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Purchases and expenses – what’s in a name?

MYOB Moderator Merrin
230 Posts
MYOB Moderator
Merrin
MYOB Moderator

230Posts

102Kudos

0Solutions

The menu previously called Expenses has been renamed Purchases.

 

Why? Well, generally in accounting software we differentiate between:

 

  • a purchase, which relates to a payment you’ll make to a supplier for goods or services, and
  • an expense, which relates to money you’ve already spent. Petrol's a good example of an expense.

Bills or supplier invoices are examples of things you’d enter as purchases. These should be entered into your accounts before you’ve paid them, so you can see what you need to pay in the future.

 

In MYOB Essentials, you can enter a purchase by selecting Create bill from the Purchases menu. This lets you enter the information you need, and then track what you owe to each supplier and when it’s due.

 

purchases menu.png

 

 

If you’ve already spent the money, you should enter the expense using Spend money (in the Banking menu). Here’s that petrol example from earlier.

 

 

spend_money.png

 

We’ve updated the menu to make the purchases functionality a little clearer for you, too.

 

Bills will take you to a list of your current bills. By default this list shows unpaid bills.

 

Create bill will take you to a page where you can create a new bill.

 

Pay bills lets you enter a payment you’ve made to a supplier (previously Enter Supplier Payment).

 

Purchase history provides a complete list of your purchases. By default it displays all purchases entered in the past month, including the date, the total and whether they’ve been paid. (Previously Expense history)

 

We’ve taken the opportunity to make a slight change to the Sales menu too, changing Enter customer payment to Take payments.

 

This renaming is the first stage of some changes to purchases in MYOB Essentials to help you better manage your bills and supplier invoices. Stay tuned, we’ll be in touch.

15 Comments
integritypromo
1 Post
Cover User

why does our purchase order now have the heading "recipient created tax invoice"

 

when it used to have purchase order, this is now very confussing to our suppliers, and we are not happy about this !

OVOCSolutions
3 Posts
User

What is wrong with the traditional "Purchase Order"?   I was always taught to "Create a Purchase Order" (not a Bill) for suppliers.   Suppliers are also expecting a "Purchase Order" with a Purchase Order No., not a  "Bill."  Also, I receive supplier "Tax Invoices", not a Bill from my suppliers.

 

The menu options here make things very confusing!

 

MYOB Moderator Merrin
230 Posts
MYOB Moderator

Hi @integritypromo and @OVOCSolutions,

 

Thanks for the dropping me a line about the change to Purchases from Expenses.

 

Technically what was created when you previously printed an unpaid expense shouldn't have been called a Purchase Order. A proper Purchase Order shouldn't be captured in your GST reporting, but the way MYOB Essentials is set up, entering an expense (now called a bill) is reflected in your GST reporting. This is fine if you report your GST on a cash basis, but if you report GST on an accrual basis, it means you may be claiming GST before you really should.

 

However, until we introduce a proper Purchase Order feature, we will return the name of the PDF document to Purchase Order, so that existing functionality is retained.

 

Hope this helps, and thank you again for your feedback.

 

Merrin

 

 

 

 

 

OVOCSolutions
3 Posts
User

Hi Merrin,

 

Many thanks for the clarification and the ability to print out a "Purchase Order PDF".   I am looking forward to the introduction of the Purchase Order feature you mentioned.

 

Regards,

OVOC Solutions.

Experienced Cover User TheSeatShop
51 Posts
Experienced Cover User

Great news Merrin. This caused some grief for me earlier today with it changing the name and confused a supplier.

 

Do you know when this change back will occur?

MYOB Moderator Merrin
230 Posts
MYOB Moderator

Hi @TheSeatShop,

 

While I'm pushing for "immediately" as my preferred timeframe for this, I'm hearing early next week. I'll confirm more precise timing on Monday.

 

Hopefully that doesn't cause you too much pain over the weekend.

 

Thanks,

Merrin 

OVOCSolutions
3 Posts
User

Hi Merrin,

 

Any idea on the timeframe for the proper "Purchase Order" feature you mentioned above?

 

Regards,

 

OVOC Solutions

MYOB Moderator Merrin
230 Posts
MYOB Moderator

Hi @OVOCSolutions 

 

Apologies for my delay in responding to you. The "Purchase Order PDF" functionality was returned to Essentials yesterday afternoon.

 

As far as the proper Purchase Order feature, I'm sorry I can't provide a timeframe for this at the moment (which, given my conservative communications, means not this year.)

 

Thanks,

M

Contributing Cover User deepfried
17 Posts
Contributing Cover User

There are standard universal accounting standard terms and definitions for a lot of these functions (such as purchase orders).  Can MYOB please stick to the conventions and stop making up new terms?


Thanks

Hillsscrap
2 Posts
User

I have recently set up essentials for our company, unfortunately the set up phase was during the transition of "Recipient Created Tax Invoice"back to "Purchase Order"

In the scrap metal industry we must make RCTI's instead of normal Invoices as we are the ones paying out the money, not the customers giving it to us.

Is there any was i can change it back to an RCTI, as our invoices are now rendered useless and cannot legally buy items of customers without the words "Recipient Created Tax Invoice" on the document.

Any Help at all would be much appreciated thanks

MYOB Moderator Merrin
230 Posts
MYOB Moderator

Hi @deepfried 

 

Thanks for dropping us a line. The change from expenses to purchases actually also brings MYOB Essentials in line with MYOB's other accounting software, AccountRight,  as well as other accounting software options in the market.

 

So, we'll be sticking with this for a while.

 

Sorry for any inconvenience,

 

Thanks,

Merrin 

 

MYOB Moderator Merrin
230 Posts
MYOB Moderator

Hi @Hillsscrap,

 

I am so sorry to hear that you set up your company in MYOB Essentials in the few days between the releases, and that you needed the Recipient Created Tax Invoice option. Unfortunately there is no way to roll back functionality for just your MYOB Essentials business, and the Purchase Order wording was existing requested functionality, that we've reverted to.

 

If you'd like, I can organise someone to give you a call tomorrow and see what we can work out. 

 

Thanks,

Merrin

 

 

Hillsscrap
2 Posts
User

That would be absolutely fantastic and very much appreciated if you could please,

thank you for the swift reply Smiley Happy

Valued Partner Colleen
274 Posts
Valued Partner
On my new screen I see an area called 'Purchases...Create a Bill'.  I expect the GST to be reported on that immediately if I am on accrual accounting. Can you please clarify what you meant when you said: 

 

Hi @integritypromo and @OVOCSolutions,

 ... the way MYOB Essentials is set up, entering an expense (now called a bill) is reflected in your GST reporting. This is fine if you report your GST on a cash basis, but if you report GST on an accrual basis, it means you may be claiming GST before you really should.....    Merrin

 

If you have stated it the wrong way around, does that mean that GST will be reported too early on a Cash Basis?  
MYOB Moderator Merrin
230 Posts
MYOB Moderator

Hi @Colleen,

 

Sorry for the confusion.

 

The explanation above was more around why we shouldn't call the Purchase Order PDF a "purchase order". 

 

As you menitioned, when you create a bill the GST is reported immediately.  

 

If we were genuinely recording a purchase order, the GST wouldn't be reported until we confirmed the order by converting it to a bill. Since we create the Purchase Order pdf by printing an unpaid bill, we're technically recording the GST earlier than we should.

 

This is only really a problem for Accrual reporters who use the "Purchase Order" feature. If you enter a bill as a genuine unpaid bill, there's no issue.

 

Does that help clear it up a little?

 

Thanks,

Merrin