data. To disable a tab, all entered data must first be deleted. Only data that has not been referenced by
another transaction can be deleted, so disabling a tab can be tedious. So think carefully before enabling tabs. They can
always be added later.
Edit
Summary
Summary
Update
Summary
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Update
Note
Accounting method cannot be selected until after the first sales or purchase invoice has been created.
Note
Balances of many accounts may change or disappear from the Summary when cash basis accounting is selected because
elements contributing to them have not been recognized through receipt or payment of funds. MYBOS will still make all
necessary calculations, though. Account balances will be restored when accrual basis accounting is again selected. No
information is lost when switching back and forth between methods.
Accrual basis accounting more completely reports both financial performance and position. It is generally preferred by accountants, because
it shows when revenue has been earned and debts incurred, regardless of whether money has yet changed hands. It provides more and
better financial information for managing the business. Cash basis accounting is usually employed only by very small, simple businesses,
often those without inventory. It emphasizes the importance of cash in a company’s financial picture.
The choice between these options may be influenced by local laws. Many businesses start on the cash basis. But frequently, as revenue
increases beyond some threshold or inventory is added, authorities require a change to accrual basis accounting. MYBOS can handle the
switch easily.
Choosing overall accounting basis
To change between accrual and cash basis accounting in MYBOS, click at the top of the page:
Select one of the two accounting methods in the dropdown box and click :
Choosing accounting basis for reports
Many reports available in MYBOS can be created for either accounting method, regardless of which has been chosen for everyday use.
When creating or editing a report, select the desired accounting method in the dropdown box:
The report will display the accounting method used in its heading:
Edit
Summary
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Reports
Update
Settings
Reports of both types can be created and saved for the same period and will be available when the particular report is selected in the
tab:
Set and display account codes
Account codes can be used to identify specific accounts in an overall identification scheme for the chart of accounts.
Setting account codes
In the tab, select and click for an account or group:
Enter the desired alphanumeric content in the Code field and click :
Account codes will show in ovals under the tab:
Settings
Chart of Accounts
Edit
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Update
Summary
Notes
If account codes have not been assigned yet, the checkbox will not be visible.
This selection applies only to the Summary . Various reports also include the option to show account codes on their
definition screens.
Controlling account code display
To display account codes, click in the tab:
Check the box to Show account codes and click :
The now includes account codes:
Turn off display of account codes by unchecking the box.
Edit
Summary
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Summary
Summary
Settings
Regardless of whether account codes are displayed, they will appear in the Account field dropdown box when entering line items on
transactions, including cash receipts, sales invoices, journal entries, and so forth:
Exclude zero-balance accounts from Summary page
By default, account balances are shown for all accounts enabled or created in MYBOS. This is generally what you need when starting a
business. But once you have used MYBOS for more than a single accounting period ( e.g., a financial year), you may have accounts that are
no longer used cluttering your page.
If they have no transactions posted to them, accounts can be deleted. If you have used them, but they now have zero balances, you can
exclude them from the .
Click in the tab:
Check the box to Exclude zero balances:
Click
The
.
tab will now show figures only for accounts with non-zero balances.
Clear transactions in Suspense account
Suspense is a built-in account where MYBOS posts transactions it cannot properly resolve. Suspense has several unique characteristics:
• It can neither be created nor deleted by a user.
• It appears automatically on the Balance Sheet in the Equity grouping whenever it has a non-zero balance.
• It it not listed in the Chart of Accounts under , so it cannot be edited or moved to a different account group.
• Many transaction fields in MYBOS default to Suspense until valid entries are made in them.
Any balance in Suspense signals a problem. Never attempt to clear the Suspense account with a journal entry. That only hides problems
and usually makes both your Balance Sheet and Profit and Loss Statement inaccurate. Problems that caused transactions to post to Suspense
must be identified and corrected.
Edit
Summary
Update
Summary
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Accrual basis
Update
Edit
Finding problems in Suspense
To identify transactions with problems, drill down by clicking on the blue balance for the Suspense account on the
page:
All transactions contributing to the balance will appear. These might be either debits or credits:
If the Edit button for any transaction is dimmed, be sure MYBOS is set for accrual basis accounting. Return to the
click Set Period :
page and
Select in the dropdown box and click :
Then drill down again on the Suspense balance. (You can return to cash basis accounting after problems with Suspense have been cleared.)
Fixing problems in Suspense
The Suspense account above reveals five transactions with some type of error. Each problem must be addressed individually. To fix one, click
on the button to the left of the transaction.
Summary
Summary
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Update
Problem 1: Unassigned expense claim
Beginning with the most recent transaction in the example, an expense claim did not include a Payer:
Designating a Payer from predefined choices clears this transaction from Suspense:
Remember to click the button to save each correction.
Problem 2: Payment not complete
A payment for messenger services recorded the payee, a description, number of deliveries, and price, but did not include proper allocation
to an expense account:
Selection of the appropriate account correctly completes the transaction:
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Problem 3: Capital contribution not properly allocated
The next transaction recorded a contribution of capital from a partner to fund a remodeling project. It listed the partner as the payee,
properly marked the receipt as a contribution, but neglected to direct the receipt to the specific partner’s subaccount:
Adding that detail to the receipt fixes the problem:
Problem 4: Unbalanced journal entry
A journal entry contained a typographical error, reversing digits when recording a distribution of earnings. This mistake resulted in an
unbalanced transaction:
Editing the mistake properly balances the transaction, removing it from Suspense:
Problem 5: Fixed asset purchase invoice
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The final problem in the example is a purchase invoice for a delivery truck that did not properly assign the purchase to the specific fixed
asset created for the truck, despite assigning it to the Fixed assets account:
The corrected purchase invoice resolves the problem:
Suspense is now empty and no longer shows on the Balance Sheet:
MYBOS is designed to preserve information rather than reject incorrect entries. But when anything is in your Suspense account, your
records and reports are almost certainly wrong.
Close an accounting period
Historically, the accounting cycle involved numerous tasks to “close the books” at the end of an accounting period, whether a month,
quarter, or year. Income and expense summaries were developed, trial balances were created, amounts were transferred with journal entries,
and so forth. Most steps were designed to:
• Zero out income and expense accounts before starting a new accounting period
• Identify and correct errors
• Limit accumulation and propagation of mistakes from one period to the next
These practices developed over centuries, not only to support meaningful analysis, but also to combat unavoidable omissions, mental
miscalculations, and oversights when entering and posting hundreds or thousands of transactions manually.
MYBOS eliminates the need for most of these steps by:
• Performing all calculations electronically, eliminating arithmetic errors
• Basing automatic double entries on type of transaction and account selection by the user, reducing the need for manual journal
entries with their requirement to deduce which accounts to debit and credit
• Furnishing real-time feedback when journal entries are made, reducing the possibility of unbalanced transactions
• Leaving incorrect, incomplete, or unbalanced transactions in Suspense until fixed
• Carrying forward information from one period to the next in a perpetual database
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Edit
Summary
Update
Settings
Lock Date
Note
For many small businesses, especially sole traders/proprietors, none of these steps might be necessary. Perhaps the
business has no prepaid items. Depending on the equity structure of the chart of accounts, the second and third steps
might have happened over the course of the accounting period. And reports can always be generated later if they are
needed.
• Setting displays and reports to cover defined time periods
Closing the books
At the end of any accounting period, just a few tasks are normally required. For many businesses, these steps are only performed annually:
1. Make necessary adjusting entries (when using accrual basis accounting) for prepaid expenses and income items.
2. Make desired distributions of earnings to capital or equity accounts using journal entries.
3. Pay out desired dividends or draws.
4. Create desired reports for the accounting period. These might be limited to a Profit and Loss Statement and Balance Sheet. Of
course, others can be added to suit needs of management, accountants, or tax authorities. Reports can be printed, stored
electronically, or just saved in MYBOS.
5. Consider locking past transactions by setting the lock date once end-of-period adjustments are complete. This prevents changes to
transactions forming the basis for statutory reporting obligations and tax returns.
Setting up the next accounting period
The only essential step prior to entering transactions for the next period is resetting the period in the
tab. Click on :
Be sure the box is checked to Show balances for specified period. Otherwise, all transactions from the date MYBOS was first used will
be included. Enter the first day of the new accounting period in the From field. Normally, select Today as the Until date so the is
always current, but no transactions entered in advance will be included until their entry dates are reached:
To begin accounting work for the new period, click :
You might want to define common reports for the new accounting period, too. That way, they will be quickly available when needed. But
they can also be created later.
Set lock date
In MYBOS, closing an accounting period is not required, but a lock date can be set to prevent any changes on or before a desired date.
Go to the tab and click :
Summary
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Update
Example
Maria wants to prevent any changes to accounting transactions before 1 January 2015. She sets the lock date to 31
December 2014:
Now, if she tries to edit or delete any transaction dated on or before 31 December 2014, she will see the following notice:
Note
Lock Date is useful in multi-user editions of MYBOS to prevent restricted users from modifying locked transactions.
Ensure the Lock Date feature is disabled for restricted users to prevent them from unlocking restricted data. For
administrators or unrestricted users, the feature will act as a reminder to prevent accidental data modification.
Enter the desired lock date and click .
You can temporarily remove the lock date if you need to edit or delete a transaction. Enter the lock date again when you have completed
the changes to previously locked transactions.
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Chapter 2: Structuring Accounts
Once you have established a business in MYBOS, the most important task is structuring your accounts to match your form of organization,
method of operation, legal reporting requirements, and management information needs. Effort here will pay dividends as long as you run
your business.
Chart of Accounts
Design a chart of accounts
A chart of accounts is an organized list of all accounts in a business entity’s financial records. An account is where a financial transaction is
classified, allocated, or posted. (These terms all mean the same thing.)
Every account has a balance based on additions and subtractions made since it was opened (or during a specified period of time). So
summaries or totals of balances of various types or groups of accounts are often included when displaying a chart of accounts. But strictly
speaking, only the accounts themselves make up the chart of accounts.
The chart of accounts will:
• Govern how every single transaction a business makes is recorded
• Determine what information management views to make important decisions
• Support government regulatory and tax filings
• Organize information for presentation to bankers, owners, creditors, and auditors
So it should be thought out carefully. Once it has been developed, written descriptions of which types of transactions are posted to each
account are convenient reminders and can be helpful during audits, when working with accountants, and for training new users or reminding
established ones.
Although the effort of building a good chart of accounts produces no direct revenue, it costs little or nothing, but will improve operations far
into the future. A well-designed chart of accounts ultimately makes your business easier to manage and can save time and money.
Understanding some basics will help you develop a good one.
Types of accounts
Accounts have been classified the same way by accountants and bookkeepers everywhere for over 500 years. (Nobody said accounting was
exciting.) Classification depends on whether accounts depict your current financial position or determine your performance over a period of
time. They are named for the two most important financial statements of any company: the balance sheet and the profit and loss (P & L)
statement, also called the income statement.
Accounts depicting position are called balance sheet accounts, because they appear on the balance sheet. (See, this is easy!) They are also
sometimes referred to as permanent or perpetual accounts, because they carry forward from one accounting period to another. When up to
date, they define the state of a business at the current moment.
Balance sheet accounts
• Asset accounts represent the value of what you own, including cash, inventory, fixed assets, and other things.
• Liability accounts represent what you owe to others outside the business, including loans, employee wages earned but not yet
paid, and so forth.
• Equity accounts record how much money is invested in the business, including profits that have not been distributed. Equity can be
thought of as the net worth of a business. (Net worth is different from value, which is what someone might pay to buy the
business.)
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Example
Ravi has a bank account balance of 10,000 to start his messenger service. That is an asset. But 8,000 of that amount was
obtained as a loan, a liability. Ravi’s equity, or net worth, is 2,000. In fact, that is the amount he had saved and put into the
business venture. His accounting equation is:
10,000 (Assets) = 8,000 (Liabilities) + 2,000 (Equity)
Accounts determining performance are called profit and loss or income statement accounts, because they appear on reports of the same
name. (You probably predicted that.) Balances for these accounts are calculated over a specified timeframe or accounting period, such as a
month, quarter, or year.
Profit and loss accounts
• Income (or revenue) accounts record amounts earned by the business
• Expense accounts record amounts spent on business activities (not including any withdrawals, dividends, or distributions to owners
or shareholders)
Businesses may subdivide their accounts into elaborate hierarchies. But all accounts are one of those five basic types. There are no
exceptions. (That would be too exciting.)
Accounting equations
Accounting begins with the simple equation:
Assets – Liabilities = Equity
This is just an accountant’s way of saying the difference between what a business owns and what it owes is its net worth. (You already knew
that, right? This is getting simpler.)
To make things seem mysterious so they can keep their jobs, accountants like to scramble that equation a little by moving Liabilities to the
right side of the equation (reversing the sign, of course):
Assets = Liabilities + Equity
This version of the equation says the sum of all asset account balances must equal the sum of all liability and equity account balances.
Details of this balance constitute your financial position at any given time. A proper chart of accounts and good accounting procedures
make sure the two sides of the accounting equation are always equal. That’s what shows on a balance sheet, nothing more, though specific
accounts in each type and their arrangement may vary.
But how can a business grow (or fail, for that matter)? This is where those profit and loss accounts fit into the picture. Revenue earned by a
business adds to Assets, possibly by increasing a bank account. Or it might take the form of a receivable, that is, an amount earned and
invoiced to a customer but for which money has not yet been received from the customer. A receivable is still an asset, because it has value
to your business.
In contrast, expenditures by the business effectively decrease assets, reducing that bank account or creating a payable, or amount owed to a
supplier. The accounting equation can be extended:
Assets = Liabilities + Equity + Income – Expenses
Elements of this equation can be grouped without changing its meaning:
Assets = Liabilities + Equity + (Income – Expenses)
The portion in parentheses is called net profit and is what shows on the profit and loss statement and defines your performance. So the
extended equation combines position and performance into one calculation, merging status at a moment with changes not yet transferred
into the permanent accounts.
If you spend less than you make, you are profitable. Profits can increase your Assets. Or they can reduce your Liabilities. Either increases
Equity. The creative aspect of business involves using Assets, Liabilities, and Equity to generate profits. Eventually, profits are converted to
Equity and can be moved out of the business and into owners’ pockets. The chart of accounts guides and records that process. (And you
thought accounting would be completely boring. Well, it mostly is, until you get to the last step about putting money in your pocket.)
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Example
Ravi begins operating his messenger service. During the first month, he spends 2,500 from his bank account to pay
operating costs. The transactions increase various Expense accounts on the left side of the equation. So the Expense
accounts are debited. They also decrease his bank account, an Asset account, also on the left side. So the bank account is
credited the same amount. (Yes, a payment from a bank account is a credit, showing that what you probably thought you
knew was wrong.)
At the end of the month, Ravi deposits 4,000 received from customers into the bank. This transaction increases an Asset
account, on the left side, so the bank account is debited. To balance this, an Income account, on the right side, is credited
with 4,000. After these changes, Ravi’s bank balance is 11,500, and his extended accounting equation is:
11,500 (Assets) + 2,500 (Expenses) = 8,000 (Liabilities) + 2,000 (Equity) +4,000 (Income)
Everything is still in balance. Ravi’s new business is profitable and growing.
Debits and credits
The extended accounting equation can be ungrouped and rearranged one more time:
Assets + Expenses = Liabilities + Equity + Income
Why bother? Because this version can help you understand the deepest mystical secrets of accounting: debits and credits. Scholars, Latin
linguists, and historians disagree about origins of those terms, including who first used them, when, and in what language. Every story is
thorough and convincing. But you don’t need to know any of them.
You only need to know two things about debits and credits:
• Your natural understanding of them from dealing with banks, merchants, and others who send you bills is probably backwards. The
terms they use are not from your perspective, but from your bank’s or the merchant’s. All accounting is done from the perspective
of the one keeping the books. So your bank’s debit is your credit.
• For accounting purposes, debit means “on the left” and credit means “on the right.”
Looking at the rearranged equation just above, Asset and Expense accounts are debit accounts. They are on the left side of the equal sign.
Liability, Equity, and Income accounts are credit accounts. They are on the right. (Pretty simple, eh?)
A debit transaction increases a debit account. A credit transaction increases a credit account. The reverse is also true. Debit transactions
decrease credit accounts and credit transactions decrease debit accounts. So (here comes the magic), you can determine whether a
transaction is a debit or credit by whether it increases an account on the left (a debit) or the right (a credit). (Yes, you can do it the other way
round, too, but that’s harder to remember.)
This relationship between debits and credits and the need to keep both sides of the accounting equation in balance led more than five
centuries ago to invention of double-entry accounting. Every transaction starts out as a debit or credit posted to one of the accounts in your
chart of accounts. But to balance your books, it must be offset by an opposite credit or debit to a different account.
Fortunately, when using MYBOS, you don’t have to remember most of this. Except for occasional journal entries, all transaction forms in
MYBOS determine which accounts to debit and credit based on context. When faced with a decision, refer back to this Guide. And
remember the rule that debits increase debit accounts and credits increase credit accounts.
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Chart of Accounts
Edit
Notes
Smart planning will involve adding a test business in MYBOS. You can experiment with typical transactions you expect to
use in your business to evaluate how your chart of accounts supports your needs. Investigate whether available reports will
provide information you want. You will be much happier deleting a few sample transactions or starting over with a new test
business than rebuilding your real accounting records if things don’t work out.
Detailed instructions for building a chart of accounts are found in another Guide.
Design considerations
Designing your chart of accounts is one of the most important things you do when starting a business or adopting MYBOS. Poor design
will irritate you every day. Yet too many businesses undertake the task in a hurry. Do some research first. Check with local authorities.
Consult an accountant or attorney (or both) to prevent costly problems. Several factors should influence your design:
• Laws and regulations. You may need accounts to record taxes collected or paid. If you have employees, you need accounts for
wages, contributions to retirement funds, etc.
• Business type. Retail shops need different accounts than repair businesses, consultants different than manufacturers, and schools
different than social clubs.
• Size. Larger companies with several divisions or locations need more complex charts of accounts than smaller ones.
• Legal organization. Partnerships need capital accounts; sole traders or proprietors may not. Trusts and corporations have different
needs, too.
• Government filings. All charts of accounts should be set up to easily support filings you will make, especially tax returns. It is much
easier to post transactions to accounts that match forms than to laboriously back them out of a jumble when a filing deadline
approaches.
• Management needs. Accounts should support management decisions during the current accounting period. They should also
support comparison with previous periods. But it is pointless to collect information you cannot use.
• Permanence. Remember that once an account has been used, MYBOS will not let you delete it. So good practice includes
accounts useful over the long term. Creating accounts for one-time events is usually poor practice. For example, accounts collecting
transactions on a category of customers are better choices than accounts set up for individual customers who might never buy
again. Accounts to handle expenses for events are fine, but accounts for the 2017 charity fundraiser might not be a good idea. They
will clutter your financial statements in 2022.
Build a chart of accounts
Design your chart of accounts before building it. Read this Guide first. Consult your accountant and attorney, if necessary. Once you have a
basic structure in mind, remember that MYBOS will automatically add some accounts based on tabs (functions) you enable. So some accounts
you want may be created for you. A few accounts may be added you did not realize you needed.
Default chart of accounts
When you first create a new business in MYBOS, it already has a simple chart of accounts. Find the chart of accounts by clicking on the
tab in the left navigation pane, then clicking the icon from the display that appears:
The default chart of accounts illustrates some key concepts. The Balance Sheet side includes three groups or categories in boldface type:
Assets, Liabilities, and Equity. Only the Equity group has an button. It can be renamed (to accommodate needs of non-profit
organizations). The other two cannot be edited. (If you read the Guide linked to above, you know that all balance sheet accounts must fall
into one of these three groups, whatever they are called.)
Settings
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Note
This chart of accounts will be your starting point. You will transform it into one tailored for your legal structure, market
sector, and reporting needs. As you work on it, it will be helpful to frequently check your Summary page to see what
affect your actions are having on the display. You may even want to consider your first draft a test business, into which you
can make a few sample entries to see their effects. Those few transactions can be deleted and the test business’ data file
copied, renamed, and opened as your real business.
It also includes one account, Retained earnings within the Equity group. Retained earnings is an example of an automatically generated
account. Every business needs this account. So while you can
But more about that later.
it by renaming it or assigning it to another group, you cannot delete it.
The default chart of accounts also includes some common (but by no means universal) accounts for the Profit and Loss Statement in Income
and Expense groups. You can use these groups and accounts, rename them for other purposes, or delete them to fit your planned chart of
accounts structure (to save space, not all accounts are shown below):
Define groups first
A four-step, methodical approach will simplify building your chart of accounts. Begin by defining groups. This step is first because every
account must be assigned to a group. In fact, if you neglect to assign an account, MYBOS will assign it for you to an automatic group,
Uncategorized.
A group can be subsidiary to another group. So on the Balance Sheet side of Brilliant Industries’ chart of accounts, we will create two groups,
Current assets and Plant, equipment, and property, and assign them to the Assets group. We click the
group name and choose Assets in the dropdown box:
button, enter the
Edit
New Group
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Update
We’ll do something similar under Liabilities. Assets, Liabilities, and Equity always display in that order (by long tradition). But other groups
will display alphabetically unless we re-order them later. So far, the result looks like this:
Since liabilities are usually shown in order of their demand on cash, we want Short-term liabilities to appear first in the chart. So we click on
the double-ended arrow to the right of it:
A list of groups eligible for re-ordering appears. A multi-directional arrow cursor allows groups to be dragged into new positions. We drag
Short-term liabilities to the top of the list and click :
Our balance sheet shows the change:
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Edit
Expenses
Expenses
Update
Moving to the Profit and Loss Statement side of the chart of accounts, we take several actions:
• Rename the Income group to Operating income after clicking on beside it.
• Add a Cost of goods sold group. Since this will be a top-level group, we do not assign it to another group. We check the box for
. This will display the group and its subsidiary accounts under the heading Less: Cost of goods sold, using positive
numbers. Leaving it unchecked will display negative numbers. There is no affect on accounting behavior, only on how displays are
presented.
• Add a Non-operating income group, also unassigned
• Reassign the Interest received account to the new Non-operating income group
• Rename Expenses to Operating expenses.
• Add a Non-operating expenses group, leaving it unassigned, but checking the box.
We click on the double-ended arrow for one of the groups to re-order the groups, just as we did for Balance Sheet groups:
After clicking , our progress so far is shown below (again, some accounts have been eliminated to save space):
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Add totals next
Interim subtotals and final totals are useful in accounting displays. Add them with the
button. Totals calculate a running
summation of all groups above them in the chart of accounts. They are positioned the same way as the groups, clicking on the double-
ended arrows and dragging their titles in the list. After updating, they show with dashed underlines.
We add two totals and adjust their positions:
New Total
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Note
A bottom-line, net profit (loss) total can be added, named as desired. If one is not specifically created, MYBOS will
automatically add one labeled Net profit when a profit exists. If the business has a loss for the reporting period, the default
total will change to Net loss. This automatic total will not show in the Settings tab, but will appear on the Summary
page and in financial statements.
Activate automatic accounts
Several tabs and some settings activate accounts necessary to their functionality when they are enabled (or as soon as the first entry is made
using them). If you plan to use any of these tabs (or need the accounts they activate), enable them now following procedures in another
Guide. Automatic accounts are summarized in the table below:
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Customers
Fixed Assets
Note
If an automatic account is not activated with the tab, make an entry in it. Such an entry can be a placeholder or setup entry.
This will allow you to position the automatic account correctly in order, add account codes, and even rename the account.
The placeholder entry can then be deleted. When a real entry is entered later, the account will reappear in the correct order,
with the assigned account code, and under the new name.
We enable the , , , and tabs and make at least one entry in each tab.
After reassigning accounts to appropriate subsidiary groups and arranging in order of liquidity, the Balance Sheet side of the chart of
accounts looks like this:
Bank Accounts
Inventory Items
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And the Profit and Loss Statement side looks like this:
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Add other desired accounts
Finally, add any remaining accounts from your plan. Assign these to relevant groups or subgroups. For example, we will add accounts for
short- and long-term loans to the Balance Sheet. And since Brilliant Industries is a sole proprietorship, we will change the name of Retained
earnings to Owner’s equity. Note how the original, automatically assigned name of this account remains visible in the chart of accounts; it will
not show elsewhere in the program:
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Settings
Chart of Accounts
New Account
Similar additions can be made on the Profit and Loss Statement side.
Add an account
Some accounts in your chart of accounts are present by default when you add a business and cannot be deleted. Others are activated as
various tabs are enabled and remain unless the tab is disabled (which is only possible if no transactions have been entered within it). When
necessary, you can add an account to either your Balance Sheet or Profit and Loss Statement.
Accounts are added under :
Add a Balance Sheet Account
Click on on the Balance Sheet side of the chart of accounts:
Define the account:
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Settings
Create
New Account
Create
• Name should be a short description of the account’s purpose.
• Code is optional. See another Guide for more information on account codes.
• Choose the Group under which the account will be reported. (Groups must be defined before accounts can be assigned to them.)
• Select a Tax Code if all or most transactions posted to this account will have the same tax code applied. For Balance Sheet accounts,
this field is often left blank. The field will not appear unless at least one tax code has already been defined under .
• If migrating to MYBOS from an earlier accounting system, enter a Starting balance. This field only appears if a start date has
been set.
Click to save the new account.
Add a Profit and Loss Statement account
Click on on the Profit and Loss Statement side of the chart of accounts:
Define the account. Fields available for Profit and Loss Statement accounts are the same as for Balance Sheet accounts, and they have the
same purposes. a Tax Code is more commonly selected for Profit and Loss Statement accounts than for Balance Sheet accounts, because
income and expense transactions posted to them are more frequently subject to the same taxes. The Tax Code field is, nevertheless,
optional:
Click when finished.
Delete an account
You can delete an account if all these statements are true:
• No transactions are posted to the account.
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Delete
Delete
Update
• The account was not automatically activated when you enabled a tab.
• The account is not Retained earnings, a mandatory account present by default in all businesses.
Under , click on , then next to the account you want to delete:
Click . If the first condition listed above has not been satisfied, a notice appears and transactions posted to the account are listed:
If no button is available, either the second or third condition has not been satisfied. In other words, MYBOS will not let you
delete an account needed for proper functioning of the tabs you have enabled or necessary for proper maintenance of your account
records.
Set up accounts receivable
Accounts receivable is an asset account that records amounts owed to a business by customers. In MYBOS, this is a control account,
meaning it is built into the software and is made up of subaccounts for customers defined in the
should not be created manually in the chart of accounts.
tab. Normally, this account
Activate Accounts receivable
To activate Accounts receivable, enable the
tab. Click below the left navigation pane, check the box for
, and click below the list.
Accounts receivable will automatically appear in the Balance Sheet and chart of accounts when the first customer has been created:
CAUTION
If Accounts receivable is created manually in the chart of accounts, many built-in functions will be lost. MYBOS will not be
able to associate sales invoices with specific customers. And it will not be able to apply customer advances, deposits, or
overpayments to sales invoices.
Settings
Chart of Accounts
Edit
Customers
Customers
Customize
Customers
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Update
Set up starting balances for customers
If making a transition to MYBOS from a previous accounting system, follow this Guide to set up starting balances for customers.
Set up accounts payable
Accounts payable is a liability account that records amounts the business owes to suppliers. In MYBOS, this is a control account, meaning
it is built into the software and is made up of subaccounts for suppliers defined in the
manually in the chart of accounts.
tab. Normally, it should not be created
Activate Accounts payable
To activate Accounts payable, enable the
tab. Click below the left navigation pane, check the box for
, and click below the list.
Accounts payable will automatically appear in the Balance Sheet and chart of accounts when the first supplier has been created:
Set up starting balances
If making a transition to MYBOS from a previous accounting system, follow this Guide to set up starting balances for suppliers.
Set and display account codes
Account codes can be used to identify specific accounts in an overall identification scheme for the chart of accounts.
Setting account codes
In the tab, select and click for an account or group:
CAUTION
If Accounts payable is created manually in the chart of accounts, many built-in functions will be lost. MYBOS will not be
able to associate purchase invoices with specific suppliers. And it will not be able to apply advances, deposits, or
overpayments paid to suppliers to purchase invoices.
Suppliers
Suppliers
Customize
Suppliers
Settings
Chart of Accounts
Edit
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Update
Settings
Update
Enter the desired alphanumeric content in the Code field and click :
Account codes will show in ovals under the tab:
Controlling account code display
To display account codes, click in the tab:
Check the box to Show account codes and click :
Edit
Summary
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Summary
The now includes account codes:
Turn off display of account codes by unchecking the box.
Regardless of whether account codes are displayed, they will appear in the Account field dropdown box when entering line items on
transactions, including cash receipts, sales invoices, journal entries, and so forth:
Add custom control accounts
Custom control accounts can be useful additions to your chart of accounts. A control account in MYBOS is a top-level, balance sheet
account containing subsidiary ledgers or subaccounts. (The terms are interchangeable). Some accounts activated automatically when various
tabs are enabled are control accounts. Perhaps the most familiar examples are Cash at bank and Cash on hand, the default control accounts
for bank and cash accounts. Another good example is Accounts receivable, made up of individual customer ledgers.
A custom control account is one you create yourself to segregate and give visibility to selected subsidiary ledgers that would otherwise be
assigned to a built-in control account. A custom control account may contain only one type of subsidiary ledger, including:
• Bank accounts
• Cash accounts
• Customers
• Suppliers
• Inventory items
• Employees
• Fixed assets
• Fixed assets accumulated depreciation
Notes
If account codes have not been assigned yet, the checkbox will not be visible.
This selection applies only to the Summary . Various reports also include the option to show account codes on their
definition screens.
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Settings
Control Accounts
Examples
Jurgen operates a machine shop with some very expensive, digitally controlled boring and milling machines. He wants see
the value of these important assets on his balance sheet separately from other fixed assets like workbenches and office
furniture. So he creates a custom control account called Digital machinery and assigns those fixed assets to it.
Northwind Traders has a variety of bank accounts it uses for different purposes. Rather than leave them all lumped together
under the built-in control account, Cash at bank, it decides to break them apart for better management visibility. So the
company renames that account as Cash deposits. It creates two new custom control accounts, Payroll accounts and Term
deposits. Northwind leaves its various demand deposit accounts in the original, renamed control account. It assigns the
accounts at local branch banks used to pay employees in various cities to Payroll accounts. And it assigns its longer term
certificates of deposit to Term deposits. Now the balance sheet clearly distinguishes between highly liquid funds, money
available for the weekly payroll, and cash reserves that are not readily accessible.
• Intangible assets
• Intangible assets accumulated amortization
• Capital accounts
• Special accounts
Create a custom control account
To create custom control account, go to :
You will see lists of existing control accounts (including automatic ones) for the categories mentioned above for which tabs are enabled. You
will also see the number of subsidiary ledgers for each category:
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Create
Click
complete are identical:
for the category where you want to define the custom control account. Regardless of category, the fields to
• Name the account as you want it to appear on your balance sheet.
• Enter an alphanumerical Code if desired.
• Select which Group the custom control account will be in: Assets, Liabilities, or Equity, or any subgroup of one of these.
Click to add the custom control account to your chart of accounts.
New Control Account
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Example
Brilliant Industries has defined a number of fixed assets. By default, the purchase costs of all fixed assets are shown on the
balance sheet under the Fixed assets account (a built-in control account). The company wants to split fixed assets into
categories and have each category show separately as:
• Land & buildings
• Motor vehicles
• Furniture
To do this, the company creates a custom control account for fixed assets. It assigns this custom control account to a
subgroup under Assets named Plant, equipment, and property:
It creates another custom control account named Motor Vehicles and a third for Furniture. It assigns both to the same
subgroup, Plant, equipment, and property.
Brilliant Industries also wants separate accumulated depreciation contra accounts for each fixed asset category. So it adds
custom control accounts in the accumulated depreciation category. It assigns the contra accounts to the same subgroup as
the corresponding asset accounts:
• Land & buildings, accumulated depreciation
• Motor vehicles, accumulated depreciation
• Furniture, accumulated depreciation
The Assets portion of the balance sheet now looks like this:
Brilliant edits individual fixed assets under the Fixed Assets tab to select the specific control accounts to which they
should belong. For example:
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Capital Accounts
Note
If no assets are assigned to the built-in accounts, Fixed assets, at cost and Fixed assets, accumulated depreciation, those
accounts will not appear in the chart of accounts. They will remain as default assignments for newly created assets, though.
So no asset will ever be unassigned.
Once you have created a custom control account made up of a specific subaccount type, you will be able to select control accounts for all
subaccounts of the same type when creating new ones or by editing existing ones.
Capital Accounts
Set up and use capital accounts
Capital accounts track contributions from, distributions of earnings to, and drawings of owners or others with financial interests in a
business entity. They can be adapted to suit any type of entity, including sole proprietors, partnerships, companies, trusts, and funds.
To set up capital accounts, enable the tab, following instructions in another Guide. The tab will appear in the left
navigation pane. The number in the window indicates the number of capital accounts established:
After a control account has been selected for each fixed asset, the Fixed Assets tab shows which fixed asset belongs to
which control account:
Manager Guides
65
Create
Note
Terminology used in MYBOS to describe capital account balances is from the perspective of the business, not the capital
account holder. For positive capital account balances, which are credit balances to the business, MYBOS uses the
descriptive phrase, Amount to pay. This indicates the business owes capital to the member. For negative, or debit, balances,
MYBOS uses the phrase, Paid in advance, indicating the business had paid the member more than was actually distributed
to the member.
In the tab, click to define the first member or owner of a capital account:
Click to save.
If making a transition to MYBOS from a previous accounting system, the member may already have a capital account starting balance to
transfer. In that case, after creating the member as described above, follow procedures in another Guide to enter the starting balance.
Sole proprietorships require only a single capital account. Partnerships require a capital account for each partner. Trusts require one for each
beneficiary. Funds require a capital account for each member. Repeat the process described until all capital accounts have been established:
If capital account members leave the company, they cannot simply be deleted, because there are transactions that reference them. Instead,
make them inactive by editing them and checking the Inactive box:
Inactive members appear in gray at the end of the list. They can be reactivated after clicking the button.
By default, all capital accounts are combined as Capital accounts in the Equity section of the Balance Sheet:
Sometimes, it is necessary to rename the account. For example, if the business operates as a sole proprietorship, the account can be
renamed as Owner’s equity. Click under in the tab:
Capital Accounts
New Capital Account
Capital Accounts
Edit
Edit
Chart of Accounts
Settings
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66
Settings
Capital subaccounts
Sole proprietors and partnerships are unincorporated, meaning they have no shareholders. Their capital accounts can be set up as described
in this Guide. But companies or corporations (terminology varies in different jurisdictions), trusts, and funds are separate legal entities.
Depending on the legal structure of a business, it may be nessessary to change the classification of Capital accounts from Equity to Assets if
they are debit balances or Liabilities if they are credit balances. When in doubt, consult with a local accountant to be sure.
Use capital subaccounts
Each capital account you create automatically has the following subaccounts:
• Drawings
• Funds contributed
• Share of profit
Subaccounts are useful for segregating movements to and from capital accounts. Default subaccounts are sufficient for most businesses, but
you can add, remove or rename subaccounts under the tab by selecting :
Drawings
Drawings tracks money a partner, beneficiary, or member withdraws from the business. When you transfer funds from a cash account to a
member, or if the business pays a private expense on behalf of a member, the transaction should be posted to the Drawings subaccount:
Funds contributed
Funds contributed tracks money a member has contributed to the business. When a member deposits personal funds into a business cash
account, the transaction should be posted to the Funds contributed subaccount.
Note
In some situations, sole proprietors need not add the complexity of capital accounts to their business records. See this
Guide for a discussion of a simpler approach to equity accounting.
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Capital Accounts
Reports
Settings
Chart of Accounts
Share of profit
Share of profit is used to allocate net profit from Retained earnings to Capital accounts. Only certain types of legal entities are required to
distribute profit to owners. Such distributions are often done by an accountant at the end of a financial period using journal entries:
They prevent earnings from accumulating endlessly in Retained earnings. Such distributions show that funds are no longer available for
general business operations, but have been earmarked for the capital account owner.
Common Business Situations
Simplify equity accounting for sole traders / proprietors
Many small businesses are owned by a single person, often called a sole trader or sole proprietor. But MYBOS’s default account structure
accommodates other, more intricate business organizations. So it may encourage more complexity in the chart of accounts than necessary.
Every new business created in MYBOS automatically includes a Retained earnings account, essentially the net of all inflows and outflows,
adjusted for various transfers, dividends, etc., since creation of the business. In many cases, the tab is also enabled,
where members (owners of capital accounts) are designated, investment contributions and draws are recorded, and so forth. Frequently,
journal entries transfer amounts between Retained earnings and various subaccounts of Capital accounts. And both Retained earnings and
Capital accounts are included under the Equity heading on the Balance Sheet. But for the sole proprietor, things can often be simpler.
As sole owner of the business, a proprietor owns the Retained earnings account. So no real reason for separate capital accounting exists.
Retained earnings can be renamed as Owner’s equity, eliminating the need for other equity accounts. Benefits include fewer tabs enabled in
MYBOS and reduction of equity transfers with journal entries. Unnecessary reports disappear from the tab. Any transactions
that might have involved Capital accounts can instead be allocated directly to Owner’s equity, bypassing needless steps.
Eligibility for simple equity accounting
You must satisfy two requirements to use this simple equity accounting:
1. You must be the sole owner of the business, with no partners or shareholders involved.
2. You must personally be entitled to all profits and liable for all debts of the business. (Loans are permissible, but outside investors
with capital interests are not.)
Setting up simple equity accounting
Rename Retained earnings under :
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Edit
Update
Click to the left of the Retained earnings account name:
Rename the account as Owner’s equity. Add an account code if desired. Click when finished.
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Note
One characteristic of this simple equity structure is absence of a drawing account revealing how much you have drawn from
the business since the previous accounting period closed. (Drawing accounts are normally zeroed out at the end of each
period, requiring more transactions.) A drawing account is unnecessary because the information is more readily available in
MYBOS in the Statement of Changes in Equity report. Follow three simple steps:
1. Post all draws to Owner’s equity.
2. Enter the description Draw for withdrawal line items.
3. Create a Statement of Changes in Equity report in the Reports tab covering the full account period.
The sum of your draws to date during the accounting period will appear as a single total in the report. Current information
will always be just a few clicks away.
Your chart of accounts will now show the new name, with the original, default name in gray strike-through text, revealing the automatic
origin of the account:
Your Balance Sheet will show a very straightforward equity account structure:
In essence, Owner’s equity shows how much value you have invested in your business at a given moment, taking into account all forms of
assets and liabilities, including unbilled time and expenses, cash and equivalents, fixed assets, loans, accounts payable and receivable, and so
forth.
Set up business as a self-employed services provider
Many self-employed individuals primarily provide services to their customers or clients. They maintain no inventory, have no employees, pay
for purchases as they are made, and operate as sole traders or proprietors (that is, they have no partners or other shareholders). Yet they
need to keep accurate records of time spent and materials purchased for completion of jobs, may need to collect and remit taxes assessed
on their services, and want to submit professional quotes and invoices to their customers. Examples of such individuals include:
• Accountants, lawyers, and others providing professional services
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Summary
• Carpenters, plumbers, and repair technicians
• Consultants
• Freelance artists, web developers, and media developers
This Guide outlines basic steps for setting up business as a self-employed services provider. Rather than furnishing detailed instructions
at every phase, it links to other MYBOS Guides. Suggestions are offered for accommodating additional needs and for further simplification.
Create the business
Create your business on the
select Create New Business:
page, which functions as the home page of the MYBOS application. Click and
For purposes of illustration, this Guide will follow creation of a business named Sample Consulting. The first step is to enter the name of the
business:
Once the business has been created, a page will appear showing four, default functional tabs and several default accounts:
Businesses
Add Business
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Settings
Bank Accounts
Cash Accounts
Inter Account Transfers
Click on the tab and enter business details. If you have one, add a business logo.
Customize functional tabs
Now enable additional functional tabs you will need for your business. Click
additional tabs:
below the left navigation pane and enable these
• (if you will make any transactions through a financial institution of any type)
• (if you will deal with any physical coins or bills)
•
• (only if you enable multiple bank or cash accounts and believe you will sometimes need to transfer
money between them)
•
•
•
Customize
Receipts & Transactions
Expense Claims
Customers
Sales Quotes
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Sales Quotes
Purchase Invoices
Tax Codes
•
•
•
•
If all your work will come without needing to give customers quotes, proposals, or bids, do not enable . If you will, for some
reason, be buying from suppliers on credit, add to the list. If you are not sure, leave both those tabs off the list. They
can easily be added later. Likewise, if you are not sure whether you will own depreciable fixed assets, do not enable that tab unless you need
it later.
Add bank and cash account(s)
Every business needs at least one bank or cash account, even if that means your own pocket. So add one or more now so the business can
spend and receive money. The illustration below is for a bank account, but a petty cash account is set up the same way:
If you will have a business credit card, set it up now. (This example does not include one.)
Set up your chart of accounts
Several accounts in MYBOS are activated automatically only when needed. So you can see these, make the following setup entries:
• In the
• In the
• In the
• Under
tab, create a customer called Setup Customer. Leave all fields blank except Name.
tab, create a billable time entry. Choose Setup Customer, but leave all other fields in their default states.
tab, create a fixed asset. Fill in Item name as Setup Fixed Asset. Leave all other fields blank.
, activate or create a tax code that will apply to your services.
Now click on , then , where all active accounts will be listed:
Note
If your business will own no property qualifying as fixed assets or your services are not taxable in your jurisdiction, omit one
or both of the last two setup entries above.
Sales Invoices
Billable Time
Billable Expenses
Fixed Assets
Customers
Billable Time
Fixed Assets
Settings
Settings
Chart of Accounts
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Edit
Edit
Edit
Example
Because Sample Consulting expects to perform some work on an hourly basis and some on a fixed price basis, we will
rename Billable time - invoiced to Service sales - billable time and Sales to Service sales - fixed rate. Since no interest-bearing
accounts or investments are anticipated, we will change the Interest received account to Other income, providing a place to
post miscellaneous income items.
Click next to Retained earnings. Change the name of this account to Owner’s equity. This built-in account will function in the same
way, but the default title was more appropriate to corporate ownership structures.
Click buttons next to income accounts to rename or delete them. Automatically created accounts cannot be deleted while their tabs
are enabled. But they can be renamed. Their default names show in grey strike-through text when editing. Add any additional income
accounts you think you will need.
Lastly, expense accounts to rename or delete them. Good practice is to match required expense reporting categories for tax filing in
your jurisdiction. Add accounts if necessary.
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Example
Donations are not allowable business expenses in Sample Consulting’s jurisdiction, so we will delete the Donations account.
Computer equipment is not treated differently from other tools and equipment, so we will rename Computer equipment as
Equipment. The owner of Sample Consulting plans to work from home, so we will change Rent to Other expenses.
With all changes mentioned, Sample Consulting’s chart of accounts is complete. It’s Summary page now looks like this:
Clear setup entries
Although they have no financial impact on your records, you should clear the setup entries. (These were only made so you could see and
edit all accounts.)
Note
Default expense accounts are only placeholders. When their names are edited, original names are no longer visible in the
Settings tab. This behavior is different from other account categories.
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Summary
New Tracking Code
Note
As long as your setup tax code was one you will actually use, leave it in place.
Example 1
Brilliant Industries wants to monitor profitability of its incandescent and LED lamp manufacturing divisions. It sets up two
tracking codes: INC and LED. All income and expenses are designated with one code or the other. At the end of each
financial period, Profit and Loss Statements are generated separately for the two divisions. Combined Profit and Loss
Statements can also be created comparing performance of the two divisions.
Example 2
Atlas Construction assigns tracking codes to each building project by year: 2016-1, 2016-2, 2017-1, etc. Transactions related
to a single project are tagged with appropriate tracking codes. Those pertaining to the business in general are left uncoded.
Profit and Loss Statements can be generated for individual projects or the entire company. If necessary, Atlas could
designate separate lists of expenses and accounts on which tracking codes would be used for distinct project types.
Concrete projects might have tracking codes applied on subcontractor labor, while internally performed electrical projects
might have tracking codes applied on wages.
• Delete the billable time entry by clicking in the tab.
• Delete Setup Customer. (You will not be able to delete this customer unless you have first deleted the billable time entry above.)
• Delete Setup Fixed Asset by clicking in the tab.
Some accounts will temporarily disappear from your and chart of accounts. They will return when real entries are made.
Begin operations
MYBOS is now configured to handle your business. Among other things, you will be able to:
• Send sales quotes
• Purchase or record fixed assets
• Record and invoice billable time and expenses
• Send sales invoices
• Issue customer statements
• Make payments and receive money
• Generate accounting reports
The next step is to enter any expected customers. Others will hopefully follow. Enter other transactions as they occur.
Tracking Codes
Use tracking codes
Tracking codes are optional. You can apply them to income and expense line items. They were originally intended to support monitoring
profitability by division within a single financial entity. But MYBOS users also find them helpful for monitoring financial performance on
major projects, at different geographic locations, or on business brought in by individual sales representatives. You can employ tracking
codes selectively. That is, you can apply them only to certain types of transactions or those you want to include in a specific analysis.
Different tracking codes can be applied for different purposes, as well.
Creating tracking codes
In the tab, click on , then :
Edit
Billable Time
Edit
Fixed Assets
Settings
Tracking Codes
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Reports
Profit and Loss Statement
New Report
For purposes of illustration, asume you want to track three divisions: Alfa, Beta and Gamma. Enter the name of the first code and click
:
Repeat for the other two divisions:
Applying tracking codes to transactions
When you record income, you will be able to select which division the income should be allocated to.
The same applies to expenses. If an expense should be spread across multiple divisions, you can split the expense to allocate the appropriate
amount to each division.
Viewing profitability by tracking code
In the tab, click :
Create a new report by clicking the button.
Create
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Reports
Tracking Exception Report
Caution
Tracking code Profit and Loss Statements only show amounts with tracking codes applied to them. You can check the
Tracking Exception Report under the Reports tab to view transactions that do not have tracking codes. This can help
you determine whether tracking codes were accidentally forgotten.
Define the new report by entering a date range and selecting the desired code in the Tracking Code field. (Leave the selection as Any to see
all transactions.) You can add comparative columns for other tracking codes:
Click to save the report.
the report so see income, expenses and profitability of selected tracking codes side by side for the specified period:
Correct missing tracking codes
When tracking codes are used to separate income and expenses for different divisions, locations, or projects, it is important that tracking
code designations not be accidentally omitted from transactions. To review and correct missing tracking codes, use the Tracking Exception
Report.
In the tab, select :
Create
View
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Create
Update
Note
Of course, MYBOS cannot determine whether assigned tracking codes are correct. It only knows when they are missing.
Confirmation that assigned tracking codes are correct is a management activity.
If a report for the desired time period has already been created, click
define the desired report:
. If a report has not yet been created, click and
Click to save the report. The resulting report lists all income and expense accounts, by group, that have transactions without
assigned tracking codes:
Drill down on an individual account by clicking its balance:
transactions to add tracking codes. Be sure to click to save changes.
Special Accounts
Use special accounts
Special accounts are custom subsidiary ledgers. In MYBOS, subsidiary ledgers are used to record related transactions, such as those
pertaining to a single customer, supplier, or type of asset or liability. They are summarized in a general ledger control account. Only the
control account is reported on the Balance Sheet to reduce complexity. The balance of a control account equals the sum of balances of its
constituent subsidiary ledger accounts.
MYBOS includes several in-built control accounts that are activated as various functional tabs are enabled.
View
New Report
Edit
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Special accounts
Special Accounts
Update
Examples
A real estate MYBOS might require custom subsidiary ledgers to manage trust accounts for various properties in a
portfolio. Rather than every property’s trust account being displayed separately in financial reports, they can be
summarized in a control account named Trust funds payable. Yet funds associated with different properties are separately
identified in their own special accounts.
A designer and manufacturer of robotic fabrication equipment receives large advance deposits with sales orders. Because
delivery of its customized products typically takes 18 to 24 months, the company prefers more visibility into customers’
deposits than is furnished by MYBOS’s normal handling under Accounts receivable. So it creates a custom control account,
Customer deposits in the Liabilities group and uses special accounts as subsidiary ledgers for various customers’ deposits.
No matter how many customer deposits are received and eventually consumed, the Balance Sheet structure remains fixed
from year to year, with only the one control account showing.
Note
Special accounts cannot be used for income or expense accounts on the Profit and Loss Statement side of the chart of
accounts. They can only be used for Balance Sheet accounts in the Assets, Liabilities, or Equity groups.
Some businesses may require special accounts because the in-built control accounts with their subsidiary ledgers are not suitable.
Enable the tab
To create a custom subsidiary ledger, first enable the tab. Below the left navigation pane, click , check the
box for , and click :
Rename or create the control account
Special accounts will automatically be assigned to a default control account named Special accounts. You can rename this control account to
something more suitable if you will only have one category of special accounts. But you should normally create a new control account on
the Balance Sheet for every new category of special account. Go to
for the special accounts category:
, click on , then
Examples
Accounts receivable is an in-built control account, where customer accounts are the subsidiary ledgers or subaccounts, and
the sum of all customers’ balances equals the balance of the Accounts receivable account on the Balance Sheet.
Inventory on hand is another in-built control account. Its subsidiary ledgers or subaccounts are the various inventory items.
A Balance Sheet would be too long if the value of every item in inventory appeared individually.
Special Accounts
Customize
Settings
Control Accounts
New Control Account
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Special Accounts
New Special Account
Example
The property MYBOS creates a new special account for each property she manages. These all show under the
Special Accounts tab:
You can have multiple control accounts made up of special accounts. This is useful if you require more than one category of custom
subsidiary ledgers.
Create special accounts
Return to the tab and click :
As you define each special account, select your newly created control account in the Control account field:
Special accounts can be used for most transactions as if they are regular accounts. When the control account is selected for a line item on a
transaction entry form, another field appears for the particular special account.
Example
The real estate property MYBOS creates a control account named Trust funds payable:
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Inactivate special accounts
If special accounts become obsolete, they cannot simply be deleted, because there are transactions that reference them. Instead, make them
inactive by editing them and checking the Inactive box:
Inactive special accounts appear in gray at the end of the
button.
Other applications
list. They can be reactivated after clicking the
Special accounts can be used for many purposes. If you have numerous loan accounts, rather than show them individually on a balance
sheet, you can create all loans as special accounts within their own subsidiary ledgers, summarizing them in a single control account named
Loans. This keeps your Balance Sheet concise enough to be easily analyzed, but lets you track what you owe on every loan.
You could also use custom subsidiary ledgers to track store credits given to customers ( e. g., gift cards or customer loyalty program
bonuses). When a customer wants to use store credit, you can easily check the available balance in the
it to a receipt.
tab, then apply
Example
The property MYBOS receives rent from a tenant and records the transaction under the Receipts & Payments tab:
Special Accounts
Edit
Special Accounts
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Special Accounts
Special Accounts
New Special Account
Note
The process described in this Guide is totally optional. Advances, deposits, and refunds are handled automatically during
normal operation of MYBOS. But some users prefer to track them separately from ordinary Accounts receivable or
Accounts payable, either for improved visibility in accounting records or for contractual reasons.
Avoid automatic credit allocations with special accounts
By design, MYBOS automatically applies receipts from customers or payments to suppliers to the sales or purchase invoice with the oldest
due date if a specific invoice is not chosen during account selection:
If there is no unpaid invoice, the receipt or payment amount is posted to Accounts receivable (for a customer) or Accounts payable (for a
supplier) and automatically applied to the next sales or purchase invoice issued for the customer or supplier involved. This automatic credit
allocation is the default process for handling deposits from customers or advance payments to suppliers.
You can avoid automatic credit allocations by creating a special account for the customer or supplier to hold credits until they are
eventually allocated manually. This way, you can be sure receipts and payments are applied only to specific invoices.
Set up the special account
Enable the Special Accounts tab by clicking
and clicking Update below the list:
below the left navigation pane, checking the box for ,
Go back to the tab and click :
Name the account to match the customer or supplier. Leave the default Control account as Special Accounts, or select a custom control
account you have already created:
Example
John Smith buys a $500 item, but has a $400 gift card, entered as a special account under a Store credit custom control
account. Even though John forgot to bring the gift card with him, the store can look up his balance and apply it on a sales
receipt:
If John later brings the gift card to the store, trying to use the balance again, no credit will be available.
Customize
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Create
Example
Northwind Traders has a customer named Morgenstern Gesundkost. Because Northwind expects deposits to be paid with
orders, it establishes a special account for Morgenstern Gesundkost. The initial balance of the account is zero:
Click .
Use the special account
To avoid automatic credit allocations, post transactions to the special account instead of Accounts receivable or Accounts payable as you
normally would.
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Example
Morgenstern Gesundkost currently has two unpaid invoices:
Morgenstern pays Northwind Traders a deposit of $5,000 on a new order. If Northwind posted money received from them
to their ordinary customer account, $5,000 would be instantly applied to their two outstanding invoices, leaving a credit
balance in Accounts receivable.
Instead, Northwind allocates $5,000 to Morgenstern’s special account:
After the transaction is created, Morgenstern’s invoices remain unpaid and their balance under the Special Accounts
tab shows a credit of $5,000:
Allocate the credit manually
To apply the credit manually to an invoice, simply add a new line item with a negative amount equal to the deposit in the special account.
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Settings
Start Date
Notes
By default, Special accounts appears in the Assets group of the Balance Sheet when the first special account is created.
Customer deposits of the type illustrated in the examples above contribute to the account balance as negative amounts.
Deposits paid to suppliers appear as positive amounts. If your Special accounts balance is usually negative, you may want to
move it to the Liabilities group by editing the account under Settings
Chart of Accounts .
The examples shown illustrate a deposit by a customer and application to a sales invoice. Procedures for deposits to
suppliers and application to purchase invoices are similar, but the initial payment is a New Payment rather than a
New Receipt transaction.
Starting Balances
Set start date
A start date should be set only when migrating an ongoing business to MYBOS. The purpose of a start date is to allow closing balances from
the previous accounting system to be entered as starting balances in MYBOS. When MYBOS is used from the beginning of business activities,
a start date is not necessary.
Go to the tab and click :
Example
When Northwind raises a sales invoice for the order to which the deposit applies, it adds a new line item as described
above:
This results in a new invoice for the difference between purchased items and the earlier deposit. The balance under
Special accounts goes to zero:
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Update
Notes
Transactions dated prior to the start date will be ignored by MYBOS, except those used to establish starting balances.
Notes
Starting balances are not set for accounts on the profit and loss statement, because balances of such accounts depend only
on transactions during the current financial period.
Starting balances cannot be set or modified if a lock date has been set.
Note
The starting balance of the Retained earnings account is determined automatically by the program as other starting
balances are entered. This ensures the accounting equation ( Assets = Liabilities + Equity) is always in balance. If the starting
balance of Retained earnings in MYBOS does not match the closing balance of your prior accounting system after all other
starting balances are entered, you have one or both of two problems. Either (1) you have entered another starting balance
incorrectly in MYBOS or (2) your prior accounting system balance sheet was out of balance. Identify and correct the source
problem. Do not attempt any adjustment to the Retained earnings account.
Enter the desired Start Date and click :
Enter starting balances
Starting balances are used only when migrating accounting for an entity to MYBOS from a prior accounting system. They can be set only for
balance sheet accounts or, when appropriate, for their subsidiary ledgers. (See information below.) They are not used for new businesses just
beginning operation. Starting balances on the start date for MYBOS should equal ending balances for equivalent accounts in the old
accounting system.
Set a start date
Starting balances can be entered after a start date is set. To set a start date, follow procedures in this Guide.
Enter starting balances
Starting balances are entered in one of three ways, depending on whether they pertain to:
• Ordinary accounts
• Subsidiary ledgers of control accounts
• Pending invoices and bank transactions
MYBOS allows only one method for any account, subsidiary ledger, or transaction, so you cannot choose incorrectly.
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Note
Starting balances for asset accounts are normally debits, unless the account is a contra asset account (one where the
balance is usually negative). Starting balances for liability accounts are usually credits, unless the account is a contra liability
account. Starting balances for equity accounts are credits when the business owes money and debits when the business is
owed money.
Example
Sample Consulting, a sole trader, switches its accounting to MYBOS at the beginning of the calendar year. It sets its start
date accordingly. On its start date, Sample Consulting has a liability in its Tax payable account for VAT collected from
customers but not yet paid to the tax authority. So it enters a starting balance credit by editing the Tax payable account in
Chart of Accounts under the Settings tab:
Starting balances for ordinary accounts
An ordinary account is one you add yourself in the
tab, from the page:
Ordinary accounts do not include those added automatically by MYBOS when certain functional tabs are created or control accounts
created from the page in . For accounts with an button next to their names in the chart of
accounts, click the button. If they are ordinary accounts and a start date has been set, a Starting balance field will be available:
Select whether the starting balance is a debit or credit from the dropdown list, enter the balance (always as a positive number), and click
.
Starting balances for subsidiary ledgers
Subsidiary ledgers can be thought of as subaccounts of control accounts. Control accounts may be activated automatically when certain
functional tabs are enabled. They may also be custom control accounts you define on the
tab. They include:
• Accounts receivable and Accounts payable
• Cash at bank and Cash on hand
• Fixed assets and Intangible assets
• Inventory on hand
• Employee clearing account
• Capital accounts
• Custom control accounts
page in the
Settings
Chart of Accounts
Control Accounts
Settings
Edit
Update
Control Accounts
Settings
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Bank Accounts
Cash accounts
Customers
Suppliers
Inventory Items
Employees
Fixed Assets
Intangible Assets
Capital Accounts
Special Accounts
Note
If control account assignments for subsidiary ledgers have been changed from the defaults above, starting balances are still
set in the default tabs listed.
Starting balances are not set directly for control accounts of any type. Instead, they must be set for individual subsidiary ledgers
(subaccounts). To set a starting balance for a subsidiary ledger, go to the tab used for defining that type of subaccount. Default relationships
are:
• for Cash at bank
• for Cash on hand
• for Accounts receivable
• for Accounts payable
• for Inventory on hand
• for Employee clearing account
• for Fixed assets, at cost and Fixed assets, accumulated depreciation
• for Intangible assets, at cost and Intangible assets, accumulated amortization
• for Capital accounts
• for special accounts assigned to any custom control account
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Example
Sample Consulting has one fixed asset, its office computer. So two companion accounts are included on its balance sheet,
Fixed assets, at cost and Fixed assets, accumulated depreciation. On the start date, the fixed asset purchase was already
completed, and the asset was partially depreciated. After defining the office computer as a fixed asset in the
Fixed Assets tab, Sample Consulting enters the acquisition cost and accumulated depreciation from its prior
accounting system:
After Update is clicked, all three modified accounts from the two Examples show their correct starting balances on the
Summary page:
Starting balances for pending invoices and bank transactions
The final category of starting balances requires additional steps. A simple, summary balance at the subsidiary ledger level would not be
sufficient, because future transactions or events (after the start date) may be linked to prior ones (before the start date). Therefore, the prior
transactions themselves must be entered, with transaction dates before the start date.
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Example
On its start date, Sample Consulting has an overdue sales invoice issued to Brilliant Industries last year. It enters the invoice
using the process described.
The Accounts receivable control account reflects the change to the starting balance. But the Sales income account to which
the invoice was posted shows nothing for the current period:
Note
More information about starting balances for customers is here. More information on suppliers is here.
MYBOS uses these pre-start-date transactions only to establish starting balances. It ignores them for financial reporting during the current
or later financial periods. And it ignores any inventory item quantities. Such transactions include:
• Unpaid sales and purchase invoices
• Pending bank transactions
Unpaid invoices
Sales and purchase invoices not fully paid as of the start date are entered exactly like normal invoices, but with dates before the start date. If
an invoice has been partially paid, only its remaining balance due is entered. (Since quantities are ignored, any line item can be adjusted so
the balance due equals the remaining balance from the old accounting system.)
Pending bank transactions
Pending bank transactions are entered in the
to Pending.
tab, using dates before the start date. The Status field must be set
Receipts & Payments
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Starting Balances report
If all starting balances are entered before any other transactions are entered for the business, a summary of them can be reviewed simply by
look at the Balance Sheet on the page or in the tab. Often, however, new businesses face pressures to start recording
income and expenses before the chart of accounts is fully defined. Or there is a desire to review starting balances later in the life of the
business.
In that case, go to the tab and click on the report in the General Ledger reports group:
The report will list starting balance totals by account on the start date. Amounts are clickable to drill down and see starting balances for
subsidiary ledgers. Drilling down further leads to individual transactions where appropriate.
Example
Just before its start date, Sample Consulting received and deposited into its bank money for a sales invoice. The sales
invoice was considered paid in full in the old accounting system, so it was not entered as a starting balance in the
customer’s subsidiary ledger under Accounts receivable. But the starting balance of the bank account only included cleared
amounts of 4,679. So the receipt was entered with its original deposit date. Status was set to Pending. The
Bank Accounts tab accurately reflects the complete status of the bank account:
Summary
Reports
Reports
Starting Balances
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Example
Sample Consulting produces its Starting Balances report, including all starting balances mentioned in previous examples in
this Guide:
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Settings
Business Logo
Update
**Note
Regardless of your logo’s file size, it should not be larger in any dimension than 1,000 pixels.
Chapter 3: Customizing a Business
MYBOS includes many features for customizing your business’ look to the outside world. It also allows customization of inputs and displays
to streamline your internal workload.
Business Logo
Add or change a business logo
Add a logo
To add a logo to transaction forms, go to the tab and click :
Browse to the graphic file containing your logo and select it. MYBOS will accept most standard graphic file formats:
**Click when your file has been selected. The logo in use will be displayed on the Business Logo screen:
It will appear on all forms in the default theme and wherever included in coding for other in-built or custom themes:
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Delete
Settings
Change a logo
To change a logo, go to the
tab and click . Click .
If you want to replace the logo, add the new one as described above.
Custom Fields
Use custom fields
Custom fields help tailor MYBOS to specific needs of your business, accounting workflow, and local laws and customs. They can be added
to forms, accounts, definitions, and displays to record and present information not essential to operation of the program.
Custom fields can be added for most functional tabs enabled in the left navigation pane:
• Bank and cash accounts
• Receipts and payments
• Inter account transfers
• Expense claims
• Customers and suppliers
• Sales quotes
• Sales and purchase orders
• Sales and purchase invoices
• Delivery notes and goods receipts
• Credit and debit notes
• Inventory items
• Inventory transfers
• Inventory write-offs
• Production orders
• Employees
• Payslips
• Billable time entries
• Fixed assets
• Capital accounts
• Journal entries
• Folders
They can also be added for several categories in the tab:
• Inventory kits
Settings
Business Logo
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Custom Fields
Notes
Custom fields for individual line items can also be created for some transaction forms. Those are explained in another
Guide.
Note
If default content for the destination form has been set under Form Defaults in the Settings tab, content from the
source form will override default content.
Example 1
You create a custom field, Delivery route, for sales invoices to help plan daily delivery schedules. You also create a
custom field labelled Delivery route for delivery notes.
You next create a sales invoice and enter Route #1 into the custom field. The content of this field will not carry forward to a
delivery note created in the ordinary way in the Delivery Notes tab. But if you use the Copy to button to create a
delivery note from the sales invoice, Route #1 will transfer.
Example 2
You add a custom field, Point of contact, for your customers, and set it to show on printed documents. This field will be
visible for every form where customers are included, such as sales quotes, sales orders, sales invoices, delivery notes, etc.
The field is unique to the customer, not any single form. Note, however, that because the field is not associated with any
form, it does not appear on the input screen for a sales-related transaction, only on the completed form when it is viewed.
Example 3
You define a custom field for inventory items, Country of origin. This field can appear in the Inventory Items tab
listing, and shows when editing individual inventory items. But it does not appear when inventory items are entered as line
items on forms. (If you want country of origin to appear on sales invoices, for example, you must include that information in
the Description field or a line-item custom field.)
• Non-inventory items
• Withholding taxes (for tax withheld at source, not payroll withholding, which is set up as a payslip deduction item)
Earlier versions of MYBOS included many non-essential fields on transaction entry forms. This practice took up unnecessary screen space
and added needless complexity to the program. Upon update to the current version, any non-essential fields with content are converted
automatically to custom fields with the same labels. So no data is lost. Now, entry screens can contain only information you desire or the
program requires. And you have the option to purge unnecessary data from old records.
Custom fields are unique to the tab, form, account, or item for which you create them. Fields created for one form are not automatically
available on other forms. This separation helps you customize forms without unnecessarily cluttering others. On the other hand, fields
created for accounts and items may be available on multiple forms or displays where those accounts or items are used. Regardless of where
they are created, though, custom fields are not available in situations where they would be pointless.
Just as custom fields do not automatically appear on other forms, contents entered in a field for one transaction do not automatically appear
in a field for a related transaction, even if the fields have the same label. However, if a transaction containing custom fields is copied to
another type transaction for which custom fields with identical labels have been created, contents of the custom fields will be transferred.
Creating custom fields
To create a custom field, go to the
tab and click :
Settings
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New Custom Field
New Custom Field
The screen will show a button for each form, account, or item you have enabled.
Click the relevant button and complete the definition:
• Label is your assigned name for the custom field. This label will appear where appropriate on forms or displays to designate the
field. So it should be something you are willing for customers and suppliers to see.
• Position controls the order in which custom fields appear. Enter a number, if desired.
• Type lets you choose Single-line text, Paragraph text, Dropdown list, Image, Date, or Number as the nature of the field. Dropdown list
in the Type field brings up a new window, Options for drop-down list, where you can enter fixed choices for the list:
• Size allows a choice of Small, Medium or Large for either text type. Your selection will alter the size of the field on the entry screen
so you know how much text will fit.
• Check Show custom field as a column if you want the field to be included in listings of the relevant tab.
• Check Show custom field on printed documents to display the field on forms.
Click to save the custom field. Later, the field can be edited. Be sure to click after editing.
Create
Update
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Example 4
Roger, the accounting MYBOS at Northwind Traders, wants to closely monitor depreciation and disposition of fixed assets
to be certain the company follows prescribed accounting standards. He creates four custom fields for the Fixed Assets
tab. All are single-line text and designated to show as columns:
When Roger views the Fixed Assets tab, he sees a more complete picture of the company’s fixed assets:
Example 5
Anastasia sells her glass artwork both to wholesale corporate distributors and directly to residential customers. To remind
herself of discount rates and payment terms, and to simplify marketing campaigns, she establishes a custom field, Customer
type, in the Customers tab. She sets it to show as a column:
Before mailing a new brochure targeting residential customers, she uses the Search function to filter her customer list:
Example 6
ModTek Design Associates wants its customers to know which partner has reviewed and approved billings. It creates a
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Notes
Entry screens always show custom fields, labelled as such. For example:
But fields show on completed forms and as display columns only when they contain an entry and the field has been
defined to show on the relevant form or display.
Field type applies only to the form on which the entry is first made. When forms containing custom fields are copied to
other forms with identical labels, the type of field does not matter. So for example, an entry in a single-line text field will be
copied to a custom field of the dropdown list type, regardless of the options normally available in the dropdown list.
Lastly, default text that you want to appear in a custom field on all new forms should be entered under Form Defaults for
that transaction form.
Making custom fields inactive
MYBOS will not allow custom fields to be deleted if they have already been used. If a field outlives its usefulness, check the box to make it
inactive (the box does not appear when custom fields are first being created):
Inactive custom fields appear in gray at the end of lists. They can be reactivated by clicking
after editing.
and unchecking the box. Always click
custom field for the Sales Invoices tab, labelling it Approved by. The field will show at the bottom of the sales invoice:
Edit
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Form Defaults
Example
A custom field for sales invoices is defined, with a Label of Photo. The custom field is defined to show on printed
documents. On a sales invoice, the following HTML code is inserted, referencing a photograph of an apple:
The resulting sales invoice shows the custom field with the photograph:
Notes
Resize large images before storing them.
Custom fields will accept additional HTML style attributes.
You may find that images will not display onscreen, but are replaced by a symbol indicating inability of the software to
download them:
This happens when the image host restricts ability to hotlink images to local IP address 127.0.0.1. In these situations, PDFs
of a transaction or emails sent from the program generally display the images correctly. But the only reliable solution is
using a different host to store images.
Add an image to a custom field
One of the field types allowed for custom fields is Image. After the field is defined under
, image content can be added on the
relevant transaction form or under for the form for which you have created the custom field.
Rather than incorporate the image itself into MYBOS’s business data file, the image must be stored at a web-accessible location. HTML
code is entered into the custom field referencing the URL of the stored image.
Add custom fields for individual line items
You can add custom fields for individual line items in addition to those created for various transaction forms. This capability is supported
for line items on:
• Sales and purchase invoices
• Sales and purchase orders
Settings
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Create
Caution
Although line-item custom fields and their contents are replicated when a transaction is cloned, they do not carry over to
line items on other forms, even when the Copy to function is used. This is because transferring information in custom
fields to different circumstances would rarely be desirable. However, line-item custom fields with identical names can be
created for more than one form, providing locations for manual information transfer when appropriate.
Note
Multiple lines of text can be entered in line-item custom fields. Simply hit the Return key to add another line.
• Sales quotes
• Credit and debit notes
• Delivery notes
• Goods receipts
To create a line-item custom field, go to the Settings tab, click Custom Fields , then find the list with -Line appended to its name for
the form to which you are adding the field. Click New Custom Field for that list:
• Give the custom field a Label, which will appear as a column heading.
• Enter an optional, numerical Position. All custom fields appear after Description and before Qty.
• Unless the custom field is for internal purposes only, check the box to Show custom field on printed documents.
Click to save the custom field.
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This feature is automatically supported across all custom themes:
Example
Northwind Traders sells caviar and needs to include lot numbers on sales invoices for warranty purposes, but doesn’t want
to include them in descriptions of inventory items. So Northwind creates a line-item custom field under Custom Fields :
Northwind labels this custom field Lot # and checks the box to show it on documents:
Lot # is now an editable column when Northwind enters sales invoices:
It will show on the invoice as a custom column, too:
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Update
Note
This Guide applies to custom fields for transaction forms. It does not cover line-item custom fields, which appear on
individual lines of the form and cannot be moved using techniques described here.
{% for field in fields %}
<div style="font-weight: bold">{{ field.label }}</div>
<div style="margin-bottom: 10px">{{ field.text }}</div>
{% endfor %}
<div style="font-weight: bold">Some Custom Field</div>
<div style="margin-bottom: 10px">{{ custom_fields["Some Custom Field"] }}</div>
{% for field in fields %}
<div style="font-weight: bold">{{ field.label }}</div>
<div style="margin-bottom: 10px">{{ field.text }}</div>
{% endfor %}
<div style="font-weight: bold">Some Custom Field</div>
<div style="margin-bottom: 10px">{{ custom_fields["Some Custom Field"] }}</div>
Note
When adding lines, substitute the actual label of your custom field for Some Custom Field.
Move a custom field on transaction forms
By default, custom fields appear near the bottom of completed transaction forms. You can move a custom field so it appears somewhere
else using a custom theme.
Create a custom field
First, create a custom field for the desired form, following instructions in another Guide. Make sure the custom field is marked to Show on
printed documents. For purposes of illustration, a custom field labelled Some Custom Field will be used below. The field will show on the
relevant transaction entry screen, and content can be entered by default or manually:
Create a new theme
Then go to Themes under Settings and create a new custom theme. You can create one from scratch after clicking the
button or View an existing theme and Copy to New Theme.
Let’s adapt the built-in, default theme and call our new theme Plain (custom). When opened for editing, notice how lines 18-21 contain the
following code:
These 4 lines are responsible for showing transaction dates, reference numbers, etc., all of which are elements of an array named fields that
is separately defined for each transaction type. If you want to show content of your custom field below these basic fields, insert the following
two lines after {% endfor %}:
You will end up with:
or your custom theme. Edit the transaction form to which you want to apply your custom theme by checking the
Custom theme box and selecting your theme:
New Theme
Create
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{% for field in custom_fields %}
<tr>
<td colspan="99">
<div style="font-weight: bold; padding-top: 20px">{{ field.label }}</div>
<div>{{ field.text | newline_to_br }}</div>
</td>
</tr>
{% endfor %}
{% if field.label == 'Some Custom Field' %}{% continue %}{% endif %}
{% for field in custom_fields %}
{% if field.label == 'Some Custom Field' %}{% continue %}{% endif %}
<tr>
<td colspan="99">
<div style="font-weight: bold; padding-top: 20px">{{ field.label }}</div>
<div>{{ field.text | newline_to_br }}</div>
</td>
</tr>
{% endfor %}
Note
When adding the line, substitute the actual label of your custom field for Some Custom Field.
When you view your transaction, your custom field will show below the basic fields in the header:
Suppress the duplicate custom field
You will notice your custom field now shows twice. The first place is in the heading, where you just added it. The second is at the bottom of
the form where custom fields normally appear. To hide the second appearance, go back to edit your custom theme and find the following
lines:
After {% for field in custom_fields %} insert this line:
So you will have:
This will cause the program to bypass your custom field when looping through and displaying any others you may have in the
custom_fields array.
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{% if custom_fields["Customer Reference"] %}
<div style="font-weight: bold; padding-top: 10px">Customer Reference # : {{ custom_fields["Customer Reference"]
}}</div>
{% endif %}
{% if custom_fields["Supplier Reference"] %}
<div style="font-weight: bold; padding-top: 10px">Supplier Reference # : {{ custom_fields["Supplier Reference"]
}}</div>
{% endif %}
Note
Other than customer and supplier statements, themes do not affect the layout or design of reports.
Add conditional logic
If customization is to be applied only in certain situations, you need to add conditional logic to your theme. For example, suppose you have
defined two custom fields, one for a Customer Reference number on sales invoices, the other for a Supplier Reference number on
purchase invoices. But you want to insert whichever is appropriate for a transaction at hand using the same custom theme. You can insert
the following code in the appropriate section of the theme:
The program will test all custom fields incorporated in the form as it loops through them to see if they are Customer Reference or
Supplier Reference. If one is present, its label and field content will be displayed. Otherwise, execution of theme code will continue
without action.
Themes
Change the look of forms with themes
Themes change the overall design and presentation of forms and documents displayed or printed by MYBOS. They provide a unified look
for:
• Payments, receipts, and transfer vouchers
• Expense claims
• Sales quotes
• Sales and purchase orders
• Sales and purchase invoices
• Debit and credit notes
• Delivery notes and goods receipts
• Inventory transfers and write-offs
• Production orders
• Payslips
• Journal entries
• Customer and supplier statements
Built-in, default theme
MYBOS includes a built-in, default theme named Plain. This theme cannot be edited or deleted. But it can be tailored with unique business
details and a logo. The title of the particular transaction form being displayed or printed appears at the upper left, as in this sales invoice:
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Settings
Themes
View
By design, MYBOS minimizes displayed information. So fields not populated do not show. For example, in the illustration above, inventory
codes are not present, so the Code column is not displayed. The Plain theme also incorporates Paid in Full and Overdue “stamps” that display
at the bottom of sales invoices when appropriate.
Activating other built-in themes
MYBOS includes other built-in themes, too. New themes will continue to be added with future releases of the program. These are available
under the tab by clicking :
To preview a theme, click beside its name:
A large screenshot of the theme, populated with representative data, will appear:
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Edit
Note
Theme previews do not represent any specific transaction form. They only display the general look of the theme and
location of your logo and business details. Their content does not match what appears when using the theme.
Note
All features of MYBOS are not supported by all built-in themes. Most do not include the Paid in Full and Overdue stamps
for sales invoices without further modification. Be sure any theme you choose meets all your needs before committing to
use it. (The built-in Plain theme supports all features.)
To activate (or deactivate) the theme, click and check (or uncheck) the box:
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New Theme
Create
Adding custom themes
You can add your own custom themes. Themes are coded in the Liquid templating language. If you are not familiar with Liquid, check one of
many educational web sites on the internet, such as https://shopify.github.io/liquid/. There are two methods for adding a custom theme:
• Write code from scratch
• Copy and modify a built-in theme
Write code from scratch
To write your own theme, select the
tab, then and :
Give your new theme a Name and write code directly in the Theme code box:
Click . Your theme will automatically become active and visible in the list of themes:
Copy and modify a built-in theme
An easier approach is to modify a built-in theme similar to what you need. While viewing that theme, click on the
select New Theme:
button and
The Liquid code for the built-in theme will appear in a code box:
Settings
Themes
Copy to
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Create
Note
Unlike built-in themes, custom themes cannot be deactivated except by deleting them.
Rename the theme, modify the code, and click . Your new theme will become active.
Using themes
When at least one built-in or custom theme besides the Plain theme is active, transaction entry forms include a Custom theme checkbox:
To use a theme, check the box. A dropdown list of active themes will appear:
Select a theme, and the form will display with the new look:
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Settings
Themes
Note
Built-in themes cannot be edited. Only custom themes can be edited.
MYBOS will remember the theme you have chosen for a particular form. However, all new forms will use the themes chosen for their form
types in under unless you change them.
Customize themes
Themes can be customized in MYBOS to include, exclude, or modify features or change placement of information. First, however, a
custom theme must be added under . Usually, the easiest approach is to copy one of the built-in themes and edit it. Themes
can, however, be coded from scratch. Either way, new themes are added according to instructions in another Guide.
Editing a theme
To edit a theme, go to
and click
next to the theme you want to customize:
The Liquid computer code for the theme will appear:
Form Defaults
Settings
Settings
Edit
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Update
Themes
View
Edit the code directly in the window. Click below the editing window to save changes. If you are not familiar with the Liquid
language, numerous educational websites can be found on the internet, including at https://shopify.github.io/liquid/.
Viewing a theme
To see the results of your editing, return to the list and click :
A generic image of your theme will be displayed, with representative content:
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Edit
To further customize the theme, click above the image:
Set a theme for customer or supplier statements
To set a theme for customer or supplier statements, go to
customers and suppliers, there are two types:
and click on the type of statement you want to issue. For both
OR
Unpaid invoices type
To set a theme for an Unpaid invoices statement, click
and choose an active theme from the dropdown list:
Reports
Set Date
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Update
Update
Note
When known regulations require, built-in tax codes automatically change Invoice on sales invoices to Tax Invoice. In some
cases, other form titles are similarly modified. If a requirement in your jurisdiction is not already incorporated into MYBOS,
you can change titles as described below.
Click . The theme will apply to all statements of that particular type until changed.
Transactions type
To set a theme for Transactions type statements, click
and choose an active theme from the dropdown list. Click .
The theme will apply to all statements of that particular type until changed.
Change a form title
A title is the name of a particular transaction form in MYBOS. Titles appear near the top of forms in many themes, but can be placed
elsewhere. They include:
• Payments, receipts, and transfers
• Bank reconciliations
• Expense claims
• Sales and purchase invoices
• Sales and purchase quotes
• Sales and purchase orders
• Credit and debit notes
• Delivery notes and goods receipts
• Payslips
• Production orders
• Depreciation and amortization entries
• Inventory write-offs and transfers
• Journal entries
• Folders
• Customer and supplier statements
Sales invoices, sales quotes, receipts, and payments include the ability to set a custom title directly from the transaction entry screen.
Modification of titles for those forms are common, sometimes even being required by law.
Any other form’s title can be changed by modifying a custom theme. (You cannot modify built-in themes.) If you have not created a custom
theme yet, follow instructions in another Guide, then these steps:
• Under the tab, click . Then click next to the custom theme you want to modify:
• When the custom theme’s computer code appears, locate the following segment of code: {{title}}. (You may have to scroll to the
right to see complete lines.)
Set Period
Settings
Themes
Edit
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Update
Example
An Expense Claim could be turned into a Travel Expense Report with this substitution:
{{title | replace: "Expense Claim", "Travel Expense Report"}}
producing:
CAUTION
Beware of unintended consequences. Any place old title text appears in the title of any form, it will be replaced with new
title text. So you may wish to limit usage of custom themes to specific forms or create additional themes. You might also
use more sophisticated conditional tests in your code. Those are beyond the scope of this Guide.
• Replace that code with {{title | replace: "Old Title", "New Title"}}. Preserve all other code in the same line. “Old Title”
must be the name of the form you want to change, exactly as it appears when using the default theme. “New Title” is the text you
wish to substitute. Both are case sensitive, and the quotation marks must be included.
• Click .
Any time forms are viewed in the particular custom theme, old title text will be replaced by new title text.
Change fonts in custom themes
MYBOS supports custom font families for screen viewing, PDF generation, and printing using custom themes. The custom fonts must be
installed on your machine. No external font loading is currently allowed.
For example, you can change the built-in theme, Bold Yellow, to use the Agency FB font. While viewing the theme, copy it to a new theme
and set the style attribute in the first line of Liquid code to font-family: Agency FB:
A sales invoice using the new custom theme will look like this:
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Caution
Substitution of custom fonts may be different for PDFs and printed documents, because printing occurs through your
operating system. Printed documents may require insertion of the font-family attribute at multiple places in the Liquid
code of a theme. Experiment with your custom theme to be sure you have the desired font showing in all the right places.
Because custom fonts must be installed on your machine, they will not be used for emailed transaction forms. If
you want to email a form with a custom font, you must first create a PDF and then email the PDF.
Of course, you can have multiple fonts within single PDF document. You just need to set the font-family attribute on relevant tags.
Include calculations in custom themes
To include calculations in custom themes, particularly using numbers entered in custom fields, use arithmetic filters available in the Liquid
templating language:
• abs — returns the absolute value of a number
• at_least — limits a number to a minimum value
• at_most — limits a number to a maximum value
• ceil — rounds the input up to the nearest whole number
• divided_by — divides a number by the specified number
• floor — rounds a number down to the nearest whole number
• minus — subtracts a number from another number
• modulo — returns the remainder of a division operation
• plus — adds a number to another number
• round — rounds an input number to the nearest integer or, if a number is specified as an argument, to that number of decimal
places
• times — multiplies a number by another number
Example 1
Let’s say you have two custom fields defined for sales invoices. Both are number type fields:
• Field 1
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<div style="font-weight: bold; padding-top: 20px">Field 1 + Field 2</div>
<div>{{ custom_fields["Field 1"] | plus: custom_fields["Field 2"] }}</div>
{{ table.totals["Total"] | plus: custom_fields["Field 1"] }}
{{ table.totals["Balance due"] | plus: custom_fields["Field 1"] }}
Note
This Guide is not a comprehensive tutorial on arithmetic filtering, and certainly not on Liquid coding in general. It is meant
only to illustrate the concept of using filters to perform calculations in custom themes. Additional Liquid code will probably
be necessary to obtain desired results. Users are responsible for the performance of their own custom themes and should
consult online syntax guides or hire competent programming support if necessary.
• Field 2
and you want to also show on invoices the sum of Field 1 and Field 2. You do not need to define a third custom field and enter content
into it. Instead, inject the following lines into your custom theme at the appropriate place, following the code that displays the
custom_fields array:
The first line displays a label for your calculated result. The second includes the Liquid arithmetic filter that adds your two custom fields’
values. The result is:
Example 2
You can also code a custom theme to perform calculations involving built-in fields. For instance, if you want to add the value of Field 1 to
the total or balance due on your invoice, inject one of the following lines into your theme:
or:
Add line numbers to themes
Line numbers can be added to sales invoices and other transaction forms with a custom theme. Below is Liquid code for a modified version
of the default (Plain) MYBOS theme that includes a column with sequential line numbers. You can copy the code and use it to create your
own custom theme. You can use similar code to modify other built-in themes after activating them, too.
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<table style="padding: 30px">
<thead>
<tr>
<td colspan="99">
<table style="margin-bottom: 20px"><tr>
<td style="font-weight: bold; font-size: 32px">{{ title }}</td>
{% if business.logo != null %}<td style="text-align: right"><img src="{{ business.logo }}"
style="max-height: 150px; max-width: 300px"></td>{% endif %}
</tr></table>
<table style="margin-bottom: 20px"><tr>
<td>
<div><b>{{ recipient.name }}</b> {{ recipient.code }}</div>
<div>{{ recipient.address | newline_to_br }}</div>
<div>{{ recipient.identifier }}</div>
</td>
<td style="border-right-width: 1px; padding-right: 20px; text-align: right">
{% for field in fields %}
<div style="font-weight: bold">{{ field.label }}</div>
<div style="margin-bottom: 10px">{{ field.text }}</div>
{% endfor %}
</td>
<td style="padding-left: 20px; width: 1px; white-space: nowrap">
<div style="font-weight: bold">{{ business.name }}</div>
<div>{{ business.address | newline_to_br }}</div>
<div>{{ business.identifier }}</div>
</td>
</tr></table>
<div style="font-size: 14px; font-weight: bold; margin-bottom: 20px">{{ description }}</div>
</td>
</tr>
<tr>
<td style="font-weight: bold; padding: 5px 10px; text-align: center; border-left-width: 1px;
border-bottom-width: 1px; border-top-width: 1px; width: 1px">#</td>
{% for column in table.columns %}
<td style="font-weight: bold; padding: 5px 10px; text-align: {{ column.align }}; border-left-width:
1px; border-bottom-width: 1px; border-top-width: 1px{% if forloop.last == true %}; border-right-width: 1px{% endif
%}{% if column.nowrap %}; white-space: nowrap; width: 80px{% endif %}">{{ column.label }}</td>
{% endfor %}
</tr>
</thead>
<tbody>
{% for row in table.rows %}
<tr>
<td style="padding: 5px 10px; text-align: center; border-left-width: 1px; width: 1px">{{
forloop.index0 | plus:1 }}</td>
{% for cell in row.cells %}
<td style="padding: 5px 10px; text-align: {{ table.columns[forloop.index0].align }};
border-left-width: 1px{% if forloop.last == true %}; border-right-width: 1px{% endif %}{% if
table.columns[forloop.index0].nowrap %}; white-space: nowrap; width: 80px{% endif %}">{{ cell.text | newline_to_br
}}</td>
{% endfor %}
</tr>
{% endfor %}
<tr>
<td style="border-bottom-width: 1px; border-left-width: 1px"> </td>
{% for column in table.columns %}
<td style="border-bottom-width: 1px; border-left-width: 1px{% if forloop.last == true %};
border-right-width: 1px{% endif %}"> </td>
{% endfor %}
</tr>
{% for total in table.totals %}
<tr>
<td colspan="{{ table.columns | size }}" style="padding: 5px 10px; text-align: right{% if
total.emphasis == true %}; font-weight: bold{% endif %}">{{ total.label }}</td>
<td style="border-left-width: 1px; white-space: nowrap; border-right-width: 1px;
border-bottom-width: 1px; padding: 5px 10px; text-align: right{% if total.emphasis == true %}; font-weight: bold{%
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Notes
The purpose of this Guide is to furnish basic information about how the page number feature is implemented. We will not
furnish detailed coding instructions on how to control placement and style of page numbering. Users are responsible for
coding and debugging their own custom themes. This Guide offers only a couple examples to get you started.
Page numbers are automatically included on PDFs of multi-page reports, which are not affected by themes. (Customer and
supplier statements are exceptions, because they are displayed according to the theme selected.)
<tfoot>
<tr><td colspan="99" style="text-align: center"><!--Page Counter--></td></tr>
</tfoot>
Add page numbers to PDFs of custom themes
Page numbers can be added to PDFs of multi-page transaction forms and statements by including appropriate code in a custom theme.
This is in addition to repetition of transaction header information included by default on PDFs of all themes.
When generating a PDF, MYBOS looks for the exact HTML comment tag, <!--Page Counter—>, in your theme. By incorporating this tag in
your Liquid theme, you can control where the page numbers will be positioned and how they will be presented (colors, font size, alignment
etc.) The page numbers will appear in the format Page X of Y.
For example, you can customize the default, Plain, theme by adding the following three lines between the </tbody> and </table> tags near
the end of the theme code:
The theme code would look like this:
endif %}">{{ total.text }}</td>
</tr>
{% endfor %}
{% for field in custom_fields %}
<tr>
<td colspan="99">
<div style="font-weight: bold; padding-top: 20px">{{ field.label }}</div>
<div>{{ field.text | newline_to_br }}</div>
</td>
</tr>
{% endfor %}
{% if emphasis.text != null and emphasis.positive %}
<tr><td colspan="99"><div style="text-align: center; margin-top: 40px"><span style="color: #006400;
border-width: 5px; border-color: #006400; padding: 10px; font-size: 20px">{{ emphasis.text | upcase
}}</span></div></td></tr>
{% endif %}
{% if emphasis.text != null and emphasis.negative %}
<tr><td colspan="99"><div style="text-align: center; margin-top: 40px"><span style="color: #FF0000;
border-width: 5px; border-color: #FF0000; padding: 10px; font-size: 20px">{{ emphasis.text | upcase
}}</span></div></td></tr>
{% endif %}
</tbody>
</table>
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Example
Customize the default theme, named Plain, by finding the following code:
<td>
<div><b>{{ recipient.name }}</b> {{ recipient.code }}</div>
<div>{{ recipient.address | newline_to_br }}</div>
<div>{{ recipient.identifier }}</div>
</td>
Replace the first line:
<td>
with:
<td style="padding-left: 20px; padding-top: 10px">
This will move recipient details 20px to the right and 10px toward the bottom of the page. Adjust these numbers as
required until the address fits your envelope window exactly.
Resulting transaction forms using the custom theme will not show page numbers on screen, because lengthy forms are not paginated on
screen. But when you generate a PDF, the page counter will show at the bottom center of each PDF page:
Likewise, if you are using the Glossy Green theme and want to show the page counter in the top right corner in a green color, you could add
the <!--Page Counter--> comment tag to the beginning of the theme:
Adjust recipient information to fit windowed envelopes
MYBOS’s completed forms can be customized so recipient information fits a windowed envelope. Recipient information includes, among
other things:
• Customer name and address on sales invoices and credit notes
• Supplier name and address on purchase invoices and debit notes
• Employee information on payslips
• Expense claims payers’ information on expense claims
Since there is no standard for window location, this will require some simple customization of a theme.
Include or exclude OVERDUE and PAID IN FULL stamps on sales invoices
Sales invoices displayed using the built-in, Plain, theme display colored “stamps” at the bottom when paid in full or overdue:
Other built-in themes do not include these stamps, regardless of sales invoice status.
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Settings
Themes
Create
{% if emphasis.text != null and emphasis.positive %}
<tr><td colspan="99"><div style="text-align: center; margin-top: 40px"><span style="color: #006400; border-width:
5px; border-color: #006400; padding: 10px; font-size: 20px">{{ emphasis.text | upcase }}</span></div></td></tr>
{% endif %}
{% if emphasis.text != null and emphasis.negative %}
<tr><td colspan="99"><div style="text-align: center; margin-top: 40px"><span style="color: #FF0000; border-width:
5px; border-color: #FF0000; padding: 10px; font-size: 20px">{{ emphasis.text | upcase }}</span></div></td></tr>
{% endif %}
One or both stamps can be included on other built-in themes or excluded from the Plain theme by creating a custom theme and modifying
a few lines of computer code. The only programming skills needed are the ability to copy, paste, and delete. Before starting, however, read
and understand this Guide.
Find the code
To include or exclude the stamps, first find the computer code that generates them. Go to the tab and select :
Click beside the Plain theme, then and select New Theme:
When the computer code for the theme appears, locate these lines near the bottom:
The first three lines control appearance of the green PAID IN FULL stamp. The last three lines control appearance of the red OVERDUE
stamp.
Use or modify the code
To add either or both stamps to another custom theme, copy the appropriate lines of code from this source theme and paste them into the
other destination theme. Normally, these lines should be pasted into a theme just before the </tbody> tag. Characteristics of the stamps,
such as font color or size, can be edited.
There is no need to
version of MYBOS.
the source theme once you have copied the code from it, because the Plain theme already exists in every
To eliminate either or both stamps from the Plain theme, delete the relevant lines of code. Modify the new theme’s name so you can
distinguish it from the default, Plain, theme and click .
Shortcut for the OVERDUE stamp
Another way to eliminate only the OVERDUE stamp is to suppress the sales invoice due date. When creating or editing a sales invoice, check
the box to Hide due date, and the OVERDUE stamp will not appear:
The due date also will not appear on the completed sales invoice. But the PAID IN FULL stamp will appear when the invoice amount has
been received.
Form Defaults
Set form defaults
Form defaults are optional. They can be used to set:
• Standard content for almost any field, including custom fields
• Standard checkbox options
View
Copy to
Create
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Billable Expenses
Note
Form defaults can only be set for transaction forms and subsidiary ledgers related to functional tabs already enabled
through the Customize link.
• Unique custom themes
Form defaults apply only to the form for which they are defined, but they can be set for forms in every MYBOS tab except
(because there is no separate form), including recurring versions (where available):
• Bank accounts
• Cash accounts
• Payments or receipts
• Inter account transfers
• Expense claims
• Sales quotes
• Sales and purchase orders
• Sales and purchase invoices (ordinary and recurring)
• Credit and debit notes
• Delivery notes and goods receipts
• Inventory transfers and write-offs
• Production orders
• Payslips (ordinary and recurring)
• Billable time entries
• Journal entries (ordinary and recurring)
Form defaults can also be set for subsidiary ledgers:
• Customers
• Suppliers
• Employees
• Inventory items
• Fixed and intangible assets
• Capital accounts
• Special accounts
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Settings
Form Defaults
Edit
Notes
Regardless of any entry in the Date field, the program defaults to the current date when the default form is saved. And the
current date is prepopulated on every new transaction created except clones.
The Type field is also ignored for receipts and payments. That field will conform with the type of transaction selected when
clicking New Receipt or New Payment .
Setting or modifying form defaults
To set or modify a form default, click , then :
Click beside the form or ledger category for which you want to set or modify default content or custom theme:
A copy of that form or ledger entry appears. Enter content in any field except Date (on any form) or Type (on the receipt or payment form).
Check any option box. Add lines, if available and necessary. (Visible fields and options depend upon tabs you have enabled and settings you
have entered elsewhere in the program, just as they would when entering a normal accounting record.)
You can set a default Custom theme for a transaction form if you have activated at least one theme besides the automatically activated Plain
theme. Check the box and choose an active theme in the dropdown list:
Examples
Standard terms and conditions can be set up in a custom field for sales invoices. These will appear on every new sales
invoice.
If only one bank or cash account exists, or is most regularly used, it can be pre-selected as a form default for receipt and
payment forms.
If a sole proprietorship only enters expense claims by its owner, the owner can be selected as the expense claim payer.
Late payment fees on sales invoices can be set up in advance.
The Title of sales quotes can be changed for all future quotes by entering a new one as a form default.
Currencies can be chosen in advance for specific transaction types.
Inventory write-offs can be set up to always debit a specific expense account.
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Update
Create
Note
Form defaults affect only new transactions and ledger entries. They do not modify content or theme selection retroactively.
Click to save your new defaults.
Applying form defaults
Form defaults are applied automatically. Exact behavior depends on the specific action:
• Whenever a new transaction form is created, the default content and custom theme appear. Both can be edited or augmented,
either before clicking
the built-in, Plain, theme.
or afterwards by editing. If no default custom theme is designated, new transaction forms appear in
• When a form is cloned, content of the source form is carried forward, overriding default content. An exception to this rule exists for
reference numbers. Clones follow the default setting for reference numbers, whatever it is, in order to support mandatory automatic
sequencing.
• When a form is copied to another type, content of the source form is also carried forward, overriding default content of the
destination form type.
• Whether generated by cloning or copying, a new destination form appears in the custom theme (if any) set as default for that form
type. If no custom theme has been set as default, all forms appear in the Plain theme.
• When a new ledger entry is created, default content will appear. Content can be edited or augmented, either before clicking
or afterwards by editing the ledger entry.
Create
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Add Business
Summary
Chapter 4: Program Features
Many features of MYBOS appear consistently throughout the program or draw upon several functional modules. These make the program
fairly intuitive to use.
Learn the Program
Experiment with a test business
Whether you are brand new to MYBOS or a seasoned user, consider creating a test business. Rather than risk mistakes with your real
accounting records, experiment first with a test business to try out new features. You can create as many businesses as you want in MYBOS,
regardless of whether you are using the desktop, server, or cloud editions. You will never be charged extra for more companies.
Setting up the test business
On MYBOS’s home page, click on the
in the dropdown box:
button in the top menu bar. Then click and select
Enter the name of your test business and click :
A page for your test business will appear with a minimal set of tabs enabled and a few sample income and expense accounts:
Businesses
Add Business
Create New Business
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Note
An alternative to setting up your own test business is to import one already set up. Follow the procedure outlined in
another Guide.
The test business will also appear on the home page with any others you have created:
Common Procedures
Create non-inventory items
Non-inventory items are shortcuts for entering line items in many sales- and purchase-related transaction forms in MYBOS. They are
completely optional. Unlike inventory items, they are not required for any transaction entry. But once defined, they help:
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New Non-inventory Item
Note
Non-inventory items can be used for sale and purchase of physical goods, but they do not support counting quantities on
hand, monitoring stock movement, or calculating profitability. For those functions, use inventory items.
• Standardize terminology by always referring to a product or service with identical language
• Improve accounting accuracy by always posting similar income or expense items to the same accounts
• Store and apply consistent prices to commonly sold or purchased goods or services
• Speed up entries by automatically filling information on forms
Creating non-inventory items
Before non-inventory items can be employed, they must be created. And they can only be created if at least one sales- or purchase-related
tab that can make use of them is enabled (see list below in section on Using non-inventory items).
With at least one such tab enabled, go to the tab, click on , then :
Complete the definition:
• Item code can be anything that helps find, sort, or categorize the item. If used, Item code will appear on forms.
• Item name will appear when searching for a non-inventory item to complete a line item. If no further description of the item is
entered, Item name will appear in the Description field on completed forms, such as sales invoices.
• Unit Name is optional, but can be used to specify units by which the item will be sold or purchased. Only one unit name is allowed;
if goods or services are purchased and sold in different units, either apply conversions before making entries or create separate
non-inventory items.
• The Description field is for more comprehensive information. Its contents will appear on finished forms in place of Item name.
Settings
Non-inventory Items
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Create
Anything a customer or supplier should see can be placed into this field.
• Two checkboxes are used to indicate whether the non-inventory item can be purchased or sold (or both). When these are checked,
fields appear for additional information. The illustration above is for a service that can be sold, but not purchased. The Sale price,
Account to which a sale will be posted, and applicable Tax Code are entered. A Tracking Code can also be selected. Notice that
only the Sale price is free text. The other three fields must be selected from previously defined accounts, tax codes, or tracking
codes. This information will be prefilled whenever this non-inventory item is added to a form.
• Check the Inactive box to prevent accidental use of obsolete items.
Click to save the non-inventory item.
The second illustration below shows a non-inventory item created for advertising purchased frequently in local publications:
Using non-inventory items
Non-inventory items can be used for:
• Receipts and payments
• Expense claims
• Sales quotes
• Sales and purchase orders
• Sales and purchase invoices
• Credit and debit notes
• Delivery notes and goods receipts
When completing any of these forms, an Item field will appear at the left end of line items whenever any inventory or non-inventory items
have been defined that are applicable. For example, if no inventory items are defined, but non-inventory items for sales of services have
been, all sales-related forms will include the Item field. But unless non-inventory items for purchases have been defined, forms like purchase
invoices will not include the Item field.
To use a non-inventory item, click on the dropdown box of the Item field. Or, begin typing the Item code or Item name in the field to take
advantage of the autosearch capability. When a non-inventory item has been selected, all its parameters will automatically be filled for the
line. Anything can be edited except the account to which the item is posted:
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Non-inventory Items
Edit
Edit
Updating non-inventory items
Non-inventory items can be updated when required, such as when a service description is altered or a price change occurs. Go to
and click for the item to be changed:
Edit the item as desired and click
will be affected.
. Existing transactions using the non-inventory item will not be modified. Only future forms
If the non-inventory item is no longer needed, it can be deleted as long as it has never been used. But MYBOS will not allow non-inventory
items to be deleted if they have been used. In that case, check the box, and the non-inventory item will no longer be available.
If an inactive non-inventory item becomes useful again, scroll to the bottom of the non-inventory items list, where you will see the item’s
name in light grey text with strike-through markings:
Click next to the item’s name. Uncheck the box and the item will once again be available. Remember to click
when finished editing.
Use reference numbers
Most transaction forms in MYBOS allow you to enter a reference number to identify individual transactions. In general, this field is labeled
simply as Reference:
In two cases, it is given a label more in keeping with traditional accounting usage. Following is a list of forms that include the Reference
field. Where a different label is used, this is shown in parentheses:
• Receipts and payments
• Inter account transfers
• Expense claims
• Sales quotes
• Sales and purchase orders
• Sales and purchase invoices (Invoice number)
• Credit notes and debit notes
• Delivery notes and goods receipts
• Inventory transfers and inventory write-offs
Note
Although only applicable type (sale or purchase) non-inventory items are normally available when creating a form manually,
items already included on a form will be copied to new forms when the Copy to function is used.
Settings
Update
Update
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Create
Warnings
When searching for existing reference numbers, MYBOS ignores alphabetic content and punctuation marks. For example, if
the highest-numbered sales invoice includes a prefix, such as INV2018-45, the next automatically assigned number will be
201846.
If a form with an existing reference number is edited to assign an automatic sequence number, that form is included in
MYBOS’s search. So, if sales quote 347 is edited to include an automatic reference number, it will become 348 when
Update is clicked.
Because of these features, mixing free text and automatic reference numbers is seldom advisable. Your free-text entries will
become the criteria for determining automatic number assignments. However, the search process for each transaction
type is separate from all others. So using free-text invoice numbers on purchase invoices and automatic ones on sales
invoices would be perfectly acceptable.
• Production orders
• Payslips
• Journal entries
MYBOS provides two methods for entering reference numbers.
Free text
The default mode allows entry of any alphanumeric content as free text. Possibilities include:
• Externally generated sequence numbers
• Customer or supplier reference numbers, such as purchase order or sales invoice numbers
• Bank transaction or cheque numbers
• Informative prefixes combined with sequence numbers
You have complete control. And, using Form Defaults, you can prefill portions of the Reference field on a form-by-form basis.
Automatic numbering
MYBOS can also assign sequential reference numbers for you. Just check the box within the Reference field:
When the form is created or updated, MYBOS will find the highest number among existing forms of the same type and add 1 to its
reference number. Automatic reference numbers can also be set under Form Defaults. In that case, the Reference field will show the
checkbox ticked and Automatic. MYBOS will assign the number when you click . Afterwards, only the assigned number shows if
the transaction is edited. Regardless of how references are originally set, they can be overridden by editing a transaction.
Apply a discount to a line item
Discounts to individual line items can be applied or indicated on transaction forms related to sales, purchases, and refunds. These
include:
• Sales quotes
• Sales orders
• Sales invoices
• Credit notes
• Purchase quotes
• Purchase orders
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Notes
Although the checkbox activates the column for the entire form, discounts must be entered line item by line item.
Discounts applied to line items are not posted separately to any account. They reduce the calculated Amount field for each
line item. Therefore, they are effectively the same as changes to unit prices.
• Purchase invoices
• Debit notes
The option lets you show customers discounts you are extending. It also lets you record how much of a discount, if any, a supplier has
extended to you.
The Discount column is not normally displayed to save space. Where discounts can be applied, a checkbox appears on the entry form:
If the checkbox is activated, you can choose between Percentage or Exact amount options:
Selecting the Percentage option will add a Discount column where you will be able to enter the percentage.
Choosing the Exact amount option allows you to enter a fixed amount.
Enter a discount as a separate line item
Discounts can be entered as separate line items rather than as adjustments to the price of individual line items on transaction forms
related to sales, purchases, and refunds. These include:
• Sales quotes
• Sales orders
• Sales invoices
• Credit notes
• Purchase quotes
• Purchase orders
• Purchase invoices
• Debit notes
The option lets you show customers overall discounts you are extending. It also lets you record separately a discount a supplier has
extended to you. Rather than associating a discount with a specific line item, this feature may be helpful distinguishing the effects of
promotional discounts from costs and sales prices in profit margin calculations for inventory items.
To enter a discount as a separate line item, check the Discount box when creating a transaction. Select the Exact amount option:
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Notes
MYBOS will not calculate the discount amount for you from other line items or the transaction subtotal. You must
determine the discount manually or enter the calculation directly into the Discount field.
Discounts of specific amounts and descriptions can be set up as non-inventory items.
Example
Brilliant Industries sells five ceramic lamps (inventory code 101) to a wholesale customer, so no sales tax is due. Under terms
of this customer’s incentive plan, Brilliant extends an overall discount of 295:
Add a line item for entry of the discount:
• Select an appropriate Account where the discount will be posted, such as Discounts, Advertising and promotion, or Miscellaneous
expenses.
• Describe the discount in the Description field.
• Leave Qty and Unit price fields blank.
• Enter the monetary amount of the discount (in the currency of the customer) in the Discount field as a positive number.
• A Tax code may or may not be applicable to the discount, depending on local regulations. In many cases, it will be, because
discounts are reductions to prices. If one is, be sure that all line items on the invoice are taxable at the same rate.
The discount amount will appear on the completed transaction in a Discount column. The amount being subtracted from the total will
appear as a negative number in the Amount column.
Discounts entered this way will be posted to the account selected without affecting other line items.
Clone transactions and reports
Create a clone in MYBOS when you want a transaction or report similar to one that already exists. To create a clone, click the button
near the top of the MYBOS window while viewing a transaction or report:
Clone
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Create
Create
Cloning a transaction
Cloning generates an exact duplicate of a transaction. All standard and custom field contents, checkbox options, and custom themes will
appear on a new transaction entry form exactly as they were for the parent transaction, with one exception. That exception is the reference
number field, which will follow the setup for that form type under
form content will be overridden by cloning.
in the tab. Other aspects of the default
When the entry screen appears, anything can be edited or added to it. Click to save the new transaction. If the default is for
automatic reference numbers, the reference number will be added only at this point. The newly cloned transaction will appear.
Cloning a report
Cloning a report does not generate a duplicate of the report itself. Instead, it generates a duplicate report definition screen. As with
transactions, anything can be edited or added, just as if a new report were being created from scratch. This feature is especially helpful when
creating reports for new reporting periods or designing similar, but not identical, custom reports. Click
definition. The newly cloned report will appear.
Use the Copy to function
Several transaction forms and reports in MYBOS relating to customers and suppliers offer a
to save the new report
button in their headers, allowing
one transaction or report to be converted directly to a new transaction in a workflow. This feature carries over important information, such as
customer or supplier name, reference numbers of various types, and details of line items. Copying to a new transaction form:
• Saves time
• Prevents mistakes
When a form or report is copied, a new entry screen for the destination form appears, but the new transaction is not immediately created. All
entries can be edited, deleted, or augmented first. The destination form is finalized only when the
The table below shows which original forms and reports can be copied to various destination forms:
button is clicked.
Form Defaults
Settings
Create
Copy to
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Example
A description in a sales invoice line item such as:
<img src="https://imgur.com/Rw3up5r.png" style="float: right">
- Species: Malus domestica
- Parentage: Cox's Orange Pippin x Oldenburg
- Originates from: Germany
- Introduced: 1930
- Developed by: Kaiser Wilhelm Institute
- Orange Pippin Cultivar ID: 1147
- UK National Fruit Collection accession: 1972-026
will produce the following output:
Use HTML code in fields
Almost all fields in MYBOS accept Hypertext Markup Language (HTML) code. This allows you to control appearance of text content and
show images on documents like invoices or quotes. Any online HTML syntax guide will provide guidance.
Notes
Copy to options appear only for tabs that are enabled. If no tabs are enabled except the one for the original form, the
Copy to button itself will not appear.
No report can be copied to another report, because reports are generated from numerous individual transactions.
When both original and destination forms include custom fields with identical labels, content of original custom fields will
copy to the destination custom fields, overriding any default content for the destination form set under Form Defaults.
However, if an original custom field is empty, default destination content will be used.
When a purchase-related form is copied to a sales-related form or vice versa, the customer or supplier does not carry over.
When inventory or non-inventory items are included on a form, posting accounts and prices change to those appropriate
for the destination form.
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Example
You would like to show a box for a signature on a sales invoice. Enter the following code into a custom field named
Signature:
<div style="border: 1px solid #000; width: 200px; height: 40px"></div>
On an invoice, this will be presented as:
Example
You want to list your terms and conditions in unobtrusive fine print on sales invoices, but do not want the trouble of
creating a custom theme. So you create a custom field for sales invoices, labelled Terms and Conditions. In it, you enter the
following default text:
<span style="font-size: 8px; color: #999999">Payment is due upon presentation of invoice.</span>
The following appears near the bottom of all new sales invoices:
You can also use HTML for greater control over how custom fields are displayed.
Finally, you can also control the appearance of text.
Perform calculations in number fields
MYBOS can perform calculations in built-in number fields as quantities or prices are entered. The result of the calculation is stored, not
the calculation itself.
When entering a transaction, simply include an arithmetic expression in a number field. Allowed characters include:
• Numerals 0, 1, 2, 3, 4, 5, 6, 7, 8, and 9
• Operators +, -, *, and /
• Parentheses and braces (, ), {, and } in matching pairs
Notes
To keep your data file size small, MYBOS does not store images directly. Note the reference to the image in the example above
is a URL where the image is stored.
You may find that images will not display onscreen, but are replaced by a symbol indicating inability of the software to
download them:
This happens when the image host restricts ability to hotlink images to local IP address 127.0.0.1. In these situations, PDFs
of a transaction or emails sent from the program generally display the images correctly. But the only reliable solution is
using a different host to store images.
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Do not include an equal sign (=) in the field. While entering the calculation, MYBOS will display the entered characters. If the expression
is incomplete or unallowable, the field is outlined in red. When a valid expression has been entered, its result is shown in real time and
included in other calculations performed by the program.
Examples
The following entry is invalid because of mismatched parenthesis and brace. Note how the Amount field remains zero:
When the expression is corrected, its results are used in the transaction:
and flow through to the completed form:
Calculations can be entered into multiple fields in the same line. They can also be quite elaborate. The following
calculations:
produce:
When returning to the entry screen by clicking Edit , the results of the calculation have been stored:
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Copy to clipboard
Notes
Completed transaction forms, such as sales invoices, expense claims, journal entries, or purchase orders, cannot be copied.
These forms are not data files, but presentations of data from files. Customer lists, cash account registers, or fixed asset
ledgers, on the other hand, are data lists and can be copied.
Example
Northwind Traders wants to create a spreadsheet of expense claim information to support a monthly management review.
The main listing of the Expense Claims tab can be copied. It is sorted according to claim amount by clicking on the
Amount column heading.
The Copy to clipboard button is clicked:
Copy lists and reports
You can copy lists and reports from MYBOS to use in word processing documents, text files, or spreadsheets. Rather than export in
formats unique to any specific application, MYBOS makes data available in tab-separated-value (TSV) format for lists and reports. TSV-
formatted data can be imported or pasted into virtually all word-processing, text-editing, and spreadsheet programs on the market.
Copy data from the screen display
Any list that can be copied has a
button at the lower right corner below the list:
Any report that can be copied has a button near the top of the window:
The copy function copies only the data displayed on screen. It preserves any search or sort operations performed on the data prior to
copying.
Note
Calculations cannot be performed in number-type custom fields. If an arithmetic expression is entered in such a field, the
program ignores it.
Copy to clipboard
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Example
Northwind pastes the copied expense claims data into a spreadsheet and adjusts column widths for a suitable presentation:
If desired, Northwind could also create charts or graphs from the data using spreadsheet capabilities.
Paste data into destination document
Open a word-processing, text-editing, or spreadsheet document and paste in the data. Depending on your purpose, TSV-formatted data is
usually best pasted into a pre-formatted table in a word-processing document. It can usually be pasted into the first cell of a spreadsheet,
where it will automatically be parsed into individual cells. (Exact behavior in the destination document depends on your operating system,
application, and version.) TSV formatting is used by MYBOS because it is the most flexible. Functions available in the destination
application can be applied to the exported data for analysis or presentation.
Use compact mode on small screens
Accounting data must often be displayed in rows and columns to be comprehensible. Unfortunately, as the amount of information about
individual entries grows, displays often exceed screen width. And that sometimes means a lot of scrolling back and forth to enter, edit, or
read data.
If your screen width is limited, MYBOS’s left navigation pane can be minimized to gain valuable space by clicking the symbol at the
bottom left corner of the MYBOS window, eliminating tab names and record count windows and leaving only icons:
As you scroll over the icons, the tab names will be visible:
Click again to restore to full width:
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Journal Entries
New Journal Entry
Journal Entries
Make journal entries
Journal entries record accounting transactions of a business. The terminology refers to the days of hand-written accounting records, when
daily transactions were were entered in a journal and later posted to individual account ledgers.
In MYBOS, most transactions are entered in other functional tabs, thereby automating many decisions about account posting and reducing
errors. So journal entries are relatively few; most record transfers between accounts. In fact, no transaction involving the actual receipt or
payment of funds by a business can be recorded via a journal entry.
The tab is always enabled for every business. To make a journal entry, go to that tab and click :
Complete the entry:
• Date is prefilled with today’s date, but can be edited.
• Reference can be used for any form of identifier. If the box within the field is checked, MYBOS will add a sequence number
automatically when the journal entry is created. MYBOS finds the highest Reference among existing journal entries and adds 1.
• Narration should be a brief description of the overall transaction being entered.
• Account indicates which account the line will post to. If necessary, subaccount fields appear and must be completed.
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Settings
X
Caution
If a journal entry requires a tax code, enter the gross amount, including tax. The amount debited or credited to the
selected account is automatically reduced, proportionate to the tax code. The reduction is debited or credited to Tax
payable (or another account designated in the tax code’s definition). See the example below.
Note
By long tradition in accounting, debits in a transaction are entered first, followed by credits. But the order has no financial
impact.
• Description accepts information about the individual line item.
• Enter debit amounts under the Debit column and credit amounts under Credit.
• Select Tax codes and Tracking Codes if applicable. Frequently they are not for journal entries. (These fields do not appear unless
tax codes and tracking codes have been defined under .
• A Custom theme can be selected if any are active.
Because debits and credits must balance for all journal entries, MYBOS calculates the difference between their sums as inputs are made.
The difference shows in red to the right of the totals. A red zero indicates a balanced transaction:
Order of lines can be changed by dragging the arrow symbols to their left. Lines can be deleted by clicking to their right.
Click
both:
to save the entry. If the journal entry includes more than one debit or credit, the finished transaction view will show totals for
Notes
The journal entry form initially opens with fields for two line items, and every journal entry must include lines for at
least two accounts. More can be entered, as long as the sum of all debits equals the sum of all credits. Click
Add line if more lines are needed.
If an account is chosen that involves previously specified inventory locations, an Inventory location field
appears below the Narration field:
Create
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Settings
Recurring Journal Entries
New Recurring Journal Entry
Example
Brilliant Industries purchases a delivery truck and records it as a fixed asset. At the same time, it buys and installs a package
rack in the truck. The rack costs 100.00, inclusive of 10% tax. Brilliant posts the tax-inclusive payment to its Motor vehicle
expenses account, applying the 10% tax code.
Brilliant’s accountant later determines that local tax law requires the cost of the rack, including tax, to be capitalized and
depreciated as part of the cost of the truck, not taken as a current operating expense. So the rack’s full cost, including tax,
must be shifted to the Fixed assets account. And since the tax can no longer be counted as an offsetting input tax, it must
be removed from the Tax payable account.
This oversight is corrected with a single journal entry. The transaction records a 100.00 debit to Fixed assets and the
subaccount for the truck. No tax code is selected. To balance this, a 100.00 credit is posted to Motor vehicle expenses with a
10% tax code applied:
When the journal entry is created, the book value of the truck in Fixed assets goes up by 100.00. But the balance of the
Motor vehicle expenses account only goes down by 90.91. The remaining 9.09 is added to Tax payable to compensate for
the input tax that can no longer be claimed. The accuracy of the Motor vehicle expenses account is preserved because, when
the rack was originally recorded as a tax-inclusive payment, only 90.91 was posted to the expense account. (90.91 x 1.10 =
100.00)
Note
Procedures for making regular journal entries are described in another Guide. Read it first. Recurring journal entries are very
similar.
Set up and manage recurring journal entries
Recurring journal entries are useful when you make journal entries on a regular schedule and most details are identical from one period to
the next. MYBOS can track when these journal entries are due, remind you to create them, yet give you the opportunity to edit details.
Set up a recurring journal entry
To set up a recurring journal entry, go to and
click :
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Create
Settings
Example
One recurring journal entry has at least one journal entry pending:
Complete the entry form as you would a regular journal entry, with the following changes:
• Next issue date is the date of the next recurring journal entry. You should enter a date that is the same day of the week or month
you want future journal entries to be recorded. This field replaces the Date field of a regular journal entry.
• Interval must include the number of weeks or months between recurring journal entries. Future entries will be on the same day of
the week or month.
Click to save the recurring journal entry, which will be visible in the Recurring Journal Entries listing under :
Create recurring journal entries
When one or more recurring journal entries are due (or past due) to be issued, two notifications are provided. The first is a yellow counter
window in the left navigation pane showing the number of recurring journal entries for which journal entries are pending (not the number of
pending journal entires, which could be higher if you have not kept up by creating journal entries that are due).
The second notification occurs any time you go to the
pending:
tab. You will see a yellow notice that at least one journal entry is
Journal Entries
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Create
Settings
Note
Standards may exist in your jurisdiction for when bad debts can be written off and what evidence may be required to justify
the write-off. Check with a local accountant or tax authority for accurate information.
Click the yellow bar to see a list of journal entries due:
Click to enter all pending recurring journal entries. Necessary edits (if any) can be made after the journal entries are created.
Manage recurring journal entries
If a recurring journal entry should be skipped, modified in frequency, or changed in amounts, simply
Frequently, this involves only changing the Next issue date. But any field can be edited.
it under .
If the recurring journal entry ceases to be useful, it in the tab. Since a recurring journal entry is a template, not an
actual transaction, MYBOS will allow you to delete recurring journal entries that have already been used.
Write off bad debts
Despite your best efforts to pre-qualify loan recipients, check customer credit references, and vigorously pursue collection, it may become
necessary to write off bad debts. Debts can include loans you have made to others, balances due on sales invoices under Accounts
receivable, or other assets recording money owed to you. Underlying reasons might include:
• Bankruptcy of the customer or debtor
• Legal disputes over contract terms
• Death or disappearance of a customer
• Termination of a business without payment of obligations
Whatever the reason, a debt should only be written off when there is a reasonable and sincere belief it cannot be recovered.
Write-offs of bad debts do not include credits for return of merchandise, price adjustments for faulty or damaged items, or warranty refunds.
Those should be handled with credit notes, as described in another Guide.
Establish a Bad debts account
When a bad debt is written off, an asset that previously had the potential to generate income is converted to an expense. So you must
choose an expense account for the write-off. Good practice is to add an account to the Expenses category of your chart of accounts, naming
it something like Bad debts. But any suitable expense account can be used.
Write off a bad debt
Use a journal entry to write off a debt. Debit the Bad debts account by the amount being written off. Credit the asset account where the bad
debt is recorded by the same amount.
Edit
Delete
Settings
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Example
Quick Computer Repair previously invoiced Brilliant Industries 350.00 for computer repair services. No taxes were applied:
Brilliant Industries has gone out of business without paying for the work, so Quick Computer Repair must write off the bad
debt. It makes a journal entry, debiting 350.00 to Bad debts and crediting the same amount to Accounts receivable, Brilliant’s
subaccount, and the specific sales invoice:
If the original debt was the result of a sales invoice, the journal entry leaves the income in the income account where it was first posted. This
preserves a record of the economic activity. But that income is offset by the expense in the Bad debt account.
Adjust taxes
If the debt being written off was the result of a taxable transaction, things are more complex. You must first determine whether, under local
tax law:
• Tax is payable to the authority because taxable goods or services were delivered, regardless of whether they were paid for, OR
• Tax is not payable because the goods or services were not paid for.
Tax is payable
In the first case, debit Bad debts for the gross amount of the debt, including taxes. Credit the asset account where the debt is recorded by
the same amount. But do not apply any tax codes.
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Example
The journal entry includes gross amounts and applies the tax code only to the debit line:
Tax is removed from Tax payable. Both Service sales - fixed rate and Bad debts include 350.00. The final result is no tax owed
to the authority and no net profit on the transaction. But both sales activity and the bad debt are recorded.
Tax is not payable
In the second case, not only must the full debt be transferred to expenses, the tax liability must also be eliminated. So apply the relevant tax
code to the Bad debt debit.
Reverse a write-off
Occasionally, a bad debt legitimately thought to be unrecoverable becomes recoverable, such as when:
Example
The services in the prior example are subject to a 10% goods and services tax. The original sales invoice was entered as
follows:
showing this on the completed sales invoice:
Since the tax is payable regardless of collection status, the debt is written off with the following journal entry. Note the
absence of tax codes:
After the journal entry is made, Service sales - fixed rate still records the sale at 350.00. Bad debts records the full write-off at
385.00. And 35.00 remains in Tax payable. Thus, Quick Computer Repair incurs a loss on the transaction of 35.00, equal to
the tax it must pay on behalf of its defunct customer.
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Example
Brilliant Industries resumes business and notifies Quick Computer Repair it will honor its former obligations. A second
journal entry is made:
(This illustration is for the second tax situation, where tax is not payable unless it is collected. In the opposite case, where
tax is payable regardless, apply no tax code to Bad debts on the credit side of the journal entry.)
The reversal leaves 35.00 in Tax payable, 350.00 in Service sales - fixed rate, and removes the debt amount from Bad debts.
Accounts receivable shows 385.00 due from Brilliant Industries, just as though the unfortunate circumstances had never
occurred.
• A lost customer is located
• A customer or debtor emerges from bankruptcy and makes good on its former debts
Do not delete the write-off journal entry. Instead, place the formerly bad debt back into your assets with a reverse journal entry. This time,
debit the asset account where the debt was lodged and credit Bad debts.
Tax Codes
Create and use tax codes
Tax codes are used by MYBOS to calculate and record taxes invoiced, collected, paid, and owed. They can be used for sales taxes, goods
and services taxes, value added taxes, and other taxes imposed by a country or regional tax authority. They are applied (separately and
distinctly, if necessary) to individual line items on:
• Sales and purchase invoices
• Payments and receipts
• Debit and credit notes
• Sales and purchase quotes
• Sales and purchase orders
• Expense claims
• Journal entries
Tax amounts calculated from tax codes are posted to the account selected when defining a specific tax code, regardless of whether they are
debits or credits. This account must be added to your chart of accounts before a tax code is used.
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Settings
Chart of Accounts
New Account
Example 1
Johanna charges and collects VAT from customers on architectural design services. For tax filing, VAT she collects from
customers is offset by VAT she pays to her suppliers. So she must use the same VAT tax code on sales and purchase
invoices. Johanna’s tax liability balance will be the difference between VAT collected and VAT paid. When she remits that
amount to her tax authority, applying the same tax code on the payment, the balance will drop to zero.
Example 2
Roberto collects sales tax from customers at his coffee shop. But local law does not permit him to offset sales tax he pays to
suppliers. (In some jurisdictions, Roberto would not be assessed sales tax by his suppliers on items he will resell.) Roberto
should apply the sales tax code on receipts and sales invoices. But when he purchases taxable supplies, he should include
sales tax paid to his suppliers in the price of the supplies and apply no tax code on purchase invoices or payments. His tax
liability balance will reflect only sales tax collected until he remits that amount to his tax authority, dropping his tax liability
balance to zero. Sales tax he pays to suppliers will be included as an expense in the cost of supplies, reducing net income.
But it will not reduce the amount he must remit to his tax authority.
On some transaction forms, an option is available as to whether amounts are tax-inclusive or tax-exclusive:
When tax-inclusive, MYBOS calculates effective prices that, when combined with tax at the specified rate, equal the amount entered. In
other words, the tax amount is effectively backed out of the total. When tax-exclusive, MYBOS applies the tax rate to the entered amount
and adds the resulting tax to obtain a higher total.
Setting up tax liability accounts
Tax liability accounts can be set up before or after adding tax codes. But it is normally faster to set them up first so tax codes can be added
in a single step.
Go to and click :
On the balance sheet side, click :
Define the account:
Note
A tax code account offsets taxes collected or received under its tax code(s) against taxes paid under the same tax code(s),
regardless of transaction type. Whether taxes are collected from customers, paid to suppliers, refunded by or remitted to
tax authorities, they all post to the same account and offset one another. This has important ramifications for how tax codes
are applied on forms. The determining principles are whether and how the particular transaction affects the amount you
owe to a tax authority.
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Tax Codes
Edit
• Give the account a Name. In this example, the name is Tax payable.
• Enter a Code, if desired, to match an overall scheme for the chart of accounts.
• Assign the account to a Group. Normally, tax accounts are placed in the Liabilities group, because more tax will be payable to the
tax authority than is recoverable from the authority. (When a tax is not offsetting, this will always be true.) If, under unusual
circumstances, you expect to always be paid a recoverable tax by the authority instead of remitting tax, classify the tax code under
Assets.
• Leave the Tax Code field with the default, No tax entry.
Click
as necessary.
. If you will be separating different tax codes into different balance sheet accounts, repeat the process above as many times
Adding a tax code
You can add as many tax codes as you need to use. At a basic level, MYBOS allows two types of tax codes:
• Business localization tax codes, which are predefined for specific countries or regions
• Custom tax codes, which you define yourself
Business localization tax codes
Localization settings and features, including predefined tax codes, are available in the program for some locations. These are always
preferable if they meet your needs. Generally, predefined tax codes exist only when localization options include a report transformation that
calls data for specific tax codes. Unless the tax code is predefined, the report transformation cannot find necessary data.
In many cases, more than one tax rate or type is available for a country. To activate localization tax codes for your location(s), follow
instructions in this Guide.
When the tax codes are first imported, they will be assigned to the Suspense account by default. On the page of the
tab, click for all tax codes and assign each one to the desired tax liability account.
Note
Prior to MYBOS version 19.11.85, a built-in account named Tax payable was activated automatically when tax codes were
used. All tax codes posted to this account by default. Much greater flexibility is achieved by defining your own tax liability
account(s).
For businesses already established when version 19.11.85 was released, the built-in Tax payable account was converted
automatically to a standard account, defined as in the example above. No action is required by the user for the conversion.
Create
Settings
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New Tax Code
Example
Sample Manufacturing Company operates in Australia. It follows instructions for installing the GST Calculation Worksheet.
That installation includes several tax codes. Clicking Edit for the GST 10% tax code, Sample sees the tax code is set up as
a single rate, 10% tax that changes the title of every sales invoice on which it is applied to Tax Invoice. Sample selects the
Tax payable account it previously established following instructions above and clicks Update :
Custom tax codes
If your country or the specific tax type and rate you need are not available through the localization feature, you will need to create one or
more custom tax codes. MYBOS provides a generic framework for creating simple or complex tax codes to handle almost any tax scenario.
To set up a custom tax code, go to the tab, then , and click :
Define the tax code:
• Enter a Name for the custom tax code.
Notes
If a localization tax code is for a 0% rate, that is, if it is required by local law only to show that no tax is being levied, no tax
liability account assignment will be possible.
Once tax codes are activated, they remain available even if localization options for other countries are imported. This way,
tax codes can be added from more than one country.
Settings
Tax Codes
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Add line
Create
• Under Tax rate, choose one of three rate options in the dropdown box. Choose 0% to create a tax code for tax exempt
transactions where it may be necessary to show the tax-exempt status. No tax will be calculated, but forms will show the 0% rate is
being applied. Choose 100% to create a tax code for line items that are all tax. A common application is when a tax authority sends
a bill for tax due on imported goods; the tax is paid to the tax authority instead of the supplier who sold you the goods. Forms will
show the tax amount as a regular line item rather than an addition to the subtotal. The entire amount will post to the designated tax
liability account. For most custom tax codes, select Custom.
If the custom tax code includes only one component, select Single rate in the next dropdown box that appears and enter the
custom rate:
If the custom tax code includes more than one component, select Multiple rates and enter each tax component on its own line. Use
the button to add additional components. If your tax code contains components subject to compounding, enter the
compounded rate into applicable Tax rate fields. On completed transactions, your tax components will be shown separately.
• Select the Account from those tax liability accounts already created. For single-rate codes, only one account can be selected. For
multiple rate codes, different accounts can be selected for each component.
Click to save the tax code.
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Caution
Taxes from custom tax codes you create are not included in figures computed by tax calculation worksheets in the
Reports tab. Only predefined tax codes associated with the country for which a worksheet was developed are taken
into account. Therefore, if you create any custom tax codes and want to use one of the tax calculation worksheets, you
must manually adjust values from the worksheet for all taxes collected or paid under self-created tax codes when filing
information with your tax authority.
Applying tax codes to line items
Tax codes are applied to individual line items on transaction forms. Every line item can have a unique tax code according to its taxability
under local law. If any tax code has been defined, the Tax field appears to the right of the Amount field on the form:
Tax amounts are not shown for individual line items, but tax codes are when there is more than one. If there is only one line item, its tax
code is not shown on the completed transaction. Regardless of whether tax codes are shown per line item, total tax amounts are shown for
each tax code in the Totals section of the form:
Example
Roger’s consulting services are subject to sales tax from several jurisdictions. But all are remitted to a central tax authority.
So he creates a single Tax payable liability account and a custom tax code with multiple rates:
Roger applies the custom sales tax on a sales invoice for a day of services. Each tax component is separately listed:
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Note
Wherever the Customer/Supplier field appears, the list includes both customers and suppliers. This is because receipts
could come from either customers or suppliers, and payments could be made to either. (Think of refunds.)
An additional feature is available for receipts, payments and journal entries to support reporting of taxable events by customer or supplier in
jurisdictions where that is required. This is a Customer/Supplier field where the tax can be designated to apply to a specific customer or
supplier, as the case may be. The field appears after a tax code has been selected, but only when a customer or supplier is not identified
elsewhere on the form. If a customer or supplier is selected as the payer or payee, the field is not available because it is unnecessary. For
example, on a journal entry, if a tax code is selected for any line, the Customer/Supplier dropdown field appears:
Flat rate tax schemes
Some jurisdictions use what are known as flat rate schemes, usually to simplify record-keeping and tax filing. Such schemes free a business
from the need to record and offset taxes paid against those collected. Under such schemes, a standard tax rate is applied on sales, but a
lower rate is remitted to the tax authority. This lower rate is calculated on the total amount for a line item, including standard tax. The
difference is kept by the business as additional income. Often, flat tax rates vary by business type and size, based on assumptions of average
tax paid to suppliers by businesses with certain characteristics. So they must be set up as custom tax codes in MYBOS.
To add a flat rate tax code, follow the same procedure as for any other single-rate custom tax code. (Flat rate schemes cannot be used with
multi-component tax codes.) Name the tax code as you want customers to see it, normally with the standard tax rate’s name. Check the Flat
rate box and enter the lower rate you will pay to the tax authority:
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Tax Codes
Edit
Update
Update
Update
Caution
When operating under a flat rate tax scheme, no tax code should be applied on purchases, because tax paid cannot be
used to offset tax owed. Unit prices of purchased items should include tax paid. In the case of purchased inventory items,
tax paid will be included in average cost, just as if it were a shipping charge or other cost of purchasing the item.
Caution
Editing a tax code will retroactively change every prior transaction that used that code, as well as future transactions.
Consider carefully before editing a code.
Customers will see the standard tax rate on sales invoices, and Accounts receivable will show the full amount as being due. But your tax
liability account will show a lesser amount. The difference will be added to the income account where the particular line item on the sales
invoice is posted.
Custom titles
Some jurisdictions require different titles on transaction forms including tax, such as Tax Invoice instead of Invoice. You can enter custom
titles for sales invoices and credit notes by checking appropriate boxes when defining a tax code. The default titles show in grey:
Editing tax codes
Once a tax code has been added, it can be edited. In the
tab, go to :
Click beside the tax code you want to change. Modify the tax code definition and click .
Inactivating tax codes
When a tax code is no longer valid, such as when a rate increases, you cannot delete it if it has ever been used. Nor should you change it
because, as described above, that will change every transaction that has ever used it. Instead, make it inactive by checking the box:
Be sure to click . If the tax code comes back into use, simply uncheck the box and click .
Choose between tax-exclusive and tax-inclusive prices
Tax-exclusive prices do not include tax. Taxes calculated according to any tax codes applied are added to the Sub-total of a transaction to
obtain a Total. Tax-inclusive prices already have any applicable taxes included in their line item Amount fields. MYBOS can handle either
situation with selection of the same tax code. But tax amounts calculated will, necessarily, be different. So will effective unit prices for the
same entry in the Unit price field.
The basics
The election of tax-exclusive versus tax-inclusive pricing can be made on:
• Receipts and payments
Settings
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Caution
If the tax scheme in your jurisdiction does not offset taxes paid against taxes collected, do not use tax codes on your
purchases. Include tax in the unit price of every line item, where it will add to the expense of the item.
Example
You buy an item for 1,000 plus 10% goods and services tax. If the amount of 1,000 is tax-exclusive, 10% tax is added to it,
increasing the total to 1,100. The tax shows as an addition when you create a purchase invoice:
Since the transaction is a purchase, 100.00 is debited to Tax payable, where it offsets amounts you have collected from
customers on behalf of your tax authority. The 1,000.00 sub-total is debited to the designated expense account. The entire
1,100 is credited to Accounts payable.
If this were a sales invoice instead of a purchase invoice, entries would be similar, but results would be reversed. MYBOS
would credit 100.00 to Tax payable and 1,100 to an income account. It would debit Accounts receivable by 1,100.
• Sales quotes
• Sales and purchase orders
• Sales and purchase invoices
• Credit and debit notes
Default choices can be made for each form type in under . Such defaults can edited on a transaction-by-
transaction basis. When a form has a financial impact, such as a receipt, sales invoice, or debit note, amounts contributing to the untaxed
sub-total are posted to appropriate income or expense accounts. Calculated taxes are posted to Tax payable, where they offset one another
according to whether they are being paid or received.
Tax methodology for tax-exclusive pricing
Tax-exclusive pricing is the most intuitive. A sub-total is calculated for all line items subject to a specific tax code; then, the sub-total is
multiplied by the appropriate percentage to obtain the tax amount. The tax amount is added to the sub-total to give the total. If more than
one tax code is applied on a transaction, separate calculations are performed before adding together all sub-totals and tax amounts for a
total.
Form Defaults
Settings
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Form Defaults
Example
You make the same purchase as in the previous example, using a payment form, but pricing is tax-inclusive. The resulting
Total, calculated tax, and presentation change:
MYBOS debits only 90.91 to Tax payable, 909.09 to the designated expense account, and credits 1,000.00 to the bank or
cash account where the transaction is entered.
Were this a receipt, MYBOS would credit 90.91 to Tax payable and 909.09 to the designated income account. It would
debit a bank or cash account by 1,000.00
Tax methodology for tax-inclusive pricing
When entering tax-inclusive prices, the situation is opposite. MYBOS calculates what tax-exclusive unit price would have produced the tax-
inclusive amount after tax was added. The program does this for every line item. This calculation is:
Tax-exclusive price = Tax-inclusive price / (1 + Tax rate)
Thus, both effective unit prices and calculated taxes are lower for tax-inclusive pricing, assuming identical inputs.
Choosing tax methodology
You can make unit prices tax-inclusive by checking a box. The choice applies to the entire form:
You can set your choice as default using .
Note
Receipts and payments use a slightly different format from that shown in the example above. When the transaction is tax-
exclusive, the tax amount is displayed for each line item as well as the tax rate. If the purchase in the example had been
recorded with a payment form instead of a purchase invoice, the completed transaction would look like this:
Calculations and allocations to tax liability accounts are identical to when invoices are used. When transactions are tax-
inclusive, the tax amount column is not included. (See below.)
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Work with multi-component custom tax codes
Multi-component custom tax codes present several accounting challenges. Individual tax components may be:
• Levied by different tax authorities
• Payable to tax authorities on different dates
• Subject to rate changes at different times
• Applicable to different customers
• Effective only for certain categories of goods or services
Basic instructions for creating multi-component custom tax codes are contained in another Guide. Read that Guide first. Those instructions
are adequate for simple situations where all components:
• Apply simultaneously to goods or services
• Are payable to the same authority at the same time
• Are not expected to change
If any of these criteria does not apply, read on.
An example
This Guide uses a custom tax code with three components as an example. The overall tax code is named Sales tax 6.25%. Components are
levied by the state, the county, and a special transit district. Percentage tax rates are as shown:
In the simple situation outlined above, all components were assigned to a single tax liability account. (That situation is also illustrated in an
example in the other Guide.) On a sales invoice with a line item to which this tax code applies, the applicable tax code is selected:
The resulting sales invoice lists the individual tax component amounts rather than the amount for the overall tax code:
Caution
When purchase or sales prices have been defined for inventory or non-inventory items, choosing a different tax
methodology does not modify the unit price entered automatically as the item is selected. So you should always be aware
of how your inventory and non-inventory prices were determined and choose the matching tax methodology.
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Summary
Settings
Chart of Accounts
Edit
Update
Assuming no other taxable transactions have been recorded yet, the shows all taxes payable in a single account:
The various tax reports in the
line:
tab also group all components together. For example, the Tax Summary report includes just one
If it is necessary to determine how much of each component was collected, a calculation must be made outside MYBOS. That amount is the
ratio of a component to the total tax rate multiplied by the tax collected. But this approach is cumbersome. MYBOS can streamline the
process.
Establish separate tax liability accounts
To keep track of individual tax components when they are payable to different authorities or on different schedules, rename existing or
create separate new tax liability accounts for each. Continuing with our example, in the tab, we select :
On the Balance Sheet side, we click for the original Tax payable account and change its name to State sales tax payable,
corresponding to the first component of the tax code. For purposes of illustration, we also assign a Code to the tax liability account. We click
to save our changes:
Reports
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New Account
Settings
Tax Codes
Summary
Back at the Chart of Accounts screen, we click :
We enter a name for a tax liability account for the second tax component, in this case, County sales tax payable, and assign it the Code of
2502. We repeat the process for the third component, creating a Transit tax payable account, 2503. All accounts are placed in the Liabilities
group (or they could be assigned to a subgroup under that). The Tax Code fields are all left blank.
We then return to and edit the tax codes by assigning each component to its matching tax liability account:
Now, the shows a breakdown of how much tax is owed to each authority:
Required payments to various tax authorities can now be determined from their appropriate accounts, eliminating the need to calculate
prorated shares of the overall tax code.
At the present time, tax reports in MYBOS cannot break out individual components.
Handling different taxable situations
For situations where all tax components do not apply, create new tax codes to match. In the example, goods and services delivered outside
the county are exempt from county sales tax, but still subject to the other two. And food sales are exempt by law from the transit sales tax.
So two new tax codes are created in the same manner as the first:
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Caution
Never edit components of a tax code that has already been used for any transaction. All previous transactions using that
code would be retroactively modified.
• County-exempt sales tax 3.75%
• Transit-exempt sales tax 5.55%
Component account assignments are made to the same three tax payable accounts, as applicable. Tax codes would also be created for any
other feasible combinations of customer, location, and applicability. Every tax code is, in effect, a subset of the basic, three-component code
originally created. Transactions can be designated for proper tax treatment based on identity or location of the customer, type of goods, etc.
If necessary, tax codes can be selected on a line item basis within any transaction form.
After the new tax codes are in place, a second sales invoice for the same services to a customer outside the county is summarized on a new
line on the Tax Summary, reflecting the lower tax rate:
But the various components are posted to the same tax liability accounts as before (reflecting the two transactions entered so far):
Changing component tax rates
When a component of a tax code changes, a completely new tax code must be created. Good practice is to make the obsolete tax code
inactive.
Returning to the example, assume the state sales tax component increases to 3.5% mid-year. We create new tax codes and make obsolete
ones inactive. Subsequently, we issue a third sales invoice for identical services to a customer within the county. The resulting Tax Summary
shows all three rates used during the accounting period:
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Note
Changing component rates do not require adjustment of tax liability accounts or changes to their names. Only a new tax
code must be created, with components assigned to the same liability accounts as before.
Paying individual tax authorities
Rather than paying off all or a portion of a single tax liability account, payments can be made to tax authorities for a single component,
posting the bank or cash transaction to the appropriate component’s tax liability account. Assume, for example, we want to remit only the
transit tax payable. After the three transactions described above, the balance of our Transit tax payable account is 2.25. We enter a payment
for that amount, posted to the Transit tax payable account. The Balance Sheet shows nothing remaining in that liability account, but
amounts remaining to be paid to other tax authorities:
Reverse charge VAT (Value Added Tax)
Reverse charged VAT is used in some territories to collect tax on purchases from suppliers who are not subject to the tax authority’s
jurisdiction. Usually, that means reverse charged VAT applies to imported goods or services that do not pass through customs.
Often, this is justified by explaining that foreign entities will be spared the need to register or make tax filings with the authority. But the
method also eliminates the need for a tax authority to obtain filings and remittances from entities outside its control. Thus, reverse charged
VAT improves tax collection.
Basically, reverse charging of VAT transfers responsibility for assessing and collecting VAT from a seller to a purchaser. Instead of being
assessed VAT by and paying VAT to your supplier, you assess VAT on yourself and remit it directly to the tax authority.
However, since typical VAT regimens offset VAT paid on purchases against VAT collected on sales, the result is no tax actually paid on goods
or services subject to reverse charged VAT. Think of this as simultaneously claiming the tax you would have paid the supplier and reporting
the same tax the supplier would have received from you in a normal situation. Since those amounts are the same, no money changes hands
for VAT.
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Update
Example
Sample Manufacturing Company needs to reverse charge 5% VAT on purchases from outside the country. It creates a new
custom tax code, named RCM VAT 5% (for Reverse Charge Method), as follows, assigning the tax reporting to its existing
Tax payable account:
So why implement such a scheme? And if no money is due to anyone, why not use a regular, zero-percent tax code? As mentioned above,
reverse charged VAT improves tax compliance. But data submitted to the tax authority in connection with reverse charged VAT is also used
to track the volume of trade with other jurisdictions for:
• Revenue sharing
• Tax treaty enforcement and compliance
• Economic performance monitoring
• Tax rate analysis and adjustment
The use of reverse charged VAT tax codes ensures that total sales volumes are still reported and can be categorized according to their
proper tax codes.
Set up a reverse charged VAT tax code
Reverse charged VAT is accounted for in MYBOS using a custom tax code. General procedures for creating custom tax codes are contained
in another Guide. Read it first.
When creating the new custom tax code, give it an informative Name and select 0% in the dropdown Tax rate field. Select the tax liability
Account where you want the tax reported. Check the box for Reverse charged. When the percentage field appears, enter the rate of the
VAT tax to be reverse charged. Click .
Apply a reverse charged VAT tax code
Reverse charged VAT tax codes are applied the same way as other tax codes. While applicability of the code to a line item is shown, they do
not affect the balance of the transaction.
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Reports
Example
Sample Manufacturing creates a Tax Summary for its financial year. (For purposes of illustration, only the single, reverse
charged VAT transaction in the examples above is included.)
Reverse charged VAT accounting
If no reverse charged VAT amount shows on a purchase transaction form, what happens to the tax? The answer is found on two tax reports
in the tab.
A Tax Summary report for a time period including the transaction shows both the VAT amount that would have been collected by the
supplier on its sale in an ordinary situation and the VAT you would have paid the supplier on your purchase in such a case. These offset,
leaving a net tax liability of zero for the transaction. Note that for reverse charged VAT tax codes, figures on the Tax Summary are effective
amounts, although they do not reflect the actual transaction.
Example
Sample Manufacturing purchases an annual subscription for accounting software from ACME Services. The subscription
costs 1,000.00, and 5% VAT is due on the purchase. But, because the supplier is foreign, local tax regulations require the tax
to be reverse charged. Sample applies its RCM VAT 5% tax code on the purchase invoice, with the following results:
Sample pays ACME 1,000.00.
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Settings
Tax Codes
Edit
Note
The transaction amounts are from the perspective of your business, not the supplier’s business. Therefore, Total Sales
figures will be the same as Tax on Sales figures.
Example
Sample Manufacturing creates a Tax Transactions report for the same period:
Note
Tax codes that have been used cannot be deleted, because doing so would compromise existing transactions. However, if a
tax code has not yet been applied in any transaction, it can be deleted.
A Tax Transactions report will include every reverse charged VAT transaction during the period covered. On this report, actual transaction
amounts are shown.
Because both the purchaser’s and supplier’s sides of the reverse charged VAT transaction are reflected in the tax reports, all figures typically
necessary for proper tax filing are available.
Archive tax codes
Tax codes no longer in use can be archived. When archived, tax codes no longer appear in the Tax field dropdown list for line items on
transaction forms. But they are not deleted from MYBOS.
To archive a tax code, go to the tab and click :
Click next to the obsolete tax code and check the Archived box:
Click Update . The archived tax code will be listed in gray text. It can reactivated, if necessary, by clicking
then clicking Update again.
and unchecking the box,
Edit
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Example
Sales by Brilliant Industries are subject to a 10% goods and services tax. Brilliant has added an in-built tax code, GST 10%,
for the country where it operates. The government increases the tax rate to 16%. So Brilliant adds the new tax code and
archives the obsolete one. Both are now listed under Settings , but the archived tax code is distinguished by its gray
text:
The archived GST 10% code does not appear as an option when entering transactions:
Example
John Smith, a partner in a business, spends $110 on fuel and oil for a business vehicle. The payment includes 10% tax. John
would normally record the transaction like this (after checking the box to indicate Amounts are tax-inclusive):
An archived custom tax code can also be renamed to highlight its former purpose. Record such changes in your business files to support
future questions or audits. Potentially useful name changes include:
• Adding a date indication, such as Pre-2017
• Inserting an obvious prefix, such as XXXX
• Including a warning, such as Do Not Use
Adjust tax accounting for partial personal use
When you use tax codes, MYBOS automatically calculates the tax amount based on the tax rate. But when an expense involves partial
personal use, you may need to adjust tax accounting, because a portion of the expense is not a legitimate business expense. Therefore, a
portion of the tax MYBOS would normally calculate is not attributable to the business and cannot be used to offset amounts owed to your
tax authority, as reported in the Tax payable account.
To properly adjust tax accounting, split a line item partially for personal use into two lines on the payment form. Apportion the Unit price
by the percentage of business versus personal use. Apply the tax code only to the line for the business portion. Post the remainder to
Owner’s equity or Capital accounts (as a draw), depending on your form of organization. Include the applicable portion of tax paid on the
personal-use line, but do not apply a tax code, since tax paid for personal use is not a business expense.
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Add line
$100 would be added to the Motor vehicle expenses account and $10 would be subtracted from the Tax payable liability account.
But 50% of this expense is for John’s personal use of the company’s car, so he can’t claim the full $110 as having been paid by the business
on Motor vehicle expenses. He can only claim half. John splits the transaction using the button like this:
In the Tax Summary, this transaction is reported like this:
And John’s Capital accounts balance is reduced by $55, just as though he had received a payment from the company from his share of
profits.
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Settings
Deferring payment of GST on imported goods
If you are an importer and are registered for GST, you may be able to defer payment of GST by participating in the deferred GST scheme. If
you have been approved to participate in the deferred GST scheme, add the tax code named Australia - GST 10% (Deferred).
When recording purchases from overseas subject to GST, select the GST 10% (Deferred) tax code:
Batch Operations
Use Batch Create and Batch Update functions
and
in all functional tabs except:
•
•
•
•
functions streamline large-scale creation and updating of information in MYBOS. They can be used
These batch operations can be used for some , too:
•
•
•
•
•
These batch operations are available whenever you see these buttons in the bottom-right corner of the MYBOS window:
Batch Create
Batch Update
Billable Expenses
Folders
Emails
Reports
Bank Rules
Exchange Rates
Inventory Kits
Non-inventory Items
Tracking Codes
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Copy to clipboard
Note
Illustrations in this Guide are for batch operations on inventory items, but procedures are the same wherever batch
operations work. The blank template changes automatically.
Example
Brilliant Industries enters information for some of its lighting products:
Note
To understand each column, it may be helpful to first complete one entry of the type you are creating, filling all fields. Copy
the resulting listing from the Batch Update window (see instructions below) and paste into a spreadsheet as an example.
If columns are not understood, leave them blank. You can always edit them later.
Batch Create
To add new items to a tab, regardless of whether others already exist, click
. Follow the instructions sequentially. First, copy
the blank template by clicking :
Paste the template into your spreadsheet program:
The template contains only column titles. It tells you what information is required for the batch operation.
Fill data into the empty spreadsheet template:
Finally, copy and paste data for the newly created entries from the spreadsheet back into MYBOS. Be sure to copy and paste the column
headings in addition to the data.
Batch Create
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Back
Batch Update
Example
Brilliant Industries’ batch-created inventory items now appear in the Inventory Items tab:
Example
Brilliant Industries decides to raise prices on its LED products using the Batch Update function. It copies and pastes
inventory item data into a blank spreadsheet:
Note that each line in the spreadsheet now has a unique Key.
Click to review the information being added. If satisfactory, click to enter the new items into MYBOS:
If not satisfactory click the button, modify the spreadsheet, and repeat the pasting process.
Batch Update
Batch updates are used to modify already existing items in a tab. They are somewhat simpler than batch creation, because the structure of
the database is more obvious. Click on . Again, follow the sequential instructions:
Next
Batch Create
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Next
Batch Update
Caution
Do not, under any circumstances, remove columns in the spreadsheet while updating. This will result in deletion of all
content in those columns for included transactions.
Example
Brilliant Industries deletes the incandescent light bulb product, leaving only LED inventory items. It doubles their prices,
using spreadsheet tools:
Example
Brilliant Industries’ updated Inventory Items list shows increased sale prices on LED products. The 100W incandescent
bulb’s listing has not changed:
Note
You cannot add elements when using Batch Update , because a key is required for every row in the database. These keys
are generated when new elements are added. To add elements in groups, use Batch Create .
Use the spreadsheet program to update data:
For convenience, you can remove any rows you don’t need to update from the spreadsheet. You can also leave them in place, however. Do
not remove or modify any content in the Key column for rows you keep.
Copy and paste the updated data from the spreadsheet back into MYBOS. Be sure to copy and paste column headings in addition to
the data. Click to review changes being made. If satisfactory, click .
Use the Batch Delete function
removes selected entries in a tab, table, or list that have no records associated with them. The function is useful for such
tasks as:
• Deleting erroneous bank statement imports with many transactions
• Emptying tabs of unneeded customers, suppliers, assets, and so forth when constructing a standard business “shell”
• Correcting systemic data entry errors
Batch Delete
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Back
Search
Warning
The Batch Delete operation cannot be reversed. As with editing throughout MYBOS, the program will not allow you
to delete anything that has already been referenced in a transaction. Still, Batch Delete is a brute-force tool. Use it
cautiously. Do not use it unless you are certain you want to permanently remove all data selected on the review
screen. And always back up your data before any batch operation.
The operation is begun by clicking the button at the bottom right corner of any screen where it can be used:
Heed the warnings
When is clicked, MYBOS displays a red warning banner that includes a link (circled in bright green below):
Click the link or the button at the top left corner of the MYBOS window to abandon the operation without affecting any data.
Select and delete data
Below the warning banner will be a list of all data in the table you were viewing, with individual and group checkboxes on the left. Check the
boxes for all data entries you wish to delete. MYBOS will not allow you to check the box of any element already referenced in a transaction:
Elements of the list can be edited and viewed, if necessary, to correct or confirm their content while in batch delete mode. Just click the
appropriate buttons. Entries can be unchecked if you decide not to delete them. When satisfied you wish to delete all remaining checked
entries in the table, click the red button:
Search and Sort
Search for records
Almost every screen in MYBOS showing a table or list includes a Search field and
button:
To conduct a search, enter the search argument in the Search field and click . The following guidelines apply to all searches:
• Searches cover information visible on screen, but not content of underlying subsidiary ledgers, items, registers, or transactions.
• Searches are conducted for literal matches of text strings, with numbers treated as text.
Batch Delete
Cancel
Search
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• All text strings in the search argument must be present somewhere in the record. (The Boolean logic applied is AND, not OR.)
• Negation (the Boolean NOT) cannot be used.
• Partial string searches work.
• Order of text strings in the search argument does not matter.
• Uppercase letters are ignored.
• When a table or list extends to more than one page, all pages are searched, including those not visible.
• Sort order in place before a search is preserved in search results. So both sort and search functions can be used simultaneously to
find desired data.
• To restore a full list or table, click the link in the yellow header bar of the search results.
• Searches cannot be narrowed from previous results. New searches cover the entire, original table or list.
• Quotation marks are not interpreted as demarcating a literal string consisting of the quoted characters as in many search engines.
They are interpreted as characters within the search string, usually resulting in no search results.
• When the searched screen includes totals, search results include totals for the returned records.
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Examples
Some examples from a list of sales invoices illustrate the search principles. All searches are conducted on this default listing:
A search for 2017 invoices yields:
After reverse sorting by date, a search for “OVERDUE” (note the uppercase letters) produces:
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A search for “55” returns the invoice 55 days overdue, as well as all invoices including “55” in their balances:
Reversing the order of words returns identical results. To illustrate, the search arguments “bob ware” and “ware bob” return:
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Sort lists and tables
You can sort lists and tables in MYBOS to help find information as your accounting records expand. Every list or table has a default order,
which can depend on parameters like:
• Issue date
• Clearance date
• Payment status
• Alphabetical order of names or descriptions
In most cases, the default order is most convenient, because it was designed with context in mind. But if it does not work for you, sorts can
be performed on any column in the list or table. And they can be in ascending or descending order.
To sort a list or table, click on the heading for the column by which you want to sort. To reverse order, click the heading again. A small or
symbol will appear beside the column heading to indicate an ascending or descending sort direction.
Sorts are preserved during searches. Likewise, search results can be sorted without disturbing the search results. So the sort and search
functions can be used simultaneously to amplify the effectiveness of each.
AND
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Examples
All sort examples below are based on the following, default list of sales invoices. Notice that overpaid invoices are listed
first, then coming due invoices, then overdue according to age:
Clicking on the heading alphabetizes the list:
Clicking the reference number symbol twice lists oldest invoices first:
The invoices can also be sorted by balance due:
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View
New Attachment
Note
Normally, an attachment is made to the specific transaction to which it relates. When attachments do not apply to
individual transactions, but, for example, to entire projects or accounting periods, they can be organized in folders. See
another Guide for instructions.
Attachments
Attach supporting documentation
Transactions in MYBOS can be substantiated and documented with digital attachments. These can include:
• Word processing documents
• Spreadsheets
• Scanned invoices
• Scanned receipts
Add an attachment
Click to see any transaction form or folder in MYBOS. Add an attachment to the transaction or folder by either of two methods:
• Click at the bottom of the page. Browse to the file you want to attach and select it according to normal
procedures for your operating system.
• Drag and drop the attachment onto the
button.
In the illustration below, a spreadsheet file has been attached to a sales quote:
A sort by invoice total, followed by search for “Lumen” producers an ordered list of invoices to Lumen Lighting:
New Attachment
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Attachments
X
Update
Attachments
Note
If an attachment has already been added to a transaction or folder, the box will already be checked. You can just click
Update .
Managing attachments
Attachments will be incorporated into the business’ data file, not stored separately for independent file management. The attachment will
not be deleted from its original location. There are two ways to manage attachments:
• From transactions or folders
• Within the tab
From transactions or folders
To view an attachment, click on its name while viewing the transaction or folder. To delete an attachment from that transaction or folder,
click after its name. Deleting an attachment from a transaction only removes it from that transaction or folder in the business’
accounting database. It does not delete it from other transactions or folders or wherever else it may be stored.
Within the
If the
tab
tab is not already enabled, click
below the left navigation pane, check the box, and click :
Go to the tab to view a list of all attachments saved in the business data file:
Attachments
Attachments
Customize
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Batch Delete
Update
Folders
New Folder
Note
Editing an attachment’s name changes its name within the data file, but does not change content of the attachment. Nor
does it change the name of the source file anywhere else on the computer or any accessible storage drive.
Caution
Deleting an attachment within the Attachments tab deletes it from the specific transaction or folder where it was
attached in the data file. However, if it was attached separately to different transactions or folders, those attachments will
remain.
Individual attachments are identified by date of attachment and transaction or folder type. They can be viewed or edited. is
also available.
Organize attachments with folders
Transactions in MYBOS can be supported and documented with digital attachments. These can include:
• Word processing documents
• Spreadsheets
• Scanned invoices
• Scanned receipts
Normally, the attachment is made to the specific transaction to which it relates. But sometimes, attachments do not apply to individual
transactions, but to entire projects or accounting periods. In these cases, organize attachments with folders.
Create a folder
Below the left navigation pane, click . Check the box for the tab, then click :
In the tab, click :
Customize
Folders
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Create
View
New Attachment
Example
Northwind Traders creates a folder for general business documents:
The folder is listed in the Folders tab:
Enter a Description of the folder’s contents. Be sure to click to save the folder.
Add an attachment
Click to see contents of a particular folder. The folder will display much like any MYBOS transaction form. The display has no
accounting function, but provides a way to add, list, and delete attachments consistent with other tabs in the program.
Add an attachment to the folder by either of two methods:
• Click at the bottom of the page. Browse to the file you want to attach and select it according to normal
procedures for your operating system.
• Drag and drop the attachment onto the folder form while you are viewing it.
In the illustration below, two files have been included in the folder:
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X
Attachments will be incorporated into the business’ data file, not stored separately for independent file management. The attachment will
not be deleted from its original location. To view an attachment, click on its name while viewing the folder. To delete an attachment, click
after its name. Deleting an attachment from a folder only removes it from the business’ accounting database. It does not delete it from
wherever else it may be stored.
Include descriptive information
Descriptive information about a folder can be added using custom fields. Usually, you will want to check the boxes to show the custom field
both as a column and on printed documents:
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Example
Northwind Traders creates a custom field is named Contents. Both boxes are checked, and the field type chosen is
Paragraph text. The 2017 General Business Docments folder is edited to include basic information about categories of
documents within it:
The resulting Folders tab listing now includes searchable information about the folder:
And the View screen for the folder includes the same information:
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Standard Reports
Create reports
MYBOS includes many predefined reports to summarize, analyze, and present transaction data. Access them in the
left navigation pane:
tab in the
Enabling reports
Many reports are available to users whenever tabs related to them are enabled. By default, when a new business is added in MYBOS, a few
tabs are already enabled, so a few reports common to all businesses can be generated:
As more tabs are enabled, more reports are available. For example, when
and statements can be produced:
and tabs are enabled, aging reports
Reports are available related to tax codes, fixed assets, inventory, expense claims, capital accounts, and other aspects of accounting.
Some reports pertain only to certain business locations. These are enabled in one of three ways:
• Importing tax codes for a specific location following instructions in this Guide. This feature automatically adds reports associated
Reports
Customers
Suppliers
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Custom Reports
with tax codes you use.
• Importing report transformations relevant to a location according to the Guide cited above. Additional reports can be added at any
time. This is the only option for existing businesses or those operating in multiple locations.
Creating reports
Begin creating a new report by clicking on the report’s name under the tab. Then, in most cases, click . (One
exception is , which is not covered by this Guide.) Depending on which report is being created, various fields will appear.
Some have default content, shown in grey. This content can be overwritten to customize a report. Other fields, such as dates, may be
required. Some reports offer options for adding explanatory information, showing account codes, or excluding zero balances. For example, a
new Cash Summary entry screen is shown below:
For some reports, comparative columns can be added. These can be useful for comparing current performance with past accounting periods.
Note that columns can be named and their order adjusted by dragging the double-arrow symbols to the left of column names up or down.
The top-listed column will appear at the left on the report in bold type. Other comparative columns will appear to the right of that column:
The foregoing setup produces the following Balance Sheet:
Reports
New Report
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Create
Edit
Update
Delete
Occasionally, an option exists to set the end or as-of date as Today. When that choice is selected, the report will always be up to date when
viewed. A custom date can also be entered:
OR
Reports that are simple lists can be exported for further manipulation in a spreadsheet by clicking at the bottom of the screen.
Saving and editing reports
Most reports can be saved. (Customer and Supplier Statements cannot, because they change according to the as-of date or period
specified.) Every report that can be is automatically saved when is clicked. Frequently used reports are then readily available
without creating new ones. In fact, it may be convenient to define common reports for a full accounting period (such as through the end of a
year). A report defined that way will be accurate through the current date whenever viewed, until the end of the accounting period. Of
course, the displayed end date may be wrong.
Saved reports can be edited after clicking the button to the left of a report in the list:
Click after editing to save the revised report. Saved reports can also be deleted when no longer needed by clicking at
the bottom of the edit screen.
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Create
Cloning reports
Definitions of reports can be cloned. This capability is useful when nearly identical reports must be produced, especially when they are
complex. For example, Profit and Loss Statements might be generated under both accrual and cash basis accounting.
To clone a report, click beside it in its listing. Click at the top of the report window:
Modify the report as desired and click .
Collapse account groups in financial reports
You can collapse account groups to simplify a Profit and Loss Statement or Balance Sheet report. This capability might be useful on Profit
and Loss Statements when detailed separation of income and expenses into separate accounts is desired at the data entry phase, but
consolidated reporting is sufficient for other purposes. It might be helpful on a Balance Sheet when various asset or liability accounts can be
grouped for review purposes.
When an account group is collapsed, only the group name and combined balance are displayed on the financial report. Individual accounts
and balances within the group do not show. To collapse a group, go to the
Groups to collapse:
screen for the report and click inside the field below
A dropdown list of groups eligible for collapse on the financial report will appear. Click on the one you want to collapse. Repeat the process
if you want to collapse additional groups.
Note
MYBOS does not actually save reports as documents or files. It stores definitions of reports, including necessary dates,
titles, column headings, etc. When a saved report is viewed, MYBOS actually creates it in real time from the stored
definition. Therefore, a deleted report can always be recreated, because MYBOS never deletes the underlying transactions,
only the information needed for a particular display. And if report formats are improved as MYBOS is updated, all saved
reports will automatically be updated, too.
View
Clone
Edit
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Example
Northwind Traders has designed its Profit and Loss Statement with several groups, including Other Income and Other
Expenses:
But Northwind does not need to display all these accounts in its quarterly management review package. So it selects the
Other Income group for collapse:
and then the Other Expenses group:
The resulting Profit and Loss Statement looks like this:
To expand a group that was previously collapsed, select
Groups to collapse field.
Issue customer statements
for the financial report and click the X in front of the group’s name in the
A customer statement summarizes the position of your customer. By itself, it does not create any obligation for the customer to pay you.
That is the purpose of sales invoices. In fact, a customer statement has no direct financial impact on anything. Although some businesses use
customer statements for billing, they are really more informational in nature. They can be used for several reasons, including:
Edit
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Update
View
• Sending reminders of amounts owed
• Listing opening balances, receipts, new charges, and closing balances during a billing period
• Summarizing aging of Accounts receivable (how long overdue payments might be)
• Answering customers’ questions
• Troubleshooting account disputes
• Reviewing customer history
Creating customer statements
Customer statements are created in the Reports tab under Accounts receivable. The reports in this group become available
automatically when you activate the Customers tab. MYBOS can generate two types of customer statements. Click on the type you want:
Unpaid invoices statements
The Unpaid invoices option produces a classical customer statement based on sales invoices that have not been completely paid. When
selected, it brings up a list of all customers with unpaid invoices as of the date last set. To change the date or choose a theme, click
Enter the desired Date. Choices include Today or Custom, which adds a field where any date may be entered. Choose a Theme from the
dropdown list and click :
The resulting list shows numbers of unpaid invoices and Accounts receivable balances:
Click to see a specific customer’s statement, which can be printed or emailed:
Set Date:
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Set Period
Update
View
Transactions statements
The Transactions option provides the opportunity to specify both From and To dates and show individual transactions. When selected, it
brings up a list of all customers with past transactions. By default, MYBOS shows all transactions from your start date to the current date.
To modify those dates or select a theme, click at the top of the list:
Modify dates or choose a theme from the dropdown list and click . The date range and theme apply to all customers:
Click to see the desired customer’s debits, credits, and running balance over the specified period:
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Reports
Suppliers
Note
Customer statements do not include any sales made as cash transactions (without sales invoices), because these are not
processed through the Accounts receivable account and therefore do not involve the customer’s subsidiary ledger.
This format lists transactions as debits or credits according to their impact on the balance of your Accounts receivable, not the balance of
your bank or cash account. Thus, invoices are shown as debits and receipts as credits.
Issue supplier statements
A supplier statement summarizes your position with a specific supplier. By itself, it does not record any obligation for you to pay the
supplier. That is the purpose of purchase invoices. In fact, a supplier statement has no direct financial impact on anything. Supplier
statements are informational in nature. They can be used for several reasons, including:
• Listing opening balances, payments, new purchases, and closing balances during a billing period
• Summarizing aging of Accounts payable (how long overdue payments might be)
• Sending inquiries to suppliers
• Troubleshooting account disputes
• Reviewing supplier history
Supplier statements are rarely sent to suppliers, but are often used internally.
Creating supplier statements
Supplier statements are created in the tab under Accounts payable. The reports in this group become available automatically
when you activate the tab. MYBOS can generate two types of supplier statements. Click on the type you want:
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Update
View
Unpaid invoices statements
The Unpaid invoices option produces a classical supplier statement based on purchase invoices you have not yet completely paid. When
selected, it brings up a list of all suppliers with unpaid invoices as of the date last set. To change the date or select a theme, click
:
Enter the desired Date. Choices include Today or Custom, which adds a field where any date may be entered. Choose a Theme from the
dropdown list and click :
The resulting list shows numbers of unpaid invoices and Accounts payable balances:
Click to see a supplier’s statement, which can be printed or emailed:
Set Date
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Set Period
Update
View
Transactions statements
The Transactions option provides the opportunity to specify both From and To dates and show individual transactions. When selected, it
brings up a list of all suppliers with past transactions. By default, MYBOS shows all transactions from your start date to the current date. To
modify those dates or select a theme, click at the top of the list:
Modify dates or choose a theme from the dropdown list and click . The date range and theme apply to all suppliers:
Click to see a supplier’s debits, credits, and running balance over the specified period:
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Sales Invoices
Sales Invoices
Note
Supplier statements do not include any purchases made as cash transactions (without purchase invoices), because these are
not processed through the Accounts payable account and therefore do not involve the supplier’s subsidiary ledger.
This format lists transactions as debits or credits according to their impact on the balance of your Accounts payable, not the balance of your
bank or cash account. Thus, suppliers’ invoices (corresponding to expenses) are shown as credits and payments as debits.
Create sales invoice reports
Sales invoice reports can help you analyze sales performance of your business. Three sales invoice reports are available:
• Sales Invoice Totals by Customer
• Sales Invoice Totals by Item
• Sales Invoice Totals by Custom Field
Enable the
tab and create a report
These reports automatically become available when the tab is enabled. Below the left navigation pane, click
, then check the box:
Click to enable the tab. The three reports will be added under the tab:
Sales Invoices
Customize
Update
Reports
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New Report
Caution
These reports only include information from sales invoices. They do not report cash sales. So the figures they present may
not match total balances in sales revenue accounts for the period. If you want these reports to be comprehensive, all sales
must be recorded on sales invoices.
Example
Northwind Traders prepares a report comparing sales results for a three-year period:
Click on a report title, then . Follow the general procedures for creating any report in MYBOS, as discussed in another Guide.
Specific information about the sales invoice reports is given below.
Sales Invoice Totals by Customer
This report reveals which customers generated the most sales for a specific period of time. The report supports comparative columns so you
can compare multiple periods side by side (e. g., years, quarters, months, weeks). The list is sorted in descending order of sales in the primary
column. All figures are clickable to view sales invoices contributing to them.
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Example
Northwind prepares a report for the same three-year period to analyze sales results by item:
Sales Invoice Totals by Item
Similar to the previous report, this report shows totals for items sold during a specific period of time. The report includes both inventory
items and non-inventory items. It also supports comparative periods and is sorted in descending order of sales in the primary column. Again,
all figures are clickable.
Sales Invoice Totals by Custom Field
The final sales invoice report offers great flexibility to fit your business needs by leveraging custom fields for sales invoice analysis. The key is
to first define and populate custom fields that support your sales analysis goals. The report can incorporate sales invoice totals based on the
following types of custom fields:
• Sales invoice
• Sales invoice line item
• Customer
• Inventory item
• Non-inventory item
When a new report is defined, available custom fields are displayed by type:
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As with the other two reports described above, comparative columns can be set up, results are sorted in descending order of sales in the
primary column, and all figures are clickable.
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Example
Northwind has sales associates who earn commission on generated sales each month. So it needs a report giving sales
invoice totals by sales associate to calculate their commissions.
It creates a custom field for sales invoices called Sales associate, and every time it creates an invoice, it selects the sales
associate who closed the sale.
It creates a new report, specifying three monthly time frames and selecting the Sales associate custom field:
The report will show sales invoice totals by sales associate (not by customer or item as with the previous reports):
You can accomplish more with this report. For example, if you have thousands of customers, it may not be very useful to see invoice totals
by customer because the report would be so long. Perhaps it would be more useful to see invoice totals by country. Likewise, if your
inventory is large, it might be helpful to create custom fields for inventory items ( e. g., group, material, type, brand, etc.) and view totals by
those custom fields.
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Note
Custom field content is not mandatory. Sales invoices that do not contain anything in the custom field selected will be left
out of the report. So, if Northwind sells other brands of appliances, but only wants to track the five in the example above, it
can do so. Results for items with different brands will be available in other reports.
Examples
Northwind adds a custom field, Country, to its customer definitions. Now, it can generate reports by country:
It also defines a custom field, Brand, for inventory items and limits choices to a few popular brands. Now it can see how
those brands perform relative to one another:
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Reports
Profit and Loss Statement (Actual vs Budget)
New Report
Note
New budgets can also be started by cloning existing budgets:
Create a budget
A budget is an estimate or plan of income and expenses for a set period of time that can be compared to actual figures from the Profit &
Loss Statement.
MYBOS includes a simple budgeting capability under the tab. Click on :
Then click to start the process:
Fill in the form:
• Title can be anything that will help identify the budget when it is viewed in a list.
• From is the first day of the budget period. By default the first day of the current month will appear. Edit as necessary.
• To is the final day of the budget period. By default, the last day of the current month will appear. Edit as necessary.
• Tracking Code allows you to create a budget for a division, branch, or project by selecting its tracking code. This field does not
appear unless you have defined at least one tracking code.
• Account fields offer all accounts from the Profit and Loss Statement side of your chart of accounts. (Budgets cannot be created for
Balance Sheet accounts, because those are perpetual.)
• Amount is the expected income or expense during the budget period for the individual account.
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Add line
Create
• Click
budget.
to add more accounts. Only those accounts with expected income or expenses need to be included in the
Click to store the budget. You can create as many budgets for as many different time periods as you want. A budget from one
time period can be cloned as a starting point for building a budget for another time period.
Note
Enter income as positive numbers, expenses as negative numbers.
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Example
The business, Northwind, creates a budget for the month of May 2016. Although it uses tracking codes, this budget is for
the entire company:
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Caution
When creating a budget, only accounts already in your chart of accounts can be included. So build your chart of accounts
first, then create your budget, which will appear in the same basic format.
Accounts will be included in the Profit & Loss Statement (Actual vs. Budget) if you enter a budget figure or there is an
actual income or expense transaction during the budget period. Only if both are true will Percentage figures be
calculated.
Prepare a quick profit and loss statement
You are applying for a loan and your bank has requested profit and loss statement (P&L). Or your accountant wants to lodge your tax
returns and is in need of your P&L. What is it?
A profit and loss statement (P&L) is a financial statement that summarizes the income and expenses incurred during a specific period of
time, usually a fiscal quarter or year.
In MYBOS, there are two ways to get P&L out. The “dirty” way assumes you already know the final figures and “clean” way means you don’t
know the figures so you will enter all transactions within a period individually and let MYBOS sum them up for you.
Create a business
Click button then , enter your business name and click button.
Northwind can view the budget to see a comparison between actual and budgeted figures for the defined time period:
Add Business
Create New Business
Add Business
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New Journal Entry
Your business should be successfully created.
Normally at this point we would click on Customize to add new tabs but if all you want is to generate a P&L statement and you know the
figures (dirty way), we don’t have to enable any additional features as we have all we need.
Record a journal entry
Let’s say we need to generate P&L for December 31, 2016. If you know your figures, go to
button.
tab and click
Then enter your figures for all applicable Income and Expense accounts. Income figures always go to Credit column and expense figures go
to Debit column. Also, make sure to set the date to 31/12/2016.
Journal Entries
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Create
New Report
Normally all journal entries must balance to adhere to rules of double-entry accounting principles. Since we only want to
generate P&L statement, we can relax rules a bit for now.
Once you are done, click button.
Generate Profit & Loss statement
Once your journal entry is saved, go to
tab.
Then click
And finally button.
Here you will need to enter period for which your P&L is for. Let’s say the income and expense figures you have entered in journal entry
cover the whole year 2016. Your period should be set to be from January 1, 2016 until December 31, 2016. Optionally you can also set
column name to FY 2016 which is abbreviation for Financial Year 2016.
Reports
Profit and Loss Statement
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Create
Update
After you click , you will be able to view your newly-created report.
So there you go. Quick & dirty way to generate professional-looking P&L for your bank or an accountant.
Make a Comparative P&L
Your P&L will look even more trustworthy if you make it show multiple periods side-by-side. For example, we can show FY 2015 figures next
to FY 2016 figures. In order to do that, record another journal entry which will capture income & expense figures for FY 2015. The journal
entry should be dated as at December 31, 2015.
Then edit this P&L report to add comparative period by clicking on
2015.
button. Then enter period details for FY
Click button to view new P&L.
Add comparative column
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As you can see, now you have two periods side-by-side which looks much better. You can keep going to add as many periods as you like.
Create a Multi-step P&L
MYBOS also supports custom income & expense groups, sub-groups (unlimited levels) and custom totals which can cater for entities with
more complex layout requirements. If you want your P&L to show gross profit, operating profit, net profit before income tax in addition to
custom sub-groups, you can re-organize your Chart of Accounts to reflect your business requirements with ease. Your end result could look
like this:
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Custom Reports
Custom Reports
Create custom reports
When standard reports available in MYBOS’s
tab do not furnish information you want, create custom reports using the visual
query builder under the heading in that tab.
This feature allows great flexibility in defining reports, yet requires no particular software or database skills. Essentially, every variable from
every ledger entry from all transactions in a business’ accounting records can be queried and included in a custom report. The results can be
filtered, ordered, and grouped.
Reports
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New Report
Add line
Create a custom report by going to the tab, clicking , then :
The query builder screen appears with a placeholder report already defined:
Entries in the query builder are of three types:
• Text fields for titles, names, descriptions, or certain search or operator parameters (more about these below)
• Checkboxes to activate filtering criteria, ordering, grouping, or display options
• Dropdown menus for selecting database elements to include in the report and operators to apply to the data
In most cases, multiple choices can be made by clicking . Dropdown menu content varies according to prior selections. Some
selections activate additional fields (see examples below). Criteria can be deleted by clicking the X at the end of a line. Fields and checkboxes
on the query form are as follow:
• Name is used as a title on the completed report. If not edited, the report will be titled Custom Report. Any name you enter will also
appear in the
• Description appears only in the
report without having to view it.
listing.
tab listing, not on the finished report. This is useful for identifying a saved
• From and Until identify the first and last dates to be searched and reported. By default, the current date is prefilled for both. The
date of a transaction is not a separately searchable variable, but is generally included for every line in the report listing a variable
from a transaction.
• Select… allows you to choose the specific variables or elements to be included in the report. Each selection criteria line will become
a column on the finished report. Their order can be adjusted by clicking and dragging on the double-ended arrows to the left of the
lines.
• Alias is used to rename a column. This is especially helpful when selection criteria are lengthy. For example, the combination of
Reports
Custom Reports
Custom Reports
Custom Reports
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Notes
Multiple selection criteria will capture transactions with any of the criteria listed. Since MYBOS is a double-entry
accounting system, and some actions (such as invoicing for inventory items) involve more than just two accounts,
transactions can seem to be duplicated. But these are simply postings to individual accounts in the general ledger that
must be addressed with filters in some situations.
Multiple filters are governed by the Boolean AND operator. In other words, a selection must pass all filters sequentially to
appear in the report. There is no option for an OR operator. To achieve the effect of OR filtering, you must using multiple
filters to exclude everything you do not wish reported.
When groups are collapsed, only group names and subtotals are preserved.
Inventory item and Code might receive the alias Code for the sake of simplicity and saving space.
• The Where… checkbox activates filters. These can become complex, especially when multiple filters are applied. Typically, additional
context-specific fields appear. (See examples below.)
• The Order by… checkbox provides the ability to sort results by something besides date. Order can be ascending or descending. It
can also be determined by criteria that are not selection criteria, but are present within the ledger entries. For example, a custom
report on inventory items sold could be sorted by unit price, even though only quantity and total amount are shown on the report.
• Group by… provides interim subtotals for designated variables.
• When context is appropriate, another checkbox appears for Groups to collapse. With this option, entire groups can be reduced to
a single line summarizing all entries.
The placeholder custom report mentioned above produces this result for a day on which there are no transactions:
Obviously, that is not very informative. But it illustrates the effect of some entries on the query builder. The best way to understand custom
reports is to build a few and experiment. Here are a few examples to get you started:
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Example 1
To generate a custom report listing all inventory your customers have purchased on credit, create the following:
Both inventory items and inventory kits were included as selection criteria to be sure both were captured. Negative values
were selected for quantity and amount purely to generate a more conventional presentation. MYBOS designates credits
and lists quantities that reduce inventory as negative numbers. But a sales summary normally presents positive numbers.
The first filter selects only transactions with a designated customer listed. It therefore excludes cash sales to payers. The
second filter captures only postings to the Inventory - sales account, leaving out other categories of sales.
The ordering alphabetizes customers. The grouping provides subtotals for each customer. The resulting report looks like
this:
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Example 2
You can generate a custom report showing your general ledger transactions grouped by account for a specific period:
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In this case, no filtering is applied, because all transactions are desired. Notice that the report is grouped by general ledger
account, even though that variable is not a selection criteria (only a portion of the report is shown to save space):
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Example 3
A custom report showing general ledger transactions only for Accounts receivable, grouped by customer name, can be
created as follows:
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The resulting report is shown below. One customer still owes money; the other’s account is fully paid:
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Notes
Unlike most MYBOS reports, custom reports cannot be exported. They can, however, be copied to a clipboard for pasting
into other applications’ documents. Simply click Copy to clipboard while viewing the report:
Custom reports can also be cloned. This feature is useful when nearly identical reports are desired, avoiding the need to
recreate most of the query. To clone a report, click its View button, then Clone :
Another custom report form will appear. After editing it with characteristics of the new custom report, click Create .
Emails
Email transactions and reports
You can email PDF-formatted versions of completed transactions and reports directly from within the MYBOS program. This Guide
covers:
• Setting up SMTP relay credentials
• Sending email
• Keeping track of emails
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Settings
Email settings
Setting up SMTP relay credentials
If you have an email address, you have an SMTP server you can use ( e.g., Gmail). There are also many SMTP server providers who offer relay
service. Many have generous limits. For example, Mailgun.com allows you to send up to 10,000 emails per month for free.
To enter email settings, go to the tab and click :
Set up your server following instructions from your provider:
• Enter your own Email address.
• Check the box to Send a copy of every email to this address if you want copies of your outgoing emails.
• Name will be used as the sender’s identity. Your business name is the default entry, but may be edited.
• Paper size can be set to A4 or Letter, depending on which you expect recipients to use.
• Email sending format can be set as Plain text or HTML. This setting controls how the output of the Liquid email template for the
transaction type being sent is formatted.
• Hostname is the SMTP name furnished by your email provider.
• Port should normally be designated as 587, but MYBOS also supports port 25. (MYBOS will not support port 465 used as the
default by many email providers and applications.)
• Username is your login name with your provider.
• Password is the one required for login with the Username above.
• Check the box to Show password to make your password visible. (This box appears only after content is entered in the Password
field.)
Click to save your settings. After settings have been updated, you can test them by clicking . A test
message will be sent to your email address. A notice also appears if the test is successful.
Update
Test email settings
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Send
Sending email
While viewing the document you want to send, click
near the top of the window:
An email composing screen will appear:
• To will be filled with any email address previously recorded for a customer, supplier, or employee if one is associated with the
document. Otherwise, this field will be blank. Enter or edit the address as needed. Enter additional email addresses, if desired,
separated by commas or semicolons.
• Subject will be pre-filled with the title of the transaction or report you are emailing.
• A message may be entered in the text window.
• Checkboxes will appear for any attachments to the transaction. If you check a box, that attachment will be sent with the email in
addition to the transaction itself.
Click . The document will be sent as a PDF attachment to an email.
Notes
Your email application or provider may override content of the Name field, substituting whatever you have set up for your
general email. Therefore, you may want to create a separate email account for sending documents from MYBOS.
Paper size set for emails also controls paper size for printed documents throughout the program.
HTML should be set as the sending format if you plan to use HTML elements in email templates.
Some email providers have special requirements, mostly related to security. See, for example, these tutorials:
• Google Gmail
• Yahoo! Mail
• Microsoft Office 365
Email
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Example
Brilliant Industries is preparing a sales quote for new lighting at a hotel. It adds two attachments to the sales quote, one a
picture of the project design and the other a detailed list of proposed contract terms:
Note
While reports can be emailed, you cannot add attachments to them. Therefore, attachments cannot be included with
reports when they are emailed. Any supporting documentation must be separately emailed.
Keeping track of emails
When you send your first email, MYBOS automatically activates the
tab in the left navigation pane:
In that tab, you can click next to any email to display it. To delete an email, click in the lower right corner of its window:
Attach files to emails sent from MYBOS
This Guide explains how to attach files and supporting documentation to an email sent from within the MYBOS accounting application.
General procedures for emailing completed transaction forms and reports are described in another Guide. Read it first. Standardized email
templates can be defined for many common forms after selecting
Add an attachment
in the tab, as covered in a third Guide.
Before a file can be attached to an email sent from within MYBOS, whether or not an email template is used, the file must be included in
the business data file as an attachment. Procedures for adding attachments are found in another Guide.
Select attachments
To include an attachment with a completed transaction, click
want to send with the email.
while viewing it. Check boxes to indicate which attachment(s) you
Caution
The email template will be interpreted by the program as Liquid coding and formatted as either HTML or plain-text output
according to the selection made for Email sending format.
Emails
View
Delete
Email Templates
Settings
Email
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Send
Settings
Send the email
Click to email your message, the finished transaction form, and any designated attachments.
Use email templates
Email templates allow you to include standardized messages when emailing a form directly from MYBOS. They are available for
transaction forms that typically leave the business:
• Sales quotes
• Sales invoices
• Credit notes
• Delivery notes
• Purchase quotes
• Purchase orders
• Payslips
• Customer statements
Email template location
Email templates are unique to forms and become available under
they can be used:
as tabs are enabled within which
Example
Brilliant wants to email the sales quote to its customer with both attachments. So it chooses both files:
Email Templates
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Update
You do not have to create email templates, but they are empty until you edit them:
Develop an email template
To develop a specific email template, click
language:
beside its name in the listing. Enter your desired content, using the Liquid templating
• Subject should indicate the matter covered in the email. The code, {{reference}}, will insert the reference number from the
specific form being sent, if one exists, such as a quote number or invoice number.
• Message body should be a standard forwarding message. You can edit this before sending the email.
Click to save changes to the template. The subject line will be included in the email templates list:
Edit
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Send
Delete
Use an email template
Using email templates is automatic. When viewing a form, click
at the top of the window:
The email will appear, using the email address set up for the intended recipient (customer, supplier, or employee):
All fields may be edited as necessary before clicking to deliver the email with the form as a PDF attachment. Remember to follow
Liquid templating language syntax, and take into account your Email sending format selection under
View email
When you send your first email from within the program, MYBOS automatically activates the
.
tab in the left navigation pane:
In that tab, you will see a listing of all emails sent from MYBOS and still stored within your accounting data file. Click
email to display the text of the email.
next to any
To delete an email, click in the lower right corner of its window:
Caution
While templates will be interpreted as Liquid coding, their output will be formatted according to the Email sending
format selection made under Email Settings in the Settings tab.
Note
Any attachments you added to forms in MYBOS will not be displayed, even if they were sent with the email. The best
method for ensuring you have a complete record of emails with all their attachments is to send a copy to your own email
address.
Email
Email Settings
Emails
View
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• Google Gmail
• Yahoo! Mail
• Microsoft Office 365
Troubleshoot email issues
Procedures for emailing transaction forms and reports from MYBOS are described in another Guide. If you can’t send emails from MYBOS,
the first thing you should try is updating to the latest version. The issue causing your problem could have been a software bug that has
already been fixed.
If upgrading doesn’t solve the problem, we need to dive into your under the tab:
Currently, MYBOS doesn’t support port 465. So try a different port, preferably 587. Most SMTP servers will support both ports, so this is
generally not an issue.
Some email providers have special requirements, mostly related to security. See, for example, these tutorials:
If you encounter other problems, post them in a new topic on the Forum. Be as specific as possible, including information on:
• MYBOS edition (desktop, server, or cloud)
• Software version
• Your operating system and version
• Screen shots of any error messages
• A screen shot of your
will be to obtain help.)
page (Obscure only personal information. The more information you show, the easier it
Email Settings
Settings
Email Settings
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PDF
History
PDFs
Create PDF files of transactions and reports
PDF (Portable Document Format) files of transaction forms and reports can be generated directly by MYBOS. While viewing any
completed transaction or report, click on the button near the top of the MYBOS window:
An internal PDF generator will create the PDF file. Standard operating system dialog options for naming and saving the file will be offered.
Audit history
Audit transaction history
Every business in MYBOS has a history file that allows you to audit data entries, updates, deletions, and batch operations. The history file is
unique for each business you create in MYBOS. When you backup a business, the history file is part of the backup.
View the history file
To view transaction history, click the button near the top of the MYBOS window:
A list of transactions appears, with:
• Timestamp for the transaction
• User who took the action
• Description of the action
• Action category
View individual transactions
To see exactly what a user did, click
payment:
for a transaction. For example, on July 22, 2020, at 11:29:55 AM, a user named David created a
View
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Undo
Undo
Undo
Notice that David mistakenly entered the transaction date as July 30, 2020. The next day, David noticed his mistake and deleted the payment
transaction. That action was recorded also, on July 23, 2020, at 10:26:41 AM, and can be viewed in the history file:
A new payment must now be completed. Alternatively, the existing transaction could have been edited. Either of those transactions would
also be recorded in the history file.
Undo transactions
There is another method for reversing actions, the button:
The button is somewhat like a Back button in a web browser, or the Undo function in a word processing program, with a very
important difference. MYBOS’s
order.
button does not operate in reverse order of the original actions. Actions can be undone in any
David realizes after deleting the payment it would have been simpler to edit the date than to recreate the entire transaction. So he clicks on
for the deletion action and then clicks the button. His deletion is reversed and removed from the history file:
Undo
View
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Receipts & Payments
Caution
Consequences of using the Undo button are sometimes difficult to foresee. This is especially true when transactions
reference one another, such as when a fixed asset is created, a purchase invoice records its purchase cost, and a payment
records payoff of the purchase invoice. Always make a backup of your business before undoing transactions from the
history file.
The payment is restored to the tab and can be edited there.
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Cash Accounts
Cash Accounts
New Cash Account
Chapter 5: Cashbook
These Guides describe accounting techniques for physical cash, bank accounts, credit cards, and other forms of money.
Cash and Bank Accounts
Set up a cash account
Cash accounts are used to record current transactions involving bills and coins. They are maintained by a business as physical repositories
of cash. Possibilities include:
• Petty cash funds
• Cash tills
Enable the
tab
Before you can create a cash account, you must enable the tab. Click below the left navigation pane, check the
box for , and click
Create a cash account
. You will see the tab added to the left navigation pane.
Click the tab, then :
Define the cash account:
• Name the account so it will be recognizable. The name could include a description, a store’s location, or a clerk’s name.
• Code allows you to set the order in which cash accounts are listed. Enter an integer number. If blank, accounts will display in
alphabetical order.
• Currency options will be available if you have set at least one foreign currency. By default, cash accounts are undenominated. But if
you specify a base currency, they are assumed to be in your base currency, whatever that is. If you plan to use multiple currencies,
or just want your currency symbol to appear on forms and reports, set a base currency. Cash accounts will then automatically be
denominated in your base currency unless you edit this field.
• The Inactive box appears only after an account is created. It can be checked if the account is closed. (Cash accounts cannot be
deleted from MYBOS if they have any past transactions, because doing so would eliminate the records of those transactions and
Cash Accounts
Update
Cash Accounts
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Example
Robert’s Heating Services establishes a petty cash account to buy small parts and tools. It is listed under Cash on hand:
Robert can drill down by clicking the blue balance to see individual cash account transactions:
affect active Balance Sheet accounts.) If the box is checked, the cash account will not appear in lists for transactions in the
status.
tab. The account will be greyed out in the tab listing. it to restore to active
View cash account balances
By default, all cash accounts are combined into an automatic control account named Cash on hand for Balance Sheet reporting.
Of course, you can also view individual cash account balances directly in the
custom control accounts.
Set up a bank account
tab. Cash accounts can also be assigned to
Bank accounts are sources or repositories of money maintained by a financial institution of any type. Virtually every business needs at least
one bank account. Possibilities include:
Example
Brilliant Industries has one business bank account used to receive money from customers and pay suppliers and employees.
The business also holds cash on hand to pay for staff amenities and other petty cash expenses. Brilliant Industries creates
one bank account and one cash account. It names the cash account Petty cash:
Receipts & Payments
Cash Accounts
Edit
Cash Accounts
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Bank Accounts
Customize
Bank Accounts
New Bank Account
• Bank accounts
• Credit cards
• PayPal accounts
• Crypto-currency accounts (e. g., BitCoin)
Enable the tab
Before you can create a bank account, you must enable the Bank Accounts tab. Click below the left navigation pane, check
the box for , and click . You will see the Bank Accounts tab added to the left navigation pane.
Create a bank account
Click the tab, then :
Define the bank account:
• Name the account so it will be recognizable. The name could include a description, a bank’s name, a credit card designation, or an
account number.
• Code allows you to set the order in which bank accounts are listed. Enter an integer number. If blank, accounts will display in
alphabetical order.
• Credit limit can be set, especially for credit cards. You can also use this field to indicate the amount of overdraft protection.
• Currency options will be available if you have set at least one foreign currency. By default, bank accounts are undenominated. But if
you specify a base currency, they are assumed to be in your base currency, whatever that is. If you plan to use multiple currencies,
or just want your currency symbol to appear on forms and reports, set a base currency. Bank accounts will then automatically be
denominated in your base currency unless you edit this field.
• If migrating to MYBOS from an earlier accounting system, enter a Starting balance . This field only appears if a start date has
been set.
• The Inactive box appears after a bank account has been created. It can be checked if the account is closed. (Bank accounts cannot
be deleted from MYBOS if they have any past transactions, because doing so would eliminate the records of those transactions
and affect active Balance Sheet accounts.) If the box is checked, the bank account will not appear in lists for transactions in the
status.
tab. The account will be greyed out in the tab listing. it to restore to active
Notes
You should only add bank accounts that belong to the business. Personal credit cards and personal bank accounts used
infrequently for business transactions should not be added as bank accounts. Transactions using such personal funds
should be entered as expense claims.
Bank Accounts
Update
Receipts & Payments
Bank Accounts
Edit
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View bank account balances
By default, all bank accounts are combined into an automatic control account named Cash at bank for Balance Sheet reporting. Foreign
currencies are converted into your native currency on the Balance Sheet according to exchange rates you have entered. This is necessary so
books are balanced in your base currency.
Example
Brilliant Industries, an Australian company, has one business bank account used to receive money from customers and pay
suppliers and employees. The business also maintains an account with a London bank for transactions in the United
Kingdom. The business owner occasionally uses a personal credit card for business expenses. Brilliant Industries creates two
bank accounts in different currencies:
Brilliant Industries does not create a bank account for the personal credit card of the owner because it is a personal
account. The owner’s use of the personal credit card will be recorded in the Expense Claims tab.
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Note
In the Bank Accounts tab, you can find information about all bank accounts, even if you have modified your chart of
accounts so they are reported on the Balance Sheet under different control accounts.
Example
Drilling down from Cash at bank on Brilliant Industries’ balance sheet on the Summary page shows both bank account
balances converted to Australian dollars, the base currency. It also shows their balances in their denominated currencies:
Its Bank Accounts tab shows both accounts with greater detail in their denominated currencies, including pending
transactions and cleared balances:
Brilliant can see individual bank transactions by drilling down on any of the blue figures:
Set up credit cards
A credit card belonging to a business or used exclusively for business (such as a personal credit card of a sole trader/proprietor) can be set
up in two basic ways in MYBOS. The options are:
• A contra asset account, meaning the credit card will be displayed under Assets on the Balance Sheet, but normally with a negative
value until paid off
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Bank Accounts
Bank Accounts
Bank Accounts
New Payment
Summary
Note
If a credit card has a balance owed on your start date, enter the balance as a negative number in the Starting balances
field. See this Guide for more information about starting balances for bank accounts.
• A liability account, indicating the company owes money to the credit card issuer
The two approaches are financially equivalent, so both are equally correct. This choice is a matter of personal preference.
Create a credit card account
Regardless of which option will be used, the credit card account must be created first under the tab. A credit card account
is considered a bank account because it can be used as a medium of exchange and is maintained by a financial institution rather than the
business.
Enable the tab and create the credit card account as described here. You may wish to add custom fields to your bank
accounts to record things like account numbers and financial institutions. You can also assign account code numbers to match them to an
overall numbering scheme for your chart of accounts.
The credit card will now be displayed in your tab along with other bank accounts. Because most transactions will post to
this account from transactions, the account’s balance will usually be negative. Only refunds or payments to the credit card
will move its balance in a positive direction:
Contra asset option
To set up the credit card as a contra asset account, leave the control account field at the default option of Cash at bank when you create it:
On your Balance Sheet, the balance of the credit card account will reduce the balance of the control account, Cash at bank.
The advantage of the contra asset option is your page and Balance Sheet show at a glance how much cash you have to spend
that is not already obligated. The disadvantage is credit card balances are not so visible.
Liability option
To set up the credit card as a liability account, you must first create a custom control account in your chart of accounts. Give it a name like
Current liabilities if you want it to include other short-term obligations. Or just name it Credit cards. Indicate the custom control account is
made up of bank accounts:
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Bank Accounts
Summary
Summary
Bank Reconciliations
Update
Bank Reconciliations
New Bank Reconciliation
Note
If you had bank reconciliation reports prior to the addition of the Bank Reconciliations tab to the program, the tab
will already be enabled. All past reconciliation reports will be present.
Go back to the tab and your credit card account by assigning it to the custom control account just created:
Now, the balance of your credit card account will show under Liabilities on your Balance Sheet:
Notice that while the credit card balance will still show in the tab as negative, it will appear as a positive number under
Liabilities on the page, because Liabilities are automatically subtracted from Assets on that display.
The advantage of the liability option is credit card balances show on your page and Balance Sheet as amounts owed. This may
be more useful if you do not always pay off the full credit card statement balance. This option clearly separates what you have (assets) from
what you owe (liabilities). The disadvantage is a quick glance at the
do.
Reconcile bank accounts
may suggest you have more unobligated cash than you really
Bank reconciliation is the process of verifying your records of transactions posted to bank accounts against records of the institutions. (The
term bank is used generically to refer to any institution from which you receive or can obtain statements, whether by mail or electronically.)
To avoid potential problems caused by undiscovered errors, you should reconcile your bank accounts regularly.
Enable the tab
Before a bank account can be reconciled, the tab must be enabled. Click below the left navigation
pane, check the box, and click :
Reconcile a bank account
Go to the tab and click :
Bank Accounts
Edit
Summary
Bank Reconciliations
Customize
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Define the reconciliation:
• Set the Date to which you will reconcile transactions, usually the date of the statement.
• Choose the Bank account from among those already defined.
• Enter the closing Statement balance.
Click to save the reconciliation. The reconciliation will appear in the tab list.
Successful reconciliation
If MYBOS’s figures agree with the bank statement, the status will show as Reconciled. Click
to see the reconciliation:
Create
Bank Reconciliations
View
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The reconciliation will show:
• Closing statement balance at the top
• Pending deposits and pending withdrawals
• Adjusted closing balance
• Discrepancy (which should be zero)
Unsuccessful reconciliation
If the figures disagree, the status will show as Not reconciled. Click on the blue figure in the Discrepancy column:
MYBOS will show you a screen to help with the bank reconciliation process. Exact contents of this screen may vary, depending on the
problem detected. You will first be asked to double-check closing balances as per the bank statements:
You may be asked to asked to confirm status of pending transactions:
If you make corrections, MYBOS’s suggestions may change. If the problem does not resolve, you may be presented with a list of
transactions since your last reconciliation:
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Edit
New Payment
Note
When the first denomination in a second currency is set, an account named Foreign exchange gains (losses) is activated
automatically. MYBOS uses this account to record gains and losses due to fluctuations in exchange rates.
Depending on how often you reconcile, the list of transactions can be quite lengthy. MYBOS might break down the transactions into
smaller segments to make it easier to check against your bank statement. To do that, MYBOS may ask for interim closing balances as per
your bank statement.
It is usually most efficient to keep providing new closing balances as long as you are asked for them. MYBOS will use this information to
pinpoint the specific days you don’t reconcile. Instead of checking a whole month of transactions at once, you will only need to reconcile
one day at a time and only days that don’t reconcile.
When you compare transactions from the list to your bank statement, use the button to correct or delete transactions as required. If
a transaction is included in your bank statement but not in MYBOS, use the applicable
it.
or button to record
Once you resolve all issues, Status of the bank reconciliation statement will indicate Reconciled when viewing the list of bank reconciliations.
Use multiple currencies
If your business operates in multiple currencies, the first step to set your base currency. Follow the procedure in another Guide. Once you
set your base currency, forms and reports will include the symbol for it. By default, all existing accounts and subaccounts will be
denominated in the base currency.
You can also define and customize foreign currencies by following procedures in this Guide. When you have set up both a base currency and
at least one foreign currency, you will have the option to select a currency in the following tabs:
•
•
•
•
•
•
•
•
New Receipt
Bank Accounts
Cash Accounts
Expense Claims
Customers
Suppliers
Employees
Journal Entries
Special Accounts
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Journal Entries
Example
Northwind Traders conducts its own business in Euros. But it has several customers operating in other currencies. It sets
Euros as its base currency. Its Balance Sheet is now denominated in Euros:
To handle its British customers, Northwind Traders maintains a bank account in London denominated in pounds. When
setting up this bank account in the Bank Accounts tab, it chooses a currency accordingly:
The Bank Accounts tab shows the main company checking account and the London bank account in their respective
currencies:
Meanwhile, the Summary tab converts everything to the base currency according to exchange rates entered in the
program so assets can be properly balanced against liabilities and equity in a single currency:
Most transactions will adopt the currency applicable to the account or subaccount they relate to. For example, when you set a foreign
currency for a customer, all their invoices, credit notes and quotes will be denominated in that foreign currency.
Some tabs, such as Expense Claims or , allow you to specify the foreign currency on a transaction level. For example,
under Expense Claims this is useful when an employee is to be reimbursed in the base currency but the expense was incurred in a
foreign currency.
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Cash Accounts
Bank Accounts
Cash Accounts
Convert
Convert…
Example
Northwind receives money into a Euro-denominated bank account from a customer in England who was invoiced in British
pounds. The receipt form shows the amount received in Euros, but includes an optional field where the original invoice
amount in pounds can be entered:
Some transactions also allow you to force the program to accept a manually entered foreign currency amount as being equivalent to a base
currency amount. Using this feature avoids changes to the Foreign exchange gains (losses) account as exchange rates fluctuate. If this is
possible for a particular transaction, an optional field appears for the alternate currency.
Convert a bank or cash account into the other type
You can convert a bank or cash account into the other type, transferring all prior transactions to it along with the account itself. This
might be necessary in the following circumstances:
• The account was miscategorized when first created prior to version 17.9.0. (All bank and cash accounts were handled under a single
tab in earlier versions. The only distinction was a checkbox to indicate the account was maintained by a financial
institution.)
• The account was mistakenly categorized in version 17.9.0 or a later version and has had transactions entered, so it cannot be
deleted.
Convert an account
Select the home tab for the account you want to convert, either or :
OR
In the lower right corner of the screen, click :
Select the account you want to convert and click the button:
OR
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Customize
Results of conversion
If the tab for the destination account type has not yet been enabled, MYBOS will enable it.
The converted account will appear in the listing for the destination tab. MYBOS will treat the converted account as though it had always
been the new type. Transactions previously entered in the converted account will now appear under the new destination account.
Finally, if the converted account is the last of its type, the tab for that type will disappear unless the tab has been separately enabled via the
link.
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Example
Sample Manufacturing is beginning operations. It creates one bank account named Business bank account in the
Bank Accounts tab. But it mistakenly enters three petty cash transactions into that account. The Bank Accounts tab
shows the single bank account (red circle). The three transactions (blue arrow) are indicated for the
Receipts & Payments tab:
Sample realizes its mistake and decides to fix it by converting the bank account to a petty cash fund. When the conversion
is complete, everything has been transferred to the Cash Accounts tab. Notice that the counter for Bank Accounts is
now zero (blue arrow):
In this case, the Bank Accounts tab remains, because it was enabled via Customize .
Brilliant edits the new cash account to change its name to Petty cash. It creates a new bank account named Business bank
account. This way, Brilliant avoids having to delete and re-enter transactions or accounts. Results are visible in the two
accounts tabs:
AND
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Receipts & Payments
New Receipt
Cash and Bank Transactions
Record a receipt
Money received in any way by a business is a receipt. Before one can be recorded, at least one cash account or bank account must be
established. The
Basic receipts
tab must also be enabled.
Once at least one cash or bank account exists, receipts are recorded in the tab by clicking on :
Complete the entry:
• Date is automatically filled with today’s date, but can be edited.
• Type will automatically be set to Receipt.
• Reference is optional and may be used for cheque numbers, bank confirmation numbers, or other internal sequences. If the box
within the field is checked, MYBOS will number the transaction automatically. The program will search for the highest number
among all existing receipts and payments and add 1.
• Received in is where you select the bank or cash account into which the money is being received.
• If a bank account is selected, a Status field appears, in which Cleared or Pending can be chosen. For Cleared transactions, the date
may be entered:
Status is set to Cleared by default for bank transactions. Another Guide covers cleared and pending transactions in greater detail.
Note
When bank accounts are converted to cash accounts, pending transaction information is no longer displayed, because all
cash account transactions, by definition, clear immediately. However, pending status information is not lost. If the account
is converted from cash back to bank, the pending information will once again be shown.
Receipts & Payments
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Note
If a customer or supplier is chosen as the payer, the address for that customer or supplier will be displayed on the
completed receipt form. It will not, however, show on the entry screen.
Notes
Both customers and suppliers are included in the Customer/Supplier list, allowing more complex situations like counter
trades and barters to be handled. Most users will not use this feature, because a customer or supplier will be selected as the
payer.
Designation of customers or suppliers assists with proper tax reporting. The choice has no financial impact.
When multiple customers or suppliers are involved in a transaction, the payer type must be Other, and the payer’s identity
must be entered manually. If a customer or supplier is selected in the Payer field, the Customer/Supplier field disappears.
These fields are absent for cash account transactions.
• Payer is the person or entity from whom money is being received. Other allows free text entries. But Customer or Supplier can also
be selected, in which case the Payer field becomes a dropdown list of predefined customers or suppliers, as appropriate:
• Description is an optional summary of the overall transaction.
• An Inventory location field appears if inventory locations are defined and an inventory item is selected for a line item:
• Item field can be used to enter predefined inventory or non-inventory items. If you have no predefined items, this field will not
appear. Making a selection here will prefill several other fields on the line.
• Account is the account to which the receipt will be posted.
• Description on individual line items allows more specific information to be added.
• Tax code can be selected if any have been defined. If the payer type is Other or Customer or Supplier has been selected but no
specific customer or supplier has yet been chosen, a Customer/Supplier field appears, allowing a specific customer or supplier to
be selected:
• A Tracking Code can be selected if any are defined.
• Amounts are tax inclusive controls how taxes are calculated. Check the box if taxes are included in unit prices. Uncheck the box
if taxes are to be added to unit prices. This check box applies to the entire transaction.
• A Custom title can be entered to match local usage. Enter the title in the text field that appears if the box is checked.
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New Receipt
• A Custom theme can be selected. Available themes are selected in a dropdown box that appears if the box is checked.
The completed form can be given to the payer as a receipt:
Receipts against sales invoices
Receipts from customers against sales invoices can be entered two ways:
• As a basic receipt
• From a sales invoice
As a basic receipt
To enter a receipt against a specific invoice, post it to Accounts receivable, the Customer, and the Invoice:
Partial receipts
When receiving money for only part of the balance due on a sales invoice, post the transaction as above, but enter only the amount actually
received. MYBOS will credit the partial amount against the sales invoice and show a reduced balance due. No other special steps are
necessary.
Receipts for multiple sales invoices
When receiving money from a customer for multiple sales invoices, leave the Invoice dropdown field blank. MYBOS will allocate the
receipt against the sales invoice with a balance due with the oldest due date first, then the next oldest, etc. However, if the receipt is
designated for specific sales invoices, add lines and designate amounts for those invoices individually.
From a sales invoice
To record a receipt while viewing a sales invoice, click on :
A receipt entry form will appear. Select a bank or cash account. The remainder of the form will be prefilled with information to enter the full
amount due on the sales invoice. If the receipt is for only part of the balance due, edit the amount received by adjusting the unit price.
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Capital Accounts
Receipts & Payments
New Payment
Other situations
You are not restricted to using only simple income accounts to post receipts. For example, if money is received from a business owner set up
under the tab, select the matching capital account and subaccount:
Inventory and non-inventory items can also be directly sold using receipts. For more information on selling without sales invoices see this
Guide.
Record a payment
Money spent in any way by a business is a payment. Before one can be recorded, at least one bank account or cash account must be
established. The
Basic payments
tab must also be enabled.
Once at least one bank or cash account exists, payments are recorded in the tab by clicking on :
Complete the entry:
• Date is automatically filled with today’s date, but can be edited.
• Type will automatically be set to Payment.
• Reference is optional and may be used for cheque numbers, bank confirmation numbers, or other internal sequences. If the box
within the field is checked, MYBOS will number the transaction automatically. The program will search for the highest number
among all existing receipts and payments and add 1.
• Paid from is where you select the bank or cash account from which the money is being paid.
• If a bank account is selected, a Status field appears, in which Cleared or Pending can be chosen. For Cleared transactions, the date
may be entered:
Receipts & Payments
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Note
If a customer or supplier is chosen as the payee, the address for that customer or supplier will be displayed on the
completed payment form. It will not, however, show on the entry screen.
Notes
Both customers and suppliers are included in the Customer/Supplier list, allowing more complex situations like counter
trades and barters to be handled. Most users will not use this feature, because a customer or supplier will be selected as the
payee.
Designation of customers or suppliers assists with proper tax reporting. The choice has no financial impact.
When multiple customers or suppliers are involved in a transaction, the payee type must be Other, and the payee’s identity
must be entered manually. If a customer or supplier is selected in the Payer field, the Customer/Supplier field disappears.
Status is set to Cleared by default for bank transactions. Another Guide covers cleared and pending transactions in greater detail.
This field is absent for cash transactions.
• Payee is the person or entity to whom money is being paid. First, a type must be selected. Other allows free text entries. But
Customer or Supplier can also be selected, in which case the Payee field becomes a dropdown list of predefined customers or
suppliers, as appropriate:
• Description is an optional summary of the overall transaction.
• An Inventory location field appears if inventory locations are defined and an inventory item is selected for a line item:
• Item field can be used to enter predefined inventory or non-inventory items. If you have no predefined items, this field will not
appear. Making a selection here will prefill several other fields on the line.
• Account is the account to which the payment will be posted.
• Description on individual line items allows more specific information to be added.
• Tax code can be selected if any have been defined. If the payer type is Other or Customer or Supplier has been selected but no
specific customer or supplier has yet been chosen, a Customer/Supplier field appears, allowing a specific customer or supplier to
be selected:
• Amounts are tax inclusive controls how taxes are calculated. Check the box if taxes are included in unit prices. Uncheck the box
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Create
if taxes are to be added to unit prices. This check box applies to the entire transaction.
• A Custom title can be selected to match local usage. Enter the title in the text field that appears if the box is checked.
• A Custom theme can be selected. Available themes are selected in a dropdown box that appears if the box is checked.
Click to save the transaction. The completed form can be given to the payee as a remittance or payment advice:
Payments against purchase invoices
Payments to suppliers against purchase invoices can be entered two ways:
• As a basic payment
• From a purchase invoice
As a basic payment
To enter a payment against a specific purchase invoice, post it to Accounts payable, the Supplier, and the Invoice:
Partial payments
When paying only part of the balance due on a purchase invoice, allocate the transaction exactly as above, but enter only the amount
actually paid. MYBOS will apply the partial amount against the purchase invoice and show a reduced balance due. No other special steps
are necessary.
Payments for multiple purchase invoices
When paying a supplier for multiple purchase invoices, leave the Invoice dropdown box blank. MYBOS will allocate the payment against
the purchase invoice with a balance due that has the oldest due date first, then the next oldest, etc. However, if the payment is designated
for specific purchase invoices, add lines and designate amounts for those invoices individually.
From a purchase invoice
To record a payment while viewing a purchase invoice, click on
A payment entry form will appear. Select a bank or cash account. The remainder of the form will be prefilled with information to enter the
full amount due on the purchase invoice. If the payment is for only part of the balance due, edit the amount paid by adjusting unit price.
New Payment>:
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Capital Accounts
Other situations
You are not restricted to using only simple expense accounts to post payments. For example, if money is paid to a business owner set up
under the tab, select the matching capital account and subaccount:
If a fixed asset is purchased the transaction can be allocated as below:
Employees are paid by allocating payroll amounts as follows:
Inventory and non-inventory items can also be directly purchased using payment forms. For more information on buying without purchase
invoices, see this Guide.
Track cleared and pending status of bank transactions
Many financial transactions are completed, or cleared, by the time they are entered in MYBOS. No further financial activity will occur. Some
examples are:
• Cash sales to customers, with received funds held in cash till
• Cash payments to merchants from a petty cash fund
• Imported bank transactions
• Transfers between company accounts within the same financial institution
Others involve delay before all financial activity is complete. Examples of these pending transactions include:
• Cheques written to suppliers or employees that have not yet been presented for payment
• Credit card charges not yet showing on the card statement
• Receipts from customers not yet deposited with the bank
• Deposits to bank accounts not yet available for withdrawal
• Transfers between bank accounts in different institutions not yet finalized (whether by cheque, electronic or wire transfer, or other
means)
MYBOS can easily track status of bank account deposits and withdrawals, including dates of both initial transactions and eventual clearance,
in a Status field. Cash account transactions are, of course, always complete instantly, so status is not recorded. Using this feature, you can
quickly determine how much of your bank account funds are unobligated, that is, actually available to spend. Likewise, you can determine
whether or not money received is actually accessible.
Cleared transactions
By default, all new receipts and payments to bank accounts in the
customer automatically shows Cleared in the Status field:
tab are Cleared. For example, a receipt from a
Receipts & Payments
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Bank Accounts
If desired, the clearance date can be entered:
All cleared transactions will appear under the Statement balance column for a bank account in the tab:
Pending transactions
When money has been received, but perhaps not deposited in the bank, the transaction can be marked as Pending. Similarly, until a cheque
has been presented and paid by the bank or a credit card charge is posted to a statement, it can be shown as Pending:
Inter account transfers
When transfers are made between accounts in the
transfer can be annotated separately (if they involve bank accounts):
tab, status of both the outgoing and incoming legs of the
Inter Account Transfers
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Monitoring status
If any pending deposits or withdrawals exist, they will automatically be shown in separate columns in the
tab:
A Bank Reconciliation Statement can be produced adjusting an account statement for pending deposits and withdrawals. This can help
ensure bank records match accounting records in MYBOS.
Clearing a pending transaction
Once a pending transaction has cleared on the records of the financial institution, drill down by clicking the blue balance under Pending
deposits or Pending withdrawals for the bank account involved in the
transaction:
tab. Click beside the particular
Change status to Cleared in the dropdown Status box and enter the clearance date. (See first illustration above.)
Import bank statements
To save time, you can import bank statement transactions instead of manually entering them.
Download your bank statement
Of course, you can only do this if your bank or other financial institution allows you to electronically export the statement first. Follow your
bank’s procedures for defining and downloading a statement or transaction list. To limit redundant transactions, try to download a
statement covering only the period since you last downloaded one. MYBOS will accept statements in these formats:
• *.qif
• *.ofx
• *.qfx
Bank Accounts
Bank Accounts
Edit
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Choose File
• *.qbo
• *.sta
• *.swi
• *.940
• *.iif
• *.csv
If your bank does not offer one of the other formats, you may be able to import the statement into a spreadsheet program and convert it to
*.csv format. If you import a *.csv file, MYBOS will recognize only the following columns, so delete all others:
• Date (be sure format matches your selection in the
• Reference
• Payee
• Description
• Amount
tab)
Import your bank statement
To import a bank statement into MYBOS, go to the
button:
tab. At the bottom, click on the
Click
statement:
to browse to the downloaded statement you want to import. Select the bank account for which you are importing the
Click . Review the summary of transactions to be imported and press the button.
Note
The *.csv format is the least reliable, with no accepted standard for bank statements. Use it only if your bank offers none of
the other options.
Preferences
Receipts & Payments
Import bank statement
Next
Import
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New Bank Rule
Bulk Update
Note
MYBOS has the ability to recognize most duplicate transactions, based on type, date, and amount. In the import illustrated
above, MYBOS does not recognize any duplicates and imports all transactions.
After the import is complete, MYBOS returns you to a list of uncategorized transactions. Here, imported transactions are displayed in one
of two ways:
• Those recognized according to an existing bank rule have their tentative posting Account listed in green.
• Transactions not recognized by a bank rule are assigned to the Suspense account, awaiting editing or creation of a new bank rule.
The illustration below shows a portion of the Uncategorized transactions list for the import shown above. Of transactions shown, only
one was recognized under a bank rule:
transactions to post them to proper accounts or add descriptions or other information. When a transaction has been allocated to an
account, it will disappear from the list. If the transaction is likely to be repeated in the future, click to define a rule that will
recognize and categorize it automatically next time. The account assigned by the newly defined bank rule will be shown. When all
transactions have been allocated to desired accounts, check boxes for those you want to update and click . (In most
situations, this will include only those recognized by bank rules, because any that were edited by selecting accounts will no longer appear in
the list.)
Edit
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Settings
Bank Rules
New Bank Rule
Caution
Bank statement imports have the potential to duplicate transactions already entered either manually or by prior import.
They might also eliminate transactions erroneously as duplicates when dates and amounts are the same. (This could
happen, for example, when a frequent customer buys the same thing several times in one day and some transactions are
entered manually.)
Some import formats (or poor implementation of them by financial institutions) also have the potential for date
ambiguities when transactions are limited to early in a month (days 1 - 12) or represent years with only two digits.
To minimize problems, thoroughly review imported transactions when the process is complete. Edit manually, if necessary.
The bank statement import feature is meant to save time in data entry, not substitute for regular review and oversight.
Use bank rules to categorize imported transactions
Bank rules are decision criteria you define so MYBOS can automatically categorize or post transactions to correct accounts when you
import bank statements. Procedures for importing statements are described in another Guide.
Define, edit, or delete a bank rule
Bank rules can be defined, edited, or deleted in the tab after clicking :
To define a new bank rule, click and complete the description:
• Select the bank account you have imported under If bank account is:.
• Enter your search criteria under …and description contains:.
• Specify the posting account and tax and tracking codes to apply (if any) under …then allocate to:. (If no tax or tracking codes
exist, these fields are not visible)
Notes
Transactions categorized by bank rules are only tentatively assigned to accounts. Until they are selected and updated with
the Bulk Update button, the categorization is not final.
Many imported bank transactions will not contain entries in the Payer or Payee fields, as many banks include this
information in the Description field. Unless you edit such transactions manually, your transactions will be partially
incomplete. This can result in various reports being less informative than normal. Remedy this situation by editing the
transactions to manually copy payer/payee information to the correct fields.
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Edit
Delete
Example
Jose knows his domestic wire transfer charges are always described in his bank statements as ELECTRONIC XFER FEE. So he
creates a bank rule to automatically post any transaction in his main bank account with the words ELECTRONIC XFER FEE to
his Bank charges expense account. Jose also knows that bank charges are subject to a 10% goods and services tax (GST). He
tracks income and expenses for his branch offices separately using tracking codes. So he makes matching selections in
appropriate fields:
Example
Xuan imports a bank statement. All transactions are initially uncategorized because none matched existing bank rules:
Click Create when finished. To edit or delete a bank rule, click the button to the left of the rule. Edit as desired and click
Update or click .
Define a bank rule during categorization
After a bank statement has been imported, MYBOS returns you to a list of uncategorized transactions. Here, imported transactions are
displayed in one of two ways:
• Those recognized according to an existing bank rule have their tentative posting Account listed in green.
• Transactions not recognized by a bank rule are assigned to the Suspense account, awaiting editing or creation of a new bank rule.
Uncategorized transactions must be categorized, either by manual editing or with a new bank rule and bulk categorization.
Note
When a control account is selected, such as Accounts receivable or Billable expenses, an additional dropdown field will
appear beside the account field to select a subsidiary ledger, such as the customer. If a subsidiary ledger is not selected,
transactions fitting the search criteria will be posted to Suspense.
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Edit
Bulk Update
Example
Xuan’s bank charge now has a tentative allocation:
After creating a bank rule, you are taken back to the uncategorized transactions screen, where you will notice the bank statement transaction
has successfully been matched by the new bank rule.
You should create bank rules for all transactions likely to recur, being careful not to include in the bank rule any transaction details that are
unique, such as reference numbers, invoice numbers, or dates. Once-off transactions that are infrequent should be categorized individually
by clicking rather than by creating bank rules. Transactions you edit will disappear from the bulk categorization screen.
Once you have added all your bank rules, select all transactions matched by new bank rules by checking their boxes. Click at
the bottom. All selected bank transactions with matching bank rules will be recategorized and taken off the list. Bank rules you created will
be saved, so when you import bank statements again, MYBOS will match new bank transactions to existing bank rules, reducing the time
needed to categorize them.
Example
Xuan sees that international wire transfer fees always show the same way in her bank statements. So she creates a bank rule
for them by clicking the New Bank Rule button on the applicable transaction line:
She sets a description that MYBOS will recognize for such fees, directing all bank account transactions from the Business
bank account containing NAB INTL TRAN FEE in their descriptions to be categorized under her Bank charges expense
account. Such transactions are not taxable in Xuan’s jurisdiction:
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Bank Accounts
Example
Northwind Traders has three uncategorized transactions in its checking account:
These are revealed by clicking on the blue number:
From this screen, Northwind can define new bank rules or edit transactions the same way as when importing a bank
statement.
Caution
The possibility always exists that a bank rule will incorrectly categorize a transaction with unanticipated characteristics.
When you complete the categorization process, review the results.
Define a bank rule after categorization
If transactions are not categorized automatically by existing bank rules or by defining new bank rules, they show as Uncategorized under
the tab:
Make cash sales (sell without sales invoices)
A cash sale occurs when a customer pays for goods or services immediately upon delivery. No credit is extended by the seller. No account
receivable is created. Resulting revenue is posted immediately to an income account, regardless of whether the business uses accrual or cash
basis accounting. Therefore, no sales invoice is required. The entire transaction occurs in a single step.
Example
Xuan defines additional bank rules, then checks all boxes for the bulk update:
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Note
A cash purchase does not need to be paid in physical cash. It can be paid via any form of exchange. Its distinguishing
feature is that credit was not extended by the supplier.
Cash sales are entered in exactly the same way as any other receipt. They should specifically list any inventory items sold. A copy of the
receipt can be given to the customer as evidence of the sale.
When a cash sale is entered, any available credits the customer may have from credit notes or returns will not be applied. This is because
such credits are recorded in customers’ subaccounts in Accounts receivable, which is not invoked for cash sales. To use such credits, a sales
invoice must be used instead.
When a customer statement is created, cash sales for that customer will not be included. If a complete record of sales to a specific customer
is desired, sales invoices must again be used.
When many cash sales are made, such as to walk-in customers in a retail shop, a single receipt summarizing the day’s sales can be entered
into MYBOS. A cash register or point-of-sale system can be used to record individual sales, issue customer receipts, and manage cash in a
till.
Make cash purchases (purchase without purchase invoices)
A cash purchase occurs when a business pays for goods or services immediately upon ordering or delivery. No credit is extended by the
supplier. No account payable is created. The resulting expense is posted immediately to an expense account, regardless of whether the
business uses accrual or cash basis accounting. Therefore, no purchase invoice is required. The entire transaction occurs in a single step.
Cash purchases are entered in exactly the same way as any other payment. They should specifically list any inventory items purchased.
When a cash purchase is entered, any available credits you may have with the supplier from debit notes or returns will not be applied. This is
because such credits are recorded in suppliers’ subaccounts in Accounts payable, which is not invoked for cash purchases. To use such
credits, a purchase invoice must be entered instead.
When a supplier statement is created, cash purchases from that supplier will not be included. If a complete record of purchases from a
specific supplier is desired, purchase invoices must again be used.
Record customer deposits and advances
Customer deposits and advances are funds received by a business from a customer before they have been earned. While the funds may be
present in a bank or cash account of the business, they are actually being held in trust for the customer and represent a liability the business
must eventually either repay or convert to income by completion of the economic activity for which they are intended. Some examples
include:
• Deposits accompanying purchase orders for custom manufacturing
• Receipts from prepayments for services or utilities to be invoiced later to the customer
• Deposits received for confirmation of hotel reservations
• Cleaning or damage deposits for rental property received from tenants
Accounting for deposits and advances
Two essential facts must be recorded for every deposit or advance:
• Customer - who is making the deposit?
Note
A cash sale does not need to involve receipt of physical cash. Money can be received via any form of exchange and
deposited into either a cash or bank account. The distinguishing feature is that credit is not extended by the seller to the
customer.
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New Receipt
Create
Note
Deposits, even those involving calculations with quantities and unit prices, have no impact on inventory values or quantities
because no inventory item is designated.
• Amount - how much is the deposit?
In MYBOS, both facts are recorded simultaneously when the deposit or advance is received. To receive a deposit, go to the
tab and click :
Complete the receipt form as you would for any other receipt. Do not select anything in the Item field. Select Accounts receivable and the
customer’s subaccount. Leave the Invoice field blank. A quantity is not required, because no inventory items or billable items are involved
with a deposit. You may simply enter the total deposit in the Unit price field. However, if you wish, enter the quantity and unit price and
MYBOS will calculate a total amount:
Click to finish.
Using deposits and advances
The receipt will now be added to the applicable bank or cash account’s balance. If marked as pending, it will show in the Pending deposits
column:
The deposit also reduces the total Accounts receivable balance, though the effect of a specific deposit may be obscured on the Balance Sheet
if there are other deposits from any customers:
To view specific information about customer deposits, you must first drill down by clicking the Accounts receivable balance and locating the
customer’s account Balance:
Receipts & Payments
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Customers
New Payment
Note
Deposits and advances cannot be applied on sales recorded only via cash receipts. Such transactions are not processed
through Accounts receivable, so MYBOS cannot apply any available balance. If you sell to a customer on a cash-and-carry
basis, but wish to apply an existing deposit or advance, you must create and receive money against a sales invoice in
separate transactions.
Clicking on the balance, you can see transactions contributing to it, including the recent deposit:
You can do the same thing in the tab, with identical results.
Whenever a sales invoice is created for a customer, any available net credit in that customer’s Accounts receivable balance will be
automatically applied, reducing the balance due on the new sales invoice.
Record supplier deposits and advances
Supplier deposits and advances are funds paid by a business to a supplier before they have been earned. While the funds may be in the
supplier’s hands, they are actually being held in trust for the business that pays the deposit and represent a liability the supplier must
eventually either repay or convert to income by completion of the economic activity for which they are intended. Some examples include:
• Deposits accompanying purchase orders for custom manufacturing
• Prepayments for services or utilities to be invoiced later by the supplier
• Deposits to hotels for confirmation of reservations
• Deposits to landlords by tenants of rental property for cleaning or potential damages
Accounting for deposits and advances
Two essential facts must be recorded for every deposit:
• Supplier - who is receiving the deposit?
• Amount - how much is the deposit?
In MYBOS, both facts are recorded simultaneously when the deposit or advance is paid out. To record payment of a deposit, go to the
tab. Select :
Receipts & Payments
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Create
Bank Accounts
Note
Deposits, even those involving calculations with quantities and unit prices, have no impact on inventory values or quantities
because no inventory item is designated.
Complete the payment form as you would for any other payment. Leave the Item field blank. Select Accounts payable and the supplier’s
subaccount. Leave the Invoice field blank. A quantity is not required, because no inventory items or billable items are involved with a
deposit. You may simply enter the total deposit in the Unit price field. However, if you wish, enter the quantity and unit price and MYBOS
will calculate a total amount:
Click to finish.
Using deposits and advances
The payment will now be deducted from the applicable bank or cash account’s balance. If from a bank account and marked as pending, it
will show in the Pending withdrawals column under the tab:
The deposit also reduces the total Accounts payable balance, though the impact of a specific deposit may be obscured on the Balance Sheet
if other amounts are owed to any supplier:
To view specific information about supplier deposits, you must first drill down by clicking the Accounts payable balance and locating the
supplier’s account Balance:
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Suppliers
Customers
Receipts & Payments
New Receipt
Create
Note
Deposits and advances cannot be applied on purchases recorded only via cash payments. Such transactions are not
processed through Accounts payable, so MYBOS cannot apply any available balance. If you purchase from a supplier on a
cash-and-carry basis, but wish to apply an existing deposit or advance, you must create and pay off a purchase invoice in
separate transactions.
Clicking on the balance, you can see transactions contributing to it, including the recent deposit payment:
You can do the same thing in the tab, with identical results.
Whenever a purchase invoice is created for a supplier, any available net debit in that supplier’s Accounts payable balance will be
automatically applied, reducing the balance due on the new purchase invoice.
Pay a refund
Sometimes, a business owes money to a customer and must pay a refund. Two basic situations may exist, requiring slightly different
procedures:
• A refund is being paid from a cash sale or without reference to the customer’s Accounts receivable balance.
• A customer defined under the tab has paid in advance, paid more than was owed, or has been issued a credit note, so
a credit is being reported as a negative balance (or entry) in Accounts receivable.
Refunds from cash sales
To refund a sale original made by cash receipt, go to the tab and click :
A receipt entry screen will appear. Complete the form as you would for any other receipt, with one important difference. In particular,
complete a line item for the refund:
• If an inventory or non-inventory item was involved in the original purchase, choose it in the Item field. Most of the remaining fields
will fill automatically, but may be edited.
• Account will be filled automatically for inventory and non-inventory items. Otherwise, choose the same one to which the original
purchase was posted. Because you will enter a negative number in the Qty field (see below), MYBOS will deduct the appropriate
amount from an income account, add to Inventory on hand, reduce Inventory - cost, and reduce the appropriate tax liability account.
• Description describes the return/refund.
• Qty is the number of units being refunded. Enter the quantity as a negative number. This is the important difference
mentioned above. If an inventory item is not actually being returned, but only adjusted in price, enter zero or leave blank.
• Unit price is the amount being refunded per unit of return. If only a partial refund is being made, enter the actual amount being
refunded. If no quantity was entered in the Qty field, enter the unit price as a negative number. Otherwise, enter a positive
number.
• Choose the same Tax code used for the original transaction.
• Select a Tracking Code if appropriate.
Click when the form is complete. Remember to pay the customer.
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Create
Caution
Refunding a credit balance only reduces the customer’s Accounts receivable balance. It does not adjust inventory or tax
accounts. To do that, you must issue a credit note first.
Refunds of credit balances
Customer credit balances will be automatically applied to the customer’s next invoice:
But if the next invoice is unlikely to be issued soon or the customer has requested the credit be refunded, make a payment to reduce the
credit balance. Most procedures are identical to refunds from cash sales as described above. However, for Account, select Accounts
receivable, then select the Customer. If the refund is associated with a specific invoice, select it in the Invoice (optional) field. Otherwise,
leave that field blank:
On the payment form, all numbers should be positive. Click to save the transaction.
Exchange inventory
For purposes of this Guide, you exchange inventory when either:
• A customer returns one or more previously sold inventory items to you and receives different inventory items from you, or
• You return one or more previously purchased inventory items to a supplier and receive different inventory items from the supplier,
and no credit is involved in the transaction. That means:
• Neither Accounts receivable from a customer nor Accounts payable to a supplier is adjusted, and
• No credit or debit note is involved.
In other words, an exchange occurs when all movement of funds and inventory is accomplished in a single transaction. If the items
exchanged are not of equal value, movement of funds can be via bank or cash transaction.
Customer returns goods
Conceptually, a customer exchanging inventory is equivalent to you buying back the item(s) the customer originally purchased and selling
the new item(s) to the customer. In fact, you could enter two separate transactions. But there is a simpler way that produces identical results.
Note
A receipt with a negative quantity or unit price is financially similar to a payment, which is what you are making to the
customer. But recording a refund with a payment form does not correctly reverse the original income and expense
postings. More importantly, doing so distorts the average cost of returned inventory items in the Inventory on hand
account. Think of the refund this way: you recorded the original sale with a receipt, so it is appropriate to reverse the sale
with a negative receipt.
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Receipts & Payments
New Payment
Create
In the tab and click on :
On the payment form, list all inventory items the customer is returning and their quantities. Include any tax code that was applied to the
original sale.
Next, list all inventory items the customer is buying in the exchange and their quantities. Because you are effectively receiving money for
the replacement item(s) rather than paying, enter the replacement quantities as negative numbers. Again, include any applicable tax
code.
Click to record the exchange.
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Example
Brilliant Industries previously sold a ceramic table lamp to Bob’s Hardware on a cash basis. Bob’s Hardware realizes it
purchased the wrong product and wants to exchange the lamp for a lamp kit. Because these are wholesale transactions, no
tax is assessed on any portion of the transaction.
Prior to the exchange, Brilliant’s Balance Sheet shows 1,000 in Cash on hand and Inventory on hand worth 4,432.53:
Brilliant’s Inventory Items list reveals it owns 18 table lamps and 5 lamp kits:
The payment form is completed as shown below. Note the negative quantity for the replacement item:
Because the returned item is worth more than the replacement item, Brilliant owes Bob’s Hardware 108. When the
transaction is complete, the Balance Sheet has been adjusted, showing less Cash on hand and increased Inventory on hand:
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Note
If replacement items are worth more than returned items, the customer will owe additional money. This will be shown by a
negative total. (A negative payment is the same as a receipt.)
You return goods to a supplier
When you exchange inventory with a supplier, you are effectively selling back the items you originally purchased and buying replacements.
The procedure for recording the transaction is basically the reverse of the one described above:
• Enter a new receipt to either a cash or bank account.
• Enter item(s) you return with positive quantities.
• Enter replacement item(s) you receive with negative quantities. (A negative receipt is a payment.)
• A positive receipt total means the supplier owes you money. A negative receipt total means you owe the supplier additional money.
Find and recode receipts and payments
The main screen of the tab includes a button at the bottom to assist with bulk recoding of line
items on bank transactions to different accounts or to apply different tax codes:
This feature is often useful for posting transactions from imported bank statements to proper accounts when they are not handled
automatically by bank rules. It can also be used in other situations, including when new accounts are added.
Inventory quantities have also been adjusted. Table lamps have increased by 1 and lamp kits have decreased by 1:
Receipts & Payments
Find & recode
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Search
Examples
Northwind Traders routinely contributes money to charities in return for acknowledgement in the charities’ publications.
The business believes local regulations allow a deduction from income for the donations. However, at the end of the fiscal
year, the company’s accountant determines that such contributions are not eligible for treatment as charitable donations,
but only as advertising expenses. So every donation recorded during the year must be recoded from a Donations account
to an Advertising and promotion expense account. This can be done very quickly using Find & recode .
Mariana begins using MYBOS for her catering business, posting all sales to a generic Sales income account. After several
months, she realizes she could make better marketing decisions if her sales were broken down into several categories. She
renames her existing Sales account as Business catering and adds Weddings and Private events to her chart of accounts.
Mariana then uses Find & recode to transfer wedding and private event sales to their new accounts, leaving her
remaining business sales in the original, renamed account.
Finding transactions
Select
accounts appears:
. A list of general ledger transactions for line items on receipts and payments deposited to or withdrawn from bank
From this list, select transactions to be recoded directly by checking boxes in the lefthand column. Or, use the search function to narrow the
list, in this example by entering the account name Donations and clicking :
Recoding transactions
From the narrowed list, select specific transactions to be recoded:
Notes
Transactions in cash accounts are not included in the Find & Recode function.
The Find & recode function works at the line-item level, not the transaction level. This gives you the a ability to find and
recode individual lines on receipts and payments.
Find & recode
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Bulk Update
Note
Tax codes can be recoded without changing accounts.
Example
Brilliant Industries regularly extends credit to customers by issuing sales invoices net 30 days. In other words, the due date
on each new invoice is 30 days in the future. But it offers a 5% early payment discount if customers pay within 10 days.
Scroll to the end of the list and select the new account. If a tax code applies, choose one:
Click to recode all selected transactions to the new account or tax code:
Record early payment discounts on receipts for sales invoices
An early payment discount is a reduction of the balance due on a sales invoice offered to a credit customer for payment by a deadline
earlier than the regular due date. Early payment discounts are usually offered to incentivize faster payment and minimize carrying costs of
receivables. Procedures for offering early payment discounts are covered in another Guide.
Early payment discounts are recorded in two steps:
• Entering the reduced payment
• Creating a credit note to adjust account balances
Entering payment
When entering a receipt from a customer paying early, enter the amount actually paid, posting to Accounts receivable and the customer’s
subaccount and invoice number. Do not apply any tax code. MYBOS will automatically determine whether the payment qualifies for any
early payment discount. If so, the discount will be shown on the sales invoice.
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Note
The label, “Balance due if paid by …,” and the accompanying zero amount serve as a reminder the transaction is not
complete. The format may seem unusual, but the sales invoice should never be sent to a customer at this stage.
Example
Brilliant Industries raises a sales invoice to Bob’s Hardware for 300.00 for a lamp kit. 10% tax is added. A 5% early payment
discount is offered:
Bob’s Hardware pays 313.50 before the deadline. The receipt is entered as described:
MYBOS determines the payment qualifies for the early payment discount and applies the discount to the sales invoice:
Creating the credit note
At this point, the transaction is not yet complete. Although the early payment discount has been recorded against the sales invoice, balances
of Accounts receivable and applicable income accounts have not been reduced. That must be accomplished via a credit note.
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Create
Credit Notes
Example
Brilliant Industries clicks the notification banner and sees that Invoice #8 for Bob’s Hardware has a pending early payment
discount:
It clicks Create and recording of the payment with early payment discount is complete. The final form of the sales
invoice eliminates the reminder text, displaying more conventional information:
Note
By default, discounts on the credit note are posted to the same accounts as corresponding, original line items, using the
same tax codes. These can be edited, though there is usually no need to do so. When the discount is a percentage, all line
items are discounted by that same percentage. When a fixed-amount discount is involved, line items are discounted by
proportionate amounts.
The next time the
discount:
tab is entered, a banner shows, indicating at least one sales invoice has a pending early payment
After the banner is clicked, any credit notes required from pending early payment discounts are listed for review. Click . The
tab is automatically enabled, if it is not already. Any necessary credit notes are created. Accounts receivable for the
customer(s) involved and the relevant income account(s) are adjusted.
Knowledge of the early payment discount is preserved in three places:
• On the input screen for the sales invoice itself:
• On the edit screen for the credit note:
Sales Invoices
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Caution
In most jurisdictions, an early payment discount is considered a price reduction, because it was offered as a condition of
the sale. So tax is due only on the reduced price of goods or services. But in some jurisdictions, tax may be due on the
original sale price. In that case, remove the tax code on the discount line item(s) on the credit note. You will then be paying
the tax on behalf of your customer, a factor that should be considered when determining your early payment discount
offer. Check with a local accountant or tax authority to confirm which situation applies.
Note
An early payment discount is not an ordinary discount as that term is generally used throughout MYBOS. Normally, a
discount is a percentage or fixed-amount price reduction on an individual line item. An early payment discount applies to
an entire invoice.
Example
ACME Services Company regularly extends credit to customers by issuing sales invoices net 30 days. In other words, the
due date on each new invoice is 30 days in the future. But it offers a 5% early payment discount if customers pay within 10
days.
ACME is a supplier of Brilliant Industries. Whenever cash flow is satisfactory, Brilliant saves 5% on its purchases from ACME
by paying quickly.
• In the summary-level Description field for the finished credit note:
Record early payment discounts on purchases
An early payment discount is a reduction of the balance due on an invoice offered by a supplier for payment by a deadline earlier than the
regular due date. Early payment discounts are usually offered to incentivize faster payment and minimize carrying costs of receivables.
Early payment discounts on purchases can be applied by either of two methods:
• Debit note
• Adjusted payment
Debit note method
When you take an early payment discount offered by a supplier, the supplier may send you a credit note. Enter that credit note as a debit
note in MYBOS. You can also, however, initiate a debit note yourself to record the early payment discount.
The debit note reduces the balance of Accounts payable for that supplier. Make payment with a bank or cash transaction equal to the
reduced balance due for the purchase invoice.
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Example
ACME Services Company raises a sales invoice to Brilliant Industries for 300.00 in services with a 10% tax added. A 5% early
payment discount is offered. Brilliant enters a corresponding purchase invoice:
Brilliant decides to pay early, qualifying for the discount. So it creates a debit note, allocating the debit note to the specific
purchase invoice. Since the discount applies to the entire purchase invoice, including tax, the Unit price is calculated as
5% of the total balance due of 330.00. The same 10% tax code is selected, and the debit note is marked as being tax-
inclusive:
The purchase invoice’s Balance due is reduced by the debit note:
Brilliant pays ACME 313.50 to settle its debt.
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Caution
In most jurisdictions, an early payment discount is considered a price reduction, because it was offered as a condition of
the sale. So tax is due only on the reduced price of goods or services. But in some jurisdictions, tax may be due on the
original sale price. In that case, do not apply the tax code to the discount line item(s). Your supplier will effectively be
paying your tax on the discounted portion of your purchase. Check with a local accountant or tax authority to confirm
which situation applies.
Example
Under the same scenario as before, Brilliant Industries decides not to enter a debit note. It enters its payment to ACME as a
tax-inclusive transaction, posting the discount to the same expense account as the original purchase invoice:
The purchase invoice is paid in full.
Adjusted payment method
An early payment discount can be applied without a debit note, by simply adjusting the payment transaction. Enter the full balance due from
the purchase invoice, posting to Accounts payable and the supplier’s subaccount and invoice number. Do not apply any tax code on this
line. This will totally clear the Accounts payable balance for the invoice.
Add a second line to the payment form, posted to either the same expense account as the original purchase or a dedicated contra expense
account for discounts (see Notes above). Enter the early payment reduction as a negative number. Apply the relevant tax code (see
Caution above). If more than one tax code was used on the purchase invoice, add separate lines for the discount amounts subject to each
tax code. The payment total will be reduced to match funds you are paying to the supplier.
Notes
In the example above, Brilliant could have calculated the debit note amount on the subtotal of 300.00, applied the 10% tax
code, and not checked the tax-inclusive option. The result would have been identical.
The debit note posted the transaction to the same Advertising and promotion expense account used for the original
purchase invoice. The transaction could also have been posted to a dedicated contra expense account, such as Early
payment discounts (suppliers). That would make it easier to track total savings from such discounts. Either approach is
permissible.
If line items on the original purchase invoice are taxed at different rates, you must enter a discount line for each tax code
used, apportioning the total according to subtotals for individual tax rates.
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Early payment discounts without purchase invoices
Sometimes, businesses receive sales invoices offering early payment discounts, but treat them as cash purchases and do not create purchase
invoices. For the sake of clarity in record-keeping, the payment form for such a transaction should be entered using the adjusted payment
method. Show the full purchase price, posted to relevant expense accounts, and separate line items for each portion the discount, as
determined by tax codes. Enter discounts as negative numbers. The same alternatives for account posting are available as when dealing
with purchase invoices.
Handle dishonored cheques
A dishonored cheque (or check or bank draft, according to local usage) has been presented for payment or deposited into a bank account
but rejected or returned by the bank. Typical reasons include:
• Insufficient funds
• Closed account
• Improper, incomplete, or illegible drafting
• Cheque drawn on bank outside the receiving bank’s processing network
• Forgery
In most cases, a dishonored cheque has already been recorded in MYBOS. Frequently, the cheque was a receipt against an outstanding
sales invoice. Three courses of action are available. Which is most suitable depends on several factors, including:
• Reason the cheque was not honored
• Prospects for eventual, satisfactory payment
• Processing practices of your bank
• Local banking regulations
• Accounting standards and practices followed by your business
• Use of accrual or cash basis accounting
• Involvement of inventory items in the transaction
The three options, in order of increasing complexity, are:
• Leave the cheque in Pending status
• Delete the transaction
• Reverse the transaction
Leave in Pending status
When a cheque is dishonored because of an honest mistake and can be resubmitted, the easiest course of action is to leave its Status on
the receipt entry form within MYBOS as Pending:
After whatever problem preventing clearance of the cheque is resolved and the cheque is accepted by your bank, update Status to Cleared
and enter the optional date of clearance:
This situation is equivalent to entering a received cheque into MYBOS but waiting several days before actually depositing it into your bank.
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Example
Brilliant Industries receives and records a cheque from Lumen Lighting for a sales invoice. Brilliant immediately records and
deposits the cheque into its bank account. However, because of a bank holiday, earlier deposits by Lumen into its own bank
account were not processed as expected. By coincidence, Brilliant and Lumen use the same bank. The cheque is dishonored
due to insufficient funds. But the bank is able to determine the cheque is not good before processing it. So it returns the
dishonored cheque to Brilliant without recording it.
Brilliant and Lumen have a long business relationship, and Lumen assures Brilliant’s accounting staff that funds are now
available. Brilliant leaves status for the receipt as Pending and resubmits the cheque to the bank. When the cheque clears
successfully, Brilliant updates the status.
Notes
This option can safely be used for cheques presented for cash.
This option can be used for a cheque deposited to your bank only if the cheque has not been recorded by your bank.
This option is most attractive when using cash basis accounting, because you will not want to recognize income you have
not collected.
Example
Brilliant Industries receives and records a cheque from a new customer. But when the cheque is presented to the bank for
deposit, the bank detects it as a forgery. The cheque is not processed. Bank regulations require the bank to destroy it.
Brilliant deletes the receipt from its records. Further investigation reveals the customer is bankrupt and no longer in
business. Brilliant writes off the associated sales invoice as a bad debt.
Caution
This option cannot be used when the cheque was received in a non-credit sale (in other words, when no sales invoice was
issued). The original receipt in such cases is the mechanism for recording not only sales income, in general, but inventory
movement, in particular. If the receipt is deleted, income figures will be incorrect and inventory counts will be off. Unlike a
credit sale via sales invoice, a non-credit sale leaves no other record besides the receipt.
Delete transaction
Receiving an invalid cheque is like receiving no payment at all. You might decide to delete the receipt recording such a dishonored cheque
entirely. This will leave any balance in Accounts receivable as it was before the receipt was recorded.
Notes
This option cannot be used if the cheque was presented for cash and received into a cash account. Cash accounts do not
include transaction status options in the Receipts & Payments tab.
This option can be used only if:
• Local banking practices allow dishonored cheques to be resubmitted, AND
• Your bank does not record the dishonored cheque before returning it or notifying you of the problem.
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New Receipt
Caution
Reversal is required whenever your bank records a cheque before dishonoring and reversing it. Unless you reverse the
original transaction, your records will not match your bank statement, leading to potential reconciliation and audit
problems.
Notes
A convenient short cut is to View and Clone the original receipt, but edit the unit price to be negative before clicking
Create .
Reverse transaction
The most complex and, unfortunately, the most common option is reversing the transaction.
Reversal for credit sale
To reverse receipt of a dishonored cheque received against a sales invoice, go to the
tab. Select :
Complete the receipt form exactly as you would for an incoming receipt in the amount of the cheque, but enter the Unit price as a
negative number. Post the reversal to the same customer subaccount and sales invoice under Accounts receivable as the original receipt.
Receipts & Payments
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Example
Brilliant Industries deposits a cheque from Bob’s Hardware for sales invoice #6, recording the receipt as below:
After the deposit is recorded to Brilliant’s account by the bank, the cheque is dishonored for insufficient funds. Brilliant’s
bank subtracts the deposited amount from Brilliant’s account. The bank does not return the dishonored cheque, following
its standard practices.
Brilliant clones the original bank receipt and edits the clone by making the unit price negative and adjusting dates. It also
edits the description to explain the transaction:
The customer’s Accounts receivable balance is restored to what it was prior to entry of the dishonored cheque:
Reversal for non-credit sale
When reversing a non-credit sale for which there is no sales invoice, a customer must first be created in the
tab. Then, a new
receipt with negative Unit price equal to the amount of the cheque can be entered and posted to that subaccount of Accounts receivable.
No invoice number needs to be entered. This action creates an account receivable for the customer, just as would have been the case if a
sales invoice had originally been issued.
Customers
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Reports
Customer Statements (Unpaid invoices)
Supplier Statements (Unpaid invoices)
Set Date
In this way, inventory and income figures are correctly preserved. If satisfactory payment is subsequently received, it should be recorded
against Accounts receivable for the customer. If satisfactory payment is never received, that receivable must be written off as a bad debt.
Handling bank fees for dishonored cheques
Most banks assess fees when cheques are dishonored. Such fees represent completely separate transactions between your business and
your bank. They must be entered as separate bank payments, naming the bank as payee and posting the fees to an appropriate expense
account, such as Bank fees.
If you are able to charge the issuer of the dishonored cheque for the fees, issue a separate sales invoice. Do not attempt to combine the new
transaction with the original sales transaction or a reversal.
Create receipts or payments from customer or supplier statements
Businesses that receive money from customers or make payments to suppliers covering several invoices at once can create receipts or
payments directly from statements. Situations where this capability might be useful include:
• Periodic invoicing for goods or services delivered during a time frame
• Bringing delinquent accounts up to date
• Ensuring combined receipts or payments are posted against specific invoices
Whether receiving or paying money, the procedures are the same.
View the statement
Go to the tab:
To record a receipt against several sales invoices from one customer, click :
To record payment for purchase invoices from one supplier, click :
If necessary to change the date, click :
and choose between Today and Custom (then entering the desired date):
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View
Create
Click for the desired customer or supplier.
Copy to a transaction
When the statement appears, click
and select the type of transaction you are entering:
for customer statements OR
for supplier statements.
A transaction form will appear, listing all invoices for the customer or supplier that were included on the statement. The entry form may be
edited as necessary before being saved by clicking .
Copy to
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Note
Inter account transfers can be instantaneous, as when moving money online between accounts in the same bank. Or they
may remain pending for several days, as when mailing a cheque to pay a credit card statement.
Inter Account Transfers
Transfer money between bank and cash accounts
An inter account transfer is the movement of money from one bank or cash account of a business entity to another. No funds enter or
leave the business. A transfer is not possible unless the business has at least two bank or cash accounts. Examples of transfers include:
• Withdrawing cash from a bank account for a petty cash fund
• Paying off a business credit card from a company bank account (remembering that, technically, money left the business when the
credit card was used to pay an expense)
• Moving money from a general purpose bank account to a payroll account
Example
Northwind Traders has been struggling to collect on sales invoices from a customer for more than two years. A cheque
finally arrives. To simplify recording the receipt against various sales invoices and verify that all delinquent invoices have
been paid, Northwind generates a customer statement:
The total balance due on the statement matches the cheque, so Northwind copies the statement to a new receipt. Accounts
receivable and the customer’s name are automatically filled, as are invoice numbers and amounts:
When the transaction is created, the customer’s account is settled.
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Inter Account Transfers
New Inter Account Transfer
Create
Enable the tab
Click
of the page:
below the left navigation pane, check the box to enable , and click at the bottom
Enter the transfer
In the
tab, click :
Complete the entry (some fields appear as you progress):
• Date will be prefilled with today’s date. This can be edited.
• Reference is optional and may be used for internal or external reference numbers. If the box within the field is checked, MYBOS
will number the transaction automatically. The program will search for the highest number among all existing inter account transfers
and add 1.
• Description allows you to record purpose of the transfer.
• Paid from records the origin account.
• Amount records the value of the transaction in the currency of the account.
• Status can be Pending or Cleared, in which case a date can be entered.
• Received in records the destination account.
• Amount received will automatically match the amount transferred if the two accounts are denominated in the same currency. If
this is edited, the Amount for the origin account automatically changes to match. But if the account receiving the transfer is
denominated in a different currency, the figure must be input manually.
• Status options are the same for the destination account as the origin account.
Click to finalize the transfer:
Customize
Inter Account Transfers
Update
Inter Account Transfers
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Inter Account Transfers
Note
Inter account transfers do not appear in the Receipts & Payments tab. They do, however, appear in drill-down listings
of individual account transactions accessed from the Summary , Bank Accounts , or Cash Accounts tabs.
Caution
Remember, an inter account transfer only records a transfer. It does not actually move any money. You must take action to
withdraw and deposit, make the online transfer, or send the cheque.
Note
Clearing accounts are used to temporarily lodge transactions that will eventually be posted to regular accounts. Amounts
are debited and credited in offset to one another, sometimes almost simultaneously, but other times days apart, after some
aspect of a transaction is cleared or appears on a statement. Normally, the debits and credits cancel each other, so the
balance of the clearing account returns to zero when all activity is complete. Using a clearing account is like temporarily
storing cash in your pocket until you can transfer it to your wallet.
Post inter account transfers from imported bank statements
Inter account transfers can be confusing when importing bank statements. The confusion typically arises because an inter account transfer is
really two separate transactions:
• A withdrawal from the source account (a payment)
• A deposit to the destination account (a receipt)
When a transfer is recorded in MYBOS’s tab, the program combines the two transactions on a single entry
screen, then invisibly records them to their separate bank accounts. But when transactions are imported via an electronic bank statement,
the imported statement includes only one or the other transaction, never both.
Moreover, whether posting any bank transaction to an account manually or by bank rule, receipts and payments cannot be posted to Cash
at bank and a specific bank account. (Without explaining all the details here, that would result in duplication of transactions.) Therefore,
receipts and payments that are part of an inter account transfer must be processed via a clearing account.
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Example
Brilliant Industries imports bank transactions, including inter account transfers between its various banks. It adds a new
account to its chart of accounts:
The clearing account appears on the balance sheet:
Set up the clearing account
Theoretically, since the net effect of an inter account transfer leaves the clearing account with a zero (or undisturbed prior) balance, any
account could be used. But that would temporarily distort the balance of the selected account until the transaction fully clears.
Likewise, if a clearing account exists for some other purpose, it could be used. But good accounting practice uses separate clearing accounts
for different purposes so their histories show distinct types of transactions.
The imported statement entry relating to transfers between financial accounts needs to be processed with a Bank Rule via a clearing
account. (Or edit the entry to the clearing account)
Under in the tab, add the clearing account. Assign it to the Assets group on the balance sheet.
Use the clearing account
When importing bank statements, post all transactions related to inter account transfers to the same clearing account. Withdrawals from a
source account increase the balance of the clearing account.
Note
Technically, the clearing account could also be assigned to the Liabilities group. The choice makes no long-term accounting
difference. However, since a transfer deposit cannot clear before the corresponding transfer withdrawal, funds posted to
the clearing account while in transit are better thought of as assets than liabilities.
Chart of Accounts
Settings
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Edit
Update
New Bank Rule
Example
Brilliant downloads and imports a statement for the payroll account. It categorizes the incoming receipt for the transfer to
Transfer clearing. Cash at bank increases and Transfer clearing declines to zero. The balance sheet now looks the same as
before the transfer:
Deposits to a destination account decrease the balance of the clearing account.
Methods for categorizing transactions
As with any other imported bank transaction, inter account transfer elements can be categorized by either of two methods:
• Manual: During the import process, click next to the receipt or payment. Select the clearing account and click .
• Bank rule: Click and define a bank rule that will recognize future transfer receipts and/or payments. Exact
definition of the bank rule will depend on the format and terminology used by your financial institution on its statements. Be careful
to choose criteria that are common to all transfer transactions rather than unique to one. You may need to define separate rules for
withdrawals and deposits, but only if terminology used is different. MYBOS is able to distinguish between withdrawals and deposits
(payments and receipts) when importing and will treat the transactions correctly.
Example
Brilliant transfers 7,500 from its checking account to a dedicated payroll account. It imports the statement for the checking
account and categorizes the withdrawal to Transfer clearing. On the balance sheet, Cash at bank declines, and Transfer
clearing increases by the same amount:
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Caution
You should use the Inter Account Transfers tab or import bank statements in the Bank Accounts tab, but not
both. Using both will result in duplication of transfers. Correction of duplicates requires deleting either (a) the inter account
transfer entry or (b) both the corresponding payment and receipt from imports from the two banks.
If you want to enter transfers in the Inter Account Transfers tab, yet import statements to capture other transactions,
click Edit , then Delete for transfer payments and receipts during the import process.
Expense Claims
Use expense claims
Expense claims record expenses incurred by people on behalf of the business. These can be of two types:
1. Actual expenses paid with personal funds that, in other circumstances, could have been paid directly with company funds and
posted to appropriate accounts. Examples include: travel expenses for company business charged to an individual’s credit card, cash
purchases of office supplies, or materials bought locally out of pocket on an emergency basis to finish work at a customer’s site.
Example
Looking at past statements from its main checking account bank, Brilliant discovers that outgoing transfers to its payroll
bank are always described as “XFER TO FIRST GENERAL BANK” plus various other data. Likewise, statements for the payroll
account always note “INCOMING CONSOLIDATED BANK.” It creates two bank rules to handle transfers of payroll funds
between its accounts at the two banks:
and
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Expense Claims
Expense Claims
New Expense Claim
2. Allowances based on rates rather than actual expenditures but deductible from income under local law. Often, allowance rates
are officially established. They represent real costs to the business, even though explicit monetary transactions do not occur.
Examples include: motor vehicle usage based on distance or daily meal or lodging stipends earned regardless of actual costs.
Setting up the tab
Enable the tab by clicking
at the bottom of the list:
below the left navigation pane, ticking the box for Expense Claims, and clicking
Creating expense claims payers
Expense claims may be entered only for the following three types of Payers:
1. Members created in the
2. Employees created in the
3. Expense Claims Payers defined under
persons
tab
tab, including partners and sole traders/proprietors using capital accounts
, including directors, proprietors not using capital accounts, and all other
Individuals may be of more than one type. For example, partners might define themselves as Expense Claims Payers to avoid complicating
their capital accounts with expense claims. Or a business might authorize only certain employees to file expense claims, defining those
employees as Expense Claims Payers and prohibiting expense claims from other employees.
Creating an expense claim
Once the person claiming the expense has been defined under one of those three types, you can create an expense claim. Select the
tab and click the button:
Complete the form:
Customize
Update
Capital Accounts
Employees
Settings
Expense Claims
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Settings
Create
• Date will be pre-filled with today’s date.
• Reference is optional and may be used for internal or external sequences. If the box within the field is checked, MYBOS will
number the transaction automatically. The program will search for the highest number among all existing expense claims and add 1.
• Select the Payer from the proper group in the dropdown list:
• Payee is the entity to which money was paid by the Payer. For allowance claims, you may either leave the Payee field blank or enter
Allowance.
• Complete line items with details of expenses, allocating them to appropriate accounts. ( Tax and Tracking Code fields appear only if
applicable selections have been made in the tab.)
• Location can be selected if inventory locations have been set up.
• A Custom theme can be chosen if any theme besides the built-in Plain theme is active.
When finished, click .
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Billable Expenses
What happens after the expense claim is created?
After an expense claim has been created, it will add to one of three liability or equity accounts, depending on the Payer’s type:
Line items from the expense claim will be posted to allocated expense accounts. Or, if the tab is enabled and the
expense is allocated there, it will add to the balance of the Billable expenses asset account for the selected customer.
Member’s capital accounts require no adjustment, as an expense claim is equivalent to a contribution of capital.
Expense claims showing in the Employee clearing account are reimbursed to the employee via a
or cash account:
transaction from any bank
The Expense claims account can be cleared by direct reimbursement of the Payer. Enter the payment under the
allocating the payment to Expense claims and the correct Payer:
tab,
In the case of a sole trader/proprietor or director who is an Expense Claim Payer, claims can also be cleared by journal entry, debiting
Expense claims and crediting Owner’s equity or Directors’ loans:
New Payment
Receipts & Payments
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Reports
Reports
Expense claims reporting
Status of expense claims is monitored in different ways for different Payer types. Claim, reimbursement, and clearing transfer totals of
Expense Claims Payers are shown on the Expense Claims Summary in the tab:
Claims of Members (capital account owners) show on the Capital Accounts Summary, also under :
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Receipts & Payments
Inter Account Transfers
Capital Accounts
Claims of Employees add to the Employees’ subaccounts of the Employee clearing account. These balances are visible in the
tab:
Note that employee balances are blue, meaning you can drill down by clicking on them to see included transactions:
Individual expense claims and reimbursements also show in the Employee clearing account ledger:
Final thoughts
Remember that creating an expense claim never includes paying, receiving, or transferring money in the or
tabs. The exchange of money took place between Payer and Payee and did not involve the business. Or, an
allowance may have been earned without the exchange of money.
Paying or clearing an expense claim is a separate, second transaction. When directly reimbursing a Payer, payment from a bank or cash
account is required.
Lastly, if you need a report showing how much the business owes and has paid to everyone who has filed an expense claim, you must define
all Payers in the Expense Claims Payers category, even though they may already be defined as Members or Employees. Otherwise, status
information will be scattered in different reports.
Set up expense claim payers
Expense Claim Payers, as defined in this Guide, are persons who expend personal funds on behalf of the company, including directors,
proprietors not using capital accounts, and all other persons. They are one of three types of Payers for whom expense claims can be entered.
The others are Members created in the tab and Employees.
Employees
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Settings
Expense Claim Payers
New Expense Claim Payer
To set up an Expense Claim Payer, go to the tab and click on :
Click :
Enter a name:
Click . The Payer will appear in the list:
Note
Members and Employees can also be defined as Expense Claim Payers, especially if consolidated reporting is desired. See
this Guide for further information.
Create
Expense Claim Payers
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Customers
Chapter 6: Accounts Receivable
Accounts receivable functions relate to quoting and selling goods and services to customers on credit. They include accounting for billable
time and expenses.
Customers
Enter customers
A Customer in MYBOS is an entity (person, business, or other organization) with whom you have or plan to have an Accounts receivable
relationship. Customers in MYBOS are actually subaccounts of Accounts receivable. You must first create a Customer before you can:
• Issue a sales invoice
• Sell on credit for future payment
• Create a customer statement showing balances due or summarizing past transactions
• Issue a credit note for return of goods
• Generate a sales quote for future business
• Receive a deposit or advance against future work or delivery of goods
• Record billable time or expenses for later invoicing
• Track your complete sales and receipts history with the entity
Not everyone to whom you sell must necessarily be defined as a Customer. You can make a cash sale involving immediate payment without
creating a Customer simply by entering a name as Payer when receiving money into a cash account. But such transactions will not be
recorded in a history for that Payer, even if the Payer is already defined as a Customer.
Enable the tab
To enable the
below the list:
tab, click below the left navigation pane, check the box for , and click
Create a Customer
Select the tab, then click the button:
Customers
Customize
Customers
Update
Customers
New Customer
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Customers
Complete the entry. This information will appear on sales invoices and similar documents:
• Name is the legal or billing name of the customer
• Code is a short alphabetic or numeric designation of your customer. If used, the code will appear after the customer’s name on
transactions.
• Currency in which the customer operates can be selected if a base currency has been set for the business. Transactions for the
customer will be denominated in the designated currency.
• Business identifier can be any useful identification information.
• Billing address should be the mailing address of the customer.
• Deliver address is optional. This field appears only when the
notes.
• Email address is where documents will be emailed from within the program.
tab is enabled and will be used on delivery
• Credit limit is informational. If used, the tab listing will show available credit.
Delivery Notes
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Customers
Edit
Customers
New Custom Field
Example
Bottom-Dollar Markets has different billing and delivery addresses. These can both be shown by including them in the
Address field (scroll, if necessary, to see all content):
Your Customer will now appear in the tab. Customers are listed in alphabetical order according to their names. Use scrolling,
paging, and search functions to find them. The listing shows the number of sales invoices issued to a Customer, value of any uninvoiced
items (billable time and expenses), and the Customer’s Accounts receivable balance. Other columns may appear, depending on which tabs
are enabled and the setup of any custom fields. Click on blue numbers for more details of any column.
Edit or add customer information
Click the button left of a Customer’s name to edit or add information. For example, add a Code to make Customers easier to find or
distinguish from other Customers with identical names:
Codes will appear in the tab if any are present:
Codes can also appear on completed forms after the Customer’s name. To see codes on forms, follow instructions in another Guide.
More information can also be placed into the Address field, remembering that anything there will appear on invoices.
You can also add custom fields for other information about your Customers. Under , click and locate the list
for Customers. Click :
Settings
Custom Fields
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Define your custom field. Checkboxes allow you to determine whether the custom field will show as a column in the Customers tab list
and on documents. The Position field controls the order in which custom fields appear. Enter a number there, if desired. Click Create at
the bottom of the entry screen when finished.
Example
You can add a dropdown list for delivery routes.
The results of all these changes (including default suppression of the customer code) appear as below:
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Edit
Update
Create
Note
The available credit must be entered in the currency selected for the customer.
Notes
Starting balance sales invoices affect only the monetary balance of customers’ subaccounts in Accounts receivable. They do
not affect starting balances of inventory items. Those should be set to match the physical count on the start date. See this
Guide for more information.
Starting balance sales invoices also do not affect starting balances of tax liability or withholding tax asset accounts. If line
items on the sales invoice are taxable, or if a sales invoice is subject to withholding tax, the starting balances of relevant tax
accounts must be set independently by editing the tax accounts’ starting balances directly in the Settings tab, under
Chart of Accounts . Match the closing balances in those accounts from the prior accounting system.
Set starting balances for customers
Starting balances exist only if you are transferring an existing business to MYBOS from another accounting system. In that case, you may
need to set starting balances for customers who, on your start date:
• Have available credit unrelated to sales invoices, or
• Owe you money because of unpaid sales invoices.
General procedures for entering starting balances are found in another Guide. Read it first. Before you can enter starting balances for
customers, the customers themselves must be created. Follow these procedures to enter them.
Enter available credit
Available credit refers to any amount you owe your customer on our start date. This credit could be the result of past credit notes,
settlement of contract disputes, or promised refunds. If your customer has a credit balance that can be applied to future invoices, go to the
tab and click beside the customer’s name.
Enter the Starting balance of the available credit:
Click .
Enter unpaid sales invoices
You cannot enter the starting balance for unpaid invoices as a single figure. MYBOS requires you to enter specific unpaid invoices, fully
completed. This is so MYBOS can generate accurate cash-basis reports. Even if you do not adopt cash-basis accounting, it is important to
enter all unpaid sales invoices so you can issue detailed customer statements and enter eventual receipts against the correct invoices.
Enter a starting-balance invoice in the same manner as a regular sales invoice. See this Guide for sales invoice instructions. The Issue date
field will, by default, be prefilled with the current date. Edit this to match the original issue date from your old accounting system. Only sales
invoices with issue dates before your start date will be treated as starting balance invoices.
MYBOS uses these pre-start-date sales invoices only to establish starting balances. It ignores them for financial reporting during the
current or later financial periods. And it ignores any inventory item quantities.
If an invoice has been partially paid, only its remaining balance due should be entered. (Since quantities are ignored, any line item can be
adjusted so the balance due equals the remaining balance from the old accounting system.)
When finished, click to save the invoice. Repeat for all open sales invoices preceding your start date.
Customers
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Customers
Customers
Delete
Example
To show the customer’s code on printed documents after the customer’s name, insert {{ recipient.code }} in the line
containing {{ recipient.name }} as below:
<div><b>{{ recipient.name }}</b> {{ recipient.code }}</div>
The result will be:
Use customer codes
The Code field for customers is completely optional. It can be used for several purposes, including:
• Distinguishing customers with identical names
• Annotating different departments or cost centers at a single customer (with each department being created as a distinct customer)
• Assigning customers to regions, sales personnel, or routes
Assign a customer code
When creating or editing a customer in the tab, enter any combination of letters or numbers in the Code field:
The code will also show in the listing and can be entered as a search parameter in other tabs:
Adding the customer code to documents
If you wish to add the customer code to completed forms, edit the theme used to display them. While viewing the theme’s computer code,
insert the variable {{ recipient.code }} at the place in the theme you want the code to appear. This will act as a placeholder variable that
inserts the customer code (when one exists) into your documents.
Manage inactive customers
Old, inactive Customers can clog your lists. You can delete them if you have never entered any type of transaction for them.
the
Customer and click at the bottom of the screen.
But if you have entered any transactions, MYBOS will not allow you to delete a Customer, because doing so would also delete all related,
historical transactions. Instead, you can make a Customer inactive.
the Customer will no longer appear in the active portion of lists.
the Customer and check the Inactive box. Click , and
Edit
Edit
Update
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Edit
Update
Sales Quotes
Update
Sales Quotes
New Sales Quote
If the Customer ever returns to active status, scroll to the end of the customer list, where you will see inactive customers in light grey text
with strike-through marking. Click next to the customer’s name:
Uncheck the Inactive box and click .
Sales Quotes
Create sales quotes
A sales quote offers goods or services at defined prices and terms. Strictly speaking, it is not an accounting transaction and has no financial
or inventory impact. It does not involve actual provision of services, movement of inventory, or payment of money. In fact, it is not really
necessary at all, but can be used for a variety of purposes:
• Quoting prices in advance of receiving an order
• Documenting estimates in support of requests for deposits
• Providing pro forma invoices for import/export clearance
If a sales quote is accepted by the customer, it can be converted to a purchase invoice, purchase order, sales order, sales invoice, or delivery
note.
Enable the tab
Before creating a sales quote, enable the tab. Below the left navigation pane, click , check the box for
, and click :
MYBOS allows sales quotes to be created in three different ways:
• Standard method
• By cloning
• From sales invoices
Standard method
In the tab, select :
Complete the sales quote form:
Sales Quotes
Customize
Sales Quotes
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• Issue date will be prepopulated with today’s date. This may be edited.
• Reference is optional and may be used for internal or external sequences. If the box within the field is checked, MYBOS will
number the transaction automatically. The program will search for the highest number among all existing sales quotes and add 1.
• A previously defined Customer can be selected from the dropdown list.
• If a customer is selected, Billing address will autofill.
• An overall Description of the quote is optional.
• Line items can be entered semi-automatically by selecting inventory or non-inventory items in the Item field. Or they can be
entered manually. Tax codes can be selected.
Near the bottom of the screen are checkboxes for various options. Additional fields appear when some options are checked; likewise, some
options disappear when others are selected:
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Create
Notes
While sales quotes can be prepared for customers already defined in the Customers tab, they can also be created
without first defining a customer. This is helpful when acceptance of the quote is doubtful, preventing unnecessary clutter
in the customer database.
To create a sales quote for an entity not in your customer list, leave the Customer field blank. Enter the potential customer’s
name as the first line in the Billing address field. It will appear on the finished sales quote in the same position as if a
defined customer had been selected.
Be aware, however, that if the sales quote is copied to a sales order or sales invoice, no customer or address will carry
forward. You will have to define the customer before other transaction forms can be created.
• When the Discount box is checked, options appear for Percentage or Exact amount. The discount entry must be made line item by
line item.
• The Hide total amount box allows you to include several options in a quote without displaying a total higher than any option the
customer might choose. When this option is checked, all tax codes will be ignored.
• A box can be checked to indicate Amounts are tax inclusive. This box disappears if the preceding box is checked.
• You can Round off the total, choosing Round to nearest or Round down.
• A Custom title can be entered. Possible alternatives include: Pro Forma Invoice, Proposal, Sales Quotation, Bid Sheet, or Sales Offer.
To change the title, check the box and enter your preferred choice. (Alternate titles set under Form Defaults will appear on new
sales quotes, but may also be edited.)
• A Custom theme can be selected if any theme besides the default is active.
Click when finished.
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Example
Northwind Traders sends a sales quote to Bottom-Dollar Markets for crab meat. No taxes are indicated. (These can be
added, if necessary, to any resulting sales invoice.) Nor is a discount offered. But the amount is rounded down. Northwind
has also added a custom field to its sales quotes, named Notes:
The same quote could offer untotaled options:
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Clone
Copy to
Copy to
By cloning
Repeat sales quotes can be easily prepared by cloning previous ones. While viewing a similar sales quote, click
quote need not be identical to the previous one or even to the same customer. Anything can be edited or added:
. The new sales
From sales invoices
If a customer places an order similar to a previous sale, a sales quote can be generated from a prior sales invoice. Note, this may be
backwards from the normal workflow of sales quote sales order sales invoice, but perfect for a situation where the customer
wants updated pricing for the same thing purchased last time.
While viewing the prior sales invoice, select New Sales Quote from the dropdown box:
From sales orders
A sales quote can also be generated from an existing sales order. This option may be useful when a customer modifies an ongoing job for
which you already have a sales order in your system, but needs a formal quote for approval purposes.
While viewing the existing sales order, select New Sales Quote from the dropdown box:
Sales Orders
Create sales orders
A sales order records an order from a customer, usually for internal purposes. Strictly speaking, it is not an accounting transaction and has
no financial or inventory impact. It does not involve actual provision of services, movement of inventory, or payment of money. In fact, it is
not really necessary at all, but can be used for a variety of purposes:
• Internal manufacturing or fulfillment planning
• Documentation of agreed pricing
• Customer communication
• Drafts of purchase or sales invoices
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Sales Orders
Update
Sales Orders
New Sales Order
Enable tab and define customer
Before creating a sales order, enable the tab. Below the left navigation pane, click , check the box for
, and click :
Next, be sure the customer for whom the sales order is being entered has been defined in the
orders to be created in four different ways:
• Standard method
• By cloning
• From sales quotes
• From sales invoices
Standard method
tab. MYBOS allows sales
In the tab, select :
Complete the sales order form:
Sales Orders
Customize
Sales Orders
Customers
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Create
• Issue date is prefilled with today’s date, which may be edited.
• Reference is optional and may be used for internal or external sequences. If the box within the field is checked, MYBOS will
number the transaction automatically. The program will search for the highest number among all existing sales orders and add 1.
• A Customer must be selected from the dropdown list.
• The customer’s Billing address fills automatically.
• An optional summary Description of the sales order can be entered.
• Line items can be entered semi-automatically by selecting inventory or non-inventory items in the Item field. Or they can be
entered manually.
• Description of the line item is optional.
• Qty is where you enter the number of items being sold. One is assumed if nothing is entered.
• Unit price is the sales price per item.
• Tax codes can be selected as applicable.
Near the bottom of the screen are checkboxes for various options. Additional fields appear when some options are checked:
• When the Discount box is checked, options appear for Percentage or Exact amount . The discount entry must be made line item by
line item.
• A box can be checked to indicate Amounts are tax inclusive.
• A Custom theme can be selected if any theme besides the default is active.
Click when finished:
By cloning
Repeat sales orders can be entered by cloning previous ones. While viewing a similar sales order, click
not be identical to the previous one. Anything can be edited or added:
. The new sales order need
Clone
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Copy to
Sales Invoices
From sales quotes
If a sales quote was previously given to a customer, a sales order can be generated directly from the sales quote. While viewing the quote,
select New Sales Order in the dropdown box and edit as required:
From sales invoices
When a customer enters an order for goods or services that have previously been sold to that customer, a sales order can by copied from
the earlier sales invoice:
Sales Invoices
Create sales invoices
Sales invoices make demands for payment from customers for goods or services. They increase the balance of the customer’s subaccount in
Accounts receivable and, therefore, are used when selling on credit. They do not record receipt of money, which must be handled by a
second transaction, even if the customer pays upon delivery. In a double-entry accounting system like MYBOS, they also post income to
appropriate accounts.
Enable the tab
Before a sales invoice can be created, enable the tab. Click below the left navigation pane, check the box
for , and click below the list:
MYBOS offers six methods for creating sales invoices:
• Standard method
Sales Invoices
Customize
Sales Invoices
Update
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Sales Invoices
New Sales Invoice
Sales Quotes
Delivery Notes
• By cloning
• From
• From sales quotes
• From sales orders
tab
• From purchase invoices
Standard method
In the tab, click on :
Complete the form:
• By default, Invoice date is prepopulated with today’s date.
• An optional Due date can be entered, either as a calendar date or as a number of days after the issue date. If a Due date is not
entered, MYBOS will automatically use the Invoice date as the Due date.
• Invoice number is optional and may be used for internal or external sequences. If the box within the field is checked, MYBOS will
number the transaction automatically. The program will search for the highest number among all existing sales invoices and add 1.
• The Order number field can be used to enter a customer’s purchase order number or an internal reference number. Completion of
this field is optional.
• If the tab is enabled, the Quote number field appears. Completion of this field is optional.
• A previously defined Customer must be selected in the dropdown box.
• The customer’s Billing address is filled automatically, but may be edited.
• A summary Description of the overall invoice can be entered, if desired.
• If inventory locations have been defined and the tab is not enabled, a field for Inventory location appears
below the Description field when the first inventory item is added to the sales invoice:
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Inventory items sold are then assumed to be immediately removed from the designated inventory location. However, if
is enabled, the field does not appear, and removal of inventory items from inventory locations occurs via the
delivery note.
• Line items can be completed semi-automatically by selecting a predefined inventory or non-inventory Item and entering quantities.
Or, they may be entered manually. Additional lines can be added 1, 5, 10, or 20 at a time.
• Applicable Tax codes can be selected.
• If tracking codes have been created, the Tracking Code field appears.
Near the bottom of the screen are checkboxes for various options. Additional fields appear when some options are checked:
• If the option to indicate a Discount is being applied is checked, further options appear for percentage or fixed amount discounts.
• Another option lets you indicate Amounts are tax inclusive. If this box is checked, tax amounts are deducted from the unit price;
otherwise they are added to the invoiced amount.
• Options to Round off the total are available.
• Withholding of tax can also be selected by checking the box to Deduct withholding tax and entering the Rate or Amount.
• An Early payment discount can be offered.
• Options for Late payment fees can be selected.
• The Total amount in words can be shown near the bottom of the invoice. (This feature is only available if the language preference
is set to English.)
• If the customer is denominated in a foreign currency, you can check the box to show the Total amount in [base currency]. This
amount is also shown near the bottom of the completed form.
• A Custom title can be entered, such as when local regulations require a sales invoice to be titled as a tax invoice.
• The due date can be suppressed on the completed invoice by checking the box to Hide due date.
• A Custom theme can be indicated.
Delivery Notes
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Create
Create
Customers
Billable Time
New Sales Invoice
Note
Because of the specific tax code selected, this sales invoice’s heading has been changed to Tax Invoice. This happens when
such a title is known to be required by local law. Automatic changes do not occur with custom tax codes. But titles can
always be changed manually, invoice by invoice, or set permanently using Form Defaults.
Click to generate the finished sales invoice:
By cloning
For repeat sales, an existing sales invoice can be duplicated by cloning. While viewing the existing sales invoice, click
, edit as
required, and click :
From tab
If the or tabs are being used, sales invoices can be created from the tab:
Drill down by clicking the blue balance in the Uninvoiced column for a customer:
Select any uninvoiced billable time or billable expenses to be invoiced and click :
Clone
Billable Expenses
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Copy to
Create
Copy to
A sales invoice is created, which can be edited or added to. See this Guide for more information.
From sales quotes
If the customer was given a sales quote before goods or services were ordered, a sales invoice can be created directly from the sales quote
without re-entering information. While viewing the sales quote, select New Sales Invoice from the dropdown box:
A sales invoice entry screen appears, carrying forward necessary information, including the quote number. This can be edited as needed.
When is clicked, a sales invoice is generated. For this illustration, no tax code was used, so the default Invoice title appears:
From sales orders
If a sales order has been created in response to a customer’s purchase order, a sales invoice can be created directly from it. Exactly as when
creating a sales invoice from a sales quote, select New Sales Invoice from the dropdown box:
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Copy to
Recurring Sales Invoices
New Recurring Sales Invoice
New Recurring Purchase Invoice
From purchase invoices
If goods or services being invoiced to a customer were purchased from a supplier, and the supplier’s sales invoice has been entered into
MYBOS as a purchase invoice, a sales invoice can be created directly from the purchase invoice. Again, while viewing the purchase invoice,
select New Sales Invoice in the dropdown box:
Set up and manage recurring invoices
Recurring sales or purchase invoices are useful if your business routinely issues similar sales invoices to customers or receives similar
invoices from suppliers. Once you have set them up, MYBOS will notify you they are ready to be created when they come due at the
prescribed intervals. Recurring invoices are often used for:
• Customer subscriptions
• Monthly service billings
• Insurance premiums
• Organizational memberships and dues
• Rent
• Utilities payments
Set up a recurring invoice
There are two methods for setting up recurring invoices. These are identical for sales and purchase invoices.
First method
The first method for creating a new recurring invoice is to go to the
:
tab and click or
OR
Click or :
OR
Settings
Recurring Purchase Invoices
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Create
Second method
The second method is to use the
function while viewing an existing invoice you want to make recurring:
OR
For either method
Whichever way you begin, enter Next issue date to establish when the first recurring invoice will be created:
If desired, enter how the optional Due Date should be calculated. If nothing is entered, MYBOS will assign the issue date as the due date:
Select an Interval to control how often this recurring invoice will be created:
Select whether the recurring invoice will be good Until further notice or Until a specific date:
Enter remaining information as if creating a regular sales invoice or purchase invoice and click . On the
or
Interval. Termination date (if set) will also be shown:
screen, Next issue date will be updated based on the selected
Copy to
Recurring Sales Invoices
Recurring Purchase Invoices
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Sales Invoices
Create
Sales Invoices
Purchase Invoices
Edit
View
Delete
Example
One recurring sales invoice has generated pending invoices. The left navigation pane shows:
Generate invoices
When one or more recurring invoices are due (or past due) to be issued, two notifications are provided. The first is a yellow counter window
in the left navigation pane showing the number of recurring invoices for which invoices are pending (not the number of pending invoices,
which could be higher if you have not kept up by creating invoices that are due).
The second notification occurs any time you go to the or
least one recurring invoice is pending:
tabs. You will see a yellow notice that at
Click on the yellow bar to review invoices to be generated, then press :
All pending invoices will be immediately created under the or tab, depending on which you are
in. You can further or them without affecting future recurring invoices:
Cancel a recurring invoice
When circumstances change, such as when a customer cancels a subscription or you stop regularly purchasing a product, you may want to
cancel future recurring invoices. Click for the recurring invoice in , then :
The recurring invoice will be removed from the list and no new invoices will be created from it. Cancelled recurring invoices cannot be
restored. They must be recreated from scratch.
Caution
Recurring invoices in MYBOS are templates from which actual invoices will be generated later. Setting up a recurring
invoice does not affect your customer or supplier balances, customer or supplier statements, inventory, income, or
expenses. In fact, while MYBOS will notify you recurring invoices are pending, it will not automatically generate them for
you. This avoids problems if you need to edit an invoice before issuing it or you forget to enter a service modification.
Purchase Invoices
Edit
Settings
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Settings
Update
Add Business
Example
Your customer’s next recurring sales invoice for monthly service should be generated on 24 September 2015:
Your customer pauses the service subscription for one month; therefore, no invoice should be issued on 24 September. The
next invoice should be issued on 24 October, so you edit the recurring sales invoice in Settings :
You now see the next sales invoice is due 24 October:
Skip an invoice
If recurring invoices must be skipped, but routine invoicing will resume in the future, click
for the recurring invoice in .
Set a new Next issue date, then click to save the change.
Issue your first invoice to a customer
You have just started your new business and completed your first job or sold your first merchandise. Now you want to be paid, but your
customer has requested an invoice from you. What is that? It is basically a list of goods sent or services provided, indicating the amount
due for these. You might think of it as a bill. For accounting purposes, many customers won’t pay until a sales invoice is presented.
So let’s say you are running a computer repair business. Before you can starting issuing invoices to customers, you need to set yourself up as
a business in MYBOS.
Create a business
In the tab, click and select Create New Business:
Enter your business name and click :
Edit
Businesses
Add Business
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Customize
Update
Your business will be created, but it will look nearly empty, with only a few tabs showing at the left:
Customizing left navigation
Since every business is different, all but those four modules will be disabled by default. To issue a sales invoice to a customer, you will need
to enable the and tabs.
Click below the left navigation pane and enable these two tabs:
Be sure to click at the bottom to save your choices:
Customers
Sales Invoices
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Customers
Sales Invoices
New Customer
Create
Now you are getting somewhere. Your left navigation pane will contain two new tabs, and :
Adding a customer
Before you can issue your first invoice, you must add at least one customer. Click on the
tab, then click :
Enter the customer’s details:
Click . Your customer is now saved and can be seen in the list of customers:
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Sales Invoices
New Sales Invoice
Create
Now you are ready to issue an invoice to this customer.
Issuing an invoice
In the tab, click :
A sales invoice form will open, where you need to fill in at least three fields:
• Customer, which causes previously entered customer details to populate the form
• Description of what is being sold
• Unit price
Click to save the invoice. You will be instantly taken to a preview of your invoice:
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Notes
• Unit price doesn’t show on the completed invoice because you didn’t enter any Qty. MYBOS will always try to
make the invoice as simple as possible. If you are not using the Qty field, MYBOS won’t show Qty and Unit
price columns on the invoice. It will show only the Amount column.
•
By default, your business address will be fictional. You should click on
provide your real business address so it will be shown on the invoice.
If you are charging tax, such as GST, VAT, sales tax, or similar, go to the
Settings , then Business Details to
•
Settings tab, then Tax Codes , and
create relevant tax codes. Then Edit this invoice to select the right tax code.
• If you want to show payment terms on the invoice, you can create a Notes or Terms custom field.
• If you would like to show your business logo, go to Settings , then Business Logo .
To change the overall look of your invoice, read about themes, which allow you to vary the appearance of your invoice and other forms.
After providing your real business address, applying tax codes, and changing the theme, your invoice could look like this:
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Note
An early payment discount is not an ordinary discount as that term is generally used throughout MYBOS. Normally, a
discount is a percentage or fixed amount price reduction on an individual line item. An early payment discount applies to
an entire invoice.
Example
Brilliant Industries regularly extends credit to customers by issuing sales invoices net 30 days. In other words, the due date
on each new invoice is 30 days in the future. But it offers a 5% early payment discount if customers pay within 10 days.
Then use the
printed.
button to email the invoice to your customer or use the button to generate a PDF image to be saved or
Offer early payment discounts on sales invoices
An early payment discount is a reduction of the balance due on a sales invoice offered to a credit customer for payment by a deadline
earlier than the regular due date. Early payment discounts are usually offered to incentivize faster payment and minimize carrying costs of
receivables.
As issuer of a sales invoice, you cannot know in advance whether a customer will take advantage of your early payment discount or wait until
the due date to pay the full amount. So your sales invoice cannot adjust prices in anticipation. Nor is it good practice to edit the sales invoice
after the fact if the customer pays early. Yet when a customer pays early and reduces payment, you still must clear the full balance due for
the sales invoice in Accounts receivable. Therefore, you must offer the early payment discount on the sales invoice, but adjust your
accounting only if the customer pays early.
To offer an early payment discount, check the Early payment discount box near the bottom of the sales invoice entry screen. A dropdown
box for Rate or Amount and a field for If paid within days will appear:
Choose a method; fill in the percentage discount rate or fixed amount, as appropriate; and enter the number of days until the payment
deadline. The resulting sales invoice will include the early payment discount amount, the payment deadline, and the reduced balance due if
payment is received by the deadline.
Email
PDF
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Sales Invoices
Purchase Invoices
Caution
Early payment deadlines will override due dates entered elsewhere on the sales invoice. So, if sales invoices are not
properly reviewed, a customer may qualify for an early payment discount when paying after the due date.
Resolve overpaid status on invoices
Since MYBOS version 17.9.28, both sales and purchase invoices can become overpaid when more has been received (for a sales invoice) or
paid (for a purchase invoice) than the original total of the invoice. This results in the Balance due for the invoice showing as a negative
amount. MYBOS will display Overpaid in the Status column of the main or tab listing.
There are many reasons an invoice could become overpaid:
• The customer pays more than the invoice total.
• A receipt from a customer or payment to a supplier is allocated to the wrong invoice.
Example
Brilliant issues a sales invoice to Bob’s Hardware for a lamp kit, offering its standard early payment discount described
above. The sales invoice entry is completed as below:
The sales invoice appears like this:
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Sales Invoices
Example
Brilliant Industries was issued a sales invoice for 1,000. By mistake, Brilliant paid 1,100, resulting in overpayment of 100 on
the invoice:
To resolve this issue, you edit the transaction where you recorded the receipt of 1,100 and split the amount so only 1,000 is
allocated to the invoice and 100 remains unallocated:
After the transaction is updated, the invoice status shows Paid in full:
The unallocated 100 is applied to any unpaid invoices Brilliant has, oldest due date first, or remains as a credit to be applied
to future invoices.
• A credit or debit note is posted to an already-paid invoice.
• A receipt or payment is posted to a correct invoice to which MYBOS has already distributed money automatically because an
invoice was not selected during a previous transaction entry.
Overpaid invoices are considered bookkeeping errors. MYBOS will display overpaid invoices at the top of or
tab listings so you can see and can resolve them. You should resolve overpaid status before sending out customer
statements.
Viewing the invoice ledger
To determine the specific reason an invoice is overpaid, view the ledger for that invoice. To access the ledger, click on the blue amount
under the Balance due column in the tab list:
This will reveal all transactions posted against the specific invoice (including the invoice itself) and a running balance:
Resolving overpaid status
Resolve overpaid status by editing one or more of the transactions in the invoice ledger.
Purchase Invoices
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Example
Brilliant Industries has two unpaid sales invoices. The first is for 5,000 and the second for 150:
They pay 150 and you record this receipt without specifying an invoice. MYBOS allocates 150 to the oldest invoice,
decreasing its balance due from 5,000 down to 4,850, while keeping the balance due on the second invoice unchanged:
Then you receive 5,000 with a remittance advice specifying the payment is for the earlier invoice. If you allocate 5,000 to the
first invoice, you would end up with over-payment of 150 on first invoice and the balance due still being 150 on the second
invoice:
Obviously, Brilliant doesn’t owe you anything. So you should click on the negative Balance due amount, find the payment
of 150 that was automatically allocated to the bigger invoice and reallocate it to the smaller invoice. Now all invoices are
shown correctly and the customer’s Accounts receivable balance is correct:
Sometimes overpayment on invoices can be due to mixing automatic and explicit allocations. When you record a receipt from a customer or
payment to a supplier, but do not specify the invoice, MYBOS will automatically allocate the transaction to the unpaid invoice with the
oldest due date. But if the transaction was intended for a specific invoice, it should be recorded that way.
Resolve issues with automatic credit allocations
When you enter a new sales or purchase invoice, you might find that MYBOS automatically credits the invoice with some amount, making
the Balance due less than the invoice Total:
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Customers
This automatic credit allocation happens when the customer or supplier has a pre-existing credit balance. In other words, you owe a
customer money or a supplier owes you money. Normally this is the desired outcome. You want any credits to be automatically applied to
invoices, so you are not trying to collect from a customer more than is really owed to you and you don’t pay suppliers more than you really
owe them. For example, if a customer has a credit balance of $100 due to a credit note, MYBOS will remember this until the next invoice is
issued to that customer and will automatically apply the $100 credit to it without your having to keep track of it. But if you are certain the
customer or supplier didn’t have a credit balance, such an automatic credit allocation indicates something has been recorded incorrectly.
In the example above, the problem is easy to diagnose. A bank receipt was applied to the sales invoice. You can look up that receipt in
MYBOS, determine who it was from, and decide whether an error was made. Or, the customer may have simply overpaid its account, in
which case everything is as it should be.
But suppose you know this customer didn’t have any credit with your company, and the mini-statement on the invoice refers to something
like a starting balance or a credit note. So you want to discover the origin of this credit. The best way is to view the customer ledger by
going to the tab:
Locate the customer and click the balance in the Accounts Receivable column.
Example
You have issued a sales invoice to Antonio Moreno Taquería for $3,370.00 and MYBOS has automatically applied credit
of $2,345.30, leaving a balance due of $1,024.70:
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Example
To track down more information about the sales invoice in the first example, click the customer’s balance:
This will reveal the customer’s ledger:
There, you see invoice 2650 for $1,284.60 and a receipt for the same amount on 08/05/2017, which was payment for that
invoice. However, you also see another receipt for $2,345.30 on 26/04/2017, which you suspect was not paid by this
customer. After looking at your bank statement, you discover this amount was actually paid by different customer and
attributed to Antonio Moreno Taquería in error. You can Edit the receipt to fix the error and attribute the receipt to
correct customer. Any other source would have been revealed in the same manner.
You take one final look at customer ledger to verify all transactions belong to this customer:
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Note
While the example illustrates an erroneous credit being automatically applied to a sales invoice because of incorrect
attribution of a receipt from a customer, similar mistakes can happen with purchase invoices and payments to suppliers.
Detection and correction procedures are the same.
Some bookkeeping errors can be discovered immediately; some can take weeks or even months to discover. Used properly, MYBOS’s
double-entry accounting system ensures all errors will be eventually discovered.
In the example above, even if you didn’t notice the bookkeeping error, eventually the customer who actually paid $2,345.30 on 26/04/2017
would complain that its customer statements did not reflect the payment. Or your Aged Receivables report would show that customer’s
account becoming more and more overdue. Sooner or later, you would discover the payment having been attributed to the wrong
customer.
Account for withholding tax (tax withheld at source)
Some tax authorities require withholding tax (also called tax withheld at the source) to increase tax law compliance and secure earlier
receipt of tax revenues. In simple terms, buyers are required to withhold a portion of the balance due on invoices and pay that portion
directly to the tax authority. Then, either the buyer or the tax authority provides certification of payment of withheld amounts to the seller.
The seller reduces subsequent payments of its tax liabilities by amounts already paid on its behalf by buyers.
Withholding tax may be a form of advance payment of income taxes, value added taxes, goods and service taxes, or some combination of
these and other types of tax. Because the entire process involves both buyers and sellers, MYBOS supports withholding tax accounting
through both its sales invoice and purchase invoice processes, though procedures are somewhat different.
Now, when you view the invoice, no amount is automatically credited:
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Notes
If various line items on the sales invoice are subject to different withholding rates, calculate the total amount to be withheld
manually and enter as an Amount. You may wish to explain the calculation in the Notes field of the sales invoice.
If withholding tax in your jurisdiction is not calculated on the total amount of an invoice, either (a) calculate the withholding
tax manually and enter an Amount or (b) lower the withholding percentage to offset any tax codes applied. Option (a) is
usually easier.
Sales invoice process
The sales invoice process applies when your business is the seller and you send sales invoices to your customers.
Activating withholding tax accounts
Withholding tax functionality for sales invoices does not require activation of any new tabs. Nor do you need to create any new accounts. All
necessary accounts are added automatically to your chart of accounts the first time you check the Deduct withholding tax box on a sales
invoice:
Two accounts are created in the Assets group, because the money they represent technically belongs to the business until it is eventually
used to pay taxes owed. They are:
• Withholding tax - This account records amounts your customers have paid to the tax authority that are available to offset your tax
bill.
• Withholding tax receivable - This account records amounts your customers owe to the tax authority on your behalf but have not
yet paid. If withholding tax had not been deducted from sales invoice balances, amounts in this account would be included in
Accounts receivable.
Applying withholding tax
When the Deduct withholding tax box is checked on a sales invoice, two options appear in a dropdown box, Rate and Amount:
OR
Because withholding tax is independent of any other tax code that may be applied, percentage amounts are calculated on the total due,
including other taxes. (Remember, withholding tax is not an additional tax, only a way for the tax authority to collect prospective taxes
earlier.)
Notes
As implemented in MYBOS, withholding tax does not refer to deductions on payslips of taxes due from employees. These
are referred to as Payslip Deduction Items and are explained in another Guide.
Withholding tax cannot be applied on cash receipts or payments, because the full amount of the transaction must be
recorded. Further, cash receipts cannot be associated with individual customers’ subaccounts as withholding tax must.
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Customers
New Receipt
Example
Sample Consulting invoices Brilliant Industries for advertising design services worth 1,000. (For clarity of illustration, all
other transactions have been removed.) In this case, no tax is due directly on the design services, but 10% must be withheld
by the customer against expected income tax. So the Deduct withholding tax box on the sales invoice is checked, and a
Rate of 10% is entered. The resulting sales invoice shows the customer how much to withhold from payment:
900 is posted to Accounts receivable and 100 to Withholding tax receivable:
In the Customers tab, a new column appears showing Withholding tax receivable:
Recording customer remittance
When the customer remits the withheld tax, either the customer or the tax authority will send you some form of “proof” of the remittance (a
certificate, account statement, voucher, etc.). This “proof” can be recorded in MYBOS by clicking on the Withholding tax receivable
figure in the tab, then on :
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Create
Example
Sample Consulting receives proof of remittance by Brilliant Industries. It enters a transaction for 100. The balance sheet
shows the movement between the two accounts:
Enter Date and Amount of the customer’s remittance. A Description is optional:
Click to record the transaction. The transaction amount will move from Withholding tax receivable to Withholding tax .
Using Withholding tax to pay tax bill
When a tax filing is made, the balance of Withholding tax is available to offset your tax due. Indicate the amount being applied on the
appropriate forms of the tax authority and submit with your filing. This step in the process does not occur in MYBOS, only in your tax
filing.
To record your application of available withholding tax credits in MYBOS, use a journal entry. Credit Withholding tax and debit either:
• An appropriate expense account, such as Taxes paid, if the tax is an obligation of the business, or
• An equity account, such as Owner’s equity or Capital accounts, depending on your form of organization, if the tax is an obligation of
the owner or partners.
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Purchase invoice process
The purchase invoice process is simpler, and no automatic accounts are involved, because there is no need to transfer withholding tax
amounts between accounts based on actions outside the company. When your business is a buyer, you need only withhold tax, remit it to
the tax authority, and possibly provide notification (if required by local law) to the supplier.
Setting up a Withholding tax payable account
Tax you withhold from payments to suppliers is a liability of your company, because you owe that tax to the tax authority. So you must add a
Withholding tax payable account to the Liabilities group of your chart of accounts. Follow procedures in another Guide to add the account:
Recording withheld tax
When entering a purchase invoice to which tax withholding applies, you have two concerns:
• Posting the full amount of purchases to the appropriate asset or expense accounts. This ensures fixed assets, inventory, and
operating expenses are reflected at their actual costs. (Remember, withholding tax is not an expense of your company, so it should
not affect other financial results. You are only acting as collection agent for the tax authority of amounts that will eventually be due
from the supplier.)
Example
When it submits its tax filing, Sample Consulting applies the 100 from Withholding tax to its total bill. Sample Consulting is
a sole proprietorship, so its income is taxed on the owner’s tax return. Therefore, it makes a journal entry debiting Owner’s
equity and crediting Withholding tax. That account is zeroed out on the Balance Sheet.
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• Recording tax withheld for later remittance.
These two goals mean you need at least two line items on the purchase invoice. First, record purchased line items at their full costs, using as
many lines as necessary, just as though no withholding tax was involved. Post these line items to the same accounts you normally would.
Second, add a line item for withholding tax at the amount indicated on your supplier’s sales invoice. Enter the withholding tax as a
negative quantity so it reduces the balance due on the purchase invoice. Post this line item to Withholding tax payable, the account you
created for this purpose.
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Example
Sample Consulting purchases stationery worth 500 from Summit Supplies. Summit’s sales invoice shows a 10% deduction
for withholding tax is necessary. Sample enters the following information in its purchase invoice:
450 is posted to Accounts payable and 50 to the Withholding tax payable liability account:
The full 500 cost of stationery is posted to an expense account:
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Example
Sample Consulting remits the 50 withheld from its payment to Summit Supplies via a bank payment:
The liability is cleared, but the reduced Accounts payable balance remains unchanged. The expense account where the
purchase was originally posted is also not affected:
Remitting withheld tax
When withheld tax is remitted to the tax authority, a payment is posted to the Withholding tax payable account.
Submitting notifications
Comply with local procedures when remitting withheld tax:
• File necessary information with the tax authority to indicate which suppliers’ withheld tax you are remitting.
• Notify suppliers of your remittance if required by law.
For assistance preparing notifications, drill down on the balance (or dash, if the balance is zero) of Withholding tax payable. All relevant
transactions will be listed.
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Late Payment Fees
Late Payment Fees
Update
Assess late payment fees
MYBOS can automatically determine late payment fees on overdue sales invoices. You can also add, delete, or edit late payment fees
manually.
Enable the tab
Late payment fees are recorded in a separate tab, . For fees determined automatically, MYBOS will enable this tab
when the first late payment fee is assessed. No action by the user is necessary.
If late payment fees will be added, deleted, or edited manually, but the tab is not yet enabled, click on
below the left
navigation pane. Check the box for Late payment fees. Then click :
Determine late payment fees automatically
Automatic determination of late payment fees is set up when creating or editing a sales invoice in the
steps:
1. Enter a due date
The Due date field is blank by default, but offers two choices, a fixed calendar date or net payment days:
tab. Follow three
OR
If no date is entered, MYBOS will assign the Invoice date as the Due date when you create the sales invoice.
2. Select a charging option and rate
By default, late payment fees are not charged. To determine them automatically, check the Late payment fees box in the list of options. An
auxiliary rate field will appear. Enter the percentage to be used for determining the late fee:
MYBOS will now automatically generate a notice that a late fee is due on the first day after the due date. If the sales invoice remains
overdue, additional late payment fees will be determined on the same day of each following month until the invoice is paid in full. The fee is
compounded by being calculated on the total balance due of the unpaid invoice, including any prior late fees.
Example
Sample Consulting drills down on its Withholding tax payable account balance and obtains the following list:
Customize
Sales Invoices
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Create
Note
If more than one sales invoice is shown, a late payment fee will be generated for each one every time you click Create .
3. Assess late payment fees
When one or more sales invoices are eligible to be charged late payment fees, a notice appears when the
tab is entered:
Click on the yellow banner to see a list of sales invoices with pending late payment fees:
Click to assess the fee(s) for the first month of eligibility. If additional late payment fees are pending, the list of sales invoices and
the notice will appear again. Repeat the process until all pending late payment fees have been assessed and the notice no longer appears.
This repetitive approach is necessary because every monthly determination of late payment fees depends on the prior assessments.
Note
If a late payment fee would become due on a day of the month that does not occur, such as the 31st of a 30-day month,
MYBOS will determine the fee on the latest day that does occur. So, for example, a late fee due on October 31st will next be
determined on November 30th. Subsequent fees will be determined December 30th and January 30th, then on February
28th (or 29th in leap years), March 28th, etc. This is done so one late payment fee falls in every calendar month.
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New Late Payment Fee
Create
Determine late payment fees manually
Late payment fees can be added, deleted, or edited manually in the
Add a late payment fee
tab.
Late payment fees can be added manually on any desired schedule (daily, weekly, etc.). To add a fee, click :
Complete the form and click .
Example
On June 1, 2018, a sales invoice is raised for 100.00 with payment terms of net 30 days and a monthly late payment fee of
1.5%:
The day the invoice becomes overdue, the pending late payment fee notice appears. A late payment fee is assessed, and
1.5% of the total is added. The invoice is sent to the customer again with a new balance due of 101.50. One month later, the
invoice remains unpaid, so another late payment fee is assessed, adding 1.5% of 101.50 (1.52), for total late fees of 3.02:
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Note
When a late payment fee is added manually, it will be shown on the sales invoice whether or not the Late payment fees
box is checked.
Delete a late payment fee
To delete a late payment fee, go to the
button.
tab and click beside the fee to be deleted. Click the
Edit a late payment fee
To edit a late payment fee, go to the
.
tab and click beside the relevant transaction. Modify any field and click
Example
The sales invoice from the previous example continues to accrue late payment fees for eight months, accruing 12.65 in late
fees. Eventually, the customer asks whether the invoice can be settled for 10.00 in total late fees if payment is made within 3
days. The business agrees on the condition that 20.00 will be assessed if payment is late again. A manual late payment fee
is entered:
Example
Because all the automatically determined late payment fees in the previous examples will be replaced by the agreed 10.00
fee, they are deleted as described above. (Note that Batch Delete can be used.) Only the manually entered late
payment fee remains:
Late Payment Fees
Edit
Delete
Late Payment Fees
Edit
Update
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Settings
Chart of Accounts
Clone
Caution
If the first late payment fee is manually entered, MYBOS will not determine or notify you of subsequent automatic late
payment fees.
If a late payment fee is deleted after subsequent fees have been automatically determined and assessed, MYBOS will not
redetermine the deleted fee. However, if the latest fee is deleted, MYBOS will redetermine it automatically and notify you it
is pending.
Where are late fees posted?
Late fees are posted automatically to an uncategorized income account named Late payment fees. This account appears in your chart of
accounts when the first late fee is assessed:
No action on your part is required unless you wish to rename the account or place it into an existing group. Both steps are accomplished by
editing the account under after it appears.
Refresh unit prices on sales invoices
When a customer purchases items on a regular basis, instead of creating a new sales invoice from scratch for every purchase, it may be
convenient to use the button to replicate a previous invoice:
When cloning an existing sales invoice, everything is cloned into the new invoice, including quantity, unit price and discount:
Example
The payment in the previous example is late. So the 10.00 late payment fee that was entered manually is edited to 20.00:
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Journal Entries
New Journal Entry
Example
You have a customer who owes you 1,000 from a sales invoice:
At the same time you have made a credit purchase for 200 from this same business (as a supplier):
Instead of paying your customer 200 while receiving 1000, you can make a contra entry decreasing the balance due on your
sales invoice by the amount of the purchase invoice.
This may not be completely desirable if your prices have changed since you issued the prior invoice. But there is a quick way to remedy the
problem. If you need to refresh the unit price of an inventory or non-inventory item, click the
the same item again:
inside the Item field to clear it. Then select
This refreshes the Unit price field to the current sale price. Qty and Discount fields will not change:
As always, any aspect of the new invoice can be edited before clicking
that has already been created.
. And the same procedure works when editing an invoice
Offset simultaneous sales and purchase invoices
If you have a customer who is also a supplier, you may sometimes have simultaneous, outstanding sales and purchase invoices with the
same business. In MYBOS, all sales invoices are subaccounts of Accounts receivable, while purchase invoices are subaccounts of Accounts
payable. This lets you easily offset outstanding sales and purchase invoices against one another using contra journal entries.
It makes no difference whether the sales or purchase invoice is larger; the procedure is identical. To make an offsetting contra entry, go to
the tab and click :
In your journal entry, debit Accounts payable for the supplier by the smaller of the sales or purchase invoice balances. If the purchase
invoice has a reference number, it can be selected. Otherwise, leave the Invoice field blank. Credit Accounts receivable for the customer
and the sales invoice by the same amount.
X
Create
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Credit Notes
Example
After making the journal entry illustrated above, your purchase invoice will be marked as paid in full, even though your
payment was actually via contra entry:
The balance due on the sales invoice will decrease by 200:
NOTE
A credit note should not normally be used if the original transaction was a cash sale, because the sale will not have been
recorded in the customer’s subaccount in Accounts receivable. In such situations, a direct refund should usually be made via
a bank or cash payment under the Receipts & Payments tab. However, if the cash buyer has also been defined as a
customer and prefers an account credit rather than a cash refund, a credit note may be used.
If there are more invoices, do not select invoice numbers. Instead, enter as the contra amount the smaller of the total Accounts payable or
Accounts receivable balances for the business. (Check these in the and tabs.) MYBOS will automatically offset
outstanding sales and purchase invoices on the basis of oldest due dates. But still debit Accounts payable and credit Accounts receivable.
Credit Notes
Use credit notes for customer returns and refunds
A credit note records the return of goods by a customer or a credit adjustment (refund) to a customer’s account for goods or services
previously invoiced. It makes all necessary corrections to inventory and income accounts. A credit note does not record actual payment of
money to the customer, but only adjusts the customer’s balance in Accounts receivable. A credit note can be created regardless of whether
the customer has yet paid for the goods or services.
Enable the tab
Before credit notes can be created, tab must be enabled. Click below the left navigation pane, check the
box for , and click list:
Example
The smaller amount in the example above is the 200 purchase invoice. So a journal entry is created:
Customers
Suppliers
the Credit Notes
Update below the
Customize
Credit Notes
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View
Copy to
MYBOS offers two methods for creating credit notes:
• From a sales invoice (most common)
• Manual method
From a sales invoice
The easiest way is to create a credit note directly from the original sales invoice. Go to the
tab:
Click the button alongside the sales invoice issued for the goods or services being returned or adjusted:
Then click the button and select New Credit Note to open a credit note from the existing sales invoice:
A credit note entry screen will open, prefilled with information from the sales invoice. This avoids re-entering information manually. If the
customer is to receive a full refund, no changes to the credit note are required, because the credit note will match the original sales invoice:
If a customer is to receive a partial refund or credit, reduce quantities or amounts on the credit note to match. Remove line items for goods
or services not being adjusted. (If the price of an inventory item is being partially or fully refunded, but the item itself will not be returned,
enter the refund amount and change the quantity to be blank.)
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Credit Notes
New Credit Note
When finished editing, click
credit note. (See below.)
to issue the credit note. MYBOS can automatically apply a sequential Reference number to the
The credit amount will be applied to the original sales invoice. If the customer has not paid or only partially paid the invoice, the balance due
on the invoice will be reduced by the credit note amount. If a credit note is applied to a fully paid sales invoice, the credit note amount will
be credited to the customer’s subaccount in Accounts receivable. Any credit balance will be automatically applied to the next (or the oldest
existing) sales invoice for that customer.
Manual method
If no sales invoice exists or can be found, create a credit note manually. In the tab, click on :
)
Complete the form:
• By default, today’s Issue date is prepopulated.
• Reference is optional and may be used for internal or external sequences. If the box within the field is checked, MYBOS will
number the transaction automatically. The program will search for the highest number among all existing credit notes and add 1.
• A previously defined Customer must be selected in the dropdown box.
• After a customer is selected, an optional Invoice field appears. If the credit note applies to a specific invoice, select it there:
• The customer’s Billing address is filled automatically.
• By default, a manually created credit note will show as Custom on the Description line. This option is correct for most situations.
The other option is Early payment discount, but should only be used when such a discount was offered on the the corresponding
sales invoice. General information about the credit note can be entered in the other field on the Description line.
Create
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Create
Billable Time
Billable Time
Billable Time
Billable Time
• Line items can be completed semi-automatically by selecting predefined inventory or non-inventory items in the Item field and
entering quantities. Or, they may be entered manually.
• Applicable Tax codes can be selected.
• A Tracking Code can be chosen.
• Additional lines can be added 1, 5, 10, or 20 at a time.
• Checkboxes at the bottom of the form offer some of the same options as when creating sales invoices.
Save the transaction by clicking .
Paying out a refund
If a customer requests a refund of the credit balance, record a payment from a bank or cash account and allocate the refund to Accounts
receivable and the customer’s subaccount. When a refund payment is recorded, the balance of Accounts receivable for the customer will
move in the positive direction:
Billable Time
Record billable time
records work for a customer who will be invoiced on an hourly basis at a defined rate. It is suitable for a wide range of
business applications, such as:
• Consultants who bill by the hour rather than the project
• Lawyers who charge different rates for research than for courtroom time
• Repair technicians billing for time and materials
is not a time clock. It does not record start or stop times of tasks. It cannot be used to monitor employee attendance or
directly support payslip generation.
Enable the tab
Enable the
below the list:
tab by clicking below the left navigation pane, ticking the box, and clicking
Changes to your chart of accounts
When you create your first entry, MYBOS will automatically add three new accounts to your chart of accounts:
Billable Time
Customize
Billable Time
Update
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Settings
Chart of Accounts
New Billable Time
Create
Note
The Billable Time tab can be used under cash basis accounting. But balances of these automatic accounts will never
show. Therefore, your financial position and performance will not be completely represented on your financial statements.
These accounts can be renamed under , but cannot be deleted while the tab is in use. You
can
assign them to Groups of your choosing and give them numerical Codes to indicate their positions on your Balance Sheet or Profit and Loss
Statement.
Enter billable time
Now, you can make a basic entry of billable time. Select the
tab and click :
Complete the entry:
• Date will be prefilled with today’s date.
• A Customer must be selected from the dropdown list of predefined customers. If you do not select a customer, you will not be able
to invoice the billable time.
• Description allows you to record the nature of work performed during the billable time.
• Enter Hourly rate in your base currency.
• Record Time spent in hours and minutes.
• Choose a Tracking Code (if enabled and desired). In the illustration above, this field is not visible because no tracking codes have
been defined.
Click when finished.
Billable Time
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Edit
Example
Brilliant Consulting records billable time worked for Consolidated Holdings:
The entry is visible in the Billable Time tab. Its status shows as Uninvoiced:
Brilliant Consulting’s Summary (stripped of all other transactions) shows the result of the entry:
Edit billable time
the completed entry in the
the form:
tab. Since the billable time entry has already been created, a Status field appears on
However, this field is not used for normal invoicing. Ignore it for now. Remember to click
time is described in another Guide.
to save any changes. Invoicing of billable
Billable Time
Update
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Custom Fields
New Custom Field
Billable Time
Custom Fields
Billable Time
30%20AM
Note
Entries made before defining custom fields must be edited if you want them to show the new information.
Note
This Guide uses an example from another Guide, in which Brilliant Consulting has recorded billable time for services to its
customer, Consolidated Holdings. Read that Guide first.
Example
In the Billable Time tab, Brilliant Consulting sees the uninvoiced billable time amount of 250 for Consolidated
Holdings:
Add billable time details with custom fields
Standard Billable Time entries can be made more useful by adding custom fields. In the
tab, select .
Locate the Billable Time group and click :
Define your custom field. This first example adds a single, free-text line for a staff member’s name. It is positioned to be first among custom
fields. A check mark indicates the field will show as a column in the listing:
Additional fields can be added in the same way as the first. The second example adds a service type from a dropdown list, assigned to the
second position. Such lists help standardize time entries. More options are available, including paragraph text and images:
The resulting list shows the result:
Now the listing provides more useful information that can be used for searching and sorting:
Invoice billable time
MYBOS can directly invoice billable time.
When you first record an instance of billable time, its status will be set to Uninvoiced.
To invoice billable time to a customer, go to the Customers tab:
Settings
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New Sales Invoice
Edit
Example
Brilliant searches for Consolidated Holdings, then clicks the uninvoiced balance:
Note
If you have also entered billable expenses for the customer, these will appear in the same list and can be selected for
invoicing along with billable time.
Example
Brilliant selects the billable time entry for 250 and clicks the button:
Example
Brilliant’s sales invoice lists the date and description for the billable time, the hours spent, and rate (as unit price):
Under the Uninvoiced column, click the amount for the customer you are invoicing.
Select the items you want to bill to the customer, then click .
A sales invoice will be created instantly.
If you wish to modify the invoice, especially to add additional line items, offer discounts, or mark up the billed time for extra profit, click
, make any changes, and click
items has changed to Invoiced.
. When you go back to the tab, you will see the status of your uninvoiced
Update
Billable Time
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Example
Brilliant verifies the status:
Example
Brilliant clicks to see the original time entry, which shows both the change of status and the relevant sales invoice:
Example
Brilliant Consulting’s financial statements show the result of invoicing:
Note
You cannot add billable time to an existing sales invoice. Generate a sales invoice from the Customers tab first, then add
any other necessary line items.
If you click the button for the time entry in , you will see the newly created sales invoice has been automatically
added to the Status field.
Creating a sales invoice with billable time transfers the value of the time from the Billable time asset account to the Billable time - invoiced
account.
Note
Discounts and markups of billable time on a sales invoice have no effect on the Profit and Loss Statement besides changing
the balance of Billable time - invoiced. This is because billable time does not represent an actual financial transaction until it
is invoiced. It is carried in Billable time - movement as imputed income, which can be modified during invoicing without
affecting any other account except Accounts receivable. This is distinctly different from billable expenses, which have real
costs, and for which discounts or markups mean reduced or increased profit.
Edit
Billable Time
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Billable Time
Edit
Update
Customers
Write off or write down billable time
Sometimes, you learn a customer will not reimburse you for billable time. Or you decide not to bill the customer for the full amount (or any)
of time spent on a project. These situations can happen before, during, or after invoicing. When they do, you will need to write off or write
down the billable time. Several paths are open to you.
Before invoicing
Complete write-off
To abandon any attempt at billing the time the customer, go to the tab:
Find the billable time to be written off and click :
Change the Status field from Uninvoiced to Written-off:
Click to save the change.
From an accounting point of view, the billable time was a recoverable asset from the date it was recorded until you decided it should be
written off because it was imputed income. When it is written off, it becomes worthless. The amount will be removed from the Billable time
asset and Billable time - movement accounts. The record will, however, remain in the
Partial write down
tab.
If, for some reason, you decide to eventually invoice the customer for only part of the billable time, you can simply
Reduce either the time spent or rate by an appropriate amount.
During invoicing
the time entry.
While creating a sales invoice with billable time from the tab, you can write off or write down any billable time line item. First,
follow the invoicing procedures described in another Guide. When the new sales invoice appears, immediately click the
the top of its view screen:
button at
Check the Discount box. Select Percentage or Exact amount and enter the discount, 20% in this example:
A 100% discount is financially equivalent to a complete write-off. A lower percentage means you are absorbing some of the customer’s
expense, but not all. Either way, the sales invoice will indicate the discount you are providing the customer:
Billable Time
Edit
Edit
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Billable Expenses
Billable Expenses
After invoicing
After invoicing, billable time is no different financially from any other invoice line item. If it cannot be recovered from the customer, it must
eventually be written off or written down. This can be done by writing it off as a bad debt with a journal entry or by reducing the customer’s
obligation with a credit note.
Write off as a bad debt
Writing off billable time converts it from an asset in Accounts receivable to an expense in your bad debts account. See another Guide for
instructions on writing off bad debts. Note, in particular, that the journal entry will not write off billable time explicitly. Instead, it will write off
all or a portion of Accounts receivable to the bad debts account.
You can however, use more than one expense account to post bad debts. If desired, you could add an account specifically for unrecoverable
time billing and post billable time there as you write it off or down. Or, you could post it to ordinary expense accounts according to the
nature of the time. For example, an unrecoverable travel time entry could be written off to your own wages account.
Write down with a credit note
You can use credit notes to reduce specific amounts owed on sales invoices for unrecoverable billable time. The income from billable time
was moved from the Billable time - movement income account to the Billable time - invoiced income account when the sales invoice was
created. MYBOS will allow you post a credit note line item to Billable time - invoiced:
Such an entry reduces the balance in Accounts receivable for the customer selected. If the sales invoice number is selected on the credit note,
the write-down will be applied to that specific invoice. Otherwise, it will be available for general application to amounts owed by the
customer:
Billable Expenses
Record billable expenses
Billable expenses are expenses incurred on behalf of a customer. They do not initially appear on your Profit and Loss Statement, because
they are not expenses of your business. Instead, they will reside temporarily as assets on your Balance Sheet and be passed through to the
customer by invoicing. Only after invoicing do they show up on your Profit and Loss Statement. In this respect, they are treated much like
inventory items.
Enable the tab
Enable the Billable Expenses tab by clicking
clicking Update below the list:
below the left navigation pane, ticking the box, and
Changes to your chart of accounts
When you enable the tab, MYBOS automatically adds three new accounts to your chart of accounts:
Customize
Billable Expenses
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Settings
Chart of Accounts
Notes
Prior to version 19.12.5, MYBOS used two different automatic accounts. Billable expenses - markup is converted by
version 19.12.5 (or later) to Billable expenses - invoiced. Any assigned code and group are retained. Billable expenses -
unrecoverable, was replaced by Billable expenses - cost. That new account must be edited in the Settings tab to add a
code or assign it to any group or subgroup other than Expenses.
The Billable Expenses tab can be used under cash basis accounting. But balances of some automatic accounts will not
show until a receipt is entered against the relevant sales invoice. Therefore, your financial position and performance will not
be completely represented on your financial statements.
These accounts can be renamed under , but cannot be deleted while the tab is in use. You
can
assign them to Groups of your choosing and give them numerical Codes to indicate their positions on your Balance Sheet or Profit and Loss
Statement.
Record a billable expense
Unlike most entries in MYBOS, you cannot record billable expenses directly under the
button. Instead, billable expenses are recorded in one of these tabs:
•
•
•
•
•
tab using a
To enter a billable expense, post the applicable line item to the Billable expenses asset account. Two additional fields will appear:
• Select the Customer from the dropdown list. A customer must be defined under the
be entered on its behalf.
• Leave the default entry of Uninvoiced in the Invoice field.
Line items categorized this way will appear as disbursements under the
tab.
tab before a billable expense can
Note
Enter a debit note when you receive a credit note (or equivalent) from a supplier for goods or services originally posted to
Billable expenses on a purchase invoice. The result will be a negative billable expense.
Billable Expenses
New Billable Expense
Receipts & Payments
Expense Claims
Purchase Invoices
Journal Entries
Debit Notes
Customers
Billable Expenses
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Example
Stripped of other transactions, Sample Manufacturing’s balance sheet shows the billable expense asset:
Note
You have two options when taxes apply to recording of billable expenses:
(1) If a tax is nonrecoverable, such as a sales tax, include it in the unit price of the billable expense and do not apply a tax
code. The tax will be passed directly to the customer for reimbursement and will not affect your tax liability. You (and your
customer) will lose separate visibility of the tax. However, that will not matter, because neither of you can claim the tax to
offset tax liabilities. The tax is effectively part of the price of whatever was purchased.
(2) If a tax is recoverable, such as a value-added tax, apply the tax code to the line item. The unit price can be either tax-
exclusive or tax-inclusive, but, when tax-inclusive, you must check the box indicating Amounts are tax-inclusive. In
either case, only the tax-exclusive billable expense will be passed to the customer. The tax amount will be posted to your
own tax liability account, where it will offset taxes payable to the tax authority.
Note
This Guide uses an example from another Guide, in which Sample Manufacturing has purchased materials worth 350 on
behalf of its customer, Consolidated Holdings. Read that Guide first.
Any expense categorized this way will appear on the Balance Sheet in the Billable expenses asset account instead of inflating your expenses.
Amounts under Billable expenses are cleared by invoicing them to the customer, as described in another Guide.
Invoice billable expenses
MYBOS can directly invoice billable expenses.
When you first record a billable expense, its status will be set to Uninvoiced.
Example
Sample Manufacturing Company buys materials on behalf of its customer, Consolidated Holdings, entering a purchase
invoice:
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Customers
New Sales Invoice
Example
Sample Manufacturing searches for Consolidated Holdings, then clicks the uninvoiced balance:
Example
Sample selects the billable expense entry for 350 and clicks the button:
Notes
If a debit note was posted to Billable expenses covering any of the billable expenses to be invoiced, be sure to check the
box for its negative entry, too. Otherwise, you will be overbilling your customer.
If you have also entered billable time for the customer, those entries will appear in the same list and can be selected for
invoicing along with billable expenses.
To invoice billable expenses to a customer, go to the tab:
Under the Uninvoiced column, click the amount for the customer you are invoicing.
Select the items you want to bill to the customer, then click .
A sales invoice will be created instantly. The billable expense amount on the sales invoice is posted to Billable expenses - invoiced. The asset
in Billable expenses is transferred to the Billable expenses - cost expense account.
Example
In the Billable Expenses tab, Sample Manufacturing sees the uninvoiced expense of 350 for Consolidated Holdings:
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If you wish to modify the sales invoice—adding other line items, applying a discount, marking the expenses up for additional profit or down
to forego expense recovery, or applying a tax code—click . Make the changes, then click . Changing billable expense
amounts on a sales invoice affects only the amount posted to Billable expenses - invoiced. The asset transfer to Billable expenses - cost
remains the same. Any difference between the original cost and the invoiced amount will be reflected in net profit.
Example
Samples’ sales invoice lists the date and amount of the billable expense:
The financial statements (stripped of other transactions) show the results:
Edit
Update
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Example
Sample clicks to see the original purchase invoice, which now shows the line item linked to the relevant sales invoice (again
without the markup):
When you go back to the
Invoiced.
tab after invoicing, you will see the status of your billable expenses has changed to
If you click the button for the transaction in , you will see the newly created sales invoice has been
automatically added to the source transaction.
Adding billable expenses to a sales invoice
A billable expense can also be recorded directly on a sales invoice. This approach is less common, because it may require exact knowledge
about the billable expense before it is incurred. But the approach can also be used when a billable expense has been recorded but is
forgotten during the normal invoicing process.
Example
Sample Manufacturing decides to mark up the billable expense to 400. So it edits the sales invoice. The financial statements
show the result:
Example
Sample verifies the status (without the markup in this illustration):
Billable Expenses
Edit
Billable Expenses
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Example
Sample knows it will pay a 500 meeting expense on behalf of Consolidated Holdings, so it adds that billable expense onto
the sales invoice for 350 just created. Financial statements reveal higher income, but not higher costs:
You cannot post directly to Billable expenses on a sales invoice. Instead, post the line item to Billable expenses - invoiced. This bypasses the
Billable expenses account and posts the billable expense directly to the Billable expenses - invoiced income account and Accounts receivable.
Adding expense before the purchase
If no purchase has yet been recorded, the invoiced billable expense will be pure revenue.
Later, when recording the purchase for the billable expense, post the line item to Billable expenses Customer Invoice. The cost of
the billable expense will appear in the Billable expenses - cost expense account.
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Caution
If the pre-existing purchase transaction is not revisited and edited as described above, the billable expense will remain in
the Billable expenses account. This will erroneously inflate your net income and overstate your assets.
For this reason, it is always best practice to enter billable expenses before creating a sales invoice in the Customers tab.
Then, be sure to select all desired billable expenses before creating the sales invoice.
Note
Prior to MYBOS version 19.11.91, billable expense write-offs were recorded within the Billable Expenses tab with a
distinct entry form. Write-downs were not possible. Version 19.11.91 simplified the billable expense functions and
eliminated that form. All billable expense write-offs and write-downs are now possible with ordinary features of the
program, providing more flexibility.
Adding expense after the purchase
If a billable expense has already been recorded, but is added to a sales invoice directly rather than through the normal process, revisit the
original purchase transaction and select the sales invoice to which it was added. The expense will then be removed from Billable expenses
and posted to *Accounts receivable, Billable expenses - invoiced, and Billable expenses - cost.
Write off or write down billable expenses
Sometimes, you learn a customer will not reimburse you for a billable expense. Or you decide not to bill the customer for the full amount (or
any) of a legitimate expense. These situations can happen before, during, or after invoicing. When they do, you will need to write off or
write down the billable expense. Several paths are open to you.
Example
Sample Manufacturing later pays the meeting expenses, allocating the payment as described above. The financial
statements reflect the change to Billable expenses - cost. And Cash at bank shows the offsetting credit:
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Edit
Customers
Before invoicing
To abandon any attempt at recovering the expense from the customer, go to the
tab:
Find the billable expense to be written off and click :
Simply change the posting account for the transaction to some expense account. The transaction ceases to record a billable expense and
instead records an ordinary expense that appears on your Profit and Loss Statement.
From an accounting point of view, the billable expense was a recoverable asset from the date it was incurred until you decided it should be
written off. Therefore, it was not truly an expense of your business, but of your customer’s. When it is written off, it becomes your expense.
The amount will be transferred from the Billable expenses asset account to the expense account you choose. Click
change.
During invoicing
to save the
While creating a sales invoice with billable expenses from the tab, you can write off or write down any billable expenses. First,
follow the invoicing procedures described in another Guide. When the new sales invoice appears, immediately click the
the top of its view screen:
button at
Check the Discount box. Select Percentage or Exact amount and enter the discount, 20% in this example:
A 100% discount is financially equivalent to a complete write-off. A lower percentage means you are absorbing some of the customer’s
expense, but not all. Either way, the sales invoice will indicate the discount you are providing the customer:
The discount will reduce the amount posted to the Billable expenses - invoiced account.
After invoicing
After invoicing, billable expenses are no different financially from any other invoice line item. If they cannot be recovered from the customer,
they can be written off or written down as bad debts. This converts them from assets in Accounts receivable to expenses in your bad debts
account. See another Guide for instructions on writing off bad debts.
You can use more than one expense account to post bad debts. If desired, you could add an account specifically for unrecoverable expenses
and post billable expenses there as you write them off or down. Or, you could post them to ordinary expense accounts according to the
nature of the expense. For example, an unrecoverable travel expense could be written off to your own travel expense account.
Billable expenses can also be credited to the customer with credit notes to reduce amounts owed on sales invoices. But MYBOS will not let
you post a credit note line item to Billable expenses. Unlike prices for regular goods and services, billable expenses are actual purchases you
made on behalf of the customer. Their value was fixed when you paid for them. Instead, post the credit note line item to Billable expenses -
invoiced. This will reduce Accounts receivable for the customer without affecting the cost you paid.
Billable Expenses
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Suppliers
Chapter 7: Accounts Payable
Guides in this group cover ordering and buying goods or services on credit from suppliers.
Suppliers
Enter suppliers
A Supplier in MYBOS is an entity (person, business, or other organization) with whom you have or plan to have an Accounts payable
relationship. Suppliers in MYBOS are actually subaccounts of Accounts payable. You must first create a Supplier before you can:
• Enter a purchase invoice corresponding to a received sales invoice
• Buy on credit for future payment
• Create a supplier statement showing balances due or summarizing past transactions
• Generate a purchase order
• Make a deposit or advance against future work or delivery of goods by someone else
• Issue a debit note for return of goods to someone else
• Track your complete purchase and payment history with another entity
Not everyone from whom you buy must necessarily be a Supplier. You can make a cash purchase involving immediate payment without
creating a Supplier simply by entering a name as Payee when spending money from a cash account. But such transactions will not be
recorded in a history for that Payee, even if the Payee is already defined as a Supplier. Examples of purchases where a Supplier might not be
needed include:
• Purchases by cash or check from a merchant
• Timely payment of monthly utility bills
• Credit card payments for business expenses
Enable the tab
To enable the
below the list.
tab, click below the left navigation pane, check the box for , and click
Create a Supplier
Select the tab, then click the button:
Complete the entry. This information will appear on purchase invoices and similar documents:
Suppliers
Customize
Suppliers
Update
Suppliers
New Supplier
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Suppliers
Suppliers
Edit
Suppliers
New Custom Field
• Name is the legal name of the supplier
• Code is a short alphabetic or numeric designation of your supplier. If used, the code will appear after the supplier’s name on
transactions.
• Currency in which the supplier operates can be selected if a base currency has been set for the business. Transactions for the
supplier will be denominated in the designated currency.
• Address should be the mailing address of the supplier.
• Email address is where documents will be emailed from within the program.
• Credit limit is informational. If used, the tab listing will show available credit.
Your Supplier will now appear in the tab. Suppliers are listed in alphabetical order according to their names. Use scrolling,
paging, and search functions to find them. The listing shows the number of purchase invoices created for a Supplier and the Supplier’s
Accounts payable balance. Other columns may appear, depending on tabs in use and setup of custom fields. Click on blue numbers for more
details of any column.
Edit or add supplier information
Click the button left of a Supplier’s name to edit or add information. For example, add a Code to make Suppliers easier to find or
distinguish from other Suppliers with identical names. Codes will appear in the tab listing if any are present:
Codes can appear on completed forms after the Supplier’s name. To see codes on forms, follow instructions in this Guide.
You can also add custom fields for other information about your Suppliers. Under , click and locate the list for
Suppliers. Click :
Settings
Custom Fields
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Define your custom field. A checkbox allows you to determine whether the custom field will show as a column in the Suppliers tab list.
The Position field controls the order in which custom fields appear. Enter a number there, if desired. Click Create when finished.
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Example
You can add a custom field for a point of contact at your Supplier:
When the custom field is completed on a purchase invoice, the results (including a customer code) appear as below:
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Update
Create
Note
The available credit must be entered in the currency selected for the supplier.
Set starting balances for suppliers
Starting balances exist only if you are transferring an existing business to MYBOS from another accounting system. In that case, you may
need to set starting balances for suppliers with or to whom, on your start date:
• You have available credit unrelated to purchase invoices, or
• You owe money because of unpaid purchase invoices.
General procedures for entering starting balances are found in another Guide. Read it first. Before you can enter any type of starting balance,
your suppliers themselves must be created. Follow these procedures to enter them.
Enter available credit
Available credit in the context of a supplier refers to any amount your supplier owes you on our start date. This credit could be the result of
past debit notes, settlement of contract disputes, or promised refunds. If you have a credit balance that can be applied to future purchase
invoices, go to the tab and click beside the supplier’s name.
Enter the Starting balance of the available credit:
Click .
Repeat for all suppliers with whom you have credit balances.
Enter unpaid purchase invoices
You cannot enter the starting balance for unpaid purchase invoices as a single figure. MYBOS requires you to enter the specific unpaid
purchase invoices, fully completed. This is so MYBOS can assign future payments to proper purchase invoices, generate accurate cash-basis
reports, and produce detailed supplier statements.
Enter a starting-balance invoice in the same manner as a regular purchase invoice. See this Guide for purchase invoice instructions. The
Issue date field will, by default, be prefilled with the current date. Edit this to match the original issue date from your old accounting
system. Only purchase invoices with issue dates before your start date will be treated as starting balance invoices.
MYBOS uses these pre-start-date purchase invoices only to establish starting balances. It ignores them for financial reporting during the
current or later financial periods. And it ignores any inventory item quantities.
If an invoice has been partially paid, only its remaining balance due should be entered. (Since quantities are ignored, any line item can be
adjusted so the balance due equals the remaining balance from the old accounting system.)
When finished, click to save the invoice. Repeat for all open purchase invoices preceding your start date.
Suppliers
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Suppliers
Suppliers
Use supplier codes
The Code field for suppliers is completely optional. It can be used for several purposes, including:
• Distinguishing suppliers with identical names
• Annotating different departments or ordering centers at a single supplier (with each department being created as a distinct
supplier)
• Assigning suppliers to regions, purchasing personnel, or facilities
Assign a supplier code
When creating or editing a supplier in the tab, enter any combination of letters or numbers in the Code field:
By default, the supplier’s code will not be shown on printed documents.
The code will, however, show in the listing and can be entered as a search parameter in other tabs:
Adding the supplier code to finished documents
If you wish to add the supplier code to completed forms, edit the theme used to display them. While viewing the theme’s computer code,
insert the variable {{ recipient.code }} at the place in the theme you want the code to appear. This will act as a placeholder variable that
inserts the supplier code (when one exists) into your documents.
Notes
Starting balance purchase invoices affect only the monetary balance of suppliers’ subaccounts in Accounts payable. They do
not affect starting balances of inventory items. Those should be set to match the physical count on the start date. See this
Guide for more information.
Starting balance purchase invoices also do not affect starting balances of tax liability accounts. If line items on the purchase
invoice are taxable, the starting balances of relevant tax liability accounts must be set independently by editing the tax
liability accounts’ starting balances directly in the Settings tab, under Chart of Accounts . Match the closing
balances in those accounts from the prior accounting system.
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Delete
Edit
Update
Purchase Quotes
Update
Manage inactive suppliers
Old, inactive Suppliers can clog your lists. You can delete them if you have never entered any type of transaction for them.
the
Supplier and click at the bottom of the screen.
But if you have entered any transactions, MYBOS will not allow you to delete a Supplier, because doing so would also delete all related
transactions. Instead, you can make a Supplier inactive.
will no longer appear in active lists:
the Supplier and check the Inactive box. Click and the Supplier
If the Supplier ever returns to active status, scroll to the bottom of the suppliers list, where you will see the Supplier’s name in light grey text
with strike-through markings. Click next to the Supplier’s name:
Uncheck the Inactive box and click .
Purchase Quotes
Create purchase quotes or requests for quotation
A purchase quote records an offer by a supplier of goods or services at defined prices and terms. Strictly speaking, it is not an accounting
transaction and has no financial or inventory impact. It does not involve actual purchase of services, movement of inventory, or payment of
money. In fact, it is not really necessary at all, but can be used for a variety of purposes, such as:
• Soliciting price quotes in advance of issuing a purchase order when suppliers’ current prices are unknown
• Confirming whether previously quoted supplier prices are still valid
• Documenting suppliers’ quotes
If you accept a purchase quote from a supplier, it can be copied to a purchase order, purchase invoice, or goods receipt.
Enable the tab
Before creating a purchase quote, enable the tab. Below the left navigation pane, click , check the box for
, and click :
Example
To show the supplier’s code on printed documents after the supplier’s name, insert {{ recipient.code }} in the line
containing {{ recipient.name }} as below:
<div><b>{{ recipient.name }}</b> {{ recipient.code }}</div>
The result will be:
Edit
Edit
Update
Purchase Quotes
Customize
Purchase Quotes
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New Purchase Quote
Create
MYBOS allows purchase quotes to be created in two different ways:
• Standard method
• By cloning
Standard method
In the
tab, select :
Complete the purchase quote form:
• Issue date will be prepopulated with today’s date. This may be edited.
• Reference is optional and may be used for internal or external sequences. If the box within the field is checked, MYBOS will
number the transaction automatically. The program will search for the highest number among all existing sales quotes and add 1.
• A previously defined Supplier can be selected from the dropdown list.
• An overall Description of the quote is optional.
• Line items can be entered semi-automatically by selecting inventory or non-inventory items in the Item field. Or they can be
entered manually. Tax codes can be selected.
Near the bottom of the screen are checkboxes for various options. Additional fields appear when some options are checked:
• When the Discount box is checked, options appear for Percentage or Exact amount. The discount entry must be made line item by
line item. Discounts would normally only be indicated if you have a prearranged agreement with the supplier.
• A box can be checked to indicate Amounts are tax inclusive.
• A Custom theme can be selected if any theme besides the default is active.
Click when finished.
Purchase Quotes
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Clone
Example
Northwind Traders sends a purchase quote to Leka Trading for aniseed syrup. No taxes are indicated. (These can be added,
if necessary, to any resulting purchase invoice.) Nor is a discount entered, because Leka’s terms are unknown. Most
importantly, the Unit price field is left blank. The completed purchase quote looks like this, with the title changed:
By cloning
Repeat purchase quotes can be easily prepared by cloning previous ones. While viewing a similar purchase quote, click
purchase quote need not be identical to the previous one or even to the same supplier. Anything can be edited or added:
. The new
Using purchase quotes
Two basic methods for using purchase quotes produce somewhat different results.
Unpriced request for quotation
When unit prices are not entered into a purchase quote, a form titled as a request for quotation is returned.
Priced purchase quote
Two applications for priced purchase quotes are possible:
• Validating previous prices received or quoted
• Recording a supplier’s response to an unpriced request for quotation
Note
While purchase quotes can be prepared for suppliers already defined in the Suppliers tab, they can also be created
without first defining a supplier. This is helpful when your acceptance of the purchase quote is doubtful, preventing
unnecessary clutter in your supplier database.
To create a purchase quote without specifying an entity in your supplier list, leave the Supplier field blank. Be aware,
however, if the purchase quote is copied to another transaction, no supplier name or address will carry forward. You will
have to define the supplier before other transaction forms can be completed.
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Purchase Orders
Update
Example
Northwind receives a sales quote from Leka Trading for the aniseed syrup at 13 each. Leka’s sales quote also includes the
VAT it will add to the order. Northwind edits the request for quotation from the previous example for its records, and the
title changes along with other information:
The only difference between an unpriced request for quotation and a priced purchase quote is that unit prices are entered for the latter.
Purchase Orders
Issue purchase orders
A purchase order is sent to suppliers to order goods or services. It authorizes the supplier to deliver items at listed prices and quantities by
a specified date. Legally, it may be considered an offer to purchase which, if accepted by the supplier for the consideration enumerated,
forms the basis of a contract.
Unlike most records in MYBOS, purchase orders have no financial or inventory impact. They do not involve actual provision of services,
movement of inventory, or payment of money. Accordingly, they can be used for a variety of purposes:
• Internal requests for purchase authorization
• Documentation of order pricing
• Inventory planning
• Supplier communication
• Drafts of purchase or sales invoices
Enable tab and define supplier
Before creating a purchase order, enable the tab. Below the left navigation pane, click , check the box for
, and click :
Purchase Orders
Customize
Purchase Orders
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Purchase Orders
New Purchase Order
Next, be sure the supplier to whom the purchase order will be sent has been defined in the Suppliers tab. Because of their wide
applicability, MYBOS allows purchase orders to be created in five different ways:
• Standard method
• By cloning
• From sales quotes
• From sales orders
• From your own sales invoices
Standard method
In the tab, select :
Complete the purchase order form:
• Issue date will be prefilled with today’s date, which may be edited.
• Reference is optional and may be used for internal or external sequences. If the box within the field is checked, MYBOS will
number the transaction automatically. The program will search for the highest number among all existing purchase orders and add
1.
• A Supplier must be selected from the dropdown list.
• Line items can be entered semi-automatically by selecting inventory or non-inventory items in the Item field. Or they can be
entered manually. **Description**, Qty, and Unit price for each line item are entered in their fields.
• Select an appropriate Tax code.
Near the bottom of the screen are checkboxes for various options. Additional fields appear when some options are checked:
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Create
• When the Discount box is checked, options appear for Percentage or Exact amount . The discount entry must be made line item by
line item.
• A box can be checked to indicate Amounts are tax inclusive.
• A Custom theme can be selected if any theme besides the default is active.
Click when finished:
By cloning
Repeat purchase orders can be entered by cloning previous ones. While viewing a similar purchase order, click
order need not be identical to the previous one. Anything can be edited or added:
. The new purchase
From sales quotes
If a sales quote was given to a customer including items that must be purchased from a supplier, a purchase order to the supplier can be
generated directly from the sales quote. While viewing the quote, select New Purchase Order in the
required:
dropdown box and edit as
Clone
Copy to
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Copy to
Purchase Invoices
When items on the sales quote are purchased from several suppliers, several copies can be made and inapplicable line items deleted from
each supplier’s purchase order.
From sales orders
If a sales order was created after receiving a customer’s order, a purchase order can be created directly from it. Select New Purchase Order in
the dropdown box and edit as required:
From your own sales invoices
If items are purchased only as the customer is invoiced for them (such as when inventory is shipped directly from the supplier), or if they are
being purchased as part of a repeat sale, a purchase order can be generated from a sales invoice:
Purchase Invoices
Create purchase invoices
Purchase invoices are the method by which sales invoices received from suppliers are entered into MYBOS. They increase the balance of
the supplier’s subaccount in Accounts payable and, therefore, are used when buying on credit. They can also be used to maintain a record of
transactions with a supplier. They do not, however, record payment of money, which must be handled by a second transaction, even if the
supplier is paid upon delivery. In a double-entry accounting system like MYBOS, they also post expenses to appropriate accounts and record
additions to inventory.
Enable the tab
To enable the Purchase Invoices tab, click
click Update below the list:
below the left navigation pane, check the box for , and
Customize
Purchase Invoices
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Purchase Invoices
New Purchase Invoice
MYBOS offers six methods for creating purchase invoices:
• Standard method (from suppliers’ sales invoices)
• By cloning
• From purchase orders
• From sales quotes
• From sales orders
• From your own sales invoices
• From goods receipts
Standard method
In the tab, click on :
Complete the form:
• By default, the Invoice date field is prepopulated with today’s date.
• A Due date can be entered from the supplier’s invoice. The date can be entered as By a certain date or Net in days:
If a date is not entered, MYBOS will automatically use the Invoice date as the Due date.
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Goods Receipts
Goods Receipts
Create
Caution
If automatic sequencing is used, the number assigned will be higher than any previously assigned number,
including suppliers’ numbers. Therefore, best practice is to use either all suppliers’ numbers or all automatic
numbers.
• Invoice number can be the supplier’s sales invoice number or an internally assigned reference. If the box within the field is
checked, MYBOS will automatically assign a sequence number. The program will find the highest number among all existing
purchase invoices and add 1.
• The Order number field can be used to record your own purchase order number, if you issued one.
• A previously defined Supplier must be selected in the dropdown box.
• A summary-level Description of the invoice can be entered.
• If inventory locations have been defined and the tab is not enabled, a field for Inventory location appears
below the Description field when the first inventory item is added to the purchase invoice:
Purchased inventory items are then assumed to be immediately available at the designated inventory location. However, if
is enabled, the field does not appear, and assignment of purchased inventory items to inventory locations
occurs via the goods receipt.
• Line items can be completed semi-automatically by selecting predefined inventory or non-inventory items in the Item field. If they
are, Account, Description, and Unit price will fill automatically.
• Enter quantity in the Qty field.
• Applicable Tax codes can be selected.
• A Tracking code can be selected.
• Additional lines can be added 1, 5, 10, or 20 at a time.
Near the bottom of the screen are checkboxes for various options. Additional fields appear when some options are checked:
• A checkbox allows you to indicate whether a Discount was applied. When checked, further options of Percentage or Exact amount
discounts appear.
• Note the option to indicate Amounts are tax inclusive. If this box is checked, tax amounts are deducted from the unit price;
otherwise they are added.
• A Custom theme can be selected if any are enabled.
Click to generate the finished purchase invoice. (Note that in the illustration below, no discount has been applied.):
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Purchase Invoices
Suppliers
Clone
Copy to
The transaction is now listed in the tab:
It can also be located by drilling down in the tab and clicking on the number of invoices for a particular supplier:
By cloning
For a repeat purchase, an existing purchase invoice can be duplicated by cloning. While viewing the existing purchase invoice, click :
From purchase orders
If a purchase order was issued from MYBOS and the supplier’s sales invoice matches it, a corresponding purchase invoice can be created
directly from the existing purchase order. This eliminates the need to enter information a second time. While viewing the purchase order,
select New Purchase Invoice in the dropdown box:
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Copy to
Copy to
Copy to
Copy to
The resulting purchase invoice can be edited, if necessary, in case of differences from the purchase order.
From sales quotes
If a customer was given a sales quote for items that now have been provided by a supplier, the supplier’s sales invoice may closely match the
sales quote. A purchase invoice can be created directly from the sales quote without re-entering information. When viewing the sales quote,
select New Purchase Invoice from the dropdown box:
A purchase invoice entry screen appears. After the actual supplier is selected, a purchase invoice is created, carrying forward relevant
information.
From sales orders
If an internal sales order was created in response to a customer’s order, but items to fulfill it were purchased from outside suppliers, a
purchase invoice representing the supplier’s sales invoice can be created directly from the sales order. This is useful when no purchase order
was created in MYBOS. (If one was, create the purchase invoice from the purchase order, as described above.)
Exactly as when creating a purchase invoice from a sales quote, select New Purchase Invoice from the dropdown box:
From your own sales invoices
Another method for creating a purchase invoice is from your own customer sales invoice. This option might be useful when a business keeps
records of goods and services from a supplier and does not require a sales invoice from the supplier. Instead, the business assumes it must
pay its supplier for what it has invoiced its customer.
Again, select New Purchase Invoice from the dropdown box on the sales invoice:
From goods receipts
A final method is from a goods receipt. This method can be helpful when suppliers send merchandise for inspection prior to issuing an
invoice or automatically replenish stock based on contractual terms.
As with other methods, select New Purchase Invoice from the dropdown box on the goods receipt:
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Recurring Sales Invoices
New Recurring Sales Invoice
New Recurring Purchase Invoice
Set up and manage recurring invoices
Recurring sales or purchase invoices are useful if your business routinely issues similar sales invoices to customers or receives similar
invoices from suppliers. Once you have set them up, MYBOS will notify you they are ready to be created when they come due at the
prescribed intervals. Recurring invoices are often used for:
• Customer subscriptions
• Monthly service billings
• Insurance premiums
• Organizational memberships and dues
• Rent
• Utilities payments
Set up a recurring invoice
There are two methods for setting up recurring invoices. These are identical for sales and purchase invoices.
First method
The first method for creating a new recurring invoice is to go to the
:
tab and click or
OR
Click or :
OR
Second method
The second method is to use the
function while viewing an existing invoice you want to make recurring:
OR
Settings
Recurring Purchase Invoices
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Create
Caution
Recurring invoices in MYBOS are templates from which actual invoices will be generated later. Setting up a recurring
invoice does not affect your customer or supplier balances, customer or supplier statements, inventory, income, or
expenses. In fact, while MYBOS will notify you recurring invoices are pending, it will not automatically generate them for
you. This avoids problems if you need to edit an invoice before issuing it or you forget to enter a service modification.
For either method
Whichever way you begin, enter Next issue date to establish when the first recurring invoice will be created:
If desired, enter how the optional Due Date should be calculated. If nothing is entered, MYBOS will assign the issue date as the due date:
Select an Interval to control how often this recurring invoice will be created:
Select whether the recurring invoice will be good Until further notice or Until a specific date:
Enter remaining information as if creating a regular sales invoice or purchase invoice and click . On the
or
Interval. Termination date (if set) will also be shown:
screen, Next issue date will be updated based on the selected
Generate invoices
When one or more recurring invoices are due (or past due) to be issued, two notifications are provided. The first is a yellow counter window
in the left navigation pane showing the number of recurring invoices for which invoices are pending (not the number of pending invoices,
which could be higher if you have not kept up by creating invoices that are due).
Recurring Sales Invoices
Recurring Purchase Invoices
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Sales Invoices
Create
Sales Invoices
Purchase Invoices
Edit
View
Delete
Edit
Settings
Update
The second notification occurs any time you go to the or
least one recurring invoice is pending:
tabs. You will see a yellow notice that at
Click on the yellow bar to review invoices to be generated, then press :
All pending invoices will be immediately created under the or tab, depending on which you are
in. You can further or them without affecting future recurring invoices:
Cancel a recurring invoice
When circumstances change, such as when a customer cancels a subscription or you stop regularly purchasing a product, you may want to
cancel future recurring invoices. Click for the recurring invoice in , then :
The recurring invoice will be removed from the list and no new invoices will be created from it. Cancelled recurring invoices cannot be
restored. They must be recreated from scratch.
Skip an invoice
If recurring invoices must be skipped, but routine invoicing will resume in the future, click for the recurring invoice in .
Set a new Next issue date, then click to save the change.
Example
One recurring sales invoice has generated pending invoices. The left navigation pane shows:
Purchase Invoices
Edit
Settings
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Example
Northwind Traders purchases 100 units of an inventory item at a unit price of 4.00. Northwind’s supplier adds a shipping
charge of 20.00. The fully delivered average cost of the items is not 4.00, but 4.20.
Add freight-in to inventory item costs
Freight-in represents the cost of obtaining goods from a supplier. This obviously includes transportation and shipping costs, but could also
include handling and brokerage fees, customs charges, and so forth, as long as you do not need to record those as expenses in separate
accounts. For typical accounting purposes, freight-in is added into the cost of goods, just as though the supplier charged a higher price.
MYBOS provides two methods for entering freight-in costs:
• Manual allocation
• Automatic freight-in distribution
Manual allocation
To manually allocate freight-in costs to an inventory item, add a separate line item to a purchase invoice or cash payment form. Choose the
same inventory item, but leave the Qty field blank. Edit the Description field to describe the freight-in costs.
Example
Your customer’s next recurring sales invoice for monthly service should be generated on 24 September 2015:
Your customer pauses the service subscription for one month; therefore, no invoice should be issued on 24 September. The
next invoice should be issued on 24 October, so you edit the recurring sales invoice in Settings :
You now see the next sales invoice is due 24 October:
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Notes
Manual allocation is the only method available for cash payments (non-credit purchases).
It should be used whenever freight-in costs of separate inventory items can be determined independently, such as from
separate line items on shipping invoices.
Manual allocation should also be used when freight-in costs are not proportional to line item amounts, such as when
inexpensive but heavy items cost more to ship than lighter but more expensive items. Just add multiple line items and
allocate the separate freight-in costs to their appropriate inventory items. Of course, to use this method, freight-in costs
attributable to different inventory items must be separately determinable.
Example
In the same situation as the previous example, Northwind Traders enters a purchase invoice and selects Freight-in in the
Item field:
Automatic freight-in distribution
Automatic freight-in distribution to a single item
When recording purchases with purchase invoices, freight-in can be added to inventory cost by adding a line item and selecting Freight-in in
the Item field. As for manual allocation, the Qty field can be left blank. Or it can be used to force MYBOS to calculate an Amount:
Results are identical to the manual allocation method.
Automatic freight-in distribution to multiple items
Example
Northwind’s purchase and related freight-in cost are manually entered as below:
The freight-in cost is added to the average cost of the item without affecting the quantity on hand:
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Example
Northwind purchases two items from the same supplier and wants to distribute freight-in costs proportionally. It enters the
following purchase invoice:
Freight-in costs are split according to the line item totals:
If you record the purchase of multiple inventory items on the same purchase invoice, you do not need to manually calculate the freight-in
cost per inventory item. Instead, add a line item and select Freight-in in the Item field. Leave the Qty field blank or use it to force calculation
of a Freight-in Amount. MYBOS will distribute the freight-in Amount proportionally (based on total amounts) to all inventory items
purchased. This is exactly the same process described above for automatic distribution to a single item. But in the prior case, all freight-in
cost went to the single item because it constituted 100 percent of the purchase.
Entering separate freight-in charges
When freight-in charges are billed by and paid to different suppliers than inventory item(s), separate payment forms or purchase invoices
are required. After all, you cannot record amounts paid to one entity on a transaction form for another. Examples include:
• Direct billing by freight companies
• Separate invoices from freight forwarders
• Fees from brokers
• Customs charges
For these situations, both manual allocation and automatic distribution are available. Manual allocation can be used in all cases. Automatic
distribution can be used under limited circumstances and includes drawbacks some users (or their accountants or auditors) may not like.
Manual allocation of separate freight-in charges
Manual allocation is most convenient when only one or very few inventory items are involved. (But see the Note below on a simple way to
enter data for many items.) It is required when freight-in costs are not proportionally distributed according to line item totals.
To use the manual allocation method, choose the inventory item to which a freight-in charge applies when entering the payment or
purchase invoice to the freight-in supplier, but leave Qty blank. Edit the description to describe the freight-in charge. Enter the freight-in
amount in the Unit price field. Repeat this process for every inventory item to which freight-in charges are being allocated. Dates on forms
for the purchase and freight-in do not need to match. Average costs will be correctly adjusted as of the transaction date for the freight-in
charge.
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Note
Entering freight-in charges manually for purchases involving many inventory items may seem tedious. But there is a simple
shortcut that can streamline the process. View the payment or purchase invoice by which the items were purchased. Click
Clone to generate a purchase form of the same type (payment or purchase invoice) listing all the same inventory items.
Edit the form for the different Payee or Supplier. Delete quantities and enter the desired freight-in allocations in
appropriate Unit price fields. Click Create .
A shortcoming of this method is that payments can only be cloned to payments and purchase invoices to purchase
invoices. So you cannot generate a freight-in purchase invoice in this way if the original purchase was by cash payment. Nor
can you create a payment form if the original purchase was by purchase invoice. In practical application, however, these
restrictions are usually not limiting.
Automatic distribution for separate freight-in charges
Automatic distribution is most convenient when there are many inventory items affected by the same freight-in charge. But it can only be
used when all these circumstances exist:
• Freight-in is to be distributed proportionally by line item amounts.
• Inventory items to which freight-in charges apply were all purchased via the same purchase invoice. (Automatic distribution cannot
be used if they were purchased via cash payment.)
• No other inventory items were on the purchase invoice.
• The purchase invoice does not predate a lock date set to prevent alteration of prior account periods’ records.
• Both the original supplier and the separate freight-in supplier are denominated in the same currency.
The drawbacks mentioned earlier are:
• A separate balance sheet clearing account must be created and used. This account can be an asset or liability account, since its
normal balance will be zero.
• Prior purchase invoices for inventory items must be modified with line items not on the original supplier’s sales invoices. This could
cause confusion if disputes arise or lead to adverse findings by auditors.
Example
Northwind purchases the same two inventory items from the same supplier as in the last example. They are shipped by a
separate shipping company at different times. The freight-in charges are billed by the shipping company on the same sales
invoice, broken out by inventory item. The freight-in charges are not proportional, so manual allocation is mandatory. The
payment form or purchase invoice is completed as below:
Freight-in charges are allocated differently to inventory item average costs than in the previous automatic distribution
example:
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Example
Northwind Traders buys the same two inventory items. They are shipped by a separate shipping company. Northwind
enters the purchase invoice with no freight-in charges. When the sales invoice for shipping charges arrives, Northwind
enters another purchase invoice for the shipping supplier, posting the charge to Freight clearing.
Northwind then reopens the original purchase invoice for the inventory items, adds the Freight-in line and a second
reversing line:
The clearing account is zeroed and average costs are adjusted as below. The result is identical to entering Freight-in using
the automatic distribution method when freight-in charges are invoiced by the supplier of the inventory items (as in the
example two above):
Note
Whether using manual allocation or automatic distribution, if there are additional suppliers, such as for customs fees or
warehouse charges, the same process must be repeated for each one.
The automatic distribution method requires two separate transactions. First, create a payment or purchase invoice for the freight-in supplier.
Post the freight-in amount to Freight clearing or a similarly named balance sheet account. Second, reopen the original purchase invoice on
which affected inventory items were purchased. Add two line items to it. On the first, select Freight-in in the Item field. Make sure Qty is
blank (not zero). Enter the freight-in charge as the Unit price. On the second added line, leave Item blank. Select the freight clearing
account. Enter the freight-in charge as a negative number in Unit price.
The extra complexity arises because of the separate freight-in supplier.
Account for withholding tax (tax withheld at source)
Some tax authorities require withholding tax (also called tax withheld at the source) to increase tax law compliance and secure earlier
receipt of tax revenues. In simple terms, buyers are required to withhold a portion of the balance due on invoices and pay that portion
directly to the tax authority. Then, either the buyer or the tax authority provides certification of payment of withheld amounts to the seller.
The seller reduces subsequent payments of its tax liabilities by amounts already paid on its behalf by buyers.
Withholding tax may be a form of advance payment of income taxes, value added taxes, goods and service taxes, or some combination of
these and other types of tax. Because the entire process involves both buyers and sellers, MYBOS supports withholding tax accounting
through both its sales invoice and purchase invoice processes, though procedures are somewhat different.
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Notes
If various line items on the sales invoice are subject to different withholding rates, calculate the total amount to be withheld
manually and enter as an Amount. You may wish to explain the calculation in the Notes field of the sales invoice.
If withholding tax in your jurisdiction is not calculated on the total amount of an invoice, either (a) calculate the withholding
tax manually and enter an Amount or (b) lower the withholding percentage to offset any tax codes applied. Option (a) is
usually easier.
Sales invoice process
The sales invoice process applies when your business is the seller and you send sales invoices to your customers.
Activating withholding tax accounts
Withholding tax functionality for sales invoices does not require activation of any new tabs. Nor do you need to create any new accounts. All
necessary accounts are added automatically to your chart of accounts the first time you check the Deduct withholding tax box on a sales
invoice:
Two accounts are created in the Assets group, because the money they represent technically belongs to the business until it is eventually
used to pay taxes owed. They are:
• Withholding tax - This account records amounts your customers have paid to the tax authority that are available to offset your tax
bill.
• Withholding tax receivable - This account records amounts your customers owe to the tax authority on your behalf but have not
yet paid. If withholding tax had not been deducted from sales invoice balances, amounts in this account would be included in
Accounts receivable.
Applying withholding tax
When the Deduct withholding tax box is checked on a sales invoice, two options appear in a dropdown box, Rate and Amount:
OR
Because withholding tax is independent of any other tax code that may be applied, percentage amounts are calculated on the total due,
including other taxes. (Remember, withholding tax is not an additional tax, only a way for the tax authority to collect prospective taxes
earlier.)
Notes
As implemented in MYBOS, withholding tax does not refer to deductions on payslips of taxes due from employees. These
are referred to as Payslip Deduction Items and are explained in another Guide.
Withholding tax cannot be applied on cash receipts or payments, because the full amount of the transaction must be
recorded. Further, cash receipts cannot be associated with individual customers’ subaccounts as withholding tax must.
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Customers
New Receipt
Example
Sample Consulting invoices Brilliant Industries for advertising design services worth 1,000. (For clarity of illustration, all
other transactions have been removed.) In this case, no tax is due directly on the design services, but 10% must be withheld
by the customer against expected income tax. So the Deduct withholding tax box on the sales invoice is checked, and a
Rate of 10% is entered. The resulting sales invoice shows the customer how much to withhold from payment:
900 is posted to Accounts receivable and 100 to Withholding tax receivable:
In the Customers tab, a new column appears showing Withholding tax receivable:
Recording customer remittance
When the customer remits the withheld tax, either the customer or the tax authority will send you some form of “proof” of the remittance (a
certificate, account statement, voucher, etc.). This “proof” can be recorded in MYBOS by clicking on the Withholding tax receivable
figure in the tab, then on :
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Create
Example
Sample Consulting receives proof of remittance by Brilliant Industries. It enters a transaction for 100. The balance sheet
shows the movement between the two accounts:
Enter Date and Amount of the customer’s remittance. A Description is optional:
Click to record the transaction. The transaction amount will move from Withholding tax receivable to Withholding tax .
Using Withholding tax to pay tax bill
When a tax filing is made, the balance of Withholding tax is available to offset your tax due. Indicate the amount being applied on the
appropriate forms of the tax authority and submit with your filing. This step in the process does not occur in MYBOS, only in your tax
filing.
To record your application of available withholding tax credits in MYBOS, use a journal entry. Credit Withholding tax and debit either:
• An appropriate expense account, such as Taxes paid, if the tax is an obligation of the business, or
• An equity account, such as Owner’s equity or Capital accounts, depending on your form of organization, if the tax is an obligation of
the owner or partners.
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Purchase invoice process
The purchase invoice process is simpler, and no automatic accounts are involved, because there is no need to transfer withholding tax
amounts between accounts based on actions outside the company. When your business is a buyer, you need only withhold tax, remit it to
the tax authority, and possibly provide notification (if required by local law) to the supplier.
Setting up a Withholding tax payable account
Tax you withhold from payments to suppliers is a liability of your company, because you owe that tax to the tax authority. So you must add a
Withholding tax payable account to the Liabilities group of your chart of accounts. Follow procedures in another Guide to add the account:
Recording withheld tax
When entering a purchase invoice to which tax withholding applies, you have two concerns:
• Posting the full amount of purchases to the appropriate asset or expense accounts. This ensures fixed assets, inventory, and
operating expenses are reflected at their actual costs. (Remember, withholding tax is not an expense of your company, so it should
not affect other financial results. You are only acting as collection agent for the tax authority of amounts that will eventually be due
from the supplier.)
Example
When it submits its tax filing, Sample Consulting applies the 100 from Withholding tax to its total bill. Sample Consulting is
a sole proprietorship, so its income is taxed on the owner’s tax return. Therefore, it makes a journal entry debiting Owner’s
equity and crediting Withholding tax. That account is zeroed out on the Balance Sheet.
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• Recording tax withheld for later remittance.
These two goals mean you need at least two line items on the purchase invoice. First, record purchased line items at their full costs, using as
many lines as necessary, just as though no withholding tax was involved. Post these line items to the same accounts you normally would.
Second, add a line item for withholding tax at the amount indicated on your supplier’s sales invoice. Enter the withholding tax as a
negative quantity so it reduces the balance due on the purchase invoice. Post this line item to Withholding tax payable, the account you
created for this purpose.
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Example
Sample Consulting purchases stationery worth 500 from Summit Supplies. Summit’s sales invoice shows a 10% deduction
for withholding tax is necessary. Sample enters the following information in its purchase invoice:
450 is posted to Accounts payable and 50 to the Withholding tax payable liability account:
The full 500 cost of stationery is posted to an expense account:
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Example
Sample Consulting remits the 50 withheld from its payment to Summit Supplies via a bank payment:
The liability is cleared, but the reduced Accounts payable balance remains unchanged. The expense account where the
purchase was originally posted is also not affected:
Remitting withheld tax
When withheld tax is remitted to the tax authority, a payment is posted to the Withholding tax payable account.
Submitting notifications
Comply with local procedures when remitting withheld tax:
• File necessary information with the tax authority to indicate which suppliers’ withheld tax you are remitting.
• Notify suppliers of your remittance if required by law.
For assistance preparing notifications, drill down on the balance (or dash, if the balance is zero) of Withholding tax payable. All relevant
transactions will be listed.
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Example
Derek purchases 2 items for $100 each. The transaction would normally be recorded as follows:
Adjust rounding differences on purchase invoices
Rounding differences can occur when a supplier uses different methods to calculate discounts or taxes on its sales invoices than MYBOS
uses when you record those supplier sales invoices as purchase invoices. When a supplier sends you a sales invoice, you typically enter the
invoice into MYBOS as a purchase invoice, exactly the same way it appears on the supplier’s invoice.
The problem
A problem can arise if you are charged tax or when a discount is applied. Your supplier might use either of two methods for calculating taxes
and discounts:
1. Calculate tax and discount on each line item individually, round the amounts, then total them.
2. Total line item amounts, then apply taxes and discounts.
Most automated accounting systems (including MYBOS) use the first method, because individual line items are often posted to different
accounts and it is necessary that rounding be applied to each line item. The second method is typically used when invoices are prepared
manually, because fewer calculations are needed when taxes and discounts are calculated on the total invoice amount rather than each line
item. If your supplier uses the second method, the calculated total in MYBOS may be different from the total on the supplier’s invoice.
Example
Sample Consulting drills down on its Withholding tax payable account balance and obtains the following list:
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Note
The example shown above used discounts to illustrate the problem. Similar discrepancies can occur when tax codes are
used.
Example
Derek manually calculates discounted unit prices. He rounds and enters them in his purchase invoice. But he notices his
total is $0.01 low compared to the supplier’s invoice. So he adds one cent to the first unit price:
The solution
If a rounding discrepancy like this occurs, do not enter any amount in the Discount column on your purchase invoice. Instead, calculate
discounted unit prices manually and enter those in the Unit price fields. This gives you complete freedom to adjust the discounted,
rounded amounts manually so they add up to the total amount charged on the sales invoice received from the supplier. The selection of
which line item price to adjust is arbitrary and will generally have negligible impact on average unit cost of any inventory items involved.
Regardless, the difference must be taken up somewhere so your purchase invoice total matches the supplier’s sales invoice.
Example
Derek buys two different items from his supplier for $11.55 and $24.59 and receives a 3% discount. No tax is assessed.
Derek creates a purchase invoice in MYBOS (using the first method), so the discount is applied to individual amounts, the
line figures are rounded, then the two discounted prices are totaled. $11.55 is discounted to $11.2035 and rounded to
$11.20. $24.59 is discounted to $23.8523 and rounded to $23.85. The total using the first method is $35.05, shown on his
purchase invoice as below:
But Derek’s supplier used the second method. Both prices were added before any discount, that is:
$11.55 + $24.59 = $36.14
Then the 3% discount was applied and the result rounded:
$36.14 x 0.97 = $35.0558 ~= $35.06
So there is a small difference between MYBOS and Derek’s supplier. Derek is tempted to ignore it. But if he wants his
accounting for Accounts payable and Tax payable (if tax codes are used) to be correct, he must resolve the difference.
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Sales Invoices
Purchase Invoices
Sales Invoices
If a discrepancy occurs due to tax calculations, enter into the Unit price field the tax-inclusive price and check the box on the purchase
invoice form to make the amounts tax-inclusive:
Resolve overpaid status on invoices
Since MYBOS version 17.9.28, both sales and purchase invoices can become overpaid when more has been received (for a sales invoice) or
paid (for a purchase invoice) than the original total of the invoice. This results in the Balance due for the invoice showing as a negative
amount. MYBOS will display Overpaid in the Status column of the main or tab listing.
There are many reasons an invoice could become overpaid:
• The customer pays more than the invoice total.
• A receipt from a customer or payment to a supplier is allocated to the wrong invoice.
• A credit or debit note is posted to an already-paid invoice.
• A receipt or payment is posted to a correct invoice to which MYBOS has already distributed money automatically because an
invoice was not selected during a previous transaction entry.
Overpaid invoices are considered bookkeeping errors. MYBOS will display overpaid invoices at the top of or
tab listings so you can see and can resolve them. You should resolve overpaid status before sending out customer
statements.
Viewing the invoice ledger
To determine the specific reason an invoice is overpaid, view the ledger for that invoice. To access the ledger, click on the blue amount
under the Balance due column in the tab list:
This will reveal all transactions posted against the specific invoice (including the invoice itself) and a running balance:
Resolving overpaid status
Resolve overpaid status by editing one or more of the transactions in the invoice ledger.
Purchase Invoices
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Sometimes overpayment on invoices can be due to mixing automatic and explicit allocations. When you record a receipt from a customer or
payment to a supplier, but do not specify the invoice, MYBOS will automatically allocate the transaction to the unpaid invoice with the
oldest due date. But if the transaction was intended for a specific invoice, it should be recorded that way.
Example
Brilliant Industries was issued a sales invoice for 1,000. By mistake, Brilliant paid 1,100, resulting in overpayment of 100 on
the invoice:
To resolve this issue, you edit the transaction where you recorded the receipt of 1,100 and split the amount so only 1,000 is
allocated to the invoice and 100 remains unallocated:
After the transaction is updated, the invoice status shows Paid in full:
The unallocated 100 is applied to any unpaid invoices Brilliant has, oldest due date first, or remains as a credit to be applied
to future invoices.
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Example
You have issued a sales invoice to Antonio Moreno Taquería for $3,370.00 and MYBOS has automatically applied credit
of $2,345.30, leaving a balance due of $1,024.70:
Resolve issues with automatic credit allocations
When you enter a new sales or purchase invoice, you might find that MYBOS automatically credits the invoice with some amount, making
the Balance due less than the invoice Total:
Example
Brilliant Industries has two unpaid sales invoices. The first is for 5,000 and the second for 150:
They pay 150 and you record this receipt without specifying an invoice. MYBOS allocates 150 to the oldest invoice,
decreasing its balance due from 5,000 down to 4,850, while keeping the balance due on the second invoice unchanged:
Then you receive 5,000 with a remittance advice specifying the payment is for the earlier invoice. If you allocate 5,000 to the
first invoice, you would end up with over-payment of 150 on first invoice and the balance due still being 150 on the second
invoice:
Obviously, Brilliant doesn’t owe you anything. So you should click on the negative Balance due amount, find the payment
of 150 that was automatically allocated to the bigger invoice and reallocate it to the smaller invoice. Now all invoices are
shown correctly and the customer’s Accounts receivable balance is correct:
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Customers
This automatic credit allocation happens when the customer or supplier has a pre-existing credit balance. In other words, you owe a
customer money or a supplier owes you money. Normally this is the desired outcome. You want any credits to be automatically applied to
invoices, so you are not trying to collect from a customer more than is really owed to you and you don’t pay suppliers more than you really
owe them. For example, if a customer has a credit balance of $100 due to a credit note, MYBOS will remember this until the next invoice is
issued to that customer and will automatically apply the $100 credit to it without your having to keep track of it. But if you are certain the
customer or supplier didn’t have a credit balance, such an automatic credit allocation indicates something has been recorded incorrectly.
In the example above, the problem is easy to diagnose. A bank receipt was applied to the sales invoice. You can look up that receipt in
MYBOS, determine who it was from, and decide whether an error was made. Or, the customer may have simply overpaid its account, in
which case everything is as it should be.
But suppose you know this customer didn’t have any credit with your company, and the mini-statement on the invoice refers to something
like a starting balance or a credit note. So you want to discover the origin of this credit. The best way is to view the customer ledger by
going to the tab:
Locate the customer and click the balance in the Accounts Receivable column.
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Example
To track down more information about the sales invoice in the first example, click the customer’s balance:
This will reveal the customer’s ledger:
There, you see invoice 2650 for $1,284.60 and a receipt for the same amount on 08/05/2017, which was payment for that
invoice. However, you also see another receipt for $2,345.30 on 26/04/2017, which you suspect was not paid by this
customer. After looking at your bank statement, you discover this amount was actually paid by different customer and
attributed to Antonio Moreno Taquería in error. You can Edit the receipt to fix the error and attribute the receipt to
correct customer. Any other source would have been revealed in the same manner.
You take one final look at customer ledger to verify all transactions belong to this customer:
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Note
While the example illustrates an erroneous credit being automatically applied to a sales invoice because of incorrect
attribution of a receipt from a customer, similar mistakes can happen with purchase invoices and payments to suppliers.
Detection and correction procedures are the same.
Some bookkeeping errors can be discovered immediately; some can take weeks or even months to discover. Used properly, MYBOS’s
double-entry accounting system ensures all errors will be eventually discovered.
In the example above, even if you didn’t notice the bookkeeping error, eventually the customer who actually paid $2,345.30 on 26/04/2017
would complain that its customer statements did not reflect the payment. Or your Aged Receivables report would show that customer’s
account becoming more and more overdue. Sooner or later, you would discover the payment having been attributed to the wrong
customer.
Offset simultaneous sales and purchase invoices
If you have a customer who is also a supplier, you may sometimes have simultaneous, outstanding sales and purchase invoices with the
same business. In MYBOS, all sales invoices are subaccounts of Accounts receivable, while purchase invoices are subaccounts of Accounts
payable. This lets you easily offset outstanding sales and purchase invoices against one another using contra journal entries.
Now, when you view the invoice, no amount is automatically credited:
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Journal Entries
New Journal Entry
Example
The smaller amount in the example above is the 200 purchase invoice. So a journal entry is created:
It makes no difference whether the sales or purchase invoice is larger; the procedure is identical. To make an offsetting contra entry, go to
the tab and click :
In your journal entry, debit Accounts payable for the supplier by the smaller of the sales or purchase invoice balances. If the purchase
invoice has a reference number, it can be selected. Otherwise, leave the Invoice field blank. Credit Accounts receivable for the customer
and the sales invoice by the same amount.
If there are more invoices, do not select invoice numbers. Instead, enter as the contra amount the smaller of the total Accounts payable or
Accounts receivable balances for the business. (Check these in the and tabs.) MYBOS will automatically offset
outstanding sales and purchase invoices on the basis of oldest due dates. But still debit Accounts payable and credit Accounts receivable.
Example
You have a customer who owes you 1,000 from a sales invoice:
At the same time you have made a credit purchase for 200 from this same business (as a supplier):
Instead of paying your customer 200 while receiving 1000, you can make a contra entry decreasing the balance due on your
sales invoice by the amount of the purchase invoice.
Customers
Suppliers
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Debit Notes
NOTE
A debit note should not normally be used if the original transaction was a cash purchase, because the purchase will not
have been recorded in the supplier’s subaccount in Accounts payable. In such situations, a direct receipt should usually be
entered in the Receipts & Payments tab. In these cases, enter quantities returned to the supplier as negative numbers.
However, if the cash seller has also been defined as a supplier and offers an account credit rather than a cash refund, a
debit note may be used.
Debit Notes
Use debit notes for supplier returns and refunds
A debit note records an adjustment by a supplier of the amount owed to that supplier by a business. Typically, a debit note is created in
response to a credit note received by the business from a supplier, although not all supplier credits are formally documented. Debit notes
are internal; that is, they are not normally provided to the supplier. They might be for:
• Return of goods
• Adjustment (refund) of price for goods or services previously delivered
• Overpayment of amounts billed
A debit note makes all necessary corrections to inventory, expense, and tax accounts. It does not record actual receipt of money from the
supplier, but only adjusts the supplier’s balance in Accounts payable. A debit note can be created regardless of whether the supplier has yet
been paid for the goods or services.
Enable the tab
Before debit notes can be created, tab must be enabled. Click below the left navigation pane, check the
box for , and click list:
Example
After making the journal entry illustrated above, your purchase invoice will be marked as paid in full, even though your
payment was actually via contra entry:
The balance due on the sales invoice will decrease by 200:
the Debit Notes
Update below the
Customize
Debit Notes
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Debit Notes
New Debit Note
Create
Caution
If automatic sequencing is used, the number assigned will be higher than any previously assigned number,
including suppliers’ numbers. Therefore, best practice is to use either all suppliers’ numbers or all automatic
numbers.
Create a debit note manually
In the tab, click on :
Complete the form:
• By default, today’s Issue date is prepopulated. Normally, this date is edited to match the date of the supplier’s credit note.
• Reference can be used to enter the supplier’s credit note number. If the box within the field is checked, MYBOS will assign a
number automatically. The program will find the highest number among all existing debit notes and add 1.
• A previously defined Supplier must be selected in the dropdown box.
• After a supplier has been selected, an optional Invoice field appears. If the debit note applies to a specific invoice, select it from the
dropdown list:
• Line items being returned or adjusted can be completed semi-automatically by selecting predefined inventory or non-inventory
items in the Item field and entering quantities. Or, they may be entered manually.
• Applicable Tax codes can be selected.
• A Tracking Code can be selected, if they have been defined.
• Additional lines can be added 1, 5, 10, or 20 at a time.
Save the transaction by clicking :
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Copy a purchase invoice to a debit note
Debit notes can also be copied from purchase invoices. While viewing a purchase invoice, click
and select New Debit Note:
Receiving a refund
If a supplier refunds the credit balance, receive money into a bank or cash account, allocating the refund to Accounts payable and the
supplier’s subaccount. When a receipt is recorded, the balance of Accounts payable to the supplier will move in the positive direction:
Copy to
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Chapter 8: Inventory
Inventory includes tangible goods held for sale or production. Inventory management can be complex, and MYBOS’s behavior changes,
depending on which functional tabs are enabled. Read Guides in the Overview section first to see which capabilities you want to use.
Overview
Manage inventory - Part 1 Introduction
Inventory comprises goods held by a business for sale or production. It does not include fixed assets, such as equipment or buildings. Nor
does it include tools or consumable supplies used during operations. The value of inventory is an asset, because it can generate future
income. Therefore, it appears on a company’s balance sheet.
So inventory must be counted and valued. It must be tracked as it is produced, bought, or sold. MYBOS includes many features to help
manage inventory. Some are essential; others are optional. Program behavior changes, depending on which tools are used. This Guide
explains how various tools and capabilities interact so you can decide which to use in your situation. It is divided into three parts:
Introduction, Continuation, and Conclusion. You are reading Part 1 Introduction.
The three parts of this Guide do not furnish detailed, step-by-step instructions for enabling functional tabs, completing transaction forms, or
generating reports. Those can be found in other Guides, to which hyperlinks are provided. Instead, they focus on relationships between the
inventory management features of the program:
• Inventory items are defined elements by which inventory is managed. They can have purchase and sales prices, specified tax codes
to be applied, and individual units of measure. Their costs and revenues can be assigned to custom accounts. Most importantly,
they have standard item codes, names, and descriptions by which they can be referenced.
• Purchase invoices record purchases of inventory items from suppliers on credit.
• Sales invoices record sales of inventory items to customers on credit.
• Goods receipts document receipt of goods at a location or from a supplier.
• Delivery notes document delivery of goods to a location or customer.
• Debit notes record return of goods to suppliers.
• Credit notes record return of goods to your business from customers.
• Cash receipts and payments record transactions of inventory items paid at the time.
• Production orders record in-house manufacture of inventory items from other inventory items and non-inventory cost inputs.
• Inventory kits are data entry shortcuts for combinations of inventory items stocked individually but sold together under a single
identification. (The items may also be sold individually in other transactions.)
• Inventory locations are discrete places where inventory items are physically stored, such as different warehouses or shops.
• Inventory transfers record movement of inventory items between inventory locations.
• Inventory write-offs document the loss, damage, or other non-revenue-producing reduction of inventory.
• Inventory reports provide information on changes in quantities, values, or locations of inventory. They also list profitability and
price of inventory items.
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Example
All three parts of this Guide illustrate various aspects of inventory management using an example company, Brilliant
Industries. Brilliant Industries sells electric lamps and lamp parts at wholesale. It is not required to collect or pay any taxes
on sales or purchases in its jurisdiction. Brilliant has 6 different items in inventory and assigns 3-digit item codes:
Brilliant currently has two customers and two suppliers:
AND
So far, Brilliant Industries has enabled just three tabs related to inventory management ( Reports is always enabled for all
businesses):
•
•
•
Customers
Suppliers
Inventory Items
Purchasing inventory
Inventory can be purchased with purchase invoices or cash payments.
Note
Purchase orders and sales orders are not included in this discussion because they are not actual financial transactions and
have no impact on inventory. They are convenient shortcuts for recording orders to suppliers or from customers. And they
can by copied to other transactions that affect inventory. But in the current version of MYBOS, purchase orders do not
adjust inventory availability or backorder status. Nor do sales orders commit inventory to a particular customer or future
sales transaction.
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Example
Brilliant Industries buys an initial stock of inventory via a combination of purchase invoice and cash payment. ACME
Distributing presents its sales invoice upon delivery of the merchandise. So as soon as Brilliant enters the corresponding
purchase invoice, the items are considered to be in stock. Edison Electrical Supply sells only over the counter. So Brilliant’s
owner leaves Edison’s warehouse with purchased items in hand, having written a check on the spot.
Brilliant enables the Purchase Invoices tab. The Bank Accounts and Receipts & Payments tabs were enabled
when the company’s bank account was established. (As Brilliant enables tabs, it sets up all forms for automatic sequential
reference numbers under Form Defaults.) The two transactions are entered as below:
Since all transactions were complete when they were entered, there is no need for Brilliant Industries to enable the
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Average cost
MYBOS employs the perpetual average cost method for inventory valuation. This method divides the total acquisition cost of units of an
inventory item in stock by the number of that item in stock. Thus, if more units are acquired at a cost higher than the current average cost,
the average cost of all units will go up, no matter how many units are acquired or in stock or what their individual costs were.
When items are produced, the cost of inventory consumed is transferred to the new finished goods at the average cost of each input item.
Any non-inventory costs are also apportioned among the finished goods.
Producing inventory
When inventory items are produced in-house, production orders record consumption of resources and output of new finished goods.
Goods Receipts tab. The Inventory Items list shows the results of the two purchases:
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Example
Brilliant Industries can buy finished table lamps from ACME Distributing. But it can also produce them from parts purchased
from various suppliers. It decides to manufacture a batch of 3 table lamps. So it enables the Production Orders tab and
enters the following production order:
The inventory listing shows the increase in finished table lamps, as well as reductions in the three items that went into
production. Also notice that average cost of table lamps has declined because of the production order. The cost of input
items for a lamp (87.00 + 24.35 + 3.25 = 114.60) plus labor (75.00 / 3 = 25.00) is less (139.60) than the purchase cost of a
finished lamp (195.00). In other words, Brilliant Industries can assemble table lamps itself for less than it can buy them,
potentially allowing more profit:
Also note that total value of inventory has risen because of the 75.00 labor cost to manufacture 3 lamps. The company now
has more invested in its inventory. But it can also sell that same inventory for much more because of the value added
through manufacturing operations.
Selling inventory
Inventory can be sold with sales invoices or cash receipts.
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Example
Brilliant Industries sells products to Bob’s Hardware. It enables the Sales Invoices tab and records the sale on the
following sales invoice:
It also sells 1 case of LED bulbs to Lumen Lighting for cash, and enters that transaction as a receipt:
Quantities on hand have decreased for table lamps, 60 Watt bulbs, and LED bulbs:
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Example
If Brilliant Industries had sold 3 cases of LEDs to Lumen Lighting in the previous example, a backorder situation would exist,
because only 2 had been purchased and were on hand. The inventory list would show a quantity on hand of -1:
Notice that total cost of this item has dropped to zero, and average cost is non-existent because there is no inventory.
Understanding backorders
When you have sold more inventory items than you own (have on hand) the situation is described as a backorder. That term is somewhat
misleading, because additional stock has not necessarily been ordered. This situation shows up in MYBOS as negative inventory quantities.
The negative quantity indicates how many units of the inventory item must be purchased or produced to satisfy existing sales.
Inventory reports
Four reports became available when the
tab was enabled:
• Inventory Value Summary lists opening balances, value added through purchases or production orders, cost (on an average cost
basis) of inventory sold, adjustments, and closing balances. The report can be generated for any defined period of time. An
inventory item that is out of stock for the entire period will not be listed, because there will be neither value nor value movement at
any time during the period. But an item that is in stock but has no movement will be included.
Because the goods were delivered immediately and either accompanied by a sales invoice or a cash receipt, Brilliant
Industries did not use the Delivery Notes tab. MYBOS treated all inventory movements as having happened
immediately.
Inventory Items
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Example
Brilliant Industries’ matching Inventory Quantity Movement report is below. Note the backordered LEDs second from the
bottom of the list:
• Inventory Quantity Summary corresponds closely with the previous report, but lists quantities instead of values.
• Inventory Profit Margin tabulates profits and margin rates on inventory items sold during a period. Items not sold during the
period are omitted.
Example
Brilliant Industries began the year with no inventory, made initial purchases, produced some lamps, and made sales. Its
Inventory Value Movement report is shown below. Notice that only the 2 cases of LEDs actually delivered are included; the
backordered merchandise will not appear until more are purchased and delivered:
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• Inventory Price List includes all current sales prices of inventory items. If a sales price is not defined, the item will not appear on
the list. If a custom field has been defined for inventory items, the report can be filtered by content of the custom field.
Example
Brilliant Industries sold only 3 different items during the reporting period, so only those show on the Inventory Profit
Margin report:
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Note
Because Inventory Value Summary and Inventory Quantity Summary reports are related to transactions within a specified
time period, they will not necessarily reflect total value or quantities of inventory on hand. That information can be
obtained by drilling down on the Inventory on hand account in the Summary tab or by clicking on the
Inventory Items tab. Both resulting lists can be exported to a spreadsheet program.
Example
Brilliant Industries’ full current price list is show below:
Brilliant adds a custom field for inventory categories. It filters the report for Finished lamps, with a corresponding title:
The resulting report appears below:
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Example
Brilliant Industries’ customer, Bob’s Hardware, returns one of the four white table lamps (Item code 101) it purchased in Part
1 due to a manufacturing defect. Brilliant creates a credit note:
The lamp is taken back at the same unit price as it was sold. If a tax code had been applicable upon sale, the same tax code
would be applied to the return. Brilliant will deal with issues of repair, replacement, or write-off later. These have nothing to
do directly with the credit note.
Note
When an inventory item is returned via credit note, its cost is transferred from the Inventory - cost expense account to the
Inventory on hand asset account according to the cost(s) posted to Inventory - cost for the most recent sales of that
quantity of the item (whether by sales invoice or receipt). MYBOS does not use the specific average cost applied when it
was sold to the customer returning it.
Manage inventory - Part 2 Continuation
Part 1 of this Guide on how to manage inventory covers purchasing, producing, and selling inventory items in MYBOS. It also covers
backorders and content of inventory reports when only basic functions are enabled. If you have not yet read Part 1, you should read it first.
This Part 2 covers more advanced features, including credit and debit notes, inventory kits, delivery notes, and goods receipts. It describes
how the program’s behavior changes when these additional functions are used. Information in Part 1 is not repeated here.
Part 3 describes additional capabilities: inventory locations, transfers, and write-offs. You will need to understand information in Parts 1 and
2 before you can use the capabilities discussed in Part 3.
Credit Notes
In one sense, credit notes can be thought of as an aspect of managing Accounts receivable. They reduce how much a customer owes your
business. But they can also impact inventory records when they record return of goods. Their effects are opposite those of a sales invoice, as
described in Part 1 of this Guide.
Debit notes
Debit notes are parallels of credit notes, but for returning goods to suppliers instead of taking them back from customers. Their effects on
inventory reverse those of purchase invoices.
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Settings
Note
Because there is no cost of goods calculation for purchases analogous to what occurs when inventory items are sold, there
is no transfer of costs back into the Inventory on hand account with a debit note. The full purchase price of the item(s)
returned is subtracted directly from Inventory on hand.
Inventory kits
The simplest enhancement of inventory management is use of inventory kits. These are not additional inventory items, but rather groups of
already-defined items that are sold together. The items that make them up may also be sold separately. They are defined in the
tab.
Inventory kits are not pre-assembled, but are grouped together only as sold. They are not counted during physical inventory verification,
because they do not exist until sold, so they have no value in Inventory on hand. When an inventory kit is sold, its constituent items are
subtracted from inventory quantities on hand (quantities owned) as though they had been sold individually, at their existing average cost.
Prices for inventory kits can be different from the sum of constituent prices.
Example
Brilliant Industries realizes it will probably not be able to sell as many silk lamp shades (Item code 388) as it purchased. So it
returns four to ACME Distributing for account credit. ACME sends a credit note, which Brilliant enters in MYBOS as a debit
note:
Again, had a tax code applied to the original purchase, the same tax code would be applied to the debit note. Overall
inventory status after both the credit and debit note from the last two examples are entered is shown in the
Inventory Items tab:
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Example
Brilliant Industries sells table lamps. It also sells a complete parts kit from which an end user can assemble a finished lamp.
It sells the kit for more than it would sell the individual components, making additional profit from the confidence a
consumer gains that all parts are compatible. Brilliant defines the following inventory kit:
Brilliant sells one of these kits to Lumen Lighting on the sales invoice below:
The quantities and values of all four constituent items go down by 1, as shown by the Inventory Items list. Note that
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Delivery notes
A major step up in complexity comes by using delivery notes. These document delivery of goods to a location or customer. Their use implies
that physical delivery of goods does not always occur simultaneously with issuance of a sales invoice or cash receipt. Possible reasons
include:
• Customer credit is not approved, so goods will not be delivered until payment is received.
• Items sold are backordered.
• Deliveries are spaced in time per contractual agreement.
• Products will be drop-shipped to an end user by a supplier.
• Sales invoices are issued immediately, with delivery notes serving as packing lists.
When the tab is enabled, the list immediately changes. Two additional columns are added for
quantity to be delivered and quantity owned. The original quantity on hand column now shows what should be found on premises, while
quantity owned represents what is available to sell.
the inventory kit itself does not appear in this tab:
Delivery Notes
Inventory Items
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Note
Since credit notes are effectively reverse sales invoices, MYBOS assumes movement of goods is not automatic once the
Delivery Notes tab is enabled. So delivery notes are required for credit notes, too, indicating that the credited goods
have been delivered to your business. If a delivery note is created by copying a credit note, quantities will automatically be
negative. If you create a delivery note manually, enter negative quantities.
Caution
MYBOS does not alert you to deliver backordered items sold by cash receipt when stock is replenished. Because the
program assumes all cash sales are delivered at the time of transaction, it does not designate unfulfilled quantities as still
needing to be delivered. Therefore, if you accept cash payment for inventory you do not have on hand, you will need a
separate method to remind yourself to deliver the remaining quantity. You can, however, drill down on a negative quantity
in the Inventory Items list to see transactions responsible for the backorder situation. And if a single transaction was
responsible, it is easy to confirm who the backordered quantity (shown by a negative balance) should be delivered to.
Example
Brilliant Industries enables the Delivery Notes tab. Its Inventory Items list changes, even though no new
transactions have been entered. Notice that net quantities of everything previously sold by sales invoice (3 table lamps, 6
packs of 60 W bulbs, and 1 complete parts inventory kit) now show as still to be delivered, including those items sold as
part of an inventory kit. Only items sold by cash receipt are considered to have been delivered. However, the backorder
situation with LEDs still exists. Because that sale of 3 cases exceeded stock on hand of 2 cases, Brilliant Industries still owes 1
case to Lumen Lighting:
Brilliant Industries enters delivery notes by copying from previous sales invoices and credit notes. It also purchases 5
additional cases of LEDs from Edison Electrical for cash. The backorder is cleared and all quantities to be delivered are zero:
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Example
Brilliant Industries is worried that some inventory may not be delivered immediately in the future. So it enables the
Goods Receipts tab to track goods it is awaiting from suppliers. All its prior purchase invoice quantities now show as to
be received. Quantities purchased with cash payments are assumed to have been delivered immediately:
Brilliant copies past purchase invoices and debit notes to goods receipts, and the quantities to be received are zeroed out.
Quantities on hand now match quantities owned:
Note
Just as credit notes require delivery notes, debit notes require goods receipts. In like fashion, quantities entered through
copying will automatically be negative.
Goods Receipts
Goods receipts provide capability that is a mirror image of delivery notes. That is, they record receipt of goods at a location or from a
supplier. When the tab is enabled, another column is added to the list showing quantity to be
received. Now, the inventory picture is complete. Quantities purchased but not yet received are displayed, as are quantities on hand, which
should be verifiable by checking stock. Quantities committed to delivery from previous sales and not available to sell to others are listed.
Quantities still owned and available for sale without additional purchases or production are visible, too.
MYBOS tracks partial receipts (and, for that matter, partial deliveries) as well as complete ones.
Goods Receipts
Inventory Items
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Note
Delivery notes and goods receipts are insensitive to workflow. MYBOS will allow you to receive or deliver goods before you
have purchased or sold them. Negative quantities to be received or delivered may show in the Inventory Items list
until covered by purchase or sales transactions. Quantities on hand and owned will be correct.
Example
Lumen Lighting orders another 6 cases of LED bulbs. But Brilliant has only 4 cases in stock, but thinks it can obtain more
stock quickly and enters the sales invoice. That produces a backorder of 2 cases:
So Brilliant buys 5 more cases from ACME Distributing on credit, entering a purchase invoice, only to find out delivery will
be delayed several weeks:
Hoping to keep a customer happy, Brilliant delivers the 4 cases it has on hand, entering a delivery note:
ACME surprises Brilliant, making a partial delivery of 3 cases, so Brilliant enters a goods receipt for that quantity:
Now Brilliant Industries can fulfill the remaining balance of 2 cases on its sales invoice to Lumen Lighting. It enters a
delivery note for the final 2 cases:
Brilliant now has 1 case in its warehouse and awaits receipt of 2 more. When they arrive, it enters a final goods receipt for 2
cases and sanity is restored:
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Settings
Inventory reports with delivery notes and goods receipts
Inventory reports available are not affected by activation of and tabs. All reports are based on items
owned. Thus, they reflect purchases and sales, regardless of whether items have been received or delivered.
The effects of credit and debit notes are shown in the Adjustments column on the Inventory Value Summary. They appear in dedicated
columns in Inventory Quantity Summary reports.
Inventory kits are not included in the Inventory Price List report. A list of inventory kit descriptions and prices can be obtained by exporting
the page in the tab.
Manage inventory - Part 3 Conclusion
Part 1 of this Guide on how to manage inventory covers purchasing, producing, and selling inventory items in MYBOS. It also covers
backorders and content of inventory reports when only basic functions are enabled. If you have not yet read Part 1, you should read it first.
Part 2 covers more advanced features, including credit and debit notes, inventory kits, delivery notes, and goods receipts. It describes how
the program’s behavior changes when these additional functions are used. If you have not read Part 2, you should read it after Part 1.
This Part 3 describes additional capabilities: inventory locations, transfers, and write-offs. You will need to understand information in Parts 1
and 2 before you can use the capabilities discussed here. To begin, here is the complete status of inventory after all transactions described in
the ongoing story of Parts 1 and 2:
Inventory locations
Inventory locations are separate places where physical inventory is held, such as warehouses, retail shops, and workrooms. They are defined
under . By default, all inventory is held at a location named Unspecified location until transferred elsewhere.
Caution
Think carefully before enabling the Delivery Notes or Goods Receipts tabs. Once you have started using them, you
must continue. MYBOS will not allow you to disable the tabs after the first delivery note or goods receipt exists. All
delivery notes and goods receipts would need to be deleted before the tabs could be disabled. The functionality these
tabs provide can be very important for some businesses. But they also entail extra work every time an inventory item is
purchased or sold or goods are returned. Consider creating a test company to explore whether they are truly necessary for
your business. They can always be added later.
Delivery Notes
Goods Receipts
Inventory Kits
Settings
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Example
Brilliant Industries must now make a location selection on every cash receipt or payment and every delivery note or goods
receipt:
If inventory locations have been defined, a field appears on cash receipt and payment forms whenever an inventory item is added to select
which Inventory location the items will be delivered from or received into:
A cash sale or purchase is presumed to involve immediate delivery or receipt of goods from or to a location that can be specified at the time
of the transaction.
The same field will appear on sales and purchase invoices unless the and tabs are enabled. Then,
location must be selected on the corresponding delivery note or goods receipt. This is because a credit sale or purchase may involve
delivering or receiving goods from or to different locations at different times.
Inventory transfers
To move inventory between locations, enable the
tab. Transfers can shift one or more inventory items in any
quantities between locations, regardless of whether the stock is owned by the business or already committed in a sales transaction. MYBOS
will correctly track which stock is owned, to be delivered, etc.
Example
Brilliant Industries decides to open a second warehouse for inventory storage and shipment. It names the original
warehouse North warehouse and the new one South warehouse:
Delivery Notes
Goods Receipts
Inventory Transfers
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Example
Brilliant Industries uses an inventory transfer to move about half its inventory from the Unspecified location to North
warehouse. In our example, this transaction only assigns inventory to the new location name, since the physical location has
not changed:
Brilliant transfers the remaining inventory to South warehouse with a similar inventory transfer. A new report, Inventory
Quantity by Location, became available when the new locations were created. That report now shows where all Brilliant’s
stock is stored:
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Inventory write-offs
Inventory is sometimes lost, stolen, damaged, or spoiled and no longer available for sale. Or, it may be consumed for internal company
purposes, given away for marketing reasons, and so forth. In these situations, the value of inventory must be transferred to an appropriate
expense account. Inventory write-offs accomplish such transfers and correct quantity counts. To write off inventory, first enable the
tab.
Example
Brilliant Industries uses several 60 W light bulbs from its inventory when moving into the new south warehouse. So it writes
them off to a Repairs and maintenance expense account:
The procedure would have been identical if those light bulbs had been broken during the move, but a different expense
account might have been chosen. The Inventory Quantity Summary report reflects the adjustment:
The Inventory Value Summary report likewise shows an adjustment to value and average cost. And the Inventory Quantity
by Location report shows a reduction in quantity on hand at the south warehouse.
Inventory Write-offs
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Note
You can assign inventory items to custom control accounts. You can also designate accounts of your choosing for posting
of inventory sales and cost of sales on an item-by-item basis. See another Guide for instructions.
Inventory effects on financial statements
Inventory transactions affect both the Balance Sheet and Profit and Loss Statement. Many transactions are posted by default to accounts
created automatically by MYBOS as relevant tabs are enabled. The principal accounts involved are used as follows:
• Inventory on hand, an asset account, reports the value of all inventory items owned but not yet sold. Recorded inventory value can
generate future income.
• Inventory – sales, an income account, records revenue earned from sales of inventory items.
• Inventory – cost, an expense account, records the cost (at average cost) of inventory items sold.
Additionally, expense accounts are typically created to collect non-inventory costs of production orders, write-off expenses for advertising,
breakage and loss, and internal consumption.
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Caution
If cash basis accounting is employed, inventory transactions on open sales and purchase invoices are ignored. This can
result in large differences between the main financial statements and inventory reports, making it very difficult to reconcile
and verify accounting records. A more complete and accurate representation of business position and performance is
provided by accrual basis accounting. For this reason, most accountants strongly prefer accrual basis accounting. And in
some tax jurisdictions, companies selling inventory are legally required to use it.
Example
Brilliant Industries’ Balance Sheet and Profit and Loss Statement for the year encompassing all example transactions in the
three parts of this Guide are shown below. (The business began the year with 10,000 in the bank. Zero balances are
suppressed. Accrual basis accounting is selected.) For purposes of illustration, no other transactions are included:
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Inventory Items
Note
Inventory items are used for sale, purchase, and management of physical goods, because they support counting quantities
on hand, monitoring stock movement, and calculating profitability. For commonly sold or purchased goods or services that
are not managed in this way, use non-inventory items.
Inventory Items
Create and manage inventory items
Inventory items are used to identify, count, and manage physical goods or materials held by a business for sale or production. They are
used when entering line items in many transaction forms in MYBOS. Beyond being the foundation of quantity monitoring, they:
• Standardize terminology by always referring to a product with identical language
• Improve accounting accuracy by always posting similar income or expense items to the same accounts
• Store and apply consistent prices to frequently sold or purchased goods
• Speed up entries by automatically filling information on forms
Enabling the tab
To use any inventory-related function in MYBOS, enable the Inventory Items tab. At the bottom of the left navigation pane, click
, check the box for Inventory Items, and click Update below the list:
Basic steps for creating inventory items
In the tab, click the button:
Complete the definition:
• Item code can be anything that helps find, sort, or categorize the item. This could be a stock-keeping unit (SKU) code, a model
number, or a simple memory aid. It must be unique and should be short. Codes will appear on forms if they are used. Serial
numbers are not acceptable item codes, because every unit of inventory would be treated as a separate product.
Customize
Inventory Items
New Inventory Item
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Production Orders
Settings
Notes
Production stages ensure final inventory item costs added to Inventory on hand properly include the current average costs
of all input inventory items by executing production orders in the correct sequence. They also help prevent confusing
automatic entries when production orders drawing on the same inventory item are entered on the same day.
More details about production stages is found in another Guide.
• Item name should be a relatively brief, informative name for the inventory item. It will appear when searching for an inventory item
to complete a line item. It will also appear on various management reports. If no further description of the item is entered, Item
name will appear in the Description field on completed forms, such as sales invoices.
• Unit Name is optional, but can be used to specify units by which the item will be sold, purchased, and counted. Only one unit name
is allowed; if materials are purchased and sold in different units, either apply conversions before making entries or create separate
inventory items and use production orders or inventory kits to handle the differences.
• Purchase price is the price at which the item is usually purchased. This can remain blank if prices vary from purchase to purchase.
If a purchase price is entered, it will be automatically populated into purchase-related forms, but can be edited.
• Sales price is the price at which the item will be sold. Leave blank if the sales price frequently changes. If a sales price is entered, it
will appear automatically on sales-related forms, but can also be edited.
• The Description field is for more comprehensive information. Its contents, if present, will appear on finished forms in place of Item
name, so it should also adequately identify the item, not simply add detail. Anything a customer or supplier should see can be
placed into this field.
• Production stage appears only when the tab is enabled and the first production order has been entered.
The default entry is 1. Higher integer numbers can be entered when a finished item requires other items to be produced or
purchased first.
Click Create to save the inventory item (or continue by adding additional detail as described below). The inventory item will be visible in
the Inventory Items tab:
Adding detail to inventory items
Additional options are available by making selections in dropdown lists or checking boxes. Relevant information defined this way will be
prefilled when the inventory item is added to a transaction:
• If at least one Tax Code has been created under
dropdown box. This choice can be edited on forms.
• If at least one Tracking Code has been created under
This choice can also be edited on forms.
Several accounts are activated automatically when the
inventory transactions will post to these:
• Inventory on hand, an asset account
• Inventory - sales, an income account
• Inventory - cost, an expense account
, the one usually applicable to the inventory item may be selected in a
, one usually applicable to the inventory item may be selected.
tab is enabled and the first inventory item is created. By default,
Settings
Inventory Items
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Edit
For many businesses, these are sufficient. But for businesses wishing to further divide inventory accounts, two checkboxes indicate whether
sales prices or costs of the inventory item should be posted to custom accounts created by the user. When these are checked, fields appear
for non-standard account designation. Such custom accounts must be created first in the chart of accounts:
A custom income account is where sales prices will be posted when an inventory item is sold, either through a sales invoice or receipt. A
custom expense account is where the current average cost of an item will be posted when it is sold, transferring its cost from the Inventory
on hand asset account.
Using inventory items
Inventory items can be used for:
• Receipts and payments
• Expense claims
• Sales and purchase quotes
• Sales and purchase orders
• Sales and purchase invoices
• Credit and debit notes
• Delivery notes
• Goods receipts
• Inventory transfers and write-offs
• Production orders
• Journal entries
When completing most of these forms, an Item field will appear at the left end of line items whenever any applicable inventory or non-
inventory items have been defined. To use an inventory item, click on the dropdown box of the Item field. Or, begin typing the Item Code or
Item Name in the field to take advantage of the autosearch capability. When an inventory item has been selected, all its parameters will
automatically be filled for the line. Either cost price or sales price will be used, depending on the type of form. Anything can be edited except
specified accounts:
Updating inventory items
Inventory items can be updated when required, such as when a price change occurs. In the
item to be changed:
tab, click for the
Edit the item as desired and click
affected.
. Existing forms using the inventory item will not be modified. Only future forms will be
If the inventory item is no longer needed, it can be deleted as long as it has never been used. But MYBOS will not allow inventory items to
be deleted if they have been used. In that case, check the box, and the inventory item will no longer be available.
If an inactive inventory item becomes useful again, scroll to the bottom of the inventory item list, where you will see the item’s name in light
grey text with strike-through markings. Click next to the item’s name:
Inventory Items
Edit
Update
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Settings
Inventory Kits
Example
Northwind Traders sells a wide range of individual food products from around the world. Each is stocked and sold
individually as an inventory item with its own price. Three items could be entered on a cash receipt or sales invoice as
below:
But Northwind has found it can sell more by also advertising the same three products as the “Cajun cuisine pack.” So it
creates an inventory kit, offering the three items together, at a discount.
Uncheck the box and the item will once again be available. Remember to click
Use inventory kits
when finished editing.
An Inventory kit is a defined group of inventory items that are sold together but not counted or necessarily stored together. The individual
components of the kit may also be sold separately on other occasions. When an inventory kit is sold, component items are picked from their
individual storage locations for delivery. The inventory kit is not a manufacturing tool, but a sales shortcut with several benefits. It:
• Minimizes transaction entry time
• Standardizes pricing (discounts or premiums) for items sold together
• Reduces need to assemble kits in advance
• Eliminates demand forecasting of kit sales versus component sales
Create an inventory kit
Before an inventory kit can be created, all items in it must first be created as individual inventory items. Procedures are described in another
Guide. Once all component inventory items have been created, the kit can be defined.
Go to the tab and click :
Complete the entry:
Update
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Create
View
• Item code can be anything that helps find, sort, or categorize the item. This could be a stock-keeping unit (SKU) code, a model
number, or a simple memory aid. It must be unique and should be short. Codes will appear on forms if they are used.
• Item name should be a relatively brief, informative name for the inventory kit. It will appear when searching for an inventory kit to
complete a line item. If no further description of the item is entered, Item name will appear in the Description field on completed
forms, such as sales invoices.
• Unit Name is optional, but can be used to specify units by which the kit will be sold.
• The Description field is for more comprehensive information. Its contents, if present, will appear on finished forms in place of Item
name, so it should also adequately identify the kit, not simply add detail. Anything a customer should see can be placed into this
field.
• Sales price is the price at which the kit will be sold. The price can be higher or lower than the sum of component prices. Leave
blank if the sale price frequently changes. If a sale price is entered, it will appear automatically on sales-related forms, but can also
be edited.
• Under Bill of materials, enter quantities and inventory items making up the kit.
• A Tax Code can be specified, if applicable.
• A Tracking code can be specified if sales of the inventory are always associated with a certain business profit center or project.
• A Custom income account can be specified if the kit’s revenue is to be posted somewhere besides the default Inventory - sales
account.
• An Inactive box can later be checked if the kit is no longer sold. Inactive kits do not appear when searching for items on
transaction forms.
Click to save the inventory kit. The completed definition is available for printing, emailing, or other purposes by clicking .
Inventory kits can also be cloned as the starting point for defining other inventory kits with similar, but not identical, components:
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Note
No quantities on hand can be specified for inventory kits, because they do not exist as separate items in inventory.
Example
Northwind sells the inventory kit illustrated above, saving time and ensuring pricing accuracy:
Using an inventory kit
Once a kit has been defined, it is used exactly like an inventory item on sales-related transaction forms. But it never has to be counted,
because no actual separate stock exists. Only components are managed as physical inventory.
An inventory kit does not appear on the Inventory Quantity Summary or Inventory Value Summary reports. But its sale contributes to those
reports through component items. In the case of the Inventory Value Summary report, component costs defined for the inventory items are
used. Sale price of the kit has no effect on that report. Kits are not included in the Inventory Profit Margin report.
Set starting balances for inventory items
Starting balances for inventory exist only if you are migrating an existing business to MYBOS from another accounting system. In that
case, you need to set starting balances for inventory items already in stock, including both quantities and average costs. Your starting
balances in MYBOS will be your closing balances from your previous accounting system.
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Inventory Items
Example
Brilliant Industries has six different inventory items in stock on the day it begins using MYBOS. It sets a start date and
defines those six items:
Set a start date
Starting balances cannot be entered unless a start date is set. To set a start date, following procedures in this Guide.
Create inventory items
All inventory items on hand on your start date must first be created in the tab. Follow procedures in this Guide.
Enter starting balances
General procedures for entering starting balances are found in this Guide. More specific procedures for inventory items are given below.
In the tab, click next to an item with a starting balance on your start date. Enter the starting quantity and
average purchase cost per unit:
If you have more than one inventory location defined, the default location will be Unspecified location:
Other locations can be selected from the dropdown menu. And additional locations can be added:
The same average cost must be used for all inventory locations.
Inventory Items
Edit
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Inventory Items
Find & merge
Notes
Starting balances should match the physical count on the start date. If unpaid sales or purchase invoices issued prior to the
start date are entered to establish starting balances in Accounts receivable or Accounts payable, do not adjust the inventory
item starting balance quantities for items on unpaid sales or purchase invoices. MYBOS ignores inventory item quantities
on starting balance invoices, only using price information.
If you have many inventory items with starting balances, you can use the Batch Update function in the bottom-right
corner of the Inventory Items tab, as described in another Guide:
Find and merge duplicate inventory items
MYBOS allows you to find and merge duplicate inventory items into a single inventory item. It will not, however, prevent you from
accidentally or purposely creating duplicates in the first place. (You might, for example, want to treat individual units and packaged cases
separately.)
The program alerts you to potential duplicates whenever you are in the tab by displaying an alert:
Finding duplicates
Click to see a list of potential duplicate items. This search looks first for matches in the Item code field. If found, these
override any other matches or differences. It then looks for matches in the Item name field. These also override other matching content
except for item codes. No other fields are considered.
Example
Brilliant Industries had 10 of its lamp kits on hand on the start date. So it clicks that item’s Edit button:
It enters the starting locations, quantities at each location, and average cost from the prior accounting system:
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Example
Brilliant Industries has a new inventory clerk who mistakenly creates three different inventory items for the same table lamp
without checking the existing list. To make matters worse, the clerk does not follow consistent practices when defining the
new items. So inventory of one item is spread among three. Fortunately, an alert appears:
Brilliant’s inventory MYBOS notices the problem and clicks Find & merge . MYBOS returns a list of matches. In this
case, because item codes were used correctly, all three duplicates are found, even though names and descriptions do not
match:
But what if item codes had not been used consistently or at all? If the item code had been left off the third item, only the
first two would have been found, because their item codes match:
If no item codes had been used, the same two items would have been found, because their names match. The third would
have been excluded because its name differs:
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New Inventory Location
Create
Note
By default, all inventory items in MYBOS are in an automatic location named Unspecified. This location cannot be edited or
deleted and does not appear in the list of inventory locations. But inventory items can be transferred from it to other
locations in the Inventory Transfers tab.
Merging duplicates
To merge duplicates, click the circle to the left of the item you wish to keep. Then click
combined with this item. Their quantities will be merged with those of the kept item.
. All other items found in the search will be
Inventory Transfers
Add inventory locations
Businesses that keep inventory at more than one store or warehouse may need to track availability by geographic location. MYBOS can do
this with inventory locations.
To establish locations, go to and click , then :
Enter the location’s name:
Click . The location will appear in the list of locations:
Note
Item codes are the most useful identifiers for inventory items because they override all other search criteria. Both code and
name assignment, though, should be performed according to a consistent method to maximize the chance of finding
duplicates.
Caution
Only one item’s circle can be selected at a time. Selecting another will unselect the first. You are not selecting those items
to be combined. Instead, you are selecting the one item into which all items listed will be merged. Therefore, if you want
an item to remain separate, edit it in the Inventory Items tab by changing its item code or name before initiating the
Find & merge process.
Merge
Settings
Inventory Locations
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Inventory Transfers
Inventory Transfers
New Inventory Transfer
Note
If the Delivery Notes or Goods Receipts tabs are enabled, the Location field will be disabled. Goods shipments and
receipts must then be entered with delivery notes and goods receipts to track inventory item quantities to their correct
locations. Think carefully before enabling those tabs, because they impose considerable additional work.
Example
Sanjay’s Drum and Guitar Shop has a small retail display showroom. Because of limited space, Sanjay also rents a
warehouse in a nearby industrial park where he stores most of his inventory. Sanjay creates two inventory locations: Retail
store and Warehouse. As he sells items from the showroom, he brings inventory from the warehouse to replace them. He
uses inventory transfers to record the movements.
Now, if a customer wants more of an item than he has in the showroom, Sanjay can look up his full stock level and see not
just how many he has in total, but how many are at each location. He can avoid ordering more until he really needs to, and
can make the sale immediately (arranging to deliver from the warehouse), even though he cannot physically see his
inventory.
Notes
One location automatically exists for all businesses with inventory: Unspecified location. Until transfers or purchases add
inventory to other locations, all inventory items will be located at Unspecified location. Therefore, when inventory locations
are first implemented, items must be counted and assigned to their correct locations. Make these assignments using
inventory transfers.
Inventory items themselves are not associated with any specific inventory location, because they can be moved from one to
another. Quantities at various locations are determined by the net result of purchases, sales, write-offs, and transfers, not
according to item identity.
A field for Location will appear in sales and purchase transaction forms:
Use this field to select the location from or to which the inventory item will be shipped or received.
Transfer inventory between locations
Inventory transfers are used to record movement of physical inventory items from one location to another without a sale or purchase
being involved. They are completely optional, and can only be used when at least two inventory locations have been defined (see Notes
below). Inventory locations are created as described in another Guide.
Enable the tab
To use inventory transfers, enable the Inventory Transfers tab. Click
, and click Update below the list:
below the left navigation pane, check the box for
Enter the inventory transfer
In the tab, click :
Customize
Inventory Transfers
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Create
Inventory Write-offs
Caution
Remember that the inventory transfer form only records the movement of inventory. Unless you move the proper number
of items from one location to another, and unless those locations are correct, physical inventory counts will be off and
reconciliation may be very difficult.
Complete the form:
• Date will show today’s date by default. This may be edited.
• Reference can be used for any internal or external sequence. If the box within the field is checked, MYBOS locates the highest-
numbered existing inventory transfer and adds 1 to its Reference number.
• The first, summary Description is optional, allowing you to describe the transfer in general terms.
• Item allows you to select the inventory item by item code or item name.
• The second and all subsequent Description fields will prefill from inventory items’ definitions, if they exist. Or descriptions can be
entered manually.
• Qty is the number of inventory items being transferred.
• From is the origin location. Unspecified location is the default.
• To is the destination location. Again, Unspecified location is the default.
Click to record the transfer. Inventory quantities at both locations will be adjusted automatically.
Inventory Adjustments
Write off inventory
Write off inventory to record loss, damage, obsolescence, conversion to internal use, or other non-revenue reductions of inventory. When
inventory items are written off, they are no longer available for sale or production, so they are no longer assets in the Inventory on hand
account. Their value must be transferred to some expense account. This is done in the tab.
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Inventory Write-offs
Update
New Write-Off
Settings
Settings
Enable the tab
Click below the left navigation pane, check the box to enable , and click :
Enter the write-off
In the
tab, click :
Complete the form. Some fields appear only when relevant selections have been made in the tab:
• Date will be today’s date by default. This may be edited.
• Reference can be used for any internal or external sequence. If the box within the field is checked, MYBOS will assign a number
automatically. The program will find the highest existing number among all inventory write-offs and add 1. This field can be edited.
• Description is for a summary narration explaining the write-off.
• Inventory item is where you select the item being written off. Both item codes and item names show in the dropdown box.
• Qty is the number of items being written off.
• Add line allows you to add inventory items to the transaction.
• Location (if any are defined under ) lets you select where the write-off is occurring.
Example
ACME Distributing gives away samples of its products at trade shows. To keep inventory records accurate, it writes off the
items, allocating the expense to a Trade show advertising account. The balance of Inventory on hand declines.
Customize
Inventory Write-offs
Inventory Write-offs
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Create
Note
Local law or accounting standards may dictate how write-ons should be valued. Be sure to follow any such guidance.
• Allocation is where you select the account to be debited. Only expense accounts and certain balance sheet accounts can be
chosen.
• Tax allows you to select a tax code if the disposition of the inventory item is subject to tax. Normally, this will only be the case under
value-added tax schemes when tax paid to a supplier was claimed when the item was purchased and conversion for non-revenue
usage is considered taxable by your tax authority. Consult a local accountant if you are unsure about this.
• Tracking code lets you choose an applicable code.
Click to write off the inventory item(s) and make all necessary accounting adjustments.
Write on inventory
Write on inventory to record upward adjustments (increases) of inventory when no purchases have occurred. Situations where write-ons
may be necessary include:
• Physical stock verification
• Belated discovery of excess supplier deliveries
• Reversing erroneous inventory write-offs
When inventory items are written on, they are available for sale or production, so they must be added as assets in the Inventory on hand
account. Their value must also be added to some income account or subtracted from some expense account to offset the increase to
Inventory on hand.
Write on inventory with a journal entry
Upward adjustments of inventory are recorded with journal entries. The debit leg of the journal entry is posted to Inventory on hand (or
another control account if the inventory item in question has been assigned to one besides the default account). The credit leg is posted to
an account designated for the purpose. The specific account used is not as important as consistency. Options include:
• An inventory adjustments income account
• An inventory adjustments expense account (where it will be a contra entry)
• A miscellaneous income account
Determine the write-on value
While the adjustment quantity is known, write-on value is not always easy to determine. Several possibilities exist:
• Average cost. One convenient approach is to look up the current average cost of the inventory item in the
and use that. This approach may not be absolutely correct, but it is reasonable and will generally be accepted by an auditor. It
assumes that newly found inventory items are as valuable as the ones already in stock.
• Write-off cost. Upward adjustments sometimes result from locating misplaced inventory that was previously written off. If an
tab
inventory write-off record for the specific item exists, use the average cost from that transaction. This ensures the amount formerly
written off is exactly reversed, even if average cost has since changed.
• Purchase price. When an inventory item has not been purchased recently, prices may have changed, making average cost a poor
indicator of current value. In that case, a recent price quote from a supplier may be a better representation of an item’s value.
However you determine unit cost, multiply by the number of units being added and enter the product as the debit amount of the journal
entry. (MYBOS will not perform this calculation automatically as it does in many other transactions. However, you can enter the calculation
into the Debit field to avoid manual calculation.) The credit amount, of course, must balance. Multiple inventory items can be adjusted with
a single journal entry by including additional debit line items. Only one credit line for the total amount is necessary.
Inventory Items
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Example
Brilliant Industries conducts a year-end physical count of stock on hand and discovers two more table lamps than its
records show. The listing in the Inventory Items tab initially looks like this:
Brilliant creates a journal entry, debiting Inventory on hand and selecting the table lamp. It uses the average cost method,
multiplying 196.06 by the two units, for a total debit of 392.12:
The two units are added to the quantity on hand (and owned) without altering average cost. But the total cost of table
lamps in Inventory on hand goes up:
The credit from the journal entry appears in the Inventory adjustments account. Because Brilliant expected most inventory
adjustments to be write-offs rather than write-ons, it set this account up as an expense account. So the 392.12 became a
contra entry, moving the balance of the account in a negative direction:
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New Delivery Note
Delivery Notes
Create delivery notes
Delivery notes document the delivery of goods. They can be used as:
• Physical (as opposed to financial) records of sales transactions
• Packing lists
• Delivery route instructions
• Confirmation of receipt (when acknowledged by a customer)
They have no financial impact. Indeed, they include no financial information. Delivery notes are completely optional. Without them, that is,
when the
created.
Enable the
tab is not enabled, delivery of goods is assumed to occur as soon as the sales invoice or receipt form is
tab
To use delivery notes, first enable the Delivery Notes tab. Click
, and click Update below the list:
below the left navigation pane, check the box for
Create a delivery note
Delivery notes can be created five ways:
• Standard method
• From a sales quote
• From a sales order
• From a sales invoice
• From a credit note
Standard method
In the
tab, click :
Complete the delivery note entry form:
Note
If a different costing method had been used in the example above, average cost of table lamps would have changed.
Delivery Notes
Delivery Notes
Customize
Delivery Notes
Delivery Notes
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Customers
Settings
Create
• Delivery Date contains today’s date by default, but may be edited.
• Reference is optional and may be used for internal or external sequences. If the box within the field is checked, MYBOS will
number the transaction automatically. The program will search for the highest number among all existing delivery notes and add 1.
• Order number is the corresponding sales order number, if any.
• Invoice number is the corresponding sales invoice number, if any.
• Customer is a predefined customer from the tab. Delivery notes cannot be created for “walk-in” buyers.
• Delivery address will be filled automatically if the customer has a predefined delivery address. If no delivery address exists in the
customer’s profile, MYBOS will not use the customer’s billing address. The Delivery address must be filled in manually.
• The first Description is for an optional summary of the entire delivery.
• Item allows you to select inventory items or non-inventory items.
• The second and all subsequent Description fields describe individual line items. If this field is defined for an inventory or non-
inventory item, that definition will automatically be carried over. The field may be edited.
• Qty is the quantity of the line item being delivered at this time.
• Add line allows you to add more line items 1, 5, 10, or 20 at a time.
• Location appears if inventory locations are defined under . Choose which location goods are delivered from.
Click to issue the delivery note. All necessary adjustments to inventory quantities and status by location occur automatically.
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Copy to …
Create
Other methods
All other methods of delivery note creation use the
function. This is available from:
• Sales quotes
• Sales orders
• Sales invoices
• Credit notes
When viewing an eligible form, click and select New Delivery Note:
A completed delivery note entry screen will appear. Edit as required and click .
Example
Northwind Traders has sold 5 boxes of frozen blue crab meat to Great Lakes Food Market. Northwind issued sales invoice
#46224. It issues delivery note #311 as a packing list for the shipment:
Copy to
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New Goods Receipt
Goods Receipts
Create goods receipts
Goods receipts help track location of inventory items enroute from suppliers. They can be used to:
• Record the physical (as opposed to financial) aspect of purchase transactions
• Confirm receipt of ordered goods (when given to a supplier)
They have no financial impact. Indeed, they include no financial information. Goods receipts are completely optional. Without them, that is,
when the
created.
Enable the
tab is not enabled, receipt of goods is assumed to occur as soon as the purchase invoice or payment form is
tab
To use goods receipts, first enable the
Goods Receipts
tab. Click
Customize below the left navigation pane, check the box for
Goods Receipts , and click Update
below the list:
Create a goods receipt
Goods receipts can be created four ways:
• Standard method
• From a purchase order
• From purchase invoice
• From a debit note
Standard method
In the
tab, click :
Complete the goods receipt entry form:
Caution
Think carefully before enabling the Goods Receipts or Delivery Notes tabs. Once you have started using them, you
must continue. MYBOS will not allow you to disable the tabs after the first goods receipt or delivery note is created. The
functionality these tabs provide can be very important for some businesses. But they also entail extra work every time an
inventory item is purchased or sold. Consider creating a test company to explore whether they are truly necessary for your
business. They can always be added later.
Goods Receipts
Goods Receipts
Goods Receipts
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Suppliers
Create
• Date contains today’s date by default, but may be edited.
• Reference can be used for any internal or external sequence. If the box within the field is checked, a number will be assigned
automatically. MYBOS will locate the highest-numbered existing goods receipt and add 1 to its reference number.
• Order number is the corresponding purchase order number, if any.
• Invoice number is the corresponding purchase invoice number, if any.
• Supplier is a predefined supplier from the tab. Goods receipts cannot be created for cash purchases, because the
goods are presumed to have been received upon payment.
• The first Description is for an optional summary of the entire receipt.
• Item allows you to select inventory items or non-inventory items.
• The second and all subsequent Description fields describe individual line items. If this field is defined for an inventory or non-
inventory item, that definition will automatically be carried over. The field may be edited.
• Qty is the quantity of the line item being received at this time.
• Add line allows you to add more line items 1, 5, 10, or 20 at a time.
• Location appears if inventory locations are defined under
• A Custom theme can be selected if any are active.
. Choose the location where goods are being received.
Click to issue the goods receipt. All necessary adjustments to inventory quantities and status by location occur automatically.
Settings
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Copy to
Create
Caution
Think carefully before enabling the Goods Receipts or Delivery Notes tabs. Once you have started using them, you
must continue. MYBOS will not allow you to disable the tabs after the first goods receipt or delivery note is created. The
functionality these tabs provide can be very important for some businesses. But they also entail extra work every time an
inventory item is purchased or sold. Consider creating a test company to explore whether they are truly necessary for your
business. They can always be added later.
Other methods
All other methods of goods receipt creation use the
function. This is available from:
• Purchase orders
• Purchase invoices
• Debit notes
When viewing an eligible form, click and select New Goods Receipt:
A completed goods receipt entry screen will appear. Edit as required and click .
Example
Northwind Traders has purchased 18 jars of marmalade from Specialty Biscuits. Northwind entered purchase invoice
#27484. It issues goods receipt #2315 when the product arrives:
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Production Orders
New Production Order
Notes
Finished goods must be created as separate inventory items before they can be entered on production orders.
When the first production order is created, a Production stage field appears for every inventory item under the
Inventory Items tab. By default, all items will be preset to production stage 1. Production stages can be adjusted as
described in this Guide to ensure costs of later-stage items in Inventory on hand correctly include costs of earlier-stage
items.
Multiple stages are possible, as described in another Guide. Inventory items always purchased from suppliers should be left
at the default production stage 1. Items produced from only stage 1 items should normally be designated as stage 2.
Finished goods that use stage 2 items should be stage 3, and so on.
Production Orders
Use production orders to manufacture inventory items
Production orders are used to record manufacture of finished inventory items using existing inventory and other resources. For example,
manufacturing bottled fruit juices requires fruits, bottles, and lids purchased from suppliers as inventory items. These inventory items can be
converted into the finished products sold to customers.
Basic production order with inventory items
To record a production order, go to the tab and click :
Complete the entry screen:
• Date will be autofilled with today’s date, but may be edited.
• Reference can be used for any form of identifier. If the box within the field is checked, MYBOS will assign a number automatically.
The program find the highest Reference number among existing production orders and add 1.
• Description can be any text useful for describing the production order.
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Add line
Create
Inventory Items
• Select quantity and Inventory item to be produced under Finished item.
• Select quantity and Inventory item for the first raw material to be used for production under Bill of materials. If more than one
inventory item is used, click to add more line items.
• Location of the finished item(s) can be selected if inventory locations have been defined.
Click to save the production order.
Adding non-inventory costs
If non-inventory costs, such as wages, consumables, or overhead allocations are required to produce the finished inventory item(s), check
the box to Add non-inventory cost into production. Enter accounts to which the costs will be posted and the amounts. Add lines if
necessary:
MYBOS will add the non-inventory costs to the current average cost of inventory item(s) consumed by the production order to calculate
the cost of the produced inventory item(s).
In the tab, the quantity of the manufactured inventory item will increase while the quantities of input inventory items
will decrease by the quantities included in the production order.
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Example
Brilliant Industries creates a production order to build three table lamps for its north warehouse. Each lamp uses one each
of three other parts in stock. Brilliant also includes 75.00 worth of manufacturing labor in the cost of the three lamps (25.00
each):
The Production Orders tab summarizes the order:
Manage production stages
The Production stage field on inventory items is used to manage production stages.
This field appears on the definition screen for all inventory items when the
order has been entered:
tab is enabled and the first production
Production Orders
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Inventory Items
Example
You purchase 1,000 kg of pulp for 2,000. You create a production order converting 200 kg of pulp to 40,000 sheets paper,
then another production order using 20,000 sheets of paper to print 100 books, all on the same day.
The Inventory Items tab shows you have 800 kg of pulp remaining at an average cost of 2.00 per kg. That average cost
follows from your initial purchase of 1,000 kg for 2,000:
You also have 20,000 sheets of unused paper left over from the production run of 40,000. The paper is carried at .01 per
sheet, calculated from production of 40,000 sheets from 400 worth of pulp. Because half the paper was used to print books,
half the value of pulp used to produce the paper remains, while the other half has passed on because of the second
production order.
Finally, you now have 100 books in inventory at an average cost of 2.00 per book. The total cost of inventory owned is the
same 2,000 you originally spent to purchase the pulp.
Normal production stages
To understand production stages, consider a simple case involving three inventory items:
• Pulp purchased from outside suppliers
• Paper produced in-house from the pulp
• A book printed in-house on the paper
The overall workflow is Purchase Pulp Convert Pulp to Paper Print Book on Paper Sell Book.
In the absence of production stages, production orders issued the same day for pulp conversion and printing might be executed out of
order. MYBOS does not normally distinguish transaction order when events occur the same day, a problem potentially made worse if other
inventory purchases, sales, returns, production orders drawing on the same items, and inventory transfers also intervene in rapid succession.
Average costs transferred to new finished goods could be wrong. In our example, final average costs for both the book and remaining
quantities of interim items would be erroneous. This, in turn, would result in inaccurate profit calculations during an accounting period.
Production stages solve the problem. MYBOS checks your production orders for potential problems and displays an alert in the
tab if it finds any:
When you click on the alert, you will see list of problem inventory items, their current production stages, and recommended production
stages. There are two options for action:
Note
The default value is 1. Inventory items not used in production orders should be left this way. So should inventory items
always purchased from suppliers.
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Edit
Batch Update
Example
Because production stages were never assigned to the inventory items in our illustration, the Inventory Items tab
displays an alert. When clicked, it shows the following recommendations:
Both items are checked and Batch Update clicked. MYBOS now recognizes the Book item needs further elevation:
The process is repeated. The ultimate result assigns production stages as below:
• Manually inventory items where the current production stage is lower than recommended. Set the production stage at least
as high as required.
• Check boxes for items to be elevated and click .
Either way, the display may change with further recommendations.
Circular production
Circular production refers to a situation where an earlier-stage inventory item requires a later-stage item for its own production. Neither
MYBOS nor any other accounting system can resolve circular production orders.
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The solution for circular production orders is to break the circle with an inventory write-off of the later-stage item. Then, a new production
order can be used to add earlier-stage inventory produced from it. Nothing is entered for the bill of materials of the new production order if
the item produced is stage 1, but the value of the write-off is incorporated as a non-inventory cost. If the item produced from the written-off
item is higher than stage 1, additional inventory items can be added to the bill of materials. And if additional non-inventory costs are
incurred, they can be added, too.
Example
Suppose we shred unsold books to create pulp. We create the production order below:
MYBOS shows an alert, recommending elevation of Pulp to stage 4:
But if we follow the recommendation, the program immediately suggests elevating Paper to stage 5. That leads to a
recommendation to elevate Book to stage 6, and so on, forever.
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Example
We shred and write off 50 books, posting the write-off to a suitable expense account, which will serve as a temporary
clearing account. For this example, we choose Other expenses:
In this case, recycling yield is not 100%, so only 75 kg of pulp is obtained of the 100 that originally went into these 50
books. Drilling down from the Summary tab on the Other expenses account, we find the value of books written off was
100.00:
We immediately create a new production order for the amount of pulp produced by shredding. We add non-inventory
costs equal to the write-off, allocating them to the same expense account as the write-off. We leave the bill of materials
blank, because no other inventory items are involved:
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Understand insufficient quantity on a production order
An insufficient quantity occurs when a production order requires more of an inventory item to satisfy its bill of materials than the business
owns. Such a situation might arise for many reasons, including:
• A business follows a just-in-time purchasing policy, buying raw materials only after production orders requiring them are issued.
• Suppliers deliver new inventory prior to sending a sales invoice (which is entered by the business as a purchase invoice). In this
situation, the inventory may be on hand in the warehouse but not yet technically owned by the business, because the purchase has
not been recorded.
Insufficient quantities cause accounting problems, because the cost of inventory items not yet owned is unknown. (Quoted or expected
prices do not count.) Therefore, the true cost of the production order’s finished item(s) is also unknown. In turn, the cost of sales for sold
items is unknown and profit is miscalculated.
Our final inventory status shows fewer books, more pulp, and no change to paper:
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Note
Nothing about insufficient quantities or MYBOS’s treatment of them controls or prevents actual production. They only
affect when and how costs are distributed to finished items and eventually to the cost of goods sold. If required materials
are physically available in inventory, production can occur, regardless of whether their purchase has been recorded, they
are needed for other production orders, or their reception has been recorded by goods receipts.
MYBOS avoids these problems by determining when quantities of inventory items are insufficient for production orders and actively
controlling allocation of costs to the right accounts at appropriate times. Fortunately, you do not need to do anything. Everything is
automatic.
Problems caused by insufficient quantities
To explain concepts behind insufficient quantities, this Guide uses a very simple example. Imagine a business with two inventory items, both
with starting quantities of zero:
• Leather, a raw material
• Handbag, a finished item
A customer buys a handbag on June 24, 2020. We record the sale with a sales invoice on that day at a price of 100:
Before we can deliver the handbag to our customer, we need leather to produce it. We do not have leather in stock, so we order it from our
leather supplier. Our leather supplier will deliver the required leather the next day, June 25, 2020, but will invoice us at the end of the month.
Once we have the leather on hand, even though we do not yet legally own it, we create a production order on June 25, 2020 to take 5 units
of leather to produce 1 unit of handbag:
Note
In the long run, after all inventory replenishment is recorded, overall profit could be correctly calculated. However, costs of
individual production orders and sales, and profits for interim periods could still be incorrect.
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Finally, on June 30, 2020 our leather supplier gives us a purchase invoice for 20 covering our purchase of 5 units of leather:
Absent MYBOS’s insufficient quantity process, this sequence of transactions would end up showing a value of 20 for inventory on hand
even though the quantity of everything on hand is zero:
That would occur because, when the production order was created on June 25, 2020, it created 1 handbag with a cost of 0 because the cost
of leather became known only at the end of the month when we entered the purchase invoice from our leather supplier. But by that time,
the handbag had been sold and delivered, so the purchase cost of leather was transferred directly to handbags, of which none existed. This
sequence also would distort the Inventory Profit Margin report, because no cost is being allocated to the sale (as the cost of the leather
became known several days after the sale). Profit margin for this sale would incorrectly show 100%:
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Note
In the context of this Guide, the term produce means to account for the production of finished inventory items, including
their proper costs. As mentioned in a Note above, production orders do not actually control manufacturing activity.
In normal production and sales environments, idiosyncrasies like this could easily be overlooked, buried by other transactions.
Solving the problem
To solve this problem, MYBOS does not “produce” finished items until all input items are fully costed.
For example, if your production order has 5 input items and even one is of insufficient quantity, the output item is not costed and added to
inventory until there is sufficient quantity of all input items. This means once the finished item is finally produced, the full cost is known and
subsequent sales of this item will correctly record the cost of goods sold. We will return to our example of leather and handbag to see this
concept at work.
When the production order is entered on June 25, 2020, leather has been ordered and delivered, but not yet purchased. So from an
accounting perspective, its cost is unknown. In the
Insufficient Qty:
tab, MYBOS shows Status of the production order to be
Insufficient Qty means the production order has one or more items on its bill of materials for which the business does not own the required
quantity. (Remember, ownership is conveyed by a purchase invoice or payment.) In this case, we have insufficient quantity because we are
using 5 units of leather which we did not purchase yet. We will own these 5 units of leather once the purchase invoice from our leather
supplier is entered on June 30, 2020. Once that leather is purchased, production order status will automatically switch from Insufficient Qty to
Complete:
Status being Complete triggers addition of the finished inventory item to inventory on the date the production order is fulfilled, not on the
date the production order is created. This is important because, on the date the production order is created (June 25, 2020), the cost of
leather is not known yet. It becomes known on June 30, 2020. So the finished handbag is added to inventory on June 30, 2020 with its full
cost.
Because there was a sale entered on June 24, 2020 to remove one handbag, the handbag can finally be removed from inventory on June 30,
2020, along with its full cost:
Production Orders
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Inventory Items
As a consequence, the Inventory Profit Margin report is correct, too:
The Production in progress account
Now, the example above is trivial because the production order required 5 units of leather and none was in inventory. Let’s look at a
situation where a production order requires the same 5 units of leather, but we already have 2 units of leather in inventory:
After the production order is created, the screen shows this:
Qty on hand for leather is reduced by 5 and total cost changes from 8.00 to 0.00. But inventory costs cannot simply disappear. In this case,
the value of 2 units of leather is transferred to an account named Production in progress:
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Example
A car dealer uses inventory items to track cars available for sale. It also uses inventory items to track spare parts required by
the service department. Spare parts are not used to manufacture new vehicles. They are used to repair, maintain, or
improve existing vehicles, including those held for sale. The car dealer, of course, wants to track consumption of parts when
they are installed in a car already in inventory, but does not purchase or sell them in the process. No money changes hands.
So, when repairs are made to a used vehicle or optional accessories are installed on a new one, a production order is
prepared. The vehicle being repaired or improved is selected as the Finished item. All parts consumed from inventory are
listed on the Bill of materials. Labor for installation is added as a Non-inventory cost, posting to an appropriate labor
expense Account. Costs of parts and labor are transferred to the vehicle’s cost.
Production in progress is an asset control account added to your chart of accounts automatically when your first production order is created.
Partial costs are temporarily accumulated there for production orders with insufficent quantity. When the production order collects sufficient
quantities for all inventory items on the bill of materials, the cost is transferred to Inventory on hand. If you have no production orders with
insufficent quantity, the balance of Production in progress will always be zero.
Use production orders for repairs, maintenance, or improvements
Production orders can be used to record internal consumption of inventory items for repairs, maintenance, or improvement of other
inventory items.
To do this, follow the same procedure as when using production orders for manufacturing, but enter zero as the quantity of the Finished
item. Non-inventory costs, such as labor, can also be added to a production order used this way.
This will decrease the quantity in stock of inventory items included in the Bill of materials without increasing the quantity of the
Finished item. All inventory and non-inventory costs will be added to the average cost of the Finished item.
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Employees
Update
Employees
Employees
Settings
Chart of Accounts
Employees
New Employee
Note
Some businesses use third-party processing services to manage payroll. In such cases, there is usually no reason to enable
the Employees tab, because individual payroll transactions are not entered in MYBOS. Instead, lump-sum transactions
are entered for each payroll period and individual payroll records are maintained by the outside processor. This can be
advantageous when local tax and retirement laws are complex or change frequently.
Chapter 9: Payroll
Payroll Guides describe how to record earnings, deductions, and contributions associated with your employees, as well as how to pay
employees what they are owed.
Employees
Enter employees
Employees in MYBOS are persons for whom the business will record payroll transactions. Individuals must be set up as employees before
payslips can be issued to them. Employees are also eligible to submit expense claims, even if they are not specifically defined as expense
claims payers and do not have a capital account. (See another Guide for more information about expense claims.)
Local laws usually govern who is considered an employee. Even when a regular amount is paid to them, some individuals might need to be
treated as partners (with capital accounts), sole traders/proprietors (with equity accounts), or subcontractors. The key factor in deciding to
enter a person as an employee is usually whether their compensation can be considered a wage expense under local law and accounting
regulations.
Enable the tab
Before an employee can be entered, enable the tab. Below the left navigation pane, click . Check the box for
, and click below the list:
Chart of accounts addition
When the tab is enabled, the Employee clearing account is automatically activated. This is a liability account recording amounts
owed to (and by) employees in individual subaccounts. This account can be renamed, but not deleted, while the tab is enabled
by editing it under .
Enter an employee
In the tab, click :
Complete the entry:
Employees
Customize
Employees
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• Enter the employee’s Name.
• Code is optional, but may be used for an employee identification number.
• Address is for the employee’s malinger address
• Email address will be used if payslips are later emailed to the employee.
• Currency can be selected only if a base currency has been set and a foreign currency has been defined.
• Control account is available when a custom control account for employees exists. Otherwise, employees are automatically
assigned to the Employee clearing account. Other information can be entered if custom fields are created for payslips.
• Starting balance appears only if a start date has been set for the business. If making a transition to MYBOS’s payroll
management from another accounting or payroll system, employees may have balances owed to them or owing to the business.
The amount must be entered in the currency selected for the employee:
Select Paid in advance if the employee owes the business money, such as for an employee loan. Select Amount to pay if the
employee has unpaid earnings as of the start date. Enter the amount owed or owing as a positive number, regardless of the
situation.
Click to enter the employee, who will show in the tab listing:
Create
Employees
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Edit
Update
Receipts & payments
New Payment
Note
This Guide provides instructions on paying employees set up under the Employees tab and whose payroll transactions
have been entered in the Payslips tab. It does not address third-party payroll processing.
Inactive employees
When employees terminate employment and will no longer be paid, you can remove them from lists by making them inactive. In the
tab, click to the employee and check the box:
Click and the employee will not appear in active lists.
If the employee ever returns to active status, scroll to the bottom of the employees list, where you will see the employee’s name in light grey
text with strike-through markings:
the employee and uncheck the Inactive box.
Pay employees
In MYBOS, payslips record earnings, deductions, etc. of employees. They do not record actual payments to those employees of amounts
owed as a result of payslips. To pay employees, you must enter payments in the tab. Two approaches can be
used, depending on whether the employee is owed for a single payslip, multiple payslips, or expense claims.
Single payslip approach
The simplest situation is paying an employee for whom there is only one outstanding payslip. In the
the payslip to be paid:
tab, click beside
Click :
A payment entry screen will appear, prefilled with information for paying the employee:
Employees
Edit
Payslips
View
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Add line
Create
Caution
Be sure to complete steps in making the payment: write the cheque, enter an electronic direct deposit, or prepare a cash
envelope. Remember, the payment form records the transaction; it does not complete it.
• Verify or edit the Date.
• Confirm the transaction Type is Payment.
• Enter a Reference number if desired. If the box within the field is checked, MYBOS will automatically assign a Reference by
finding the highest existing number and adding 1.
• Select the bank or cash Account you will pay from.
• Select Cleared or Pending Status if paying from a bank account. Cash account payments are presumed to be cleared immediately,
so this field does not appear for them.
• Payee should be filled with the name to which payments are made for the employee on the relevant payslip. Normally, this is the
employee’s legal name, but an employee may have given instructions for payments to be made to someone else.
• Description can contain summary information for the entire payment.
• Item should be left blank, as no inventory or non-inventory items are involved in payroll transactions.
• Account will be prefilled with Employee clearing account and Employee name. Do not change these.
• Description for the line item is optional, but can be filled with distinguishing information, especially if other items are being added
to the payment.
• Qty should remain blank.
• Unit price will be prefilled with the amount of the payslip.
• Tax should normally be left blank, as payments to employees are not taxable in most jurisdictions.
• A Tracking Code can be selected, if appropriate.
• Check the box if Amounts are tax inclusive. Normally, this will have no effect, because no tax code will be applied.
• Check the box if you will use a Custom title. A field will appear in which to enter the alternate title.
• Check the box if you will use a Custom theme. Select the theme from the dropdown menu that appears.
If other items are to be added to the payment, click . When finished, click .
Other situations for one employee
When there are expense claims or multiple outstanding payslips for an employee, drill down from the
account by clicking the blue balance:
page on Employee clearing
Summary
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Receipts & Payments
New Payment
Add line
Employees
Either continue using the total balance shown for the employee, or drill down further by clicking the employee’s balance (in this illustration,
no other employees have balances):
If you drill down on the employee’s balance, you will be able to see all transactions contributing to it. Whichever path you follow, make note
of the amount(s) owed to the employee:
Initiate payment directly in the tab. Click :
Manually complete the entry form, exactly as you would for a single-payslip payment. Post the transaction to Employee clearing account and
Employee name. For Amount, enter either the full amount due from Employee clearing account or one contributing amount from the
employee’s drill-down listing. If following the second path, click to enter additional contributing amounts.
When all amounts have been entered, the payment total should equal the employee’s balance in Employee clearing account. Click
to record the payment:
Bulk payments
Multiple employees’ payments can be recorded simultaneously. Go to the
each employee in the Amount to pay column. Click the total for the column:
tab, where you will see a list of amounts owed to
Create
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New Payment
Create
Note
Since several employees are being paid, enter something like Payroll or Various in the Payee field of the payment form.
A new page will appear, listing all employees with amounts due. On this screen, employee details can be edited, but amounts owed cannot.
Those must be altered by editing the original transactions, which are accessible by clicking individual employees’ balances. To record the
bulk payment, click :
A new payment transaction form will appear with line items for all employees owed money:
Edit the amounts to be paid, if necessary. Otherwise, click .
Effect of payments
Each payment line item debits Employee clearing account Employee name and credits the bank or cash account that is the source of
funds. If all employees are paid the full amounts owed, Employee clearing account will be reduced to a zero balance.
Payslips
Set up payslip items
Payslip items are specific elements that can appear on payslips. They are necessary so entries on employees’ payslips will be posted to the
proper account or accounts. Therefore, you must define at least one payslip item before you can issue your first payslip. Every payslip item
must be one of three types:
• Earnings
• Deductions
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New Payslip Item
Example
Northwind Traders establishes the following payroll accounts:
—Wages & salaries, an expense account for normal and vacation or holiday earnings
—Retirement matching, an expense account for the company’s portion of retirement contributions
—Income tax withheld, a liability account for tax deductions from employees’ pay
—Retirement fund deferrals, a liability account for both employees’ and the employer’s contributions to a retirement fund
• Contributions
Enable the
tab
Before payslip items can be defined, you must enable the tab. Under the left navigation pane, click , check the box
for , then click below the list:
Set up payroll accounts
Before you can create payslip items, you must add accounts to which they will be posted. Add these accounts according to instructions in
this Guide. Payroll accounts can be:
• Expense accounts on the Profit and Loss Statement. Such accounts record the various types of payroll expenses of the business.
Examples include Wages, Manufacturing labor, Vacation pay, Holidays, Sales commissions, and Bonuses. All payroll expenses can be
combined in a single account, or you can divide them into as many categories as will be convenient for management review.
Consider whether government authorities require reporting of certain categories of payroll expense when choosing your accounts.
• Liability accounts on the Balance Sheet. These accounts record amounts owed to outside entities, such as tax authorities or benefit
funds on behalf of employees. Examples include Income tax withholding, Pension fund salary deferrals, Employee medical insurance
premiums, and Employer retirement contributions. Some may represent funds deducted from employees’ pay. Others may represent
funds contributed by the business. The primary considerations in determining which accounts to establish are who the funds will
eventually be remitted to and for what purpose.
• Asset accounts on the Balance Sheet. These accounts record amounts owed to the business, such as salary advances to employees
that must be repaid.
These accounts can be used to post more than one payslip item or type.
Earnings items
Earnings items are typically wages, salaries, bonuses, commissions, and various allowances you will pay to employees. Employees, in turn, will
see earnings on their payslips broken out into these categories.
Go to , then , locate the Payslip Earnings Items list, and click :
Give the earnings item an informative Name, such as Regular wages, Holiday pay, or Vacation. Assign earnings items to the expense account
created for each one.
Payslips
Payslips
Customize
Payslips
Update
Settings
Payslip Items
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Create
Note
Earnings items must be posted to expense accounts because they are expenses of the business in the current accounting
period.
Click to save the earnings item, which will appear on the Payslip Earnings Items list:
Deduction items
Deduction items include payroll taxes, insurance premiums, union fees, or wage garnishments you subtract from an employee’s pay.
Employees will see their deductions broken out into these categories.
Deduction items are defined the same way as earnings items, except that you click
list:
for the Payslip Deduction Items
Give the deduction item an informative Name, such as Income tax. Assign deduction items to the accounts you set up for them.
Exmple
Northwind creates an item for regular wages and assigns it to the Wages & salaries account:
New Payslip Item
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Note
Deduction items are most frequently posted to liability accounts because deductions from an employee’s gross pay ( e.g.,
payroll tax, union fees) are payable to someone else (e.g., tax authority, union) by the business. Only when the deductions
are payable to the business itself should the associated payroll account be classified as an asset account.
Example 1
You are required to deposit a certain percentage of an employee’s gross pay into a pension or superannuation fund. This is
regarded as a contribution. It represents a type of employee earnings paid by the employer, but is deducted from gross pay
at the same time and subsequently paid into the employee’s pension fund.
Example 2
You have a matching gift program under which you add to an employee’s charitable contribution. Your matching gifts
would normally be earnings for the employee and an expense for you, but the simultaneous deduction also makes it a
liability you will pay to the charity.
Contribution items
Contribution items are paid by an employer and characterized as both earnings and deductions.
Contribution items are defined the same way as earnings and deduction items, except that you click
Contribution Items list:
for the Payslip
Example
Northwind creates a deduction item for income tax and assigns it to the Income tax withheld account:
It also creates a deduction item for retirement fund contributions by employees, assigning it to the Retirement fund
deferrals account. And it creates an item for recovery of salary advances and assigns it to the Staff salary advances account.
All three appear on the Payslip Deduction Items list:
New Payslip Item
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Create
Payslips
Update
Example
Northwind creates a contribution item for its portion of retirement contributions. It assigns the item to the Wages & salaries
expense account and the Retirement fund deferrals liability account:
Give the contribution item an informative Name, such as Retirement match or Matching gift. Assign contribution items to both the Profit and
Loss Statement and Balance Sheet accounts you set up for them.
Click to define the contribution item, which will appear in the Payslip Contribution Items list:
Issue payslips
Payslips are forms issued to employees recording:
• Earnings, e. g., wages, salaries, commissions, and bonuses
• Deductions, e. g., taxes, union dues, retirement savings, or anything else funded by the employee from gross earnings but withheld
by the business and paid to another entity on the employee’s behalf
• Contributions by the business, e. g., retirement plan contributions, charitable matching gifts, or other things paid to outside
authorities, organizations, or custodians on the employee’s behalf
Enable the tab
Before you can issue a payslip, enable the tab. Under the left navigation pane, click , check the box for
, and click :
Payslips
Customize
Payslips
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Payslips
New Payslip
Issue a payslip
In the tab, click :
Complete the entry:
Notes
Some businesses use third-party processing services to manage payroll. In such cases, there is usually no reason to enable
the Payslips tab, because individual payroll transactions are not entered in MYBOS. Instead, lump-sum transactions
are entered for each payroll period and individual payroll records are maintained by the outside processor. This can be
advantageous when local tax and retirement laws are complex or change frequently.
Payslips cannot be issued until payslip items have created under Settings . See another Guide for procedures.
Payslips also cannot be issued until employees have been entered in the Employees tab. See another Guide for
procedures.
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Email
Employees
• Date will automatically be prefilled with today’s date, but may be edited.
• Reference is optional and may be used for internal or external sequences. If the box within the field is checked, MYBOS will
number the transaction automatically. The program will search for the highest number among all existing payslips and add 1.
• Select Employee from the dropdown list of predefined employees.
• Enter an optional Description of the payslip.
• Select an Earnings item from the dropdown list.
• Additional Description is optional.
• Qty and Rate automatically produce the Total.
• Select a Deduction item from the dropdown list.
• Add further Description, if desired.
• Enter Amount of the deduction.
• Select an Employer contribution from the dropdown list.
• Add further Description if necessary.
• Enter Amount of the contribution.
• Check the box for Show totals for the period (if desired) and enter a date. Totals will be displayed at the bottom of the payslip
for the period beginning with the entered date and ending with the Date of the payslip.
• Check the box for Custom theme (if any are enabled) to select a theme.
More earnings, deductions, or contributions can be added by clicking . When finished, click to issue the payslip:
Payslips can be emailed to employees directly. Click while viewing the payslip:
The payslip will be emailed to the address on file in the employee’s profile in the tab:
Add line
Create
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Caution
Payslips do not record payment to the employee. They only record expenses and liabilities associated with payroll. Further
transactions are needed to discharge the liabilities by paying the employee and forwarding deductions and contributions
to relevant entities.
Note
Procedures for issuing regular payslips are described in another Guide. Read it first. Recurring payslips are very similar.
Before you can set up recurring payslips, you must enable the Employees and Payslips tabs, enter one or more
employees, and define payslip items.
Payslip effects
Payslips affect at least three accounts. More could be affected if various payslip items are allocated to more than one account. The first is
Employee clearing account, where the net pay amount is posted:
Second are the payroll liability accounts, where both deductions and contributions are posted. All amounts posted to these accounts are
owed to outside entities. In this illustration, both payroll tax and retirement match are posted to Payroll liabilities:
Third are the payroll expense accounts, where expenses to the business are posted. In this illustration, both wages and retirement match are
posted to Wages & salaries:
Set up and manage recurring payslips
Recurring payslips are useful when you pay employees on a regular schedule and most details of their payslips are identical from one
payroll period to the next. MYBOS can track when payslips are due, remind you to create them, yet give you the opportunity to edit details.
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Settings
Recurring Payslips
New Recurring Payslip
Create
Settings
Payslips
Example
One recurring payslip has at least one pending payslip:
Enter a recurring payslip
To set up a recurring payslip, go to and click :
Complete the entry form exactly as for a regular payslip, with the following additions:
• Next issue date is the date of the next recurring payslip. You should enter a date that is the same day of the week or month you
want future payslips to be issued.
• Interval must include the number of weeks or months between recurring payslips.
Click to save the recurring payslip, which will be visible in the Recurring Payslips listing under :
Create recurring payslips
Whenever a recurring payslip is due, two notifications are provided. The first is a yellow counter window in the left navigation pane showing
the number of recurring payslips for which payslips are pending (not the number of pending payslips, which could be higher if you have not
kept up by creating payslips that are due).
The second notification occurs any time you go to the tab. You will see a yellow banner.
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Create
Example
Click on the banner to see a list of payslips due.
Click to issue all recurring payslips listed. Edit any that require changes before giving them to employees.
Manage recurring payslips
If a recurring payslip should be skipped, modified in frequency, or changed in amounts, simply
involves only changing the Next issue date.
it under . Frequently, this
If the recurring payslip ceases to be useful, it in the tab. Since a recurring payslip is a template, not an actual
transaction, MYBOS will allow you to delete recurring payslips that have already been used.
Example
Edit
Settings
Delete
Settings
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Fixed Assets
Settings
Chapter 10: Asset Registers
Fixed and intangible assets are property owned by a business with long lifetimes. Their full cost is recovered over an extended period of time
rather than being counted entirely as a current expense.
Fixed Assets
Purchase fixed assets
Fixed assets are tangible property owned by a business, such as buildings, machinery, furniture, vehicles, and equipment. To be considered
a fixed asset, property must:
• Have a useful life longer than one major accounting period (usually one year)
• Cost more than the capitalization threshold (set either by company policy or local law)
• Be held for productive use rather than immediate sale (inventory is not included among fixed assets)
The acquisition cost of a fixed asset is recovered over its economic life through depreciation, rather than as an expense during a single
accounting period.
Enable the tab
Before you can enter any transaction related to a fixed asset, the fixed asset itself must be created in MYBOS. If the Fixed Assets tab
has not already been enabled, click
below the list:
below the left navigation pane. Check the box for and click Update
When the tab is enabled, four accounts are automatically activated in your chart of accounts:
• Fixed assets, at cost, an asset account recording the acquisition cost of all fixed assets
• Fixed assets, accumulated depreciaiton, a contra asset account summing depreciation to date of all fixed assets
• Fixed assets - depreciation, recording current depreciation expenses
• Fixed assets - loss on disposal, an expense account recording loss (gain) on disposal of fixed assets
These accounts cannot be disabled while the
.
Create a fixed asset
Return to the left navigation pane, click
, then
tab is enabled, but they can be renamed under
:
Complete the entry:
Customize
Fixed Assets
Fixed Assets
Chart of Accounts
Fixed Assets
New Fixed Asset
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Reports
Create
• Item code is an optional alphabetic or numeric designation for the fixed asset.
• Item name is the name that will appear for the fixed asset in reports and lists.
• Depreciation rate is the notional annual percentage depreciation rate for the asset. This rate will be used by the Depreciation
Calculation Worksheet in the tab to calculate a daily depreciation rate, which will be used in calculations.
• Description accepts detailed information about the fixed asset.
• The Control account — At cost field appears only when a custom control account made up of fixed assets exists. Otherwise, the
asset is assigned to the Fixed assets, at cost control account by default.
• The Control account — Accumulated depreciation appears whenever a custom control account for fixed asset depreciation
exists. Otherwise, the asset’s depreciation will be posted to Fixed assets, accumulated depreciation.
• When the Custom depreciation expense account box is checked, a dropdown field appears that allows you to select any regular
expense account for posting current depreciation expenses for the asset. If nothing else is selected, current depreciation for the
asset will be posted to Fixed assets - depreciation.
Click .
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Receipts & Payments
Purchase Invoices
Expense Claims
Journal Entries
Note
To this point, you have not recorded the purchase of the fixed asset. You have only set it up in MYBOS. Now you can
record financial transactions related to the fixed asset.
Purchase a fixed asset
Purchase of the fixed asset can be recorded under following tabs:
• , if purchased without credit from the supplier
• , if purchased from a supplier on credit
• , if paid by you or someone else on behalf of the business
• , if purchase was financed by a loan
When recording the purchase of a fixed asset under any of these tabs, post the amount spent to the Fixed assets account (or the custom
control account you created for the purpose) and the subaccount for the fixed asset you have purchased.
If you purchase the fixed asset using a loan, you should also create a liability account in your chart of accounts with a name something like
Loan before you record the purchase transaction. Then record the journal entry as a debit to the Fixed assets or other control account for the
purchase cost and a credit to the Loan account of the same amount. Loan repayments must be posted to the Loan account. They have
nothing to do with purchase cost, depreciation, or book value of the fixed asset.
Example
Brilliant Industries is adding a packaging machine in its factory. The machine has an expected life of 10 years and will be
depreciated using a straight-line method, so a fixed asset is created:
The fixed asset will show under the Fixed Assets tab with no book value:
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Summary
Settings
Custom Fields
New Custom Field
The purchase cost of the fixed asset will be combined with any other fixed assets’ costs and displayed under the Assets category on the
page:
Expense fixed assets
The cost of a fixed asset is normally recovered through depreciation over its economic life. Only current depreciation is treated as an
expense each accounting period, even though the full cost of the asset might have been paid when it was purchased.
However, some local tax authorities allow fixed assets to be treated as current expenses under exceptions to normal practice for various
reasons, including:
• Promoting business investment
• Reducing administrative burdens
• Encouraging small business formation
A typical exception is to allow the entire cost of a fixed asset to be recovered in a single year as a current expense under specific
circumstances. However, such exceptions often include restrictions of their own, such as requirements to recapture (give back) accelerated
depreciation taken previously if the fixed asset is retired from service or the company goes out of business before the asset’s expected
lifespan has passed. In other words, the tax authority will demand its due if criteria for the exception are not met.
MYBOS can help track necessary information if you take advantage of such exceptions for fixed assets. Purchasing, depreciating, and
disposing of fixed assets are covered by other Guides. Extra steps necessary when expensing fixed assets are accomplished using custom
fields.
In the tab, select :
Locate the Fixed Asset list and click :
Define a custom field for the date the fixed asset is placed in service. Assign this custom field to Position 1. Check the box to
. Make the field Type Single line text:
Example
Brilliant Industries purchases its packaging machine on credit from the manufacturer, entering the 10,500 cost with a
journal entry. The purchase cost now shows in the Fixed Assets tab register:
Show custom field as a column
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Create
Fixed Assets
Click .
Define a second custom field for depreciation method in the same way, assigning it to Position 2. Make this custom field Type a Drop-down
list. Enter list options allowed by local law and business policy. In this example, straight-line depreciation and accelerated depreciation under
(fictional) Rule 24-3998 are allowed:
Define a third custom field for the recovery period. Assign it to Position 3. Define a fourth custom field for the end of the recovery period,
which may or may not match the actual expected life of the fixed asset. Of course, labels for all these custom fields can be altered to match
local requirements.
When these custom fields are completed for all fixed assets, the register becomes a useful tool for determining:
• Whether a fixed asset was subject to a depreciation exception
• How long the fixed asset must remain in service to avoid recapture of depreciation expenses
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Depreciation Entries
Update
New Depreciation Entry
Note
If you entered depreciation in a version of MYBOS before the Depreciation Entries tab was added, the box will
already be checked. Just click Update .
Depreciate fixed assets
Depreciation is the portion of a fixed asset’s cost recorded as an expense during the current accounting period. In simple terms, since a
fixed asset has a useful life longer than one accounting period, depreciation represents the part of its value used up during the current
period.
Depreciation can be calculated many ways. You must determine allowable depreciation for the current accounting period according to a
fixed asset’s useful life, original cost, depreciation method, and local regulations. Once you have done that, MYBOS will keep track of how
much depreciation has been accumulated for the fixed asset.
Straight-line depreciation is the simplest method, dividing the fixed asset’s cost by the number of accounting periods it is expected to last.
Other methods can yield greater depreciation in early accounting periods to recognize rapid obsolesence or take into account the salvage or
scrap value of the fixed asset after it is fully depreciated. Tax regulations might also allow accelerated depreciation to encourage business
investment or simplify filing. And laws may specify which depreciation methods must be used or cannot be used.
Enable the tab
Before depreciation can be entered, the tab must be enabled. Click below the left navigation pane,
check the box, and click :
Enter depreciation
To enter depreciation for a specific fixed asset, go to the
tab. Click :
Complete the entry:
Example
In the register below, the delivery truck is being depreciated in a standard, straight-line fashion over a 7-year lifespan. No
special treatment is required. But the packaging machine was fully depreciated at the time it was purchased, yet is expected
to last 10 years. It currently has no book value, even though it remains a valuable business asset. So if it is disposed early,
adjustments to income may be necessary to recapture the accelerated depreciation. Follow local tax law in this respect.
The same basic approach can be followed whenever additional information must be tracked for future decision-making
about fixed assets.
Depreciation Entries
Customize
Depreciation Entries
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Create
Fixed Assets
Example
Brilliant Industries purchased a packaging machine for 10,500. It has an expected lifetime of 10 years and is being
depreciated monthly. Monthly depreciation is calculated using the straight-line method:
10,500 cost / 120 months = 87.50 / month
This amount is entered on the depreciation entry screen:
The Fixed Assets register now shows the depreciation amount and reduced book value:
• Date will be prefilled with the current date, but can be edited.
• Enter an optional Description.
• Choose the Fixed Asset from among those already defined.
• Enter the depreciation Amount.
• Select a Tracking Code if desired and if any are defined
• Click .
Subsequent depreciation entries will add to the total of accumulated depreciation. A complete record of depreciation for the asset can be
seen by clicking on the blue Depreciation balance for an asset in the tab:
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Summary
Fixed Assets
Fixed Assets
New Report
Caution
MYBOS’s Depreciation Calculation Worksheet currently calculates depreciation using the declining balance method.
Depreciation is calculated as a percentage of book value based on the number of days in the depreciation period. If this is
not your depreciation method, you cannot use this worksheet for that asset. Capabilities for other depreciation methods,
including straight-line, will be added in the future.
By default, the tab combines accumulated depreciation for all fixed assets. It displays Fixed assets, accumulated depreciation as a
contra asset account (meaning the balance is normally negative). This control account is activated automatically when you enable the
tab:
However, depreciation can be accumulated in custom control accounts instead. These custom control accounts can be assigned on an asset-
by-asset basis. See another Guide for a complete, illustrated example.
Calculate depreciation automatically
MYBOS can calculate depreciation automatically and enter depreciation for an accounting period for all fixed assets at once. To include a
fixed asset in this process, its annual depreciation rate must be entered on the fixed asset form:
The annual depreciation rate can be entered when purchasing new fixed assets. Or it can be added by clicking
tab.
for a fixed asset in the
Calculate depreciation
After you specify depreciation rates on all your active fixed assets, go to the
tab and click on
, then on :
Create a report covering the period for which you want to calculate depreciation for your fixed assets:
Note
MYBOS treats the annual depreciation rate as a notional rate for a typical, 365-day year. To figure depreciation over a
defined time period, the program calculates a daily depreciation rate from the notional annual rate by dividing the annual
rate by 365. As a result, depreciation calculated for leap years will be slightly more than for standard-length years.
Edit
Reports
Depreciation Calculation Worksheet
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Create
Cautions
Before creating a new report, all prior depreciation must be calculated and entered for all fixed assets. The calculation
worksheet assumes book values of fixed assets are valid from the first day of the defined period. If this is not true, both
current and future depreciation calculations will be wrong. (If depreciation for a prior accounting period has not been
entered, you can calculate and enter it by creating reports with earlier date ranges. However, these must be created in
chronological order.
When an asset has no book value at the beginning of a period, no depreciation should be calculated for it. Therefore,
when assets are added during an accounting period, depreciation for existing assets must be calculated through the day
before a new asset is added. A separate worksheet must be created beginning on the date of acquisition of the new asset,
running through the end of the accounting period. If assets are acquired on staggered dates, several worksheets might be
required for a single accounting period.
Example
Brilliant Industries has two fixed assets with different annual depreciation rates. Based on the depreciation rates entered for
each, the Depreciation Calculation Worksheet produces the following results for 2018:
• The From date will be prefilled with the current date. Change this to the first day of the accounting period for which you are
calculating depreciation.
• The Until date will also be prefilled with the current date. Change this to the last day of the accounting period for which you are
calculating depreciation.
• Enter a Description of the depreciation being calculated.
Click . The report will calculate depreciation amount for each fixed asset.
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Depreciation Entries
Example
Brilliant Industries reviews the worksheet from the previous example, confirming the accuracy of the numbers. It clicks on
New Depreciation Entry to generate a depreciation entry for all fixed assets for the 2018 accounting period:
Since Brilliant does not assign fixed assets to tracking codes, it leaves those fields blank. It could, however, have chosen
tracking codes if it desired.
Enter depreciation
If you are satisfied with calculated figures, click on
on the report:
This will copy the figures from the report into an actual transaction in the tab. There, you can edit the figures if
needed. The Depreciation Calculation Worksheet is just a worksheet to give you good starting point so you don’t have to calculate all the
figures from scratch.
Calculate depreciation for subsequent accounting periods
For subsequent accounting periods, the book values determined by MYBOS after applying the calculated depreciation will be used as the
starting point for the next Depreciation Calculation Worksheet.
New Depreciation Entry
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Example
Brilliant Industries packing machine failed at the end of August 2019 and was scrapped. The fixed asset was disposed. As a
result, only 243 days worth of depreciation is calculated:
Note
If your depreciation scheme allows only full or half accounting periods to determine depreciation, adjust your disposal
dates to the end or mid-point of the period.
Calculate depreciation for disposed assets
When fixed assets are disposed part way through an accounting period, MYBOS makes appropriate adjustments on the worksheet.
Example
For the following year, Brilliant Industries generates another Depreciation Calculation Worksheet. Note the different book
values and calculated results:
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Disposed fixed asset
Fixed Assets
Example
Brilliant Industries decides to replace the packaging machine it purchased in January with a more capable model, even
though only three months of its useful life have passed. The disposal is recorded as below:
Dispose of fixed assets
When a fixed asset is removed from service, it must be disposed of in your accounting records. Several circumstances may exist. The fixed
asset may have:
• Already been fully depreciated over its useful life
• Passed the end of its useful life, but have residual salvage or resale value
• Been only partially depreciated, with useful life and resale value remaining
• Been partially depreciated, but with no value remaining (worn out early)
Other circumstances could also apply, especially if special tax provisions covered purchase of the fixed asset. Regardless of the exact
situation, the purchase cost of the fixed asset must be removed from the Fixed assets account and its accumulated depreciation must be
removed from Fixed assets, accumulated depreciation. Otherwise, the balances of these two accounts would grow endlessly as the business
purchases assets over the years, even if those assets are no longer owned. Finally, whether the fixed asset is sold, scrapped, or given away,
the difference between its book value and any amount recovered through disposal must be recorded, either as income or expense.
To dispose of a fixed asset, go to the tab, click the button for the asset disposed, check ,
then enter the date of disposal. If desired, the disposal gain or loss can be posted to any regular expense account. By default, it will be
posted to Fixed assets - loss on disposal.
This transfers the book value of the asset to the Fixed assets - loss on disposal expense account and the book value on the balance sheet is
reduced to zero. Fixed assets - loss on disposal is a control account activated automatically when the tab is enabled.
Fixed Assets
Edit
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Reports
Notes
In the Fixed Asset Summary, the Acquisition cost column includes all purchases and upwards revaluations.
Consideration received includes all sales posted to the asset’s subaccount (see below) and downwards revaluations.
Depreciation includes all depreciation during the reporting period. Profit (loss) includes amounts transferred to other
accounts when the asset is disposed.
Two methods can be used when a disposed fixed asset is sold. The first is to post a receipt in the Receipts & Payments
tab to Fixed assets, at cost and the specific asset’s subaccount prior to recording disposal. This reduces the purchase cost
balance, decreasing any loss on disposal. Such a receipt would show up in the Consideration received column. The
second method is to post the transaction to Fixed assets - loss on disposal after disposal. The net effects are the same, but
the second method would not show on the Fixed Asset Summary, because the transaction would not be posted directly to
the asset’s subaccount.
Like fixed asset purchases and depreciation, disposals are reported on the Fixed Asset Summary in the tab:
Migrate fixed assets from prior accounting system
When migrating to MYBOS from a prior accounting system, fixed assets must be carried forward at their book values from the previous
system. This is accomplished in MYBOS in two steps:
• Create the fixed asset.
Example
After Brilliant Industries’ disposal action, its Balance Sheet shows no balance for either Fixed assets, at cost or Fixed assets,
accumuated depreciation. The Profit and Loss Statement shows three months’ worth of depreciation expense and the large
remaining book value:
Unless Brilliant Industries can find a buyer for the used packaging machine, this situation will look like a serious business
mistake.
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Fixed Assets
New Fixed Asset
Reports
• Enter starting balances for purchase cost and accumulated depreciation to date being carried over from your old account system.
(MYBOS will automatically calculate book value.)
These steps can be accomplished separately, or they can be combined into a single operation as the asset is being created. There is no
difference in the final results.
Set a start date
Starting balances cannot be entered unless a start date is set. To set a start date, follow procedures in this Guide.
Create the fixed asset
Before you can enter any transaction related to a fixed asset, the fixed asset itself must be created in MYBOS. If the Fixed Assets tab
has not already been enabled, click
below the list:
below the left navigation pane. Check the box for Fixed Assets and click Update
To migrate a fixed asset, return to the left navigation pane, click , then :
Complete the entry:
• Item code is an optional alphabetic or numeric designation for the fixed asset.
• Item name is the name that will appear for the fixed asset in reports and lists.
• Depreciation rate is the notional annual percentage depreciation rate for the asset. This rate will be used by the Depreciation
Calculation Worksheet in the tab to calculate a daily depreciation rate, which will be used in calculations.
Customize
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Create
Example
Northwind Traders is migrating its accounting system to MYBOS. The first fixed asset it migrates is a packing machine.
Following procedures described above, it creates the packing machine as a fixed asset, then enters starting balances:
Example
After migrating its first fixed asset, the packaging machine, Northwind’s fixed asset list and Summary show the results:
AND
• Description accepts detailed information about the fixed asset.
• The Control account — At cost field appears only when a custom control account made up of fixed assets exists. Otherwise, the
asset is assigned to the Fixed assets, at cost control account by default.
• The Control account — Accumulated depreciation field appears whenever a custom control account for fixed asset depreciation
exists. Otherwise, the asset’s depreciation will be posted to Fixed assets, accumulated depreciation.
• When the Custom depreciation expense account box is checked, a dropdown field appears that allows you to select any regular
expense account for posting current depreciation expenses for the asset. If nothing else is selected, current depreciation for the
asset will be posted to Fixed assets - depreciation.
Click .
Enter starting balances
Original purchase cost and accumulated depreciation to date from your old accounting system must be entered as starting balances.
General procedures for entering starting balances are contained in this Guide. Read it first.
When migrating fixed assets, go to the tab. Click for the asset you are migrating and enter Acquisition cost and
Accumulated depreciation in the Starting balance fields. These amounts should be the closing balances for equivalent figures from your
old accounting system.
Results
The fixed asset, with starting balances carried over from your old accounting system, will show under the Fixed Assets tab. The purchase
cost of the fixed asset will be combined with any other fixed assets’ costs and displayed under the Assets category on the Summary page. A
contra account, Fixed assets, accumulated depreciation, will record depreciation to date for all fixed assets. The difference between the two
account balances represents current book value of all fixed assets. Of course, if you assign the cost and accumulated depreciation of an asset
to custom control accounts, applicable figures will be summed there, instead.
Fixed Assets
Edit
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Intangible Assets
Customize
Update
Settings
Intangible Assets
Purchase intangible assets
Intangible assets are non-physical property owned by a business. The acquisition cost of an intangible asset is recovered over its economic
life through amortization, rather than as an expense during a single accounting period. To be considered an intangible asset, property
should generally:
• Be expected to enhance cash flow for longer than one major accounting period (usually one year)
• Cost more than the capitalization threshold (set either by company policy or local law)
Intangible assets can be related to marketing, intellectual property, contracts, or technology and can include, among other things:
• Patents
• Trade or internet domain names
• Licenses
• Customer lists
• Copyrights
• Franchises
• Trade secrets
• Good will
Often, intangible assets are acquired when an ongoing business is purchased. Part of the purchase price is allocated to intangible assets. In
other cases, intangible assets are created through reallocation of prior, internal expenses, such as when research and development costs are
converted into the intangible asset of a patent. Local law and accounting standards often influence what can or must be considered an
intangible asset.
Enable the tab
Before you can enter any transaction related to a intangible asset, the intangible asset itself must be created in MYBOS. If the
tab has not already been enabled, click below the left navigation pane. Check the box for
and click below the list:
When the tab is enabled, four accounts are automatically activated in your chart of accounts:
• Intangible assets, at cost, an asset account recording the purchase cost of all intangible assets
• Intangible assets, accumulated amortization, a contra asset account summing amortization to date of all intangible assets
• Intangible assets - amortization, recording current amortization expenses
• Intangible assets - loss on disposal, an expense account recording and loss (gain) on disposal of intangible assets
These accounts cannot be disabled while the
.
tab is enabled, but they can be renamed under
Note
When migrating many fixed assets, consider using batch operations to accomplish the steps described above.
Intangible Assets
Intangible Assets
Intangible Assets
Chart of Accounts
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New Intangible Asset
Reports
Create
Create the intangible asset
Return to the left navigation pane, click
, then :
Complete the entry:
• Name is the name that will appear for the intangible asset in reports and lists.
• Code is an optional alphabetic or numeric designation for the intangible asset. Numeric entries will control the position of the asset
on lists.
• Amortization rate is the annual rate of amortization for this intangible asset. This rate will be used by the Amortization
Calculation Worksheet in the tab.
• Description accepts detailed information about the intangible asset.
• The Control account — At cost field appears only when a custom control account made up of intangible assets exists. Otherwise,
the asset is assigned to the Intangible assets, at cost control account by default.
• The Control account — Accumulated amortization field appears when a custom control account for intangible assort
amortization exists. Otherwise, the asset’s amortization will be accumulated in Intangible assets, accumulated amortization.
• If the Custom amortization expense account is checked, any regular expense account can be selected for posting current
amortization. Otherwise, current amortization will be posted to Intangible assets - amortization.
Click .
Intangible Assets
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Receipts & Payments
Purchase Invoices
Expense Claims
Journal Entries
Note
To this point, you have not recorded the purchase of the intangible asset. You have only set it up in MYBOS. Now you can
record financial transactions related to the intangible asset.
Purchase an intangible asset
Purchase of the intangible asset can be recorded under following tabs:
• , if purchased from the seller without credit
• , if purchased from a supplier on credit
• , if paid by you or someone else on behalf of the business
• , if acquisition was financed by a loan or transfer of expenses
When recording the purchase of an intangible asset under any of these tabs, post the amount spent to the Intangible assets account and the
subaccount for the intangible asset you have purchased.
If you purchase the intangible asset using a loan, you should also create a liability account in your chart of accounts with a name something
like Loan before you record the purchase transaction. Then record the journal entry as a debit to the Intangible assets account for the
acquisition cost and a credit to the Loan account of the same amount. Loan repayments must be posted to the Loan account. They have
nothing to do with acquisition cost, amortization, or book value of the intangible asset.
Example
ACME Industries purchased the patent on an electric controller from its inventor. The patent has a remaining life of 15
years, so an intangible asset is created:
The intangible asset shows under the Intangible Assets tab with no book value:
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Summary
Amortization Entries
Update
New Amortization Entry
Note
If you entered amortization in a version of MYBOS before the Amortization Entries tab was added, the box will
already be checked. Just click Update .
The acquisition cost of the intangible asset will be combined with any other intangible assets’ costs and displayed under the Assets category
on the page:
Amortize intangible assets
Amortization is the portion of an intangible asset’s cost recorded as an expense during the current accounting period. In simple terms,
since an intangible asset has a useful life longer than one accounting period, amortization represents the part of its value, if any, used up
during the current period.
Amortization can be calculated many ways. You must determine allowable amortization for the current accounting period according to an
intangible asset’s remaining life, original cost, amortization method, possible impairment of the asset, and local regulations. Once you have
done that, MYBOS will keep track of how much amortization has been accumulated for the intangible asset.
Straight-line amortization is the simplest method, dividing the intangible asset’s unamortized cost by the number of remaining accounting
periods it is expected to last. Other methods can yield greater amortization in early accounting periods to recognize rapid obsolesence or
take into account the residual value of the intangible asset after it is fully amortized. Tax regulations might also allow accelerated
amortization to encourage business investment or simplify filing. And laws may specify which amortization methods must be used or cannot
be used.
Enable the tab
Before amortization can be entered, the tab must be enabled. Click below the left navigation pane,
check the box, and click :
Enter amortization
To enter amortization for a specific intangible asset, go to the
tab. Click :
Complete the entry:
Example
ACME Industries purchases its patent from the inventor for cash, entering the 10,500 cost with a bank transaction. The
acquisition cost now shows in the Intangible Assets tab register:
Amortization Entries
Customize
Amortization Entries
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Create
Intangible Assets
Example
ACME Industries purchased a patent for 10,500. It has a remaining lifetime of 15 years and is being amortized monthly.
Monthly amortization is calculated:
10,500 cost / 120 months = 87.50 / month
This amount is entered on the amortization entry screen:
The Intangible Assets register now shows the amortization amount and reduced book value:
• Date will be prefilled with the current date, but can be edited.
• Enter an optional Description .
• Choose the Intangible Asset from among those already defined.
• Enter the amortization Amount .
• Select a Tracking Code if desired and if any are defined
Click .
Subsequent amortization entries will add to the total of accumulated amortization. A complete record of amortization for the asset can be
seen by clicking on the blue Amortization balance for an asset in the tab.
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Summary
Intangible Assets
Edit
Intangible Assets
Example
ACME’s balance sheet shows its complete position with respect to intangible assets:
Caution
MYBOS’s Amortization Calculation Worksheet currently calculates amortization using the declining balance method.
Amortization is calculated as a percentage of book value based on the number of days in the amortization period. If this is
not your amortization method, you cannot use this worksheet for that asset. Capabilities for other amortization methods,
including straight-line, will be added in the future.
By default, the tab combines accumulated amortization for all intangible assets. It displays Intangible assets, accumulated
amortization as a contra asset account (meaning the balance is normally negative). This control account is activated automatically when you
enable the tab.
However, amortization can be accumulated in custom control accounts instead. These custom control accounts can be assigned on an asset-
by-asset basis. See another Guide for a complete, illustrated example. (That Guide illustrates using custom control accounts for a fixed asset,
but the principles and processes are identical.)
Calculate amortization automatically
MYBOS can calculate amortization automatically and enter amortization for an accounting period for all intangible assets at once. To
include an intangible asset in this process, its annual amortization rate must be entered on the intangible asset form:
The annual amortization rate can be entered when purchasing new intangible assets. Or it can be added by clicking for an intangible
asset in the tab.
Example
ACME enters amortization for the following month. The drill-down shows all entries:
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New Report
Create
Cautions
Before creating a new report, all prior amortization must be calculated and entered for all intangible assets. The calculation
worksheet assumes book values of intangible assets are valid from the first day of the defined period. If this is not true,
both current and future amortization calculations will be wrong. (If amortization for a prior accounting period has not been
entered, you can calculate and enter it by creating reports with earlier date ranges. However, these must be created in
chronological order.
When an asset has no book value at the beginning of a period, no amortization should be calculated for it. Therefore,
when assets are added during an accounting period, amortization for existing assets must be calculated through the day
before a new asset is added. A separate worksheet must be created beginning on the date of acquisition of the new asset,
running through the end of the accounting period. If assets are acquired on staggered dates, several worksheets might be
required for a single accounting period.
Calculate amortization
After you specify amortization rates on all your active intangible assets, go to the
tab and click on
, then on :
Create a report covering the period for which you want to calculate amortization for your intangible assets:
• The From date will be prefilled with the current date. Change this to the first day of the accounting period for which you are
calculating amortization.
• The Until date will also be prefilled with the current date. Change this to the last day of the accounting period for which you are
calculating amortization.
• Enter a Description of the amortization being calculated.
Click . The report will calculate amortization amount for each intangible asset.
Note
MYBOS treats the annual amortization rate as a notional rate for a typical, 365-day year. To figure amortization over a
defined time period, the program calculates a daily amortization rate from the notional annual rate by dividing the annual
rate by 365. As a result, amortization calculated for leap years will be slightly more than for standard-length years.
Reports
Amortization Calculation Worksheet
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Amortization Entries
Example
Brilliant Industries reviews the worksheet from the previous example, confirming accuracy of the numbers. It clicks on
New Amortization Entry to generate an amortization entry for all (in this example, only one) intangible assets for the
2018 accounting period:
Since Brilliant does not assign intangible assets to tracking codes, it leaves that field blank. It could, however, have chosen a
tracking code if it desired.
Enter amortization
If you are satisfied with calculated figures, click on
on the report:
This will copy the figures from the report into an actual transaction in the tab. There, you can edit the figures if
needed. The Amortization Calculation Worksheet is just a worksheet to give you good starting point so you don’t have to calculate all the
figures from scratch.
Example
Brilliant Industries has only one intangible asset. Based on the amortization rate entered for it, the Amortization Calculation
Worksheet produces the following for 2018:
New Amortization Entry
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Example
For the following year, Brilliant Industries generates another Amortization Calculation Worksheet. Note the different book
values and calculated results:
Example
Brilliant Industries became worthless to the company at the end of August 2019 when products using it were discontinued.
The intangible asset was disposed. As a result, only 243 days worth of amortization is calculated:
Calculate amortization for subsequent accounting periods
For subsequent accounting periods, the book values determined by MYBOS after applying the calculated amortization will be used as the
starting point for the next Amortization Calculation Worksheet.
Calculate amortization for disposed assets
When intangible assets are disposed part way through an accounting period, MYBOS makes appropriate adjustments on the worksheet.
Dispose of intangible assets
When an intangible asset can no longer enhance future cash flow, it must be disposed of in your accounting records. Several circumstances
may exist. The intangible asset may have:
• Already been fully amortized over its useful life
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Disposed intangible asset
Example
ACME Industries’ electric controller patent becomes useless because the company discontinues products in which it is used,
even though only two months of its anticipated life have passed. The disposal is recorded as below:
• Passed the end of its useful life for your business, but have residual resale value
• Been only partially amortized, with useful life and resale value remaining
• Been partially amortized, but with no value remaining (became useless early)
Other circumstances could also apply, especially if special tax provisions covered purchase of the intangible asset. Regardless of the exact
situation, the purchase cost of the intangible asset must be removed from the Intangible assets, at cost account and its accumulated
amortization must be removed from Intangible assets, accumulated amortization. Otherwise, the balances of these two accounts would grow
endlessly as the business purchases assets over the years, even if those assets are no longer owned. Finally, whether the intangible asset is
sold or has merely lost its value, the difference between its book value and any amount recovered through disposal must be recorded, either
as income or expense.
To dispose of an intangible asset, go to the tab, click the button for the asset disposed, check
, then enter the date of disposal. If desired, the gain or loss on disposal can be posted to any regular
expense account. Otherwise, it will be posted to Intangible assets - loss on disposal.
This transfers any book value of the asset to the Intangible assets - loss on disposal expense account and reduces the book value on the
balance sheet to zero. Intangible assets - loss on disposal is a control account activated automatically when the
enabled.
tab is
Intangible Assets
Edit
Intangible Assets
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Reports
Notes
In the Intangible Asset Summary, the Acquisition cost column includes all purchases and upwards revaluations.
Consideration received includes all sales posted to the asset’s subaccount (see below) and downwards revaluations.
Amortization includes all amortization during the reporting period. Profit (loss) includes amounts transferred to other
accounts when the asset is disposed.
Two methods can be used when a disposed fixed asset is sold. The first is to post a receipt in the Receipts & Payments
tab to Intangible assets and the specific asset’s subaccount prior to recording disposal. This reduces book value, decreasing
any loss on disposal. Such a receipt would show up in the Consideration received column. The second method is to post
the transaction to Intangible assets - loss on disposal after disposal. The net effects are the same, but the second method
would not show on the Intangible Asset Summary, because the transaction would not be posted directly to the asset’s
subaccount.
Like intangible asset purchases and amortization, disposals are reported on the Intangible Asset Summary in the tab:
Migrate intangible assets from prior accounting system
When migrating to MYBOS from a prior accounting system, intangible assets must be carried forward at their book values from the
previous system. This is accomplished in MYBOS in two steps:
• Create the intangible asset.
• Enter starting balances for purchase cost and accumulated amortization to date being carried over from your old account system.
Example
After ACME Industries’ disposal action, its Balance Sheet shows no balance for either Intangible assets, at cost or Intangible
assets, accumuated amortization. The Profit and Loss Statement shows two months’ worth of amortization expense and the
large remaining book value:
Unless ACME Industries can find a buyer for the patent, this situation will look like a serious business mistake.
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Customize
Update
Intangible Assets
New Intangible Asset
(MYBOS will automatically calculate book value.)
These steps can be accomplished separately, or they can be combined into a single operation as the asset is being created. There is no
difference in the final results.
Set a start date
Starting balances cannot be entered unless a start date is set. To set a start date, follow procedures in this Guide.
Create the intangible asset
Before you can enter any transaction related to an intangible asset, the intangible asset itself must be created in MYBOS. If the
tab has not already been enabled, click below the left navigation pane. Check the box for
and click below the list:
To migrate a fixed asset, return to the left navigation pane, click , then :
Complete the entry:
• Name is the name that will appear for the intangible asset in reports and lists.
• Code is an optional alphabetic or numeric designation for the intangible asset. Numeric entries will control the position of the asset
on lists.
• Amortization rate is the annual rate of amortization for this intangible asset. This rate will be used by the Amortization
Intangible Assets
Intangible Assets
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Reports
Create
Summary
Example
Brilliant industries is migrating its accounting to MYBOS. It owns one intangible asset, the patent for an electronic
controller. Following procedures described above, it creates the patent as an intangible asset, then enters starting balances:
Example
After migrating its intangible asset, the patent, Brilliant’s intangible asset list and Summary show the results:
AND
Calculation Worksheet in the tab.
• Description accepts detailed information about the intangible asset.
• The Control account — At cost field appears only when a custom control account made up of intangible assets exists. Otherwise,
the asset is assigned to the Intangible assets, at cost control account by default.
• The Control account — Accumulated amortization field appears when a custom control account for intangible assort
amortization exists. Otherwise, the asset’s amortization will be accumulated in Intangible assets, accumulated amortization.
• If the Custom amortization expense account is checked, any regular expense account can be selected for posting current
amortization. Otherwise, current amortization will be posted to Intangible assets - amortization.
Click .
Enter starting balances
Original purchase cost and accumulated amortization to date from your old accounting system must be entered as starting balances.
General procedures for entering starting balances are contained in this Guide. Read it first.
When migrating intangible assets, go to the tab. Click for the asset you are migrating and enter Acquisition
cost and Accumulated depreciation in the Starting balance fields. These amounts should be the closing balances for equivalent figures
from your old accounting system.
Results
The intangible asset, with starting balances carried over from your old accounting system, will show under the
tab.
The purchase cost of the intangible asset will be combined with any other intangible assets’ costs and displayed under the Assets category
on the page. A contra account, Intangible assets, accumulated amortization, will record amortization to date for all intangible
assets. The difference between the two account balances represents current book value of all intangible assets. Of course, if you assign the
cost and accumulated amortization of an asset to custom control accounts, applicable figures will be summed there, instead.
Intangible Assets
Edit
Intangible Assets
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Note
When migrating many intangible assets, consider using batch operations to accomplish the steps described above.
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Note
When using the desktop edition, business data files can be stored outside the application data folder and opened directly
without first launching the MYBOS application. This is done by creating a backup file in the desired storage location.
Business data files stored this way are not also copied to the application data folder, so information below does not apply
to them.
Note
Previous versions of MYBOS compacted the data file automatically when a business was backed up. But that process took
excessively long when a business had many transactions, customers, suppliers, etc., causing the data file to exceed 1 GB.
The current implementation allows any data file to be compacted whenever desired, reducing the size of the application
data folder. The process is now entirely voluntary.
Chapter 11: Advanced
Despite its overall simplicity, MYBOS can still present situations where more advanced knowledge is necessary.
Application Data
Manage application data folder contents
MYBOS stores all business information, accounting data, custom themes, and attachments in a separate data file for each business. By default,
these data files are saved in the application data folder. No accounting, business, or user information is stored in the application itself. The
default location for application data depends on your operating system and edition, but is the same for all businesses you create.
Over time, data storage schemes for MYBOS have changed to accommodate new program features. Sometimes, an update requires new
data files to be created. This happens automatically when the new version of MYBOS is launched. No action by the user is ever necessary.
Relic data files are not normally deleted. These obsolete data files and/or folders are harmless and can safely be left in place. By modern
standards, they are not large, and do not consume much storage capacity. However, they can be identified and deleted, if desired.
Reduce data file size
As transactions, customers, suppliers, assets, inventory items, accounts, and attachments are entered, edited, and possibly deleted, the
accounting data file for a business can grow to a size larger than strictly necessary. Data file size can be compacted by going to the
page and clicking on the file size for a business:
All data is preserved.
Businesses