Account Lists for non-bank lending Companies ie. afterpay

Waves
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Account Lists for non-bank lending Companies ie. afterpay

Hi, I'm very new to the MYOB accounting side of essentials and require assistance on how the following accounts should be set up in Accounts List;

* Afterpay

* Prospa

* Lattitude Pay

* ZipPay

* OpenPay

 

Should the opening balance reflect the limit of monies available to use be what is put here? ie. Prospa grants access to $10K however you spend from it like a credit card.

 

I noticed the accounts set up by advise of the original accountant do not have an opening balance or reflect any fees (ie. late fees for late payments in Afterpay $10) as I don't have the transactions imported to the account as I do the working bank account for day to day transactions.

 

Hopefully I've not confused anyone and would welcome any assistance?

 

Also, how do you find out whether the fees attract GST or not. Afterpay does not appear to include GST in the $10 late fees however account transaction/set up fees?

 

Thank you in advance. 

 

Are there any good MYOB face to face training courses in Brisbane?

 

Cheers

 

Nardja

 

3 REPLIES 3
Tracey_H
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Re: Account Lists for non-bank lending Companies ie. afterpay

Hi @Waves 

 

Thanks for your post. How you set these accounts up will depend on how you are using those companies. For example, do you allow your customers to Afterpay products they purchase from you or are you paying for purchases with Afterpay.

 

A liability is money that you owe so the general rule is that if you borrow money and have to make repayments you would set that company up as a liability account. Using Prospa as an example, you would create a liability account and set the Type field as Credit Card.

 

When you pay for purchases using Prospa, record a Spend Money/Pay Bills transaction and change the Pay from account to the Prospa liability account. When you make a payment to Prospa you can record a Transfer funds transaction or a Spend Money, the Pay from account is the bank account and the Pay to account is Prospa. 

 

You can then reconcile the Prospa account the same way you would a normal credit card, allocating any fees to the applicable bank fees expense account. Reconciling loan and credit card accounts keeps your financial reporting up-to-date.

 

If you are transferring amounts from Prospa to your bank account, record a Transfer funds transaction with the Transfer from account as the Prospa liability account and the Transfer to account as the bank account.

 

When it comes to GST on fees you will need to check with those companies for that information. 

 

For training courses I'd recommend having a look at our free online courses available through MYOB Academy

 

Please let me know if you need further help with this.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
Previously @bungy15

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Waves
Contributing Cover User
10 Posts
Contributing Cover User
Australia
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Re: Account Lists for non-bank lending Companies ie. afterpay

Thank you for that, makes a lot of sense.

 

With the accounts that have been set up under banks, can I reassign them or do I need to adjust previous allocations to these and create the accounts again as credit cards (liabilities)  ie. prospa, afterpay (repayments for business purchases) and then re-allocate them correctly to them?

 

Also, how do you suggest I do those transactions that would have already been processed in the previous BASS period?

 

Thank you in advance for any assistance.

Tracey_H
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Re: Account Lists for non-bank lending Companies ie. afterpay

Hi @Waves 

 

If you have a look at your asset and liability accounts in the Accounts List they'll typically have the NTR (not reportable) tax rate, which means that amounts posted to those accounts are not reported in your BAS. It's only amounts posted to accounts that have a GST reportable tax rate that are included in the BAS, for example, expense and income accounts. 

 

This means that changing the account won't affect the BAS if both accounts have the NTR tax code. Generally speaking, you could record a general journal or edit the transaction to move the amounts from the old account to the new liablity account.

 

However, I would recommend that you discuss this with your accountant. If you are going to reconcile those accounts you'll need to work out the opening balance and start date and, therefore, which transactions need to be allocated to the new account.

 

Please let me know if you need further help.

 

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

Cheers,
Tracey
Previously @bungy15

MYOB Community Support

Online Help| Forum Search| my.MYOB| Download Page

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