MYOB End of Financial Year Step by Step Guide

Tips and techniques for:

> MYOB's business management software range

> MYOB RetailManager

> MYOB AssetManager Pro

> MYOB PowerPay

www.myob.com.au

MYOB Australia Pty LtdABN 13 076 760 198

12 Wesley CourtBurwood EastVIC 3151 Australia

© Copyright MYOB Technology Pty Ltd 2004. All rights reserved® Registered to MYOB Technology Pty Ltd ABN 30 086 760 269

Welcome 5

End of fi nancial year MYOB's business management software 6

Step 1 – Back up your company fi le 9Step 2 – Reconcile your bank accounts 12Step 3 – Reconcile your accounts receivable 16Step 4 – Reconcile your accounts payable 19Step 5 – Reconcile your inventory 22Step 6 – Reconcile your GST control accounts 26Step 7 – Review your accounts and reports 31Step 8 – Provide information to your accountant 33Step 9 – Enter any end of year adjustments 37Step 10 – Start a new fi nancial year 38

MYOB RetailManager 42

Step 1 – Perform the stocktake 43Step 2 – Print the “What’s in Stock” report 47Step 3 – Print the Aged Debtors, Lay-by and Sales Order reports 48Step 4 – Back up the shopfront 48Step 5 – Perform the Accounting Export 49

MYOB AssetManager Pro 50

Step 1 – Print the depreciation and asset reports 51Step 2 – Start a new year 53

Contents

3End of Financial Year Step-by-Step Guide 2004

End of payroll year

MYOB's business management software 56

Step 1 – Process the last paycheques for the year 58Step 2 – Print payroll reports 59Step 3 – Reconcile PAYG Tax 60Step 4 – Ensure any workers under labour hire arrangements have been identifi ed 61Step 5 – Print PAYG Payment Summaries 62Step 6 – Make a backup 72Step 7 – Start a new payroll year 72

MYOB PowerPay 74

Step 1 – Finalise the last pay run for the year 75Step 2 – Enter any pay adjustments 76Step 3 – Print the Payment Summaries 77Step 4 – Send the EMPDUPE fi le to the ATO 78Step 5 – Start a new payroll year 79

Contents

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Looking forward to this end of fi nancial year?

There's so much to do — organise your fi nancial information for the accountant, prepare your BAS, print and lodge PAYG Payment Summaries — it can all get overwhelming!

That's why we've prepared this step-by-step guide. With comprehensive, easy-to-follow instructions on closing the fi nancial and payroll years in your MYOB software, you have all the information you need to start the new year smoothly.

Throughout the guide you'll also learn how various MYOB M-Powered® Services can streamline many of your business processes. You'll soon discover that there's more to MYOB than just software.

Need more information?

If you require additional information, see your MYOB software's User Guide, access your software's online help fi les or search the internet-based Support Notes available at http://support.myob.com.au .

We're sure you'll immediately benefi t from the following information, and we look forward to helping you mind your own business in many more ways in the very near future.

– MYOB Australia

Welcome


Complete this section if you are using:

• MYOB BusinessBasics• MYOB Accounting v13 or higher• MYOB Accounting Plus v13 or higher• MYOB Premier v7 or higher• MYOB Premier Enterprise• MYOB FirstEdge• MYOB AccountEdge v3 or higher

Although the requirements for your business at the end of the fi nancial year might seem daunting, you can take advantage of a number of MYOB accounting software features to easily prepare your business for the new year.

Important: Before you begin, ensure that all of your purchases, sales, cheques and payroll entries have been entered to 30 June 2004. You are then ready to move forward.

End of fi nancial year

MYOB's business management software range

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TIP You can enter transactions for the 2004/2005 fi nancial year even if you haven't fi nalised the 2003/2004 year.

When you are ready to start a new fi nancial year, any transactions you have entered for the new year will not be affected. However, you will need to run the Start a New Financial Year assistant before you can enter budgets for the new year.

Checklist 1. Back up your company fi le 2. Reconcile your bank accounts3. Reconcile your accounts receivable4. Reconcile your accounts payable5. Reconcile your inventory 6. Reconcile your GST control accounts7. Review your accounts and reports8. Provide information to your accountant9. Enter any end of year adjustments10. Start a new fi nancial year


Did you know...You can get up to speed fast with MYOB Training.

MYOB runs courses that help you to use your MYOB software in a classroom-based environment. Courses are run in a number of locations around Australia and there are many short-courses to choose from, including:

• Getting started with MYOB accounting software • Advanced features in MYOB accounting software • Certifi cate in MYOB Bookkeeping • Building reports using MYOB accounting software and

Microsoft Excel • Business reporting and reconciliation using MYOB

accounting software • Managing the GST using MYOB accounting software • Managing your inventory with MYOB accounting software • Managing your payroll using MYOB accounting software

Find out more about MYOB Training at www.myob.com.au/training/ .

You can get onsite assistance with these end-of-year procedures.

Hundreds of MYOB Certifi ed Consultants can help you onsite with these end of year procedures or any other question you may have about your software. Search for a Certifi ed Consultant near you at www.myob.com.au/support/ccmembers/ .

End of fi nancial year MYOB's business management software range

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Step 1 - Back up your company fi leYour MYOB company fi le stores all the information you have entered during the fi nancial year. We recommend that you back up this information before you continue. This will ensure you have a version of your company fi le that you can go back to if necessary.

To begin, make two backups of your company fi le after entering all transactions up to 30 June 2004. Don't perform any end of year adjustments or enter any transactions for the new year before backing up your company fi le.

We recommend that you name and label your backups carefully and always note the last cheque or invoice number (this will help you identify those tricky June-July transactions later).

For example, name the backup fi le "Company_Name_04A" and label the disk "Company Name, 30/6/04, Chq 100 Inv 10001, Backup_A".

Important: Keep one backup on hand in your business premises and the other in a secure location away from your business.

RECORD YOUR BACKUP FILE NAMES AND LOCATIONS HERE:

1.

2.


To back up your company fi le1. Go to the File menu and choose Backup. The Company File Backup

window appears.

2. Select the Backup all data and Check Company File for errors options. 3. Click Continue and the verifi cation will begin. When the data verifi cation

process is complete, a message will appear, describing the results of the test. If the process was successful click OK. (If the process discovered errors in your company fi le refer to the following Tip.)

4. Click OK. The Save In window appears. Using the Save In fi eld drop down arrow, select where you want to save your backup fi le.

5. Click Save.


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TIP The verifi cation feature checks your company fi le for errors. Data verifi cation can catch minor inconsistencies

in your company fi le before they cause serious problems. If an error is detected during the data verifi cation process, we recommend you run the Optimisation Assistant.

The Optimisation Assistant can make your company fi le more effi cient and is capable of fi xing certain types of data errors.

To run the Optimisation Assistant• Go to the File menu and choose Optimise Company File.

Once you have optimised the fi le, perform the data verifi cation procedure again to determine if the data errors have been repaired. If errors continue to be detected and the message refers to a particular transaction, open the transaction, review it or delete and re-enter it. If you receive a message referring to a record, such as an inventory item or tax code, open the record to investigate its setup.

If the verifi cation process does not specify transactions or records, you should restore the most recent backup of your company fi le and use that fi le instead. (You should also check that company fi le for errors.)

Note: If you are using MYOB Premier or MYOB AccountEdge in a network environment, ensure all other users have logged out before running the Optimisation Assistant. Also run the Optimisation Assistant from the server.


Step 2 - Reconcile your bank accountsWhen you receive your bank statements for the period ending 30 June, you should reconcile your bank and credit card accounts. This will ensure that your records match your bank’s records as at 30 June.

You can either work from your paper-based statements to complete this process, or download the bank statement from your bank's online banking website (supported fi le types include OFX, QFX, QIF and OFC). Both procedures are described below.

To manually reconcile a bank account1. Go to the Banking command centre and click Reconcile Accounts.

The Reconcile Accounts window appears.


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2. Select the account you want to reconcile.3. Enter the closing balance of the bank account you're reconciling in

the New Statement Balance fi eld. 4. Enter 30/6/2004 as the closing date of the reconciliation period in

the Bank Statement Date fi eld.

TIP If your bank or credit card statement's closing date is after 30 June, simply rule a line after the last June

transaction, calculate the closing balance on the statement as of the last June transaction, and reconcile with a statement date of 30 June 2004 in your MYOB software.

5. Mark the transactions that appear on your bank statement by clicking in the left column.

TIP If interest or service fees are on your bank statement, but do not appear in the Reconcile Accounts

window, click Bank Entry and enter those transactions. They will automatically be marked as "Cleared".

6. If the ‘Out of Balance’ amount is:• zero, you have successfully reconciled the bank account. Click

Reconcile and choose to print the Reconciliation report. After printing the report, click Reconcile again and then click the Reconcile option.

• a non-zero amount, refer to Support Note ‘440 Bank Reconciliation – Out Of Balance’, which can be found at http://support.myob.com.au .

If you need help reconciling a bank account, click the Help button in the lower-left corner of the Reconcile Accounts window and view the To Reconcile an Account topic.


To reconcile a bank account using a downloaded bank statement1. Go to the Banking command centre and click Reconcile Accounts.

The Reconcile Accounts window appears.2. Select the account you want to reconcile. 3. Enter the closing balance of the bank account you're reconciling in

the New Statement Balance fi eld. 4. Enter 30/6/2004 as the closing date of the reconciliation period in

the Bank Statement Date fi eld. 5. Click Get Statement and use the Open dialog box to locate and

open the statement fi le you downloaded from the Internet.6. The Get Statement Log appears. This alert tells you the number of

transactions in the statement fi le, the number of transactions read by your MYOB software, and if any transactions have been skipped. Click OK.

7. The Unmatched Transactions window appears. • If no transactions appear in the list, click Done. • If a transaction appears in the list, manually match the transaction

or record a new transaction — click Help in this window for step-by-step instructions. When all of the transactions have been matched, click Done to return to the Reconcile Accounts window.

8. If the ‘Out of Balance’ amount is:• zero, you have successfully reconciled the bank account. Click

Reconcile and choose to print the Reconciliation report. After printing the report, click Reconcile again and then click the Reconcile option.

• a non-zero amount, refer to Support Note ‘440 Bank Reconciliation – Out Of Balance’, which can be found at http://support.myob.com.au .


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Did you know...Reconciling your bank statements can be even easier if you're using MYOB M-Powered® bank statements.

MYOB M-Powered bank statements is an easy, effi cient and secure service that lets you receive daily updates of your bank account balances and transaction information.

You can then use your MYOB software to import the data for automatic reconciliation with your general ledger – or use it to produce a variety of reports.

This service is currently available for Commonwealth Bank of Australia customers – to apply, read the Product Disclosure Statement, or to register your interest in having this service work with another preferred bank, visit www.myob.com.au/m-powered/ or call 1300 555 111.

M-Powered bank statements is available for the following MYOB products:• MYOB Accounting v14• MYOB Accounting Plus v14• MYOB Premier v8• MYOB Premier Enterprise v2


Step 3 - Reconcile your accounts receivable If you have entered lots of sales, customer payments and adjustments during the year, it's a good idea to check that your linked account for tracking receivables (usually named Trade Debtors in the Accounts List) matches the outstanding sales allocated to your customer cards.

An imbalance can occur if a customer payment has been entered in the Receive Money window instead of the Receive Payments window. There are a few other possibilities, and this procedure will help you fi nd any incorrectly entered transactions.

To reconcile your accounts receivable1. Go to the Reports menu and choose Index to Reports.2. Click the Sales tab and highlight the Receivables Reconciliation

Summary report.3. Click Customise and set the Receivables As Of date fi eld to 30 June

2004.4. Click Display.5. If the ‘Out of Balance’ amount is:

• zero, the accounts receivable reconcile. Print and store the report in a secure location.

• a non-zero amount, please refer to Support Note ‘530 Receivables Reconciliation’, which can be found at http://support.myob.com.au .


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Does the Receivables Reconciliation report show that you have slow-paying customers? If your customers are paying late, your cashfl ow could be affected, and that's not good for your business.

One way to get your customers to pay faster is to make it more convenient for them to pay you. That's just what MYOB M-Powered invoices lets you do – it gives your customers the ability to pay you through Australia's most popular payment channels, including BPAY®, Credit Card by Phone and Postbillpay in person.

Once a customer has paid, the payment is available as cleared funds in your business bank account on the next business day. Which all adds up to faster payments, simpler payment processing and less paperwork.

To apply, fi nd out more, or to read the M-Powered Services Product Disclosure Statement, visit www.myob.com.au/m-powered/or call 1300 555 111.

M-Powered invoices is available for the following MYOB products:• MYOB JustInvoices• MYOB BusinessBasics• MYOB Accounting v12 or higher• MYOB Accounting Plus v12 or higher• MYOB Premier v6 or higher• MYOB Premier Enterprise• MYOB FirstEdge• MYOB AccountEdge• MYOB Accountants Offi ce

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To reconcile foreign currency receivables

This procedure is applicable if you are using MYOB Premier or MYOB AccountEdge and have the multi-currency feature turned on.

1. Go to the Reports menu and choose Index to Reports.2. Click the Sales tab and highlight the Receivables Reconciliation

Summary report.3. Click Customise and set the Receivables As Of date fi eld to

30 June 2004.4. Select the currency to reconcile and ensure that the Display In fi eld

(located in the Finishing tab) is set to Originating Currency. (If you are using MYOB Premier v7.5 or earlier, or MYOB AccountEdge v3 or earlier, click Advanced to access these fi elds.)

5. Click Display.6. If the ‘Out of Balance’ amount is:• zero, the accounts receivable reconcile. Print and store the report in a

secure location.• a non-zero amount, please refer to Support Note ‘530 Receivables

Reconciliation’ which can be found at http://support.myob.com.au7. Repeat this procedure for your other currencies.

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The service includes a variety of tools and resources, including:

• Legally binding terms and conditions, which can be downloaded free of charge by MYOB customers on a support plan, and used on your invoices. These terms and conditions include the Dun & Bradstreet logo as well as terms for late payment (including interest and default charges), and provisions for account recovery.

• Access to a web-based account recovery service that puts Dun & Bradstreet's expertise to work for you and gives you real-time access to the progress of each account recovery action you have in place.

For full details of the MYOB Accounts Recovery Service powered by Dun & Bradstreet, visit www.myob.com.au/billing_cycle/ .

Step 4 - Reconcile your accounts payable This section is not applicable for MYOB BusinessBasics or MYOB FirstEdge users.

If you are using your MYOB software to track your accounts payable, you should regularly check that your linked account for tracking payables (usually named Trade Creditors in the Accounts List) matches the outstanding purchases allocated to your supplier cards.

An imbalance can occur if a supplier payment has been entered in the Spend Money window instead of the Bill Payments window. There are a few other possibilities, and this procedure will help you fi nd any incorrectly entered transactions.


To reconcile your accounts payable1. Go to the Reports menu and choose Index to Reports.2. Click the Purchases tab and highlight the Payables Reconciliation

Summary report.3. Click Customise and set the Payables As Of date fi eld to

30 June 2004.4. Click Display.5. If the ‘Out of Balance’ amount is:

• zero, the accounts payable reconcile. Print and store the report in a secure location.

• a non-zero amount, please refer to Support Note ‘665 Payables Reconciliation’ which can be found at http://support.myob.com.au

Did you know...At last you can streamline your supplier payments and eliminate double handling.

How much time do you spend writing and posting cheques and faxing or posting remittance advices?

With MYOB M-Powered® payments, you can pay your suppliers and send them detailed remittance advices in one easy process. And you can even pay your staff too.As well as paying on the day, you can choose to send payments to be processed on a nominated future date – making it easy to pay all your bills on time as well as take advantage of any early settlement discounts your suppliers may offer.


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This service is currently available for Commonwealth Bank of Australia customers. To apply, read the Product Disclosure Statement, or to register your interest in having this service work with another preferred bank, visit www.myob.com.au/m-powered/ .

M-Powered payments is available for the following MYOB products:• MYOB Accounting v14• MYOB Accounting Plus v14• MYOB Premier v8• MYOB Premier Enterprise v2

To reconcile foreign currency payables

This procedure is applicable if you are using MYOB Premier or MYOB AccountEdge and have the multi-currency feature turned on.

1. Go to the Reports menu and choose Index to Reports.2. Click the Purchases tab and highlight the Payables Reconciliation

Summary report.3. Click Customise and set the Payables As Of date fi eld to

30 June 2004.4. Select the currency to reconcile and ensure that the Display In fi eld

(located in the Finishing tab) is set to Originating Currency. (If you are using MYOB Premier v7.5 or earlier, or MYOB AccountEdge v3 or earlier, click Advanced to access these fi elds.)

5. Click Display.


6. If the ‘Out of Balance’ amount is:• zero, the accounts payable reconcile. Print and store the report in

a secure location.• a non-zero amount, please refer to Support Note ‘665 Payables

Reconciliation’ which can be found at http://support.myob.com.au .

7. Repeat this procedure for your other currencies.

Step 5 - Reconcile your inventory

This section is not applicable for MYOB BusinessBasics or MYOB FirstEdge users.

As you know, each "inventoried" item in your Items List is linked to an asset account in your Accounts List. The total inventory value of your items, as shown in the inventory reports, should always match the inventory asset account values.

However if the inventory asset account has incorrectly been used in a transaction, an imbalance may occur. The following procedure will help you check for any incorrectly entered transactions.

TIP Before reconciling your inventory, ensure that you have performed a physical stocktake of your inventory and

that your MYOB accounting software's "on hand" fi gures match the actual quantities on hand. Use the Count Inventory function accessible from the Inventory command centre to print the Inventory Count Sheet report and to input your stocktake results.


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To reconcile your inventory1. Go to the Reports menu and choose Index to Reports.2. Click the Inventory tab and highlight the Inventory Value

Reconciliation report.3. Click Customise and enter the date as 30 June 2004.4. Click Display.

The Current Value column lists the value of all of the inventory items as of 30 June 2004 according to the Items List. This totals to the Inventory Value at the bottom of the report. Directly below this is the Account Balance fi eld, which is the balance of the inventory general ledger asset account as at the fi ltered date.

5. If the “Out of Balance” amount is: • zero, your inventory balances. Print and store the report in a secure

location.• a non-zero amount, you will need to fi nd the transactions that are

causing the out of balance. See the following procedure and example.


To locate the transactions that are causing the imbalance1. Filter the Inventory Value Reconciliation report back in time at

intervals (for example of one week) to try and fi nd the last time that the inventory was in balance.

2. When this point in time is found, start fi ltering the report forward in time at shorter intervals, for example one day, to fi nd exactly when the out of balance occurred.

3. Use the Find Transactions window (accessible from the Command Centre) to review the transactions that were allocated to the inventory asset account on that day.

The usual causes of an imbalance are:• Allocating journal entries to the inventory asset account: Any

adjustments to inventory should be performed using the Sales, Purchases or Adjust Inventory windows.

• Incorrectly using the inventory asset account as the allocation account in a Sale, Purchase, Spend Money, Receive Money or Adjust Inventory transaction: The only time this account should be used as the allocation account is when creating inventory adjustments for opening inventory balances, which is only performed using the Adjust Inventory window.

4. Once you have found the incorrect entries, either edit, delete or reverse them. Once the errors have been fi xed, your inventory should be balanced.

Note: If the erroneous transactions are dated in a previous year and you have closed that fi nancial year, the transactions cannot be deleted or edited. You will need to enter a reversing entry that is dated in the current fi nancial year.


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Example: Locating transactions that cause imbalances

The Inventory Value Reconciliation report is run on 30 June 2004 and the Out of Balance amount is $100.00.

Step 1 – Pinpoint the date that the imbalance fi rst occurred.Filter the Inventory Value Reconciliation report for a prior date to fi nd when it fi rst went out of balance. The report is found to go out of balance on 1 January 2004.

Step 2 – Locate the transaction(s) that caused the imbalance.Perform an account inquiry, using the Find Transactions window, on the inventory asset account for 1 January 2004.

A purchase transaction dated 1 January 2004 is found. Note the allocation account is 1-1400, which is the inventory asset account. A service-type purchase has accidentally been allocated to the inventory asset account and has caused the imbalance.

Step 3 – Edit the incorrect transaction.To fi x this incorrect purchase, click the zoom arrow to open the purchase and change the allocation to the correct account (in this example it should be an expense-type account).

When the Inventory Reconciliation report is redisplayed as at 30 June 2004, there is no longer an out of balance fi gure.


Step 6 - Reconcile your GST control accounts When you select a tax code in a transaction, the relevant tax amount is automatically allocated to the code's linked account, or control account — for example, GST Collected and GST Paid. If these linked accounts have been used incorrectly, the GST reports and your control accounts will not balance. There are a number of other reasons why your control accounts may not balance.

Use the Tax Information Reconciliation report to check your GST Collected and GST Paid liability accounts. This report reviews the activity of your tax codes and their linked accounts.

Note: The following procedure is only applicable if you pay and collect GST on the accrual basis. If you are accounting for GST on a cash basis, the GST control accounts (which are accounted for on an accrual basis) and the fi gures at G9 and G20 on your BAS (which are accounted for on a cash basis) will not match because of timing differences.

To reconcile your GST control accounts1. Go to the Reports menu and choose Index to Reports.2. Click the GST/Sales Tax tab and highlight the Tax Information

Reconciliation Summary report.3. Click Customise.


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4. Select June if you remit your BAS monthly or April to June if you remit quarterly.

5. Click Display.

6. If the "Out of Balance" amount for an account is:• zero, the control account reconciles. Print and store the report in

a secure location.• a non-zero amount, see the following tips.


What can cause an account to be out of balance in this report?

Transactions that have been allocated directly to a tax code’s linked account: With the exception of recording your payment to, or refund of, GST to the ATO (the GST remittance transaction), you should not allocate transactions directly to the GST Collected or GST Paid accounts, as they will not appear in the GST reports or in BASlink.

The opening balance of the tax code’s linked account is incorrect: When you set up your company fi le, you would have entered your account opening balances. Specifying an incorrect opening balance for a tax code's linked account (for example, GST Collected or GST Paid) will ultimately affect the account's Actual Account Balance in the Tax Information Reconciliation report.

Review your account opening balances by going to the Setup menu, choosing Balances and then choosing Account Opening Balances. Scroll down until you fi nd your tax codes' linked accounts and enter the correct opening balances.

If your company fi le has been in use for some time, and you suspect that the tax codes' linked account opening balances have been altered, restore a backup of your company fi le that you know has the correct opening balances. Note the opening balances in the restored company fi le and then correct them in your current working company fi le.


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A tax code has had its linked account changed part-way through the reporting period: The Tax Information Reconciliation report is categorised by the tax codes' linked accounts. Therefore, the linked accounts are used as report sub-headings, under which the associated tax code(s) activity is listed.

Where a tax code’s linked account has been changed, and that change is within the report’s period, the tax code’s entire activity for that period is reported against the account it is currently linked to. As only a portion of the tax code’s activity was actually posted to it’s current linked account, an out of balance for the account will be reported.

To determine if a tax code's linked account has been changed:1. Restore a backup of your company fi le from the last BAS reporting

period.2. In the restored company fi le, select the Tax Code List report in

the Index to Reports window, and click Customise.3. Go to the Report Fields tab and choose to include the Tax

Collected and Tax Paid report fi elds. (If you are using a pre-2004 MYOB software release, you will need to click the Design button to add these fi elds.)

4. Display and print this Tax Code List report and then compare it with the same report produced from your current working company fi le. Comparing these two reports will help you identify any tax codes that have had their linked accounts changed.

For further information about the Tax Information Reconciliation report, simply visit http://support.myob.com.au and search for Support Note 1773 ‘Using the Tax Information Reconciliation Report’.


Did you know...There is an easier way to save for your tax bills.

How much of the money that’s in your business bank account today needs to be set aside to pay future liabilities such as GST, employee PAYG and superannuation?

With MYOB M-Powered® MoneyController, created in partnership with Macquarie Bank, you can estimate the amount required to be set aside to meet these obligations – and have the option of transferring these funds into a designated high-interest account, straight from your MYOB software.

To apply, fi nd out more, or to read the M-Powered Services Product Disclosure Statement, visit www.myob.com.au/m-powered/or call 1300 555 111.

M-Powered MoneyController is available for the following MYOB products:• MYOB Accounting v14• MYOB Accounting Plus v14• MYOB Premier v8• MYOB Premier Enterprise v2


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Step 7 - Review your accounts and reportsYou should review the key reports to identify potential issues. Review the Accounts List, Trial Balance, Balance Sheet and Profi t and Loss reports as a minimum and look for fi gures that seem ‘out of the ordinary’ or unexpected.To investigate amounts on the report, you can simply click the on-screen amounts, and use the Find Transactions window or the Edit Accounts window that appear to see what makes up the values shown in the report.

Did you know...You can get faster access to your favourite reports.

If you're using a 2004 release of MYOB Accounting, MYOB Accounting Plus, MYOB Premier or MYOB AccountEdge, you can add the reports you frequently access to the Reports menu.

To add your favourite reports to the Reports menu1. Go to the Reports menu and choose Index to Reports.2. Highlight the report you want to display and click Customise.3. Click the Finishing tab and mark the Include in Reports Menu

checkbox.4. Click Display to display the report and to add the report to the

Reports menu.


You can print your fi nancial reports in a batch.

Not applicable for MYOB BusinessBasics or MYOB FirstEdge users.

To save you time printing reports, you can print reports in batches. For example, you may want to print all your regular monthly fi nancial reports at once – with a few clicks of the mouse you can start the printing process and then continue working on more important tasks.

To create a report batch1. Go to the Reports menu and choose Report Batches. 2. Click New and enter

an appropriate name for the batch, for example Month End Reports.

3. Choose the reports that you would like to include in the report batch by clicking the name of each report. A mark will appear next to each selected report, indicating that it is included in the new batch. To remove a report from the batch, click the report name a second time.

4. Click OK. The Report Batches window appears with the name of the report batch in the list.


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To print a report batch1. Go to the Reports menu and choose Report Batches.2. Select the relevant period from the Period drop list. You can choose

any of the months or quarters in the current fi nancial year, or you can choose to print information for the entire year to date.

TIP Your Period selection affects reports in different ways. For example, if you choose January, any "Activity"

reports will show activity information from 1 January to 31 January while the Balance Sheet report will show information as at 31 January.

3. Highlight the report batch to print and click Print.

Step 8 - Provide information to your accountantThere are a number of ways you can provide your fi nancial year information to your accountant. Talk to your accountant to discuss their preferred method.

Make a backup of your company fi le and send it to your accountant

Many accountants use MYOB software in their practice and are happy to accept your company fi le for review, and then provide you with the required changes to import into your company fi le.


MYOB company fi les are also cross-platform compatible, so even if you're using a Mac and your accountant has a Windows-based computer, they will be able to open your company fi le (assuming you are also using compatible MYOB software versions).

Please note that only your company fi le is cross-platform and not the backup fi le, therefore you will need to either copy your company fi le to CD or Zip disk if applicable.

Export information for your accountant

Your accountant may prefer you to just send the information they need in a special text fi le. Speak to your accountant to determine which accounting practice system they are using.

If your accountant uses MYOB Accountants Offi ce in their practice: Thousands of accounting practices are using MYOB Accountants Offi ce in their practice. If your accountant uses this system, you can quickly export and send just the information they need to review your accounts.

Simply go to the Accounts command centre and click Send to MYOB Accountants Offi ce. You can easily send an email containing the necessary information or provide the accountant with a special export fi le.

If your accountant does not use MYOB Accountants Offi ce in their practice: You can export your fi nancial information to Ceedata, HandiLedger and Solution 6 MAS fi le formats, by going to the File menu and choosing AccountantLink.


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Provide reports to your accountant

Some accountants simply require you to print out the key fi nancial reports for the year. Use the following list as a guide to reports that you may be required to send.

• Profi t and Loss Statement for the fi nancial year.

• Bank Reconciliation report as at 30/06/04.

• Balance Sheet and Trial Balance as at 30/06/04.

• General Ledger (Detail) report. Note: This can be a lengthy report, so you may prefer emailing it to your accountant — see the "Did you know" Tip on the next page for more information.

• Receivables Reconciliation (Summary) report (if you use MYOB accounting software for invoicing) as at 30/06/04.

• Payables Reconciliation (Summary) report (if you use MYOB accounting software for purchasing) as at 30/06/04.

• Inventory Value Reconciliation Report (if you use MYOB accounting software to track inventory) as at 30/06/04.

• GST Summary reports for the June month or quarter.

TIP Once you have provided your accountant with the information they need, lock the last fi nancial year so that

no entries are made or changed for the old year.

To lock the last fi nancial year1. Go to the Setup menu and choose Preferences.2. Click the Security tab and set the Lock periods up to and

including fi eld to June 2004. You will need to unlock the company fi le to enter any adjustments your accountant gives you.


Did you know...You can e-mail reports to your accountant.

You can e-mail individual reports straight from your MYOB software. If you want to send multiple reports at the same time, save them as PDF fi les to your hard drive and then attach them to an e-mail using your e-mail software.

To e-mail a single report1. Go to the Reports menu and choose Index to Reports.2. Select the report you want to e-mail and click Customise to fi lter

the report.3. Click Send To and choose E-mail.4. The E-mail window appears. Select the

recipient's card, or enter their e-mail address.5. Complete the Subject and add a message.6. Click Send. The report will automatically be

saved as a PDF, attached to an e-mail and sent to the Outbox of your e-mail software, ready to send.

To save reports as PDFs1. Go to the Reports menu and choose Index to Reports.2. Select the report you want to save and click Customise to fi lter

the report.3. Click Send To and choose PDF to save the fi le to disk.4. The Save As window appears. Select the folder into which you

want to save the report and name the report.5. Click Save.


36

Step 9 - Enter any end of year adjustmentsIn fi nalising your accounts for the fi nancial year, your accountant is likely to want to make a number of adjustments. If these are provided to you electronically, you can import these direct into your MYOB software; otherwise you may have to enter them manually.

To import adjustments 1. Go to the File menu, choose Import and then choose General

Journal Entries. 2. Select the appropriate import fi le format. Your accountant should

provide you with details of the fi le’s format. 3. Click Continue and then locate and open the import fi le.4. Use the Import Data window to match the import fi le fi elds with

your software's fi elds.5. Click Import to complete the process.

If you need assistance with the Import Data window, simply click Help in the bottom-left corner of the window.

To manually enter adjustments 1. Go to the Accounts command centre and click Record Journal Entry. 2. Enter the adjustments as directed by your accountant.


Important: After entering these adjustments, make two backups of your company fi le. They should both be saved to removable media, such as fl oppy disk or CD. Refer to page 9 for instructions on backing up.


1.

2.

Step 10 - Start a new fi nancial yearOnce the above tasks have been completed you are ready to run the Start a New Financial Year assistant. When you start a new fi nancial year, your MYOB software performs the following:

• The previous fi nancial year’s monthly totals for all accounts are changed to “last year” fi gures – if “last year” amounts already existed, those amounts will be replaced.

• All closed sales and closed purchases are purged.• The balance of your Current Year Earnings account (Equity-type

account) is transferred to your Retained Earnings account (Equity-type account).

• The balances of your income, cost of sales, expenses, other income and other expense accounts are returned to zero.

Any transactions that are dated in the new fi nancial year will not be affected.


38

To start a new fi nancial year1. Go to the File menu, choose Start a New Year and then choose Start a

New Financial Year. The Start a New Financial Year window appears.

2. Ensure you have backed up before you proceed as this will be the only source from which you will be able to retrieve detailed fi gures and information for the previous year. If you haven’t backed up your company fi le, click Backup. (If you are using pre-2004 MYOB software releases, click Cancel and then follow Step 1 on page 9 to back up your company fi le.)

3. Click Continue. You will be presented with a list of all the changes that will occur during the Start a New Financial Year process. Read this carefully and then click Continue.

4. Specify the new fi nancial year and the last month of the new fi nancial year. In most cases you can accept the default details showing in this window. If you are closing the fi nancial year ended 30 June 2004, you would select 2005 as the new fi nancial year (as it covers the 2004/2005 years), and June as the last month of the fi nancial year.

5. Click Continue. Choose the number of periods to use in the new fi nancial year (this feature is not available in MYOB BusinessBasics or MYOB FirstEdge). If you're not sure whether you need twelve or thirteen periods, choose thirteen.


About the thirteenth period: If you choose to use thirteen accounting periods, your fi nancial year will still only include twelve calendar months. The thirteenth period simply allows you to enter adjustments without them affecting your reports for that date.

For example, say your accountant gives you depreciation journal entries for the fi nancial year, and you date them as 30 June 2004. If you print a Profi t and Loss statement for June, the entire year's depreciation expense would be applied to that month.

A better way is to enter the depreciation journal entries into the thirteenth period. You do this by simply adding an asterisk (*) before the date *30 June 2004. The depreciation expense will appear in your annual profi t and loss statements, but not in the June report. For more information about using the thirteenth period, search for "thirteenth period" in your software's help system.

6. Click Continue. Indicate whether you want to exclude certain transactions from being erased.

• If you track undeposited funds, mark the Do Not Erase Receipts Grouped with Undeposited Funds checkbox.

• If you make electronic payments, mark the Do Not Erase Disbursements Grouped with Electronic Payments checkbox.

• If you use the MYOB M-Powered® superannuation service, mark the Do Not Erase Unpaid Superannuation Accruals checkbox. For more information about this service, see the "Did you know" Tip on the next page.

7. Click Continue. Indicate which accounts you reconcile. Any transactions that haven't been reconciled in these accounts will not be erased.

8. Click Continue. If you have backed up your company fi le, and are satisfi ed with the selections you've made in the Start a New Financial Year windows, click Start a New Financial Year.


40

The process may take some time if you have a large number of transactions or records in your company fi le.

Once this process is complete, you're done!

Did you know...You can easily handle all your staff's superannuation requirements with M-Powered® superannuation.

If you're already using MYOB Accounting Plus or MYOB Premier to run your payroll and calculate staff super, then the MYOB M-Powered superannuation service will save you even more time and paperwork.

M-Powered superannuation simply accesses the payroll information you've entered into your MYOB software, and then lets you authorise electronic payment of your staff's various superannuation funds.

Whether you pay your employees' super on a weekly, fortnightly, monthly or quarterly basis, the M-Powered superannuation service:• gives you total control of your superannuation payments• transmits and processes payments securely• automatically sends a remittance to each superannuation fund with details

of the contributions you have made, and• provides reports that keep you and your employees up-to-date.

To apply, fi nd out more, or to read the M-Powered Services Product Disclosure Statement, visit www.myob.com.au/m-powered/ or call 1300 555 111.

M-Powered superannuation is available for the following MYOB products:• MYOB Accounting Plus v13.5 or higher• MYOB Premier v7.5 or higher• MYOB Premier Enterprise


Take advantage of MYOB RetailManager’s stocktaking and reporting features to help prepare your business for the new fi nancial year.

This guide gives a quick overview of the main tasks that need to be completed at the end of the fi nancial year. For complete information and instructions, please see your MYOB RetailManager User Guide.

Checklist1. Perform the stocktake2. Print the “What’s in Stock” report3. Print the Aged Debtors, Lay-by and Sales Order reports4. Back up the shopfront5. Perform the Accounting Export


MYOB RetailManager

42

Step 1 – Perform the stocktakeAt the end of the fi nancial year you will need to perform an accurate stocktake, and with MYOB RetailManager, the process of counting and recording stock levels is easy.

Following is a list of tips that will help you perform a stocktake (for complete instructions on performing a stocktake using MYOB RetailManager, see the Stocktaking chapter of your MYOB RetailManager User Guide).

Choosing the best time to perform a stocktake

You can start your stocktake at any time, but we recommend that you perform the stocktake while the store is closed, as it can be diffi cult to account for sales made while performing the stocktake.


Clearing pre-existing stocktake fi gures

When performing a new stocktake, click Clear All in the Stocktake window. This prevents the previous stocktake’s information from being added to the new fi gures.

Printing a report to help you perform a stocktake

Click the Stock Sheets button in the Stocktake window to print a list of the items that require counting. You can use this report if you want to perform the stocktake offl ine and then transfer the results to MYOB RetailManager.

End of fi nancial year MYOB RetailManager

44

Performing a partial stocktake

You can choose to perform a partial stocktake for particular categories or subcategories, or if you only want to change a few items, you can perform a single-item stocktake. See the Stocktaking chapter of your MYOB RetailManager User Guide for more information about these options.

Completing a stocktake in multiple sessions

If you cannot complete the stocktake of all items in one session, you can close the Stocktake window and even close MYOB RetailManager and return to it at a later time. Any fi gures you have entered will be saved.

Note that if you were performing a partial stocktake, the Partial Stocktake, Primary Categories and Subcategories checkboxes will all be cleared when you return to the Stocktake window. Simply mark the relevant checkboxes to continue the stocktake.

Accounting for items sold after being counted

If you have counted items and then made additional sales of those items, you will need to adjust the item quantities in the Stocktake window, by entering negative quantities. For example, if you counted 10 Pencil Sharpeners, but sold two after counting them, you would enter the Pencil Sharpener barcode into the Stocktake window again with a count of –2. The fi nal count for Pencil Sharpeners would then be eight.

Counting lay-by and sales order stock

When performing a stocktake, ensure that you count any lay-by and sales order stock that you may have. MYOB RetailManager will assume that you have accounted for the lay-by and sales order stock in your stocktake fi gures. For example, if you have fi ve microwaves on lay-by and 10 on the shelf, you would enter 15 microwaves into the stocktake.


If a barcode cannot be found

If a message appears stating that the barcode cannot be found, check that the item actually belongs to one of the categories that you have chosen to stocktake. Either clear the Partial Stocktake checkbox and re-scan the barcode to see if it appears, or go to the Information menu and choose Stock to double-check which category, subcategory or custom fi elds the item has been assigned to.

Before committing the stocktake

• Ensure that you have counted each and every item. Uncounted items are set to zero when you commit the stocktake – meaning that every item you did not count will have a zero inventory level.

• If you do not use MYOB RetailManager’s Accounting Export feature (as shown on page 49), you will also need to print the Display Shortages report before committing the stocktake. This report compares the previous MYOB RetailManager stock levels with the new count that you have entered in the Stocktake window. You will need this report to prepare journal entries for your accounting software.

To prepare journal entries for your accounting software1. In the Stocktake window, click the Display Shortages button (in

the bottom right-hand corner).2. Click the Print button in the toolbar. If the report has many

pages, you can choose to print the last page only. Click the Pages radio button and enter the last page number of the report into both the From and To fi elds.

3. Click Print.


46

4. Using the Value column’s total, as shown below, create a General Journal entry in your accounting software that credits your Inventory (Stock) account and debits your Stock Expense (Spoilage, Shrinkage etc) account. If the Value column’s total is a negative amount, debit the Inventory account and credit the Stock Expense account.

Step 2 – Print the “What’s in Stock” reportOnce you have committed the stocktake, you should print a report of your new stock levels. To do this, go to the Tools menu, choose Reporting and then choose Stock. Print the What’s in Stock report, or for more detailed information, print the What’s in Stock Detailed report.

Note: Steps 2 and 3 should be performed on the same day, as these reports cannot be backdated.


Step 3 – Print the Aged Debtors, Lay-by and Sales Order reportsAs part of your end of fi nancial year records, you should also print a list of your aged debtors (money owed to you by your Account customers), a summary of the lay-by items you are holding and details of the payments that have been made on your sales orders as at 30 June 2004.

To print these reports, go to the Tools menu, choose Reporting and then choose Customer. You can then choose to print the Aged Debtors Detailed report, the Lay-by Detailed report and the Sales Order Detailed report.

Step 4 – Back up the shopfrontAfter performing your stocktake and printing the necessary reports, create a backup of your shopfront. A backup would have already been made when committing your stocktake (which would include the pre-stocktake inventory values), so you should now back up the fi le containing the post-stocktake results.

We strongly recommend that you use a Zip Drive, LS 120 (Super) drive or a CD writer to back up the shopfront, so that it can be stored offsite. For instructions on how to back up and restore your shopfronts, please refer to the MYOB RetailManager User Guide.


48

Step 5 – Perform the Accounting ExportIf you use MYOB RetailManager's Accounting Export function (and you are using MYOB RetailManager v5 or higher, or MYOB RetailManager Professional), you should perform an export so that the general journal entries resulting from the stocktake will update the inventory account in your MYOB accounting software.

Remember to use the Accounting Export feature regularly as this will ensure that your MYOB accounting software is always up to date.

Did you know...MYOB RetailManager integrates with MYOB accounting software.

RetailManager can save hours of bookkeeping frustration by linking with MYOB accounting software for back offi ce tasks such as paying the bills, payroll, and lodging the BAS. At the end of the day, simply cash up, hit the Export button, open your MYOB accounting software and update your books with one mouse click.

If you'd like to connect your MYOB RetailManager front of house system with an MYOB accounting system, your business will need to be running MYOB Accounting v10.5 or above (v14 recommended), MYOB Accounting Plus v10.5 or above (v14 recommended), or MYOB Premier v4.5 or above (v8 recommended). For more information about MYOB RetailManager, visit www.myob.com.au/products/retailmanager/ or call MYOB Sales on 1300 555 111.


Starting a new year in MYOB AssetManager Pro is an easy and straightforward process. Ensure that you have entered all asset transactions, including disposals, write-offs and revaluations, before you print the fi nal reports or start a new year.

Checklist1. Print the depreciation and asset reports2. Start a new year

MYOB AssetManager Pro


50

Step 1 – Print the depreciation and asset reportsYou should print the following reports before you start a new year, as they may be required by your accountant for tax purposes, or for your own records:

Depreciation Journal – Save this report as a text fi le and you’ll be able to import the journal entries into your MYOB accounting software. Alternatively, you can manually enter the journal entries.

TIP After entering the depreciation journals, you will notice that the Accumulated Depreciation account in your

Accounts List will have a negative balance (-). This represents the accumulated reduction in the value of the asset. The balance of the Original Cost account in your Accounts List will not change as a result of depreciation being recorded.


Asset Transaction Journal – Use this report to enter the required journal entries into your MYOB accounting software or other accounting software.

Capital Allowance Schedule – Print this report and give it to your accountant if you are a Non-Simplifi ed Tax System (Non-STS) business.

Depreciation Schedule – Worksheet 1 – Your accountant may require this report for tax purposes.

Depreciation Schedule – Worksheet 2 – Print this report if you are a Non-STS business, as it contains information about your Low Value Pool assets.

Low Value Pool Statement and Low Value Pool Summary – Print these reports if you are a Non-STS business.

General Simplifi ed Tax System (STS) Pool Statement and General STS Pool Summary – Print these reports if you are an STS business, as they detail the assets contained in the General STS pool.

Long Life STS Pool Statement and Long Life STS Pool Summary – Print these reports if you are an STS business and you have assets in the Long Life STS pool.

Software Pool Summary – Print this report if you have set up and use the Software Development Pool.

Trial Balance – The Trial Balance journal displays the debit and credit balances of your asset groups. You can display these values by either book or tax values.

End of fi nancial yearMYOB AssetManager Pro

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Step 2 – Start a new yearWhen you start a new year, the following will occur:• You will not be able to enter, copy or delete historical assets, so

ensure that all historical assets and transactions have been entered prior to starting a new year.

• Assets written off during the year, except those marked to be retained, are erased.

• Depreciation for the fi nancial year will be calculated and the Written Down Value or Adjustable Value of the assets (the Opening Balances) are adjusted.

• All assets are marked as ‘rolled’ to the new fi nancial year. This means that you will not be able to edit some assets and asset transaction information.

• Assets marked to go into the Low Value Pool when their Opening Adjustable Values fall below the threshold are pooled.

• All Asset Transaction Summary information is cleared for the previous years.

• Asset revaluations are refl ected in the Asset Information window’s Opening Balance fi eld for the revalued assets.

To start a new year:1. Ensure you have entered all transactions and assets for the fi nancial year. 2. Make a backup of your data fi le to removable media such as a fl oppy

disk. See your MYOB AssetManager Pro User Guide for instructions on how to back up and restore a data fi le.

3. Go to the File Menu and choose Start a New Year.• If you are prompted to print a Session Report, and you normally

print this report, click Yes. Otherwise click No.• If you are reminded to make a backup of your data fi le, and you

did not make one at step 2 above, click Yes. Otherwise click No.


4. Read the information in the Transactions window and then click Next.5. Choose whether your business will be an STS business or a Non-STS

business for the new fi nancial year, and then click Next.

6. Review the depreciation and pool settings, clicking Next to accept the changes you make and to step forward in the assistant.If you have chosen to be an STS Business, you will need to set up the:• General STS Pool• Long Life STS Pool• Software Development Pool• Full Depreciation Limit

If you have chosen to be a Non-STS Business, you will need to set up the:• Limits of the Low Value Pool• Software Development Pool• Full Depreciation Limit

7. When you reach the Ready to go! window, it will be your last opportunity to go back and make changes to any settings in the Start a New Year assistant.

End of fi nancial yearMYOB AssetManager Pro

54

• To edit settings that you have changed in the assistant, click Back until you reach the window you want to change.

• To cancel the assistant, click Cancel. Any changes you have made will not be saved when you return to the assistant.

• To proceed and start a new year on the data fi le, click Finish. After this point, if you realise that you have made errors or need to adjust data from the previous year, you will need to restore a backup, make the changes and then repeat the Start a New Year process.

Did you know...MYOB AssetManager Pro is available for purchase direct from MYOB Australia.

MYOB AssetManager Pro meets the legislative requirements of the STS and non-STS regimes and automatically calculates depreciation according to the different rules applicable for small, large, STS and non-STS businesses.

It also makes it easier to adjust to and comply with the new Uniform Capital Allowances (UCA) tax requirements, minimising business compliance costs.

With AssetManager Pro, you can:• Create asset groups for display and monitoring processes.• Effortlessly keep track of their respective costs, locations, serial

numbers, and service history.• Calculate their book value and tax depreciation.

For more information about MYOB AssetManager Pro, visit www.myob.com.au/products/assetmanager_pro/ or call MYOB Sales on 1300 555 111.


End of payroll year

MYOB’s businessmanagement software range

Complete this section if you are using:• MYOB Accounting Plus v13 or higher• MYOB Premier v7 or higher• MYOB Premier Enterprise• MYOB AccountEdge v3 or higher

If you are using your MYOB software's integrated payroll feature, you will need to start a new payroll year before you can enter paycheques for the 2004 - 2005 payroll year. In this section of the guide we have listed the procedures for balancing your payroll, printing Payment Summaries and using the Start a New Payroll Year windows.

56

Important: In order to lodge your Payment Summaries electronically via the ATO ECI software you will need to be using MYOB Accounting Plus v12 or later, MYOB Premier v6 or later or MYOB AccountEdge.

Checklist1. Process the last paycheques for the year2. Print payroll reports3. Reconcile PAYG Tax4. Ensure any workers under labour hire arrangements have

been identifi ed5. Print PAYG Payment Summaries 6. Make a backup7. Start a new payroll year


Did you know...You can easily upgrade to an MYOB product with integrated payroll.

If your business employs staff, you'll know how complex processing a pay run can become. That's why so many businesses have upgraded to MYOB software that has integrated payroll, such as MYOB Accounting Plus, MYOB Premier and MYOB AccountEdge.

Set it up once and all payments and entitlements will be calculated and tracked for you. And when you record a pay advice, both your payroll records and your business accounts are updated automatically.

To fi nd out why MYOB Accounting Plus is Australia's leading payroll software, visit www.myob.com.au/products/accounting_plus/ .

Step 1 - Process the last paycheques for the yearEnsure that all paycheques have been entered before you balance your payroll for the current year. Once you close your payroll year, you will not be able to enter or edit any paycheques for that year.

End of payroll yearMYOB's business management software range

58

Step 2 - Print payroll reportsTo print the key payroll reports for your records1. Go to the Reports menu and choose Index to Reports.2. Click the Payroll tab and print the following reports:

Payroll Activity Summary (for the full payroll year). This report lists each employee’s total wages, entitlements, deductions, employee expenses and taxes. The Activity Report derives its information from paycheques recorded using the Pay Employees function only, so it does not include any history that may have been manually edited in the employee’s card.

Payroll Register Summary (for the full payroll year). This report lists each employee’s total wages, entitlements, deductions, employee expenses and taxes but derives its information from the payroll history contained in the employee cards only. The payroll history is also the basis for the information used by the PAYG Payment Summary Assistant.

Entitlement Balance (Detail). Print this report if you track leave entitlements for your staff.

Note: If you have made direct adjustments to the payroll history information in your employees' cards, the Payroll Activity and Payroll Register reports will not match.

The only time these reports should be different is when you have commenced using the payroll function part-way through the year and have entered opening payroll balances in the Pay History tab of your employee cards.


The payroll history should not be manually adjusted if a mistake has been made on a Pay Employee transaction as there will be no audit trail, and the general ledger accounts will not be updated. Instead, the incorrect paycheque should be deleted and re-entered. Also note that Payment Summaries retrieve their fi gures from the Employee Payroll History, so if this information is incorrect, the Payment Summaries will also be incorrect.

Step 3 – Reconcile PAYG Tax You can now determine the value of PAYG Tax withheld that is due and payable for June or the quarter ending in June. You should then reconcile your year-to-date PAYG tax fi gures. This is to check that you have paid the full amount of PAYG tax that was collected during the payroll year.

To reconcile the PAYG Tax, you will need to refer to the PAYG Employer Payment Book. Total all the payments that have been made to the Australian Taxation Offi ce during the year. Compare the total payments made to the ATO with the total PAYG fi gures appearing on the Payroll Activity and Payroll Register reports.

Total PAYG remitted to the ATO $

Total PAYG showing on the Payroll Activity / Register Reports $

Variance $


60

If there is a variance between the PAYG remitted to the ATO and the Payroll Activity and Payroll Register reports, you will need to print these payroll reports for each month and compare them to your PAYG Employer Payment Book until you fi nd the discrepancy. (See Step 2 for reasons why the Payroll Activity and Payroll Register reports may not match.)

You can also compare the total gross wages shown on the Payroll Activity and Payroll Register reports with the Wages expense account in the Profi t and Loss Statement for the payroll year. If the two fi gures do not match (remember to take into account any allowances paid into other accounts), you will need to print the Payroll Register report for each month and compare it to the monthly Profi t and Loss Statements until you fi nd the discrepancy.

Step 4 - Ensure any workers under labour hire arrangements have been identifi edThe Payment Summary information you will send to the ATO (via the EMPDUPE fi le) should not contain any payments made to workers under labour hire arrangements.

To exclude employees with labour hire arrangements from the EMPDUPE fi le1. Go to the Card File command centre and click Cards List.


2. Click the Employees tab and click the zoom arrow of an employee that has a labour hire arrangement.

3. Click the Payroll Details tab and select Labour hire from the Employment Basis drop-down list.

4. Repeat these steps for the other employees with labour hire arrangements.

Step 5 - Print PAYG Payment SummariesOnce all payroll transactions have been entered and your PAYG tax has been balanced, you are ready to print the PAYG Payment Summaries for your employees. Remember that you can print your PAYG Payment Summaries as many times as you like.

TIP If you are unable to print the Payment Summaries before the fi rst pay run of the new year, make two backups of your

company fi le. Then start a new payroll year and keep using the fi le.


1.

2.

When you are ready to print your Payment Summaries, restore your backup. Give the restored fi le a name that easily identifi es it as the "Before New Payroll Year" fi le and is not accidentally used to enter data for the new payroll year.


62

To prepare your PAYG Payment Summaries1. Go to the Payroll command centre and click Print Payment

Summaries. The Payment Summary Assistant appears.The Payment Summary Assistant helps you set up the information required for your PAYG Payment Summaries.

2. Click the Plain Paper Payment Summary radio button and click Next. (If you need to print one of the other reports, you can do so after printing the PAYG Payment Summaries).

3. Check Your Company's Payment Summary Information.This window displays your company's name and address, as you entered it in the Company Information window when you set up the company fi le. This information will appear on your employees' Payment Summaries, and also in the electronic fi le containing payment summary information that you will provide to the Australian Taxation Offi ce (EMPDUPE).

Ensure this information is correct, and also enter your company's Trading Name if you wish.

Note: In the State fi eld, you must select one of the following two- or three-character codes:

ACT - Australian Capital TerritoryNSW - New South WalesNT - Northern TerritoryQLD - QueenslandSA - South AustraliaTAS - TasmaniaVIC - VictoriaWA - Western AustraliaOTH - Overseas addresses


If OTH is selected (your company is a non-resident):• The Country fi eld appears. You must enter your company's

country information in this fi eld. • The Postcode fi eld defaults to 9999 and cannot be changed.• The state and postcode as well as the town must all be reported

in the Suburb/Town/City fi eld.

For example, assume an overseas employer's address is 275 Central Park West, Apartment 14F, New York, NY USA 10024. This address would be entered as follows:

Street Address - Line 1 275 Central Park WestStreet Address - Line 2 Apartment 14FSuburb/Town/City New York, NY 10024State OTHPostcode 9999Country USA

Once you have completed these details click Next.

4. Check your Contact Information The Australian Taxation Offi ce requires each business to provide contact information for the person who processed your business's Payment Summaries as well as your company information.

If you have approval from the ATO, you can also specify an authorised signatory in this window; this person's name will appear in the "Signature of Authorised Person" area on your employees' Payment Summaries.

When you're satisfi ed with the entries in this window, click Next.


64

5. Set up the Payment Summary fi elds Indicate which payroll categories in your MYOB software are reported in each Payment Summary fi eld on your employees' Payment Summary. You can also enter a descriptive label for some fi elds and these will be printed with the amounts for the payroll categories you've linked to the fi elds.

Important: Take care when completing this step - incorrectly marking or omitting a category will result in erroneous amounts on the Payment Summaries. Refer to the PAYG Payment Summary - Individual Non Business Guidelines for information about which wages and deductions should be selected for each fi eld.

Use the following information to help you complete this window.


Gross PaymentsClick the Gross Payments fi eld on the left. The row will highlight. Now, in the right hand column, select all WAGE categories that you want to include in the Gross Payments box on the Payment Summary. To start with, you may select Base Hourly, Base Salary, Holiday Pay and Sick Pay. Even if only some of your employees are linked to a certain category, select it if any amounts for any employees have been allocated to that category.

Note: Ensure that you do not select any Allowances, Lump Sum Payment categories, CDEP categories, Deductions or Taxes at this stage. Select only the Wage-type categories.

AllowancesClick the Allowance 1 fi eld on the left, enter the name of an allowance paid to your employees in the Description column, and then select the relevant allowance category in the right hand column. Click Allowance 2, enter the description of another allowance, and then select the relevant allowance category in the right hand column.

Repeat this for any other allowances you may have. If you have more than four allowances, enter three of them as just described, then click Allowance 4, enter the description as Other and select the other allowances on the right.

Lump Sum PaymentsIf you have paid any amounts to your employees that belong to the Lump Sum Payments A, B, D and E boxes, you will need to select the appropriate fi eld on the left-hand side and click on the right-hand side payroll categories that correspond to the box. This works best when you have set up wage categories just for these types of payments.


66

This will help you distinguish between the amounts that belong in the Gross Payments box and the Lump Sum Payments boxes.

Note: Lump Sum Payment C is for any Eligible Termination Payments (ETP) eg. cash sum on termination of employment. These payments need to be issued on a separate ETP Payment Summary. Please contact your local Australian Taxation Offi ce for further information.

Lump Sum Payment E refers to amounts received for back payment of salary or wages, which accrued more than 12 months ago.

Union FeesIf you have deducted amounts that belong in the Union Fees box on the Payment Summary, select the fi eld on the left, then enter the name of the Union in the Description column and select the appropriate Union Fee category on the right. If you have a number of unions, leave the Description column empty and select ALL the Union Fees categories on the right hand side.

Community Development Employment Project (CDEP) Salary or WagesCDEP payments refer to salary or wages received by persons of Aboriginal or Torres Strait Island descent on a 'work for the dole' project within their community. If you have made CDEP payments, select the CDEP fi eld on the left and then select the appropriate CDEP payroll category on the right.

Tax Instalments DeductedSelect the Total Tax Withheld box on the left. On the right hand side, notice that the PAYG Withholding category is automatically selected. Do not clear this category. If you have set up other deductions to act as tax deductions (eg fl at rate of 20% tax set up as a deduction) then also select these.

Once you have selected all required payroll categories click Next.


6. Enter Reportable Fringe Benefi ts Enter the Reportable Fringe Benefi t amounts earned by your employees during the corresponding FBT year (in whole dollar amounts).

Employers are required to record the taxable value of fringe benefi ts provided to individual employees. Where the total taxable value of fringe benefi ts provided to an employee exceeds $1,000 in a FBT year, employers will be required to report the grossed-up taxable value of those benefi ts on the employee's Payment Summary for the corresponding income year.

For further information regarding reportable fringe benefi ts, visit the ATOassist web site at www.ato.gov.au .

After entering the Reportable Fringe Benefi t amounts, click Next.

7. Review Individual Payment Summaries You now have the opportunity to review the fi gures that will appear on each employee's Payment Summary. Click the zoom arrow beside each employee's name.

You can change the fi gures or descriptions given to the union fees or allowances for the individual


68

employees. Note that any fi gures that you change in this window will show with an asterisk (*) next to them. To change the fi gure(s) back to their original amounts click the Recalc button.

Important: You need to enter Tax File Numbers (TFN) for all employees whether you print Payment Summaries for them or not. You can enter your employees' TFN in the Employee Payment Summary Information window (shown above), or in the employee cards.

If an employee does not have a TFN, use one of the following numbers provided by the Australian Tax Offi ce:

Payee Status TFN

Payee is under 18 years of age and earns $112 or less a week

333 333 333

Payee is a Commonwealth Government pensioner

444 444 444

New payee has not made a TFN Declaration, but 28 days have not passed

111 111 111

Payee chooses not to quote a TFN and has not claimed an exemption from quoting a TFN or does not fi t into any of the above categories

000 000 000


8. Print Payment SummariesOnce you have reviewed the individual Payment Summaries click Next. MYOB will check that the entries you’ve made comply with the ATO standards, for example the system will check that all employees have a valid Tax File Number.

If no errors are found, the Print dialog box will appear and you can print your company's Payment Summaries.

The Magnetic Media Information form is printed as well. You will need to complete this form and send it to the Australian Taxation Offi ce, attached to the disk containing the EMPDUPE fi le.

9. Save the EMPDUPE File This window contains important information about the EMPDUPE fi le. The EMPDUPE fi le contains payroll information for all Individual Non-Business employees, whether or not you have selected to print Payroll Summaries for them.

Before creating the EMPDUPE fi le, you should be sure that you've printed all Payment Summaries and verifi ed that the amounts on these Payment Summaries are accurate.

Disks provided to the Australian Taxation Offi ce must be on a PC-formatted disk, Zip disk or CD-ROM.

Click Next and save the EMPDUPE fi le.

10. Check the EMPDUPE fi le totals This window provides a summary of the information that's contained in the EMPDUPE fi le you've just created.

Number of Records: This will be the number of employees whose information is contained in the EMPDUPE fi le (even employees for


70

whom Payment Summaries have not been printed). It does not include any employees whose Salary and Tax is equal to $0.

Total Tax Withheld: This will be the total PAYG withheld for all employees Total Gross Payments: This includes total salary and wages for all

employees. It does NOT include Allowances or Lump Sum Payments. Also note that each employees' Total Gross Payments will truncate the cents (as Payment Summaries do not include cents)

Once you have reviewed the fi gures on this screen click Next.

11. That's It! You're Finished!You've completed the process of printing your Payment Summaries and have created an EMPDUPE fi le for the ATO. This window displays general instructions for providing your Payroll Summary information to the ATO. When you've read this information, click Finish to close the Payroll Summary Assistant window.


Step 6 - Make a backupBack up two copies of your company fi le and test them before you start a new payroll year. For instructions on backing up your company fi le, see the step-by-step procedure on page 9.


1.

2.

Step 7 - Start a new payroll yearWhen all the tasks above have been completed, you are ready to work through the Start a New Payroll Year windows.

After starting a new payroll year:• You can enter paycheques for the new year.• The previous year's Payroll History information will be cleared from

the employee cards.• You won't be able to print Payroll History reports for the previous year

(although you can still print activity-based payroll reports until you start a new fi nancial year).

• Entitlement balances will be cleared unless the Carry Remaining Leave Over to Next Year checkbox is marked in the Entitlement Payroll Category windows (accessible by going to the Lists menu, choosing Payroll Categories, and then Entitlements).


72

To start a new payroll year1. Go to the File menu, choose Start a New Year and then choose

Start a New Payroll Year. The Start a New Payroll Year window appears.

2. The 2004 MYOB software releases give you the option of creating a backup of your company fi le at this point. Ensure you have backed up your company fi le before you proceed as this will be the only source from which you will be able to retrieve detailed payroll fi gures and information. If you haven’t backed up your company fi le, click Backup. (If you are using pre-2004 MYOB software releases, click Cancel and then follow the procedure on page 9 to back up your company fi le.)

3. Click Continue. You will be presented with details of all the changes that will occur during the Start a New Payroll Year process. Read this carefully and then click Continue.

4. Specify the new payroll year. If you are closing the payroll year ended 30 June 2004, you would select 2005 as the new payroll year (as it covers the 2004/2005 years).

5. Click Continue. If you have backed up your company fi le, and are satisfi ed with the selections you've made in the Start a New Payroll Year windows, click Start a New Payroll Year.

The process may take some time if you have a large number of transactions or records in your company fi le. Once this process is complete, you're done!


MYOB PowerPay

The following information will help you end the current payroll year and start a new year on your MYOB PowerPay data fi le. You will not be able to enter pays for the new payroll year until the Start a New Year assistant has been completed.

Checklist1. Finalise the last pay run for the year2. Enter any pay adjustments3. Print the Payment Summaries4. Send the EMPDUPE fi le to the ATO5. Start a new payroll year

End of payroll year

74

Step 1 - Finalise the last pay run for the yearFinalise the last pay run of the payroll year the same way that you would fi nalise other pay runs. Ensure that a backup is made prior to fi nalising the pay run.

When the Finalise Pay Run routine is complete, the “Finalise pay run has fi nished” message appears. Click OK and the following message appears.


When you click Continue, you will notice that the Pay Adjustments, Print Payment Summaries and Start a New Year buttons in the End of Year command centre are now available. The bottom left corner also displays “End of Year”.

TIP Now would be a good time to check the setup of the Sick Leave items. If the Reset sick leave at year end checkbox

is marked, all sick leave balances for this item will be zeroed after starting a new year.

Step 2 - Enter any pay adjustmentsThe Pay Adjustments function enables you to enter an end of year adjustment to your employees’ pays. Pay Adjustments cannot be exported to your MYOB accounting software – they are fi nal adjustments that ensure that the Payment Summaries and the EMPDUPE fi le (the magnetic media fi le for loading Payment Summaries) are accurate.

End of payroll year MYOB PowerPay

76

To enter a pay adjustment1. Go to the End of Year command centre and click Pay Adjustments.2. Double-click the name of the employee for whom you would like to

enter an adjustment.

3. Enter the pay adjustment and click OK.

TIP Click the Payroll Journal icon, located at the top right corner of the Pay Adjustments window to view a list of

all pays made to the employee during the year. The adjustment is displayed on the last line, dated 30 June 2004.


Step 3 - Print the Payment SummariesPayment Summaries can be easily printed in MYOB PowerPay. Payment Summaries are printed on plain, A4 paper and need to be given to your employees.

An EMPDUPE fi le containing your employees’ payment summary information is also created and must be sent to the ATO.

To print Payment Summaries1. Go to the End of Year command centre and click Print Payment

Summaries.

End of payroll yearMYOB PowerPay

78

Note: If there are pay items that have their Payment Summary position set to Zero (pay items that will not be printed on the Payment Summaries), a message will appear to warn you of this. You should check those pay items to ensure that they have been set up correctly and that their Payment Summary positions are correct.

2. Clear the names of any employees for whom you would not like to print Payment Summaries.

3. Enter the contact information that needs to be printed on the Payment Summaries.

4. Click Print Mag Media Form to print the form that must be sent to the ATO with the EMPDUPE fi le.

5. Click OK to print the Payment Summaries. You will be prompted to save the EMPDUPE fi le once the printing has completed.

Step 4 - Send the EMPDUPE fi le to the ATOWhen sending the EMPDUPE fi le to the ATO, note the following:• Send the Magnetic Media Form with the EMPDUPE fi le.• Ensure that the EMPDUPE fi le is saved to a PC-formatted disk, not a

Mac disk.• Make a copy of the EMPDUPE fi le and store it in a secure location, in

case the ATO has problems reading the disk that you send.


Step 5 - Start a new payroll yearYou should only start a new year on your MYOB PowerPay data fi le after entering pay adjustments (if any), printing the Payment Summaries and making a backup of your data fi le.

To start a new year1. Go to the End of Year command centre and click Start a New Year.2. Click Continue if you have made a backup of your data fi le,

otherwise click Cancel.3. If you haven’t printed all Payment Summaries, a warning will appear.

If you have printed all the necessary Payment Summaries, click Continue, otherwise click Cancel.

4. Continue to work through the assistant. When the fi nal message in the assistant appears, click Start a New Year.

All pays from the previous year will be deleted and if any entitlements have been set up to reset at the end of the year, those balances will be reset to zero.

End of payroll year MYOB PowerPay

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? Did you know...MYOB PowerPay is available for purchase direct from MYOB Australia.

Large payrolls can become very complex with lots of detail to be recorded about your organisation – its locations, departments and your employees. MYOB PowerPay takes all the hard work out of the payroll by making it fast to set up and easy to use.

It’s designed to cater for businesses employing up to 500 employees. PowerPay is a stand-alone system which can also be linked to your MYOB accounting system.

You should defi nitely choose MYOB PowerPay if any of the following apply:• you employ more than 30 employees• you are liable for state payroll tax• you employ staff in different states• you have complex salary packaging• you have many casual employees or a rapid turnover of staff• you wish to allocate payroll expenses across multiple departments.


RRP: $24.95

www.myob.com.au MK1996/0504MISC21001/1-0504

MYOB End of Financial Year Step by Step Guide

Documents

australian

labour hire

banking command

lump sum payment

lump sum payments

accounts command

gross payments

year command