GOROKA TECHNICAL COLLEGE

Computerised Accounting Systems

TOPIC TWO: USING MYOB

Lesson Two

Learning Outcomes

1. Understand MYOB Environment.

2. Moving around Accounts commend center.
3. Use On-Line Help.

MYOB Environment and Overview

MYOB is an integrated accounting software which is quite common and used by many small to
medium sized business enterprises and not-for-profit organizations in PNG. It is integrated
through linking of all accounting functions or features connected together so that only a single
entry of a transaction, activates updating of all other related records of a business entity.

Postings are done from source documents, in which transactions are identified and coded. The
coding involves allocation of income, sales, expenses, assets and liabilities to general ledger
accounts and to departments (job or department coding). Coding facilitates comprehensive
reporting that meets management and other users of the enterprise financial information needs. In
an integrated accounting software system, a single entry from the source document automatically
updates all related records in the accounting system.

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A simple diagram (not all source documents & records are shown) is shown below to illustrate how this
works, by flow of financial data and reports:

Source
Payment Cash receipt Sales inv. Supplier Timesheets
Documentation
voucher docs. inv.

Subsidiary Bank Recon. Individual Individual Individual Individual

Ledgers/Records Debtors Stock Creditors Staff
Files.
Records Records

General ledger
Accounts Bank Debtors Inventory Creditors Salary/
accounts. control control control A/C.
account. account. wages
account.

Reports:

. Trial Balance

. Profit & Loss

. Balance Sheet

. Budget analysis

The above diagram shows that several functions are being performed by the MYOB accounting
software:

 Data from the source documents are processed,

 Recorded in the subsidiary records or ledgers,
 Recorded in their respective general control ledgers. The general ledger records all
movements (debit & credit entries) of the accounts,
 Reports like Revenue Statement and Balance Sheet are produced from these records.

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Setting up a Business
In this unit you will be introduced to the MYOB accounting package. The first section is a
general overview of MYOB that helps you get a feel of the accounting package. You will then
create a new business called Henry’s Paint Wholesalers.
The starting for a business is to open the general ledger by creating a customized chart of
accounts. You will do this, then enter the opening balances for each ledger account, enter general
ledger journals and post cashbook transactions.

Open MYOB and move around within it.

MYOB is one of a number of integrated accounting packages available that helps businesses to
record, analyse and report on their financial transactions.

Follow these steps to open MYOB accounts program:

From the desktop locate the shortcut of MYOB icon and double click, MYOB Accounting.
Window will appear, refer figure 3.1.

From this window you can do one of the following:

 Open an existing MYOB data file.
 Create a new data file.
 Explore a sample company.
 See what is new in this version.
 Exist MYOB.

Fig: 3.1 MYOB Accounting welcome window

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 1. The welcome window is the starting point to opening an existing data file or
creating a new data file. Data file refers to the company chart of accounts created
to record transactions. There are about hundred data file options provided by
MYOB accounting program. To create a new data file click ‘create’, to open an
existing data file click ‘open’ and follow the prompts.

2. Using the mouse, click the explore sample company button to view a sample data
file. You have opened a sample set of accounts for Clearwater Pty Ltd.

3. Click each of the commend center icons.

Study the commend center carefully, refer figure 3.2. Your screen should look like
figure 3.2 in your handout. This is the focal point of the MYOB system. Notice a
series of large commend center icons along the top of the screen, the first being the
accounts icon. To access a commend center, simply click its icon.

Take time to study each commend center and the options they contain. As you
will discover later, they relate to, or integrate with each other extensively. This is
the reason for describing MYOB as an integrated accounting package.

Fig: 3.2 MYOB Commend Centre Screen.

The accounts command center is used to create and maintain general ledger accounts of
the company. MYOB ledgers are created to record and store transactions to reflect
reporting requirements. It uses the reporting format of:
 Revenue – Expenses = Profit
 Assets –Liabilities = Owners Equity

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Functions of Accounts Command Center.

This feature allows those involved in the data processing and recording to send accounting
information to the Accountant as and when it is required.

This icon when clicked displays the list of all the different category and classes of ledger
accounts.

There are four levels of ledger accounts with MYOB accounting software application and two
types of accounts; header accounts and detailed accounts. Header account does not accept data
entries, the detailed account accepts transactions and is where debit/credit postings are
recorded.

This icon is used to post general journal entries. The journal form records the following:
 Date of journal entry.
 Journal number.
 Narrative (memo) about the journal.
 Amount of journal.
 Details of accounts to be debited and credited.
 Job (department) cost or revenue allocation.

This feature provides transaction details about the following journals:

 General journal.
 Cash payments journal.
 Cash receipts journal.
 Sales journal.
 Purchases journal.
 Inventory journal.

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To find transaction details click the icon and select the type of journal sort, then specific the
date range to find the journal entry.

To do list icon allows access to list of pending activities that the accountant for instance needs
to perform tasks. It acts as a reminder for the accountant to check regularly, e.g:
 Stock alerts.
 Recurrent transaction alerts.
 Contact alerts.

To find records or files easily use this icon, it will display a list of options to fine information
quickly, for example:
 Accounts
 Cards
 Invoices
 Payroll categories.

MYOB accounting application provides so many different types of reports. The more common
reports are Profit & Loss, Balance Sheet and Cashflow Statement. The application is designed
to produce twelve financial reports in a year. Examples of other reports:-
 Budget analysis and comparative reports.
 Sales analysis.
 Purchases analysis.
 Ageing analysis.
 Pay advice slips.
 Cash flow analysis.
 Inventory analysis.
 Price analysis.

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 This icon is a short-cut to finding all the different reports and analysis sort. To quickly find
and make timely decisions. It provides comparative analysis and also does graphical
presentation of the reports. Examples of the analysis that can be accessed:-
 Balance Sheet (Asset & Liabilities composition).
 Profit & Loss (Year to year comparison).
 Job analysis (Budget and Actual Expenditure).
 Cashflow worksheet (Cashflow Forecasting).

The banking command center is for processing cashbook transactions. All cash
transactions from source documentation to journals are processed here and recorded in
the ledgers. Types of source documents:
 Cash receipts dockets.
 Cash/Cheque payments requisition.
 Cheque butts.
 Cash invoice.
These source documents affect cash payments and cash receipts journals.

Functions of Banking Command Center.

This icon is used to record payments (cash & cheque). MYOB application prints cheques
and processes electronic payments. From the spend money icon the following are
recorded:

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  Account to be used to make payment.
 Date of cheque.
 Cheque number.
 Cheque amount.
 Payee name and address.
 Narration (memo) of the payment.
 Legder accounts to allocate the cost.

This icon is used to record (cash/cheque) receipts. MYOB application records the
receipts from source documents and posts the transaction to the ledger accounts.

From the spend money icon the following are recorded:

 Account to be used to record the receipt.
 Date of receipt.
 Receipt number.
 Amount received.
 Payor name and address.
 Payment method, e.g cash,cheque,visa, credit card, etc.
 Narration (memo) of the receipt.
 Legder accounts to allocate the income.

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This icon is used to reconcile bank account. MYOB application reconciles bank account
every month.

From the reconcile accounts icon the following items are processed to reconcile the bank
account:
 Select the account to reconcile.
 Last reconciliation date.
 Bank statement dated.
 Bank statement balance (from the bank).
 Matching of deposits and withdrawals.

Allows locating of bank transactions. To find the transaction:

 Select the account.
 Enter the date range.
 Payee details.
 Deposit/Withdrawal details.
 It also displays the account balance.

The MYOB application makes electronic payments. To process payments:

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  Select account to be used to make payment.
 Select payment by (e.g. Pay bills, Pay liabilities).
 Payment number.
 Bank statement text.
 Bank processing date.
 Narration (memo) of the payment.
 ID number and details of payment.
 The feature also shows updated account balance.

This icon is used for printing cheques. The printing of cheques requires the following
process:
 Select account to be used.
 Identify the number of first cheque in printer.

 No of cheque print.
 Cheque number.
 Date of cheque.
 Payee.
 Amount.

This icon is for posting bank deposits. Cash receipts can be processed for banking then

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 recorded here. This makes it convenient for doing bank reconciliation each month.

The features of this icon will require processing:

 Select the account to post.
 Select payment method (i.e. cheque, cash from client).
 ID number of the deposit.
 Date of deposit.
 Narration (memo) about the bank deposit.

The sales command center is for processing and raising invoices to customers who receive goods and
services on credit. MYOB application keeps records of customers who receive goods/services on
credit, does regular follow ups reminders to collect outstanding debts.

Functions of Sales Command Center.

Invoicing for goods/services requires the following information:

 Selecting customer.
 Selecting type of invoice forms (e.g. Service, item).
 Invoice number.
 Invoice date.

 Shipping details.
 Customer order number.
 Item details & price.
 Allocation of revenue to jobs (department).
 Sales tax GST.
For receiving and recording payments from customers. The following information are
processed and posted to record the receipts.
 Select the account for banking.

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  Select the customer making the payment.

 Receipt number.
 Date received.
 Amount received.
 Payment method (cheque, visa etc.).
 Narration (memo) about the receipt.
 Details of the invoices being paid.

Icon used for printing of the receipts from customers. The printed receipts are then
mailed each month. The following information are required:
 The application displays the receipts that have been raised for printing.
 No. of the first receipt in printer.
 No. of copies to print.

This icon displays details about invoices raised in a given period. The following
information are displayed:
 Invoice date

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  Invoice number.
 Customer order number.
 Customer.
 Invoice amount.
 Amount due.
 Payment status of the invoice.

For printing or emailing account statements monthly to customer. The statement displays
customer details with summary of invoices yet to be paid. The following are required:
 Select to be printed or emailed.
 Select statement type( invoice or activity).
 No. of prints per customer.
 Statement date.

For printing or emailing invoices to customer. The invoice displays details of customer
shipping/address, goods and amount. The following are required to print or email:

 Select to be printed or emailed.

 Select sales type ( e.g. service, item etc.)
 No. of prints per selected sales, packing slips, labels.
 Invoice number.
 Invoice date.
 Customer name.
 Invoice amount.

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 The purchases command center is for processing and raising purchase orders to suppliers
to buy goods and services on credit. MYOB application keeps records of suppliers who provide
goods/services on credit and to regularly meet outstanding commitments. The application also processes
stock returns. There are different types of purchases that the application can process:
 Item orders.
 Service orders.
 Professional orders.

Functions of Purchases Commend Center.

This icon is used to raise pending purchase orders. This order does not affect the
purchases journal until the goods are actually received. The following details are
required to complete the purchase:
 Select order type.
 Select supplier.
 Shipping address.
 Order number.
 Order date.

 Order quantity.
 Item number.
 Item price and GST applicable.
This icon is for paying suppliers of goods and services on credit. Payments are generally done at
the end of each month. Payments are based on outstanding supplier invoices that have not been
paid yet. The display shows payment status and outstanding balances of each purchase order to
the supplier invoice.

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A list of outstanding invoices will be displayed for payment, the cheque amount should agree to
the total of invoices to be paid. The following information should be completed to make
payments for each supplier:
 Select account to pay from and cheque or electronic.
 Select supplier.
 Cheque number and date.
 Cheque amount.
 Narration (memo) about the payment.

Purchase register displays a list of pending purchase orders, returns and paid orders. The details
are as shown on the form below. To find purchase orders, select the date range and the supplier
sort from the ‘search by’ window.

The icon to print or email purchase orders to suppliers. The pending purchase order
should be completed first before coming to this procedure.
 Select the delivery method.
 Fill in the required fields.

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  Print and mail or fax.
 Enable email to send, if the order is be emailed.

This icon is for processing and sending electronic payments to suppliers. The following
are done to make payments:
 Select the account that will pay the account.
 Select payment by, e.g. pay bills.
 Payment number.
 Bank statement text.
 Processing date.
 ID and details of payment.

MYOB application has a payroll system that processes pays for employees. The pay system is
integrated to the other records and files of the application like the general ledger accounts. The
application can process pay and print cheques or do electronic transfers to individual employee bank
accounts.

Functions of Payroll Command Center.

The payroll categories are the different types of pays that employees get in a fortnight. E.g.
ordinary pay, sick leave, holiday pay, etc. Before an employee gets paid the types of pay that
he/she will get for that fortnight must be configured in the payroll system. The form attached

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clearly displays this. If not displayed on the list, click ‘new payroll category’ to create new
one.

Timesheets are used to post hours worked by the employees. Each fortnight time cards are
collected from departments and hours computed. These hours are entered for each employee
here. The following specific tasks should be done to complete the timesheet:

 Select the pay week (2 weeks in one fortnight). Click the hallow arrows at the top of
the table to navigate for the correct fortnight weeks.
 Select the employee from search window.
 Select payroll categories from the list to enter no. of hours.
 Complete this procedure for all the employees.

This involves checking of the pay hours posted and the computation of the wages/salaries for
the individual employees. It displays two weeks pay for each employee and total number of
hours.

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 This feature is for electronic payment of wages/salaries to employee’s bank account. To
process:
 Select the account paying the wages/salaries.
 Select payment by, ‘pay employee’.
 Enter payment number.
 Enter bank statement text.
 Enter bank processing date.
 ID and employee name.
 Date of pay.
 Amount of pay.

This icon is for reviewing cheques before printing. A list of employee names and pay will be
displayed for reviewing. Once everything is in order request for printing of the cheques.

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Employees contribute fortnightly long term savings, which are to be remitted to super funds
monthly.

 Select the account paying this savings.

 Select the period of deduction being remitted.
 Enter payment number.
 Date of payment.
 Names of employees and their contribution.

Employees get deducted wages/salaries tax fortnightly, which are to be remitted to Internal
Revenue Commission (IRC) monthly.

 Select the account paying this tax liability.

 Select IRC.
 Cheque number.
 Payment date.
 Memo for the payment.
 Total payment.
 Complete form, record and print for mailing.

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 Inventory is an asset that businesses use to convert to cash to fund other business activities, which
results in profit. MYOB application processes documents and stores data in relation to stock inflows,
storage and outflows. The inventory ledger of the application is integrated with other ledgers. The
command center displays and processes the following information:

 Stores data within inventory files and updates related ledgers.

 Description of stock on hand.
 Date of stock movement.
 Quantity received or dispatched.
 Inventory Status.
 Quantity on hand.
 Unit cost.
 Unit price.
 Processes returns.
 Processes inventory adjustments.
 Processing reports.

Functions of Inventory Command Center.

Items register icon is used to keep records of all the stock in the business for resale to customers.
The following data are processed:

 Search option to find items.

 Date of transaction.
 Item ID.
 Item description (memo).
 Quantity.
 Amount.

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Built items icon is used to record stock items received, particularly new stock items that the
business brings in, so new items are processed from here. The following data are processed:

 Recording of new stock (inventory journal).

 Date of transaction.
 Item ID number.
 Quantity.
 Unit cost.
 Amount.
 Allocation of items jobs (department).
 Item description (memo).

Items list icon is used to have access to the list of all the stock in the business for resale to
customers. The following data are processed:

 Search option to find items.

 Item ID.
 Item name.
 Quantity sold.
 Quantity bought.
 Quantity on hand.
 Last cost.
 Selling price.

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Receive items icon is used to record stock purchased by the business from the suppliers. The
following data are processed:

 Select supplier goods received from.

 Receiver address.
 No. of the purchase order.
 Date goods received.
 Supplier invoice number.
 Quantity ordered.
 Quantity received.
 Item number.
 Item price.
 Total cost of goods received.

Set item prices icon is used to set stock prices. The following data are processed to set prices:

 Item number.
 Item name.
 Last item cost.
 Average cost.
 Current item price.

Count inventory icon is used to record stock-take and compare actual stock with MYOB stock

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 records. The following data are processed from this icon:

 Item number.
 Item name.
 Item on hand.
 Item counted.
 Difference between stock on hand and stock-take are identified.
From the comparison adjustment journals are done to match physical count to MYOB records.

Adjust inventory icon is used to raise adjustment journals to match physical count to MYOB
records. The following data are processed from this icon:

 Inventory journal number.

 Date of adjustment journal.
 Narration (memo) about the journal.
 Item ID number.
 Quantity of the item being adjusted.
 Unit cost.
 Amount.
 Inventory account affected.
 Job (department) affected.

This command center is for the following:-

a) Creating new cards.
b) Customers/Trade debtors profile and transaction details are kept.
c) Suppliers/Trade creditors profile and transaction details are kept.
d) Records of Employee profiles.
e) Details about individual personal and addresses in the company.

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Functions of Card File Commend Center.

Card list provides a list and details of each customer, supplier and employees.
- Customers are those who buy goods on credit from the business.
- Suppliers are those who sell goods/services on credit to the business.
- Employees are those who are employed by the business.

Provides mailing details and addresses for mailing to clients.

The following data are processed from this icon:

 Select card type.

 Name of customer.
 Name of supplier.
 Name of employee.
 Balance of amounts owed if any.

Use On-Line Help.

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MYOB provides a comprehensive on-line help function. Select Help from the menu bar
(right side) and then select MYOB help to read the different ways MYOB can help you.
Practice using Help by selecting each different function in the Help menu. On-line-help
can be assessed at any point by pressing the F1 key on your keyboard. Follow the steps to
access help with sales invoices.

Fig: 3.9 Help commend screen.

From the commend center click help from the menu bar at the top right hand corner, refer
to screen above.

Follow these steps:

1. Select the sales commend center icon from the commend center.
2. Press the F1 button. The help screen will appear.
3. From the search box enter any key information you want to know about
sales.
4. Key posting sales, a list of information about posting sales will appear.
5. Click other items on the help screen, from the list to view.
6. To close the help screen, click File on the help menu bar and then close.

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Fig: 3.10 Sales help screen.

You have now reached the end of the MYOB overview. Much of this material will be revisited in
more detail later as you use the accounting software.

Reference:
Keeping Account with MYOB by Cathy Grundy & Doug Lyte.

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