4.96 MYOB AccountRight Plus v19.

Revision Exercise 3
Do It Yourself is a small craft shop operating in Parkes, NSW. It buys and sells craft materials
and supplies, as well as craft items that have been made by locals looking to make some extra
money on the side.
The craft materials and supplies purchased are to be created as inventory items, whereas the
craft items made by locals are not inventoried, since they are many and varied in their nature –
sometimes being one-offs.
You are to open the QuickStart data file for Do It Yourself to allow their conversion to MYOB
AccountRight Plus to take place on November 1, 2014.

Opening a QuickStart data file

1 Copy the QuickStart data file named DIY.MYO to your MYOB Data folder, and then rename it as
DIY - Your Name.MYO.
2 Start MYOB AccountRight Plus, and then open the DIY - Your Name.MYO data file.

Editing Company Information

1 Choose Setup from the menu bar, select Company Information, change the Company Name to Do It
Yourself - Your Name, and then click on OK to return to the Command Centre window.
You will now use the Purchases assistant to setup your records with important information
about Do It Yourself’s suppliers.

Using the Purchases assistant

1 Click on Setup from the menu bar, then Easy Setup Assistant to open the Easy Setup Assistant Set Up
AccountRight Plus window.
2 Next, click on the Purchases button to open the Purchases Easy Setup Assistant window, and then
click on Layout to choose the typical purchase order layout.
3 Select Item as the default purchase order layout.
4 Enter 5000 as the typical Credit Limit.
5 The default tax codes are GST.
6 Specify the following default supplier payment information:
Supplier Payment Information
Payment is Due In a Given # of Days
Discount Days 7
Balance Due Days 30
% Discount for Early Payment 2%

Creating supplier cards

7 Create the suppliers’ cards using the details given over page.
 Chapter 4: Purchases 4.97

Profile page Supplier 1 Supplier 2

Name World of Craft Craft Stuff
Address 36 Wood Street 26 Main Street
City Springwood Yeoval
State NSW NSW
Postcode 2777 2868
Country Australia Australia
Phone #1 02 2777 1447 02 2868 9036
Contact Mavis Maria
Buying Details page
Purchase Layout Item Item
Credit Limit $5,000.00 $5,000.00
ABN 12 476 901 362 64 846 028 403
Tax Code GST GST
Supplier Terms Information
Payment is Due In a Given # of Days In a Given # of Days
Discount Days 0 7
Balance Due Days 30 30
% Discount for Early Payment 0% 2%

Profile page Supplier 3 Supplier 4

Name Handy Craft Make My Own Craft
Address 22 Slippery Street 2A The Bench
City Mossgiel Parkes
State NSW NSW
Postcode 2878 2870
Country Australia Australia
Phone #1 02 2878 5493 02 2870 1020
Contact Name Nigel Jerry
Buying Details
Purchase Layout Item Miscellaneous
Credit Limit $10,000.00 $2,000.00
ABN 32 069 472 187 38 937 831 259
Tax Code GST GST
Supplier Terms Information
Payment is Due In a Given # of Days In a Given # of Days
Discount Days 7 0
Balance Due Days 30 14
% Discount for Early Payment 2% 0%

Entering Historical Purchases

8 Record the historical purchases using the information supplied in the table following:
Supplier Name World of Craft World of Craft
PO # 127 128
Date 23/10/2014 27/10/2014
Supplier Inv # 5657 5681
Memo Pre-conversion purchase Pre-conversion purchase
Total Including Tax $453.50 $312.50
Tax Code GST GST
Tax $41.23 $28.41

The Tax figures shown immediately above are for your reference only.

9 When all selections are completed, return to the Command Centre window.
It is now time to set up the various inventory items required for this exercise.
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Creating inventory items through Items List

The tables below give the necessary information for the inventory items to be created.
Item Profile page
Item Number G1 M2
Name Glue Material
I Buy This Item  
Expense Account for Tracking Costs 5-1100 5-1100
Buying Details page
Buying Unit of Measure tube metre
Tax Code When Bought GST GST

Item Profile page

Item Number W3 A4
Name Wood Assorted kits
I Buy This Item  
Expense Account for Tracking Costs 5-1100 5-1200
Buying Details page
Buying Unit of Measure metre each
Tax Code When Bought GST GST

Item Profile page

Item Number P5 L6
Name Paint Leather
I Buy This Item  
Expense Account for Tracking Costs 5-1100 5-1100
Buying Details page
Buying Unit of Measure tube piece
Tax Code When Bought GST GST

1 Create all of the above inventory items using Items List from the Inventory Command Centre.

Recording purchases and payables transactions

The following general points are to be considered when recording transactions for Do It Yourself:
• Do It Yourself does not prepare purchase orders, excepting those that result automatically
from backorders appearing on suppliers’ invoices.
• Supplier invoice numbers are to be recorded on item bills only.
• Prices shown on bills are always tax-inclusive.
• All purchases of kits, supplies, and locally made craft items are on credit.
• Before you record transactions from any particular table, be sure to read the additional notes
that follow.
Supplier names have been abbreviated out of necessity.

Recording transactions up to and including November 14

1 Record the transactions from the table over page after reading the notes that follow.
 Chapter 4: Purchases 4.99

Item bills
Supplier Purchase Date Supplier Bill Backorder Item Price Freight Tax Total
# Inv# No. Amount
World… 129 5/11/2014 5692 36 0 G1 $4.95
0 3 W3 $3.80 $10.00 $17.11 $188.20
Craft… 130 8/11/2014 449 7 2 A4 $19.95 $10.00 $13.60 $149.65
World… 131 12/11/2014 5702 3 0 W3 $3.80
12 0 P5 $5.65
2 0 L6 $7.90 $10.00 $9.55 $105.00
World… 132 14/11/2014 5727 24 0 G1 $4.95 $11.00 $11.80 $129.80

Prices may vary throughout this exercise. Assume all prices are correct.
Purchase #131 results from the backorder in purchase #129. You will need to add some
additional items to this purchase before recording it.

Creating miscellaneous bills

Miscellaneous bills are used for the first time in this exercise. In reality they are no more difficult
(or easier) than, say, a service or professional bill.
Do It Yourself uses miscellaneous bills to record purchases of items that are not in its inventory
items list. While this can work, it is not really the most appropriate choice under the
circumstances. A better choice would have been the service bill since it has a Supplier Inv# field
and provides for the recording of freight charges – the miscellaneous bill type does not.
Nevertheless, it allows the miscellaneous bill type to be demonstrated.
The following transaction occurred on November 17, 2014.

Miscellaneous bill
Supplier Purchase Date Supplier Description Acct# Amount Tax Total
# Inv# Amount
Make… 133 17/11/2014 7 Hand-crafted rocking horse 5-1300 $495.00 $45.00 $495.00

Miscellaneous bill numbers will not automatically comply with the sequence used in this table.
You will need to manually enter the purchase number for each miscellaneous purchase
transaction.
1 In the Purchases – New Item window, use the search icon to enter the Supplier as Make My Own Craft.
The window will now appear as Purchases – New Miscellaneous.
2 Enter the details for purchase #133 using the information above, and then compare your screen with
that shown in Figure 4.136 below.

Figure 4.136 Completed miscellaneous purchase bill #133

4.100 MYOB AccountRight Plus v19.7

3 Click on Record, and then Cancel, to return to the Command Centre window.

Recording transactions from November 19–21

1 Record the transactions in the tables below (in date order), after reading the notes that follow.

Miscellaneous bill
Supplier Purchase Date Supplier Description Acct# Amount Tax Total
# Inv# Amount
Make… 134 19/11/2014 9 Cubby house kitchen 5-1300 $220.00 $20.00 $220.00

You will need to manually enter the purchase number for each miscellaneous purchase.

Item purchase return (supplier adjustment note)

Supplier Purchase Date Supplier Bill Backorder Item Price Freight Tax Total
# Inv# No. Amount
World… 135 20/11/2014 ADJ152 −2 0 L6 $7.90 −$10.00 −$2.35 −$25.80

Purchase (adjustment note) #135 resulted from purchase #131.

Make suitable adjustments to the Journal Memo for a purchase return.
After supplier adjustment notes are recorded, they should be immediately settled.

Item bill
Supplier Purchase Date Supplier Bill Backorder Item Price Freight Tax Total
# Inv# No. Amount
World… 136 21/11/2014 5816 1 0 A4 $21.95 $11.00 $3.00 $32.95

2 When you have finished recording the above transactions, stay in the Purchases – New Item window.

Editing an outstanding purchase order

Purchase #137, the next transaction to be recorded, resulted from an outstanding purchase
order automatically created through a backorder. The details of this transaction are as follows:

Item bill
Supplier Purchase Date Supplier Bill Backorder Item Price Freight Tax Total
# Inv# No. Amount
Craft… 137 21/11/2014 462 1 0 A4 $19.95
2 0 M2 $19.95 $10.00 $6.35 $69.85

Purchase #137 uses the outstanding purchase order resulting from purchase #130.
Outstanding purchase #130 will open with the quantity two (2) appearing in the Order column.
As only one of that item can be supplied, you will edit that amount to one (1). The other unit of
Item No. A4 is to be ignored, not backordered. You no longer wish to receive that item from this
supplier.
You will open the outstanding order, change the order to a bill, add and change some details,
and then record it as an actual purchase.
1 In the Purchases – New Item window, enter the Supplier as Craft Stuff, and then open the existing
purchase order #130. See Figure 4.137 over page.
 Chapter 4: Purchases 4.101

Figure 4.137 Purchase order #130

2 Click on the Bill button, and then modify the purchase form to match that shown in Figure 4.138.

Figure 4.138 Completed purchase bill #137

3 Now record this purchase, and then return to the Command Centre window.

Making supplier payments

Do It Yourself makes all payments using the Pay Bills function.
The following supplier payments need to be made on November 22, 2014.

Supplier payments
Supplier Cheque No. Date Amount Purchase #
World… 1 22/11/2014 $1,196.15 All outstanding items
Make… 2 22/11/2014 $715.00 All outstanding items
Craft… 3 22/11/2014 $218.10 All outstanding items

The payment made to Craft Stuff on 22/11/2014 involves a prompt payment discount of $1.40
including GST.
The discount will be automatically allocated to Acct #6-1420 Discounts Taken.
You will not print the debit resulting from the recording of this payment. Choose the Print Later
option when the opportunity arises.
1 Use the Pay Bills function to record supplier payments using the information above, and then return to
the Command Centre window.
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Recording a cash refund from a supplier

The following information relates to a transaction occurring on November 24, 2014:

Miscellaneous purchase adjustment (supplier adjustment note)

Supplier Purchase Date Supplier Description Acct# Amount Tax Total
# Inv# Amount
Craft… 138 24/11/2014 480 Overcharged on 2m of materials 5-1100 −$20.00 −$1.82 −$20.00

Purchase (adjustment note) #138 resulted from purchase #137.

Make suitable adjustments to the memo information for this purchase adjustment.
After the supplier adjustment note is recorded, it should be immediately settled. You will have to
settle purchase #138 using a supplier refund because the original bill (#137) had been paid two
days earlier.
It is not necessary to specify the Payment Method for this refund. The Memo, however, should be
edited to read Settle Purchase Adjustment; Craft Stuff… The refund is to be deposited to the
Cheque Account (not Undeposited Funds).
Purchase #138 is a purchase adjustment using a miscellaneous bill. It is an adjustment, not a
return, since there is no physical movement of items. This transaction arises from the fact that
Do It Yourself was overcharged on purchase #137.
This is an untimely event because the original bill has been paid! The implication of this is that
the adjustment will require a supplier refund to be paid to Do It Yourself.
1 Record purchase #138, and then settle it by using the Receive Refund function.

Recording transactions occurring on November 25

The following transactions occurred on November 25, 2014:

Item bills
Supplier Purchase Date Supplier Bill Backorder Item Price Freight Tax Total
# Inv# No. Amount
Craft… 139 25/11/2014 465 5 0 A4 $18.95 $10.00 $9.52 $104.75
World… 140 25/11/2014 5898 2 0 L6 $7.90 $11.00 $2.44 $26.80

1 Record the transactions in the above table, and then return to the Command Centre.
All transactions for the month of November 2014 are now complete.

Using Analysis to view payables

1 Click on the Analysis button from the Purchases Command Panel.
The Analyse Payables window appears showing the two suppliers that are owed money: Craft
Stuff $104.75 and World of Craft $26.80.
2 Click on the zoom arrow beside Craft Stuff.
The Analyse Payables window should now focus on the outstanding items for Craft Stuff only.
The $104.75 owing is accounted for by purchase #139.
3 Close the Analyse Payables window, click on the Analysis button (again), and then check the
outstanding items for World of Craft.
The only outstanding item for World of Craft is purchase #140.
4 When you have finished looking at the payables, return to the Command Centre window.
 Chapter 4: Purchases 4.103

Deleting a supplier card

One of the suppliers, Handy Craft, has not transacted with Do It Yourself at all this period. Do It
Yourself does not wish to maintain a business relationship with this supplier and has asked you
to delete the card – as opposed to marking it as inactive.
1 Click on the Card File icon to open the Card File Command Centre, then on Cards List.
The Cards List window opens showing all supplier cards (they are the only cards seen here).
2 Select Handy Craft (but do not click on the zoom arrow!), and then from the Edit menu, choose
Delete Card. See Figure 4.139 below.

Figure 4.139 Deleting a supplier card from the Cards List window
The Handy Craft card has been removed, and it only remains to prepare the required reports.
3 Click on Close to return to the Command Centre window.

Preparing purchases and payables reports

The following reports are required for the month of November 2014:
• Ageing Detail (save as DIY_01.pdf)
• Purchases & Payables Journal (save as DIY_02.pdf)
• Cash Disbursements Journal (from the Banking page) (save as DIY_03.pdf)
• Cash Receipts Journal (from the Banking page) (save as DIY_04.pdf)
1 Prepare the reports specified above, and then check your printouts against the solutions on your DVD.
You should now exit your data file and MYOB AccountRight Plus.

Combining all reports into a single pdf

Your reports for this exercise should comprise DIY_01.pdf through to DIY_04.pdf.
1 Combine all of DIY_01.pdf through to DIY_04.pdf (in the correct order) into a single file named
DIY_all.pdf.

Exiting MYOB AccountRight Plus

1 Close your data file and exit MYOB AccountRight Plus.

Revision Exercise 3 is now completed.