$$ - MYOB for the medical practice

Introduction

MYOB is an international provider of specialised software solutions which streamlines many day to day administrative activities in business operations. This in turn allows management to focus on the overall goals of the business.

MYOB is a cost effective tool for Australian medical practices, provided it is setup and used correctly. The software is highly customisable in terms of how information can be tailored to suit medical practices and is extremely powerful in terms of the reports it can generate to quantify the financial performance of your business.

The first instalment in this series will overview the steps involved in processing transactions in MYOB. Many of these transactions will include GST in the amount which makes MYOB an invaluable tool to keep track of your obligations to the Tax Office in this regard.

A subsequent article scheduled for the November edition of Pulse+IT will focus on the financial reporting capabilities of the system.

Purchases

One of the many uses for MYOB in a medical practice is to track purchases (also known as accounts payable or trade creditors). Purchases can be goods or services such as:

  • Surgical supplies
  • Stationery
  • Equipment hire
  • Capital purchases

You can use the MYOB Purchases functionality to record:

    Any purchases that you have received from a supplier on credit.
  • Any purchase that you have returned to a supplier.
  • Any payments that you are making to a supplier where a purchase order exists in the system.

Steps to record a purchase on credit:

  1. Select purchases
  2. Select enter purchases
  3. Select the supplier and check the terms
  4. Select GST inclusive or exclusive
  5. Select the type of purchase layout
  6. Key-in the purchase details
  7. Select save as recurring if this transaction is to happen often
  8. Record

Steps to record purchases returned:

  1. Select purchases
  2. Select enter Purchases
  3. Select the supplier
  4. Select GST inclusive or exclusive
  5. Key-in negative figures to process purchases returned
  6. Record
  7. Select the register button at the bottom of the screen to apply the return or debit and apply against a purchase or deposit a refund cheque

Steps when paying a Supplier:

  1. Select purchases
  2. Select pay bills
  3. Select the correct bank account
  4. Select the supplier
  5. Enter the payment details and apply to an open transaction
  6. Record

Steps when making a purchase for cash:

If stock is not affected and a purchase order is not required, complete the following:

  1. Select banking
  2. Select spend money
  3. Select GST inclusive or exclusive
  4. Key-in the purchase details
  5. Select the cost of sales account as the allocation account
  6. Record

If stock is affected and you want to record stock movement, create a fictitious creditor called Cash Purchases and complete the following:

  1. Select purchases
  2. Select enter purchases
  3. Select the supplier cash purchases
  4. Select GST inclusive or exclusive
  5. Select the item type of purchase layout
  6. Key-in the purchase details
  7. Key-in the total of the purchase in the Paid Today field
  8. Record

Sales

Sales are also known as accounts receivable or trade debtors. Sales can be goods or services; however, in a medical practice it is normally just services unless you are selling products as well. Sales may include:

  • Rent received
  • On call income
  • VMO Income
  • Other income

It should be noted that Medical Practices normally have a billing program to manage their “sales”. Some of these applications can send individual transactions to MYOB, eliminating the need for double entry and streamlining the generation of your Business Activity Statements (BAS). In the absence of such a system, daily takings can be entered into MYOB and a monthly journal entry can be used to allocate to the relevant Income Accounts if need be. These journal entries will also track any GST paid, in preparation for the BAS.

You can use the MYOB Sales functionality to record:

  • Any sales that you have received from a customer on credit.
  • Any sales that you have returned to a customer.
  • Any payments that your customers are making to you where you have entered the sales details here previously.
  • Quotes, which can be converted into Orders and then into Invoices.

Steps to record a sale on credit:

  1. Select sales
  2. Select enter sales
  3. Select the customer and check the terms
  4. Select GST inclusive or exclusive
  5. Select the type of sales layout
  6. Key-in the sales details
  7. Select save as recurring if this transaction is to happen often
  8. Record

Steps to record sales returned:

  1. Select sales
  2. Select enter sales
  3. Select the customer
  4. Select GST inclusive or exclusive
  5. Key-in negative figures to process sales returned
  6. Record
  7. Select the register button at the bottom of the screen to apply the return or credit and apply against an invoice or write a refund cheque

Steps when customer pays you:

  1. Select sales
  2. Select receive payment
  3. Select the correct bank account
  4. Select the customer
  5. Enter the receipt details and apply to an open transaction
  6. Record

Steps when making a sale for cash:

If stock is not affected and a sales order is not required, complete the following steps:

  1. Select banking
  2. Select receive money
  3. Select GST inclusive or exclusive
  4. Key-in the sale details
  5. Select the Income account as the allocation account
  6. Record

If stock is affected and you want to record stock movement create a fictitious debtor called Cash Sales and complete the following:

  1. Select sales
  2. Select enter sales
  3. Select the customer cash sales
  4. Select GST Inclusive or Exclusive
  5. Select the item type of sale layout
  6. Key-in the sale details
  7. Key-in the total of the sale in the Paid Today field
  8. Record

Accounts

Accounts are also known as the General Journal. Journal Entries are used to record transactions that do not affect purchases, sales or banking. These types of entries may include:

  • Transferring from Clearing Account to relevant income account.
  • End of Financial Year accruals.
  • End of Financial Year prepayments.

The Accounts area in MYOB is where you can generate your BAS statement and send your financial and or BAS information to your accountant.

Steps to record journal entries:

  1. Select Accounts
  2. Select Record Journal Entry
  3. Key-in details and select the accounts to be debited and credited

Banking

Formerly referred to as the “Cash Book”, the Banking Command Centre is used to:

  1. Record payment of expenses other than those that have been entered in the Purchases ledger.
  2. Record receipt of deposits other than those that have been entered in the Sales ledger.
  3. To reconcile accounts.

Steps to record cash expenses:

  1. Select banking
  2. Select spend money
  3. Select the correct bank account or credit card
  4. Select GST inclusive or exclusive
  5. Key-in a concise and clear memo
  6. Key-in the expense details allocating the correct expense account
  7. Select save as recurring if this transaction is to happen often
  8. Record

Steps to record cash receipts:

  1. Select banking
  2. Select receive money
  3. Select the correct bank account
  4. Select GST inclusive or exclusive
  5. Key-in a clear memo
  6. Key-in the receipt details allocating the correct income account
  7. Select save as recurring if this transaction is to happen often
  8. Record

Acknowledgements

This, and forthcoming articles in this series, are based on modules from “MYOB for the Medical Practice”, which are available from the Medical Business Managers Association.

Posted in Australian eHealth

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