Entering Bills and Invoices
Entering a bill is a manual process in Cashmanager RURAL. By entering bills regularly (daily or weekly) and other transactions regularly this means you will be able to see your current cash flow and make financial decisions based on this and your budget. Maybe you will need to extend your overdraft this month? Or perhaps … another decision from bill information?
Keeping on top of entering your bills will make your GST and end of year reconciliations much quicker and easier.
How you enter a bill into Cashmanager Rural will be affected by:
- Payment - when and how much of the bill you will pay
- Transactions on the bill – do you want to see separate transactions to help you make specific financial decisions or enter the transactions all as one to make GST returns easier?
- GST – Is the invoice inclusive or exclusive of GST and is the expense GST deductible?
Follow these steps to enter transactions from your bill:
Step 1: Read your bill
--> Check your bill before entering the transactions into Cashmanager Rural as this will affect how the transactions are entered.
- Invoice date – is it for the current financial year?
- Payment date – is it due for immediate payment, will you pay in full, is it an HP/deferred payment or part paid? Payment will affect how you enter the details of the invoice. This impacts on your cashflow so your correct incomings and outgoings are shown –it’s an unpleasant surprise to think you’ve paid a bill in full and then to find out you’ve actually only made a part payment.
- Transactions – how will you enter them, as a group of separately?
Personal or exempt transactions on the bill – find these and make a note or highlight – these affect how GST is calculated as you won’t claim for GST on these transactions
- Is GST inclusive or exclusive on the invoice?
Although bills look different they will all show an invoice date, payment date, a breakdown of transactions, and how GST is worked out.
Step 2: Enter transactions: single or multiple transactions
--> Single transaction: On a bill, transactions can be grouped together and entered as one single transaction. The benefit of this approach is that it makes recording transactions quicker and it’s easier to calculate GST. You could do a single transaction when you’ve made a purchase from a company for one type of product.
In the Transaction screen click on the Expense button, then enter the transaction details.
- Enter the Transaction date as the payment date (either when you paid the invoice or the due date which you intend to pay the invoice).
- Enter the Amount as the GST inclusive amount on the invoice. This is the amount that will show as paid on your bank records. You don’t need to enter a Reference.
- If you have Other Party details enter them or skip this section
- Code details, this part is to analyse how the money was spent/received, e.g. repairs and maintenance or stock sales or purchases.
- Select the relevant Category, you may have Extended codes that break down expense or purchase items into more detail, for example, Sheep then Ram Lambs. You can set up new extended codes if needed.
- Check the GST code is correct, B for business (automatically calculates 15% GST), E for exempt or P for personal (contains no GST).
- If entering as a single transaction the Code Amount is automatically filled in for you and includes GST.
- Enter Quantity field if relevant to bill.
- Enter a Note that is short and tells you what the specific purchase was.
--> Multiple transactions: Splitting out transactions within the same bill means you will get a more detailed picture of your expenses. This can be useful for making future financial decisions. If you have different types of purchases on an invoice it is useful to enter multiple transactions. It is also useful to enter multiple transactions if you want to see the costs between different business areas such as separate farms or crops.
Although this invoice could be entered as a single transaction, it’s entered as a multiple transaction as the farmer wants to allocate the costs to the different crops.
The Code Amount is where Cashmanager Rural will recognise if you want to enter multiple transactions for the bill. If you enter a code amount smaller than the total Amount, it will create another transaction for the bill until the Remaining amount reaches $0.
--> Tip: When entering multiple transactions most invoices show each transaction GST exclusive so you will need to push <Ctrl> + to automatically calculate the GST for each transaction.
How to check you’ve entered all the transactions correctly
- Multiple lines for the bill will show in red until transactions are entered to a remaining balance of $0
- When entering each transaction make sure it’s as an expense if it shows as Income under the code amount change to Reversal by pushing <+>
- When the Remaining balance = $0 this is the last transaction to balance the bill and the red transaction lines will turn from red to grey once OK is clicked.
Step 3: Enter transactions to match when payments will occur
--> If you are not paying the bill by the due date and it will be deferred or financed (e.g. Hire Purchase) it’s important to enter this into Cashmanager Rural. This way, there will be no surprises when you’ve think you’ve paid a bill and you haven’t.
Step 4: Storing your invoice
--> Store your invoice once entered and indicate once it’s been paid.
It is useful to store invoices electronically that way they won’t get lost. Scan my bills helps with this.