Video 4: Complex ledger entry shared between entities and with consumption tax
LedgLive Video 4:
Proportioning a utility bill between entities using pair of balanced inter-entity accounts. One entity records consumption tax.
4. Complex ledger entry shared between entities and with consumption tax
Subtitles Extract
Scene 1
Drop down window clicked on is not visible in video:
Red box around select entity and ‘select entity account for Row+’ drop down lists
Set opaltrader sample dates as:
Red box around three date setters, indicating dates to set
There are two ways to record a purchase with private proportion consumption tax where the proportioned part cannot be claimed:
- Record a proportion in a journal entry as private. Reports can use this to prevent claiming, ON the private proportion, BOTH an income tax deduction AND a consumption tax refund.
- Split the purchase between two entities. This method is used here.
DROP DOWN LIST BOXS WITH CHOICES DO NOT SHOW IN VIDEO (EXTRA WINDOWS NOT CAPTURED)
A $300 electricity bill is paid by Mr Opal (not by Opal Traders), with $200 (2/3) proportioned to Mr Opal and $100 (1/3) proportioned to Opal Traders. Since consumtion tax was paid, Opal Traders is entitled to claim a consumption tax refund on their proportion of consumption tax paid.
Red box around six journal entries with an additional box around ‘account titles’
Click on each of the six journal rows. Shows details of each of the accounts of the six journal entries. The bank account is for the Mr Opal entity. To show the default account click on the ‘select entity account’ box and press enter. The default account for ‘Row+’ journal entry is the bank account of Opal Trader. As an exercise change entity to ‘Mr Opal’, start to type in bank, select bank and press enter. Enter again shows details and makes the default account
Scene 2
Red boxes around ‘New’ and ‘Row+’ buttons
Red box around ‘change ledger description’. Enter must be pressed
Red box around five journal entries
We will recreate this ledger entry. Click on ‘New’ once and on ‘Row+’ six times for each journal entry. In the ‘ledger description box’ type some description (such as vendor) AND PRESS ENTER. Note all six journal entries have the default account but only the first journal entry account is correct. We will quickly correct the other five accounts
Scene 3
Drop down window clicked on is not visible in video:
Red box around FIRST ‘Enter assigns, type searches; account for journal box for Mr Opal
Red box around second and third journal entry lines, with additional box around ‘account titles’.
No need to adjust ‘account title’ for top journal entry line. The ‘Row+’ journal account default has taken care of this
Click on the second row journal entry line of the ledger to make it active. Click on the ‘enter assigns’ box for Mr Opal on the left. Start to type ‘Other Expenes’, select it from the drop down list (not visible in video), click to select or navigate with arrow keys and press enter to select. Press enter again to assign to second row and move active journal row to third row. Active row has current ‘account title’ selected. Start typing ‘Loans to Opal Trader’ and assign as before.
Scene 4
Drop down window clicked on is not visible in video:
Red box around SECOND TABBED TO ‘Enter assigns, type searches; account for journal box for Opal Traders
Red box around last three journal entry lines, with additional box around ‘account titles’.
The Mr Opal entity ‘enter assigns’ box still has focus despite entering acting on third journal line and moving the active journal line to the fourth line. PRESS TAB TO MOVE FOCUS TO THE OPAL TRADERS ENTITY ‘ENTER ASSIGNS BOX’. Start typing ‘Loans from Mr Opal’, select (or use arrow keys and enter to select, enter to assign and move active active journal line to fifth line. Continue easily selecting and assigning selecting for last two journal lines. All very quick!
Scene 5
Red box around description, debit, credit. tax columns for first four journal entries
Fill in amounts for the first four journal entries using Excel type navigation (enter, tab, up arrow, down arrow assigns is required to save data). The inter-entity accounts ‘Loans to…’ and ‘Loans from…’ must be equal debit and credit and are specially paired in reports to ensure they are balanced. Their names do not matter. The pairing configuration by account ID used by reports generation does matter.
Scene 6
The last two journal entry rows take consumption tax into consideration with an automatic calculation. The fifth journal entry row is now the active journal row since the ‘account title’ text is selected after assigning the correct account for the fourth journal entry line.
Drop down window clicked on is not visible in video:
Red box around ‘Double Balanced’ message
Red box around ‘Change Tax To Apply’ drop down box and buttons
Red box around last two journal entries
Click on the ‘choose tax to apply drop down list’ (the additional window does not show in video). Choose ‘GST, 10%’, click on apply, reselect ‘N/A, 0%’ as default. $9.09 has been automaticaaly deducted from $100 as GST and entered in TAX column. The ledger is now unbalanced by this amount. Click on the debit entry of the last journal and enter the total recorded tax amount (from the DOUBLE BALANCED line) to double balance. Press enter or tab to record.