• Rural Community

    How to record end of year transactions

    Part of the questionnaire you complete for your accountant asks you to list all Accounts Receivable (Debtors) and Accounts Payable (Creditors).

    If these items are recorded accurately in Cashmanager, they will become part of the Accountants report that your accountant can use to prepare your end of year accounts.

    TIP: While you're coding your bank transactions, have your invoices in front of you so that you can identify and allocate transactions to the correct financial year.

    What are Accounts Receivable and Accounts Payable?

    • Accounts Receivable
      Amounts that are owed to you at balance date.

    • Accounts Payable
      Amounts that are owed by you at balance date.

    In Cashmanager, these are transactions that are recorded in the first month(s) of the new financial year.

    The items have a transaction date that matches the bank and are allocated to the financial year they belong to.

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    NOTE: Some items such as bad debts to be written off can't be recorded in Cashmanager. So check with your accountant what additional information they need.

    Allocate the correct financial year to a standard transaction

    Scenario
    Lisa's end of financial year is 30 June.
    She received a invoice from her fertiliser supplier dated at the end of June (2017 year) and paid it in July (2018 year).
    Lisa needs to show that though the transaction was paid in July, it relates to the 2017 financial year.

    For bank feeds or imported bank transactions, allocate the financial year by clicking on the Fin. Yr drop-down field adjacent to each transaction.

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    For manually created transactions in the Transaction screen:

    1. The transaction date should reflect the date the payment occurred at the bank.
    2. Allocate the correct year from the Financial year field.

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    Allocate the correct financial year to a livestock transaction

    For livestock transactions the sale/purchase date determines what financial year the stock event belongs to and as a result, closing tallies for that year.

    Scenario
    Wayne's end of financial year is 30 June.
    He sold lambs on 23 June and received payment on 8 July.
    So that his year end stock tallies are accurate, Wayne needs to record the sale against the correct financial year.

    For bank feeds or imported bank transactions, by changing the financial year to 2017 the stock sale date defaults to the last day of the financial year in your database i.e. 30/06/2017.

    This ensures correct tallies at the end of the year, while the cash remains in the 2018 year.

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    For manually created transactions in the Transaction screen:

    1. The transaction date should reflect the date the payment occurred at the bank.
    2. The Sale/Purchase date can be recorded, moving the stock event into the correct financial year.

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    What about Invoice Basis for GST?

    If you're Invoice Basis for GST the work is all done for you as the invoice date determines the financial year that is allocated to the transaction.

    This also applies to livestock sales and purchases.

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    Want to know more?

    How do I create a new financial year?
    How do I close a financial year?
    How to reconcile a bank statement that falls over two financial years
    How to balance your livestock rec.


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