BX2019 Accounting Information Systems - Assignment - MYOB Project
Course Name: Accounting Information Systems Course code: BX2019
Student Workbook
Name: ___________________
Table of Contents
Table of Contents....................................................................................................................................... 2 The Assignment – MYOB Project.............................................................................................................. 3 Section 1: Setting up the business account............................................................................................. 6 Section 2: Chart of Accounts, Tax codes and Opening Balances..........................................................20 Section 3: Regular contacts .....................................................................................................................26 Section 4: Recording Sales ......................................................................................................................28 Section 5: Recording purchases..............................................................................................................37 Section 6: Banking....................................................................................................................................44 Section 7: General journals (adjustments) ..............................................................................................50 Section 8: GST Reporting.........................................................................................................................54 Section 9: Financial Reporting.................................................................................................................56 Section 10: Reflective essay ....................................................................................................................57 Section 11: Submission............................................................................................................................58 Appendix A - Marking Guide ....................................................................................................................59
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The Assignment – MYOB Project
Overview
In this assignment, you are to create a business profile and record day to day transactions including GST and payroll transactions by using MYOB Business EssentialsTM. This project also involves the preparation of common financial statements and a GST return.
Based on the information you have processed and the financial reports you have prepared by using MYOB, you will also be required to write a reflective essay to evaluate the performance of the business.
Parameters
This is an individual assignment. Always use your own legal name, student ID and university/school email account when required.
Weighting:
Due date/time: Submission:
Required
25%
XXX (see subject outline for details)
You are required to submit the electronic files only.
You are required to generate and submit the following documents by using MYOB EssentialsTM:
1) A Quote generated for a customer on request,
2) Journals – a list of all journal entries created on a specific date,
3) Bank Reconciliation created on a specific date,
4) Journals – Adjustment journal entries,
5) GST Return for a specific period – include 3 reports,
6) Financials - profit and loss and balance sheet for a specific period.
(12.5 marks each, 75 marks in total)
You are required to write up a reflective essay to evaluate the financial performance and
financial position for the business.
Further information
(25 marks) TOTAL: 100 MARKS
Background – your business
It is assumed that you own and run your sole trader business, selling one type of specialised industrial alarm system (Javas Ultra02) and also provide installation, maintenance and repair services. Your business is based in Cains / Townsville. You have no employees. Your business is registered for GST on the accrual (invoice) basis and prepares GST every month. You have some regular suppliers and customers. The financial year of your business runs from 1 July to 30 June.
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Since you have learnt accounting as a part of your course, you have decided to use a cloud-based accounting software package to account for your own business. Your task is to set up your business profile, record and process daily transactions of your business using MYOB Business EssentialsTM. It is hoped that at the end of each month, you will be able to evaluate the operation of your business by examining the financial information generated from accounting software package.
MYOB Business EssentialsTM
MYOB Business EssentialsTM is an easy online accounting software that has everything needed to take care of a small business. It is a fast and easy way to manage cash flow and ATO compliance requirements. It includes time saving features to help take care of the day-to-day bookkeeping and financial reporting.
More details about MYOB Business EssentialsTM can be found at:
https://www.myob.com/au/accounting-software/features
All the best for your MYOB Project!
Date Time Computer lab |
See Subject Outline for details |
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Section 1: Setting up the business account
It is assumed that you own and run a sole-trader’s business in Cains/Townsville. You are to use MYOB Business EssentialsTM to create your business profile.
MYOB Business EssentialsTM is a cloud-based system. You can logout and login to continue working on the project at any time as long as internet is available.
*Make sure you allow screen pop-ups.
Step 1: Set up your Business EssentialsTM online file
Your Lecturer will advise you to set up a trial file
Go To https://www.myob.com/au/students/education-trial6
Create the business name by using your own name (preferably your Surname) and the following information. For instance, if your name is Jeff Noddy, your business will be named ‘Noddy Security Systems and Services’.
You can exercise your judgement to use your first name, surname or your full name to avoid duplication of business names in the class. For instance, if your name is Felicity Smith, your business can be named ‘Felicity Security Systems and Services’.
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Example:
Once you have access to your file/account, you will be asked to enter your business name and industry.
Click Sign in to create a new trial. It then prompts you to sign in myob.
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For NEW USER click Sign up
Enter your Email address and Password. Preferable using your student email address.
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When first time login. MYOB require the user to set up a 2 Factor Authentication (2FA) To set up 2-Factor authentication see the following links:
Two-Factor authentication (2FA) https://help.myob.com/wiki/display/sec/Two-factor+authentication
Setting up two-factor authentication on a new phone
https://help.myob.com/wiki/display/sec/Setting+up+two- factor+authentication+on+a+new+phone
Click continue to proceed.
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Click to continue All your business will be listed.
Note:
If you need to create more than one file return to www.myob.com/au/students/education-trial and start again.
In this example, I have created three (3) business or company files
Click on the Business name you just created. Here I click on “Stee Security Systems and Services”
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Create the business name by using your own name (preferably your Surname) and the following information. For instance, if your name is Jeff Noddy, your business will be named ‘Noddy Security Systems and Services’.
You can exercise your judgement to use your first name, surname or your full name to avoid duplication of business names in the class. For instance, if your name is Felicity Smith, your business can be named ‘Felicity Security Systems and Services’.
Please also select (tick) þ the role as Student or teacher.”
Then click ‘Get down to business” to continue.
When you log into MYOB, make sure you choose to log in the software pack of ‘MYOB Business EssentialsTM’
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Step 3 Entry of business details
Open the ‘Business details’ page to update your business information. This can be accessed via clicking on the business name on the top-right of the screen to open up the account settings. Select ‘Business Details’. Use the following information to complete the required sections.
Business name
Noddy Security Systems and Services
(the name you have created previously)
Trading Name
ABN Number
GST Branch
ACN Number
Client code
Contact Details
Financial Year
Opening balance date
As Above
12 345 567 789
001
12 345 567 789 00
NSS 001
Your choices
2020
July 2019 - Do not lock the data
When you have finished, click
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Step 4 GST setting
Stay on this page and click on the GST Settings Tab. Currently this tab is related to the Invoice function – If you say NO your Invoice will simply state “Invoice” if you select YES then your Invoice will state “Tax Invoice”. The business is registered for GST and reports quarterly.
When you have finished, click
The MYOB will confirm that the GST information you have just entered is saved.
What if I made a mistake?
You can always edit business information and GST settings, just make required changes and Save
Step 5 Report settings
This is where you can select your Business settings and User preferences for reporting and pre-set them. Note while generating reports you can at any time change these options within the report.
Accrual
Accrual
GST Balance
Show
Include
With a minus sign -100
Select Account No, currency symbol and cents Open in a new tab
Leave as default
Accounting Method | ||
GST Reporting Method | ||
GST clearing Account | ||
Exception alerts | ||
Year-end adjustments | ||
Display negative amounts | ||
Other preferences | ||
PDF Export | ||
Others | ||
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Section 2: Chart of Accounts, Tax codes and Opening Balances
MYOB Business EssentialsTM has a standardised chart of accounts for the convenience of users. In this section, you will learn how to view and edit the chart of accounts and enter the opening balance for your business.
Step 1: View the chart of accounts
You can always view and edit the chart of accounts for your business. Click on the Accounting Tab and down to click on Chart of accounts.
Now, take a quick look at this default chart of accounts. Pay attention to the Account numbers, Account names and Account types. Although it is not regulated by any black letter accounting standard, a chart of accounts is usually set up by following the convention: Assets start with ‘1’; liability accounts start with ‘2’ and so on. We have also explained this in class.
Since your business is registered for GST, further to Step 4 above the GST, the function of recording the input and output GST is controlled via the Chart, so you need to be sure here you have the correct Tax code associated to the account. So do a quick review of the Tax Codes, we will keep the ones in the standard chart.
If you wanted to view all the types and corresponding rates go back to the Accounting Tab and down to Tax codes, here you can view all Tax codes available, linked accounts for tax collected and tax paid and the relevant rate. You can click into the purple Tax code and edit as required.
https://help.myob.com/wiki/pages/viewpage.action?pageId=59869677
Step 2: Customise the chart of accounts
Use the highlighted functions, as indicated below, to customise the chart of accounts by editing and adding. To delete accounts, you need to click into the Account name to open that particular one, then bottom left you can Delete.
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1) Modify the following existing accounts (*as above Account #s may vary due to industry selected at set up)
Number | Old account name | New account name |
1-1110 Business Bank Account #1 1-1320 Inventory
2-1110 Credit Card #1
2-2105 Business Loan #1
4-1400 Sales
FirstBank Cheque Account Inventory – Javas Ultra02 Systems FirstBank Visa Credit Card FirstBank Visa Credit Card
Sales – Installation
When you finish, click save.
2) Create the following new accounts (Create account)
Number | Name | Type | Parent | Tax rate |
4-1000 Sales – Javas Ultra02 Systems 4-3000 Service – Software and Data 5-5100 Cost of Sales – Javas Ultra02
Systems 5-5060 Other Suppliers
1-1120 FirstBank Savings Account 2-1120 FirstBank Visa Card
1-2810 Furniture and Fittings at Cost 1-2820 Acc. Depr – Furniture & Fittings
Income Income
Cost of Sales
Cost of Sales Bank
Credit Card Fixed Assets Fixed Assets
Income GST Income GST Cost of Sales GST
Cost of Sales GST Assets N-T Liabilities N-T Fixed Assets CAP Fixed Assets N-T
When you finish adding accounts, do not forget to save! 21
https://help.myob.com/wiki/display/myob/Adding%2C+editing+and+deleting+accounts
Step 3: Enter the opening balances for your business
Make sure you only do this, after you have completed Step 2 Customise the chart of accounts.
Repeat Step 1 View the chart of accounts and use the ‘Edit Accounts’ function to enter the opening balances according to the balance Sheet provided below.
*Note currently in the Myob software you cannot enter an opening balance via the chart of accounts directly to the ‘Retained earnings’ account, so you will need to enter this balance at the Historical balancing account and then post a journal as below to move it from Historical balancing to the Retained earnings account.
Enter the following opening balances:
Account name
Assets
FirstBank Cheque Account FirstBank Savings Account Accounts receivable
Inventory – Javas Ultra02 Systems Motor Vehicle
Acc. Depr - Motor Vehicle Furniture & fittings
Acc. Depr - Furniture & fittings Liabilities
Accounts payable
GST collected
GST paid
FirstBank Business Loan Equit
