Forum Discussion

Lisapapa1173's avatar
Lisapapa1173
Contributing User
10 months ago

Entering bills paid in monthly installments

 Hi   When we renew our insurances we pay this off in installments over the year.   Should this be recorded as a Spend Money transaction each time the installment is paid or enter the full amount...
  • Albare's avatar
    Albare
    10 months ago

    From what I know if entered as a recurring transaction you setup the number of times the transaction recurrs, e.g. monthly or for an actual number of times e.g. 12 times, and set up a reminder etc...

     

    However until you actually record a recurring transaction it doesn't "sit" within MYOB as an open bill. This might effect you with respect of claiming GST if you are on the accural tax method vs cash.

     

    I've set up some bills this way, that is one overall bill and made several instalment payments against it like Council rates, just have to remember when to pay them, but I use Outlook to remind me through Calendar reminders.

     

Albare's avatar
Albare
Trusted Cover User
10 months ago

I'm not an accountant however this is exactly what I do. We premium fund all our policies as one monthly payment.

 

I enter the full amount as a service purchase, itemising the individual policies (there are 7) plus a line for the interest charge and save it as a recurring purchase.

 

I set it up as 12 transactions and then when using bank feeds allocate the payment to the open invoice.

I also have seperate accounts created for "Insurance Premium-Motor vehicle, Product liability, Property, etc....", "Broker's fee," "Stamp duty" and "Insurance Premium interest charge" and "Application fees".

 

It take's a bit of work initially however for the last 10 years the same Recurring Transaction has been edited as the renewal rolls over each Feb.

  • Lisapapa1173's avatar
    Lisapapa1173
    Contributing User
    10 months ago

    Am just wondering if any difference between Instal Payment and Recurring Payment when doing data enter

    • Albare's avatar
      Albare
      Trusted Cover User
      10 months ago

      From what I know if entered as a recurring transaction you setup the number of times the transaction recurrs, e.g. monthly or for an actual number of times e.g. 12 times, and set up a reminder etc...

       

      However until you actually record a recurring transaction it doesn't "sit" within MYOB as an open bill. This might effect you with respect of claiming GST if you are on the accural tax method vs cash.

       

      I've set up some bills this way, that is one overall bill and made several instalment payments against it like Council rates, just have to remember when to pay them, but I use Outlook to remind me through Calendar reminders.

       

      • Lisapapa1173's avatar
        Lisapapa1173
        Contributing User
        8 months ago

        Thanks🌹

Looking for something else?

Search the Community Forum for answers or find your topic and get the conversation started!

Community home

Dig into MYOB Academy for free courses, learning paths and live events to help build your business with MYOB.