Account Code Selections
Part of setting up the link with MYOB Accountright involves setting the default accounts to post income, expenses and payments received when sending an invoice in Tradify to MYOB.
There are also various integration options that you can choose, that change the way Tradify interacts with MYOB. This article explains the purpose of each account code selection as well as the other integration options.
There are four default Account Code selections:
Sales of Labour & the Sales of Materials Accounts
Tradify uses these accounts to post Revenue or Income derived from Labour and Materials, as they appear on Customer Invoices.
These must be allocated to an Income or Sales Account Type in MYOB as shown below.
The default account codes in this account type range, based on a default Chart of Accounts in MYOB, are 4-000 to 4-9999. As shown in the Tradify image above, they have been allocated to 4-1000 - Sales Income#1 and 4-2000 - Sales Income#2, but you can select whichever accounts you want in the income Account Type range. Of course you can also create additional Sales Accounts in MYOB specific for this purpose and name them according to whatever is more appropriate for your needs.
You have the option of splitting the Sales posting for Labour and Materials, however, they can also be posted to the same account if required. Splitting them between two different Sales Accounts allows you to see at a glance, in your financial reporting in MYOB, the Income derived from Labour and the Income derived from the Sale of Materials.
The accounts set in Tradify under Settings > Accounting System are defaults that apply to Labour and Material lines entered on a Customer's invoice.
The Account Codes can be altered on the invoice lines, unless they have been hard coded on the individual Billing Rates or Price List Items.
Sales or Purchase Account Codes entered on individual Price List Items or Billing Rates (see below) overwrite the default Account Codes that apply to the invoice lines from the Accounting System settings and become hard coded. They therefore cannot be changed on the invoice lines.
In the example below you will notice the two extra lines added to the invoice as per the Price List Item and Billing Rates shown above. Notice how the Account Codes set on these items, appears on the invoice lines and are different to the defaults.
While you are still able to edit the Account Codes for these lines on the invoice, the system will ignore what is entered on the line and use the Account Codes specified on the individual Billing Rate and Price List Item records.
This option provides an additional level of integration with MYOB where specific Item codes can be posted to different Sales & Purchase Account Codes where required. If the Account Code fields on each Billing Rate or Price List Item are left blank, the default Account Codes specified in the Accounting System set up will apply to the invoice lines.
Tradify uses this account to post Payments Received from customers, as they are applied to invoices created in Tradify. The account selected here must be a Bank Account or an Asset type account.
An example of where this would be used is where you wish to post Cheques and Cash payments received, which are then later deposited in the main Bank Current/Cheque Account, so that your bank statement will reflect the transactions as they occur.
Under Settings > Invoice, Quote & Purchase Settings > Payment Methods tab, you are able to set which Account Code is to be used for each payment method.
Each Payment Method has a place where you can define the Bank or Payments Account you wish to post Payments Received to.
Tradify uses this account to post the value of purchases derived from Bills sent to MYOB from Tradify.
These must be allocated to an Cost of Sales or Expense Account Type in MYOB as shown below.
The default account codes in this account type range, based on a default Chart of Accounts in MYOB, are 5-0000 to 6-9999.
As shown in the Tradify image below, the Purchases Account has been allocated to 5-100 - Purchases, but you can select whichever accounts you want in the Cost of Sales or Expense Account Type.
Of course you can also create additional Cost of Sale or Expenses Accounts in MYOB specific for this purpose and name them according to whatever is more appropriate for your needs.
This account selection is also a default that can be overwritten either manually or by the hard coded account specification set on individual item codes.
The Integration Options below control how Tradify interacts with MYOB Accountright when sending invoices through to the Accounting System
The options can be turned on or off as needs change, but it is important to understand the implications of making changes.
This article will explain what each option is used for and how it impacts the integration of Tradify & MYOB.
1 - Use MYOB invoice numbering sequence -
With this option selected, Tradify defers to MYOB to assign a number to an invoice created and approved in Tradify.
For this reason when you approve an invoice in Tradify, it has to send it to MYOB in the same step so the invoice number can be determined and allocated accordingly. The Approve button on the invoice screen therefore reads, "Approve & Send to MYOB". Please Note: This option should be selected if at any stage you intend to produce an Invoice in MYOB without it originating in Tradify in any shape or form.
It is important to ensure that in MYOB, the option to "Warn for Duplicate" invoice numbers is set under the Setup > Preferences > Sales and Purchases tabs, as shown below.
When the option, "Use MYOB invoice numbering sequence" is deselected, the invoice numbering sequence can be set in Tradify under Settings > Invoice, Quote & Purchase Settings. Invoices generated in Tradify can then be approved and only need to be sent to MYOB at a point that the user decides, (typically when the customer has approved the invoice for payment).
Tradify also monitors the paid status of the invoice up to the point it is sent to MYOB. The Invoice can also be "Reset to Draft" status (see "Options" button on the invoice screen) so it can be altered or edited as needed and then approved again afterwards. You will also notice that the Approve button on the invoice screen therefore reads, "Approve". The option to "Send to MYOB" then resides under the "Options" button in the Invoice screen and also on the Invoice list screen.
This option provides the most flexibility when producing and managing invoices and is therefore recommended, however, this does require that ALL invoicing be done in Tradify.
2 - Send invoice description to MYOB -
In Tradify the Job Description automatically copies to the Invoice Description when generating an invoice as shown below:
Example of Job Description copying to Invoice Description field.
When the option "Send invoice description to MYOB" is selected, the Invoice Description is added to the invoice line detail in MYOB when the invoice is sent there from Tradify.
Using this option allows the user in MYOB to see more details pertaining to the Job that the invoice relates to and since there is no specific Job Description field in MYOB, this is added to the line detail as a text line. (see example below)
When this option "Send invoice description to MYOB" is deselected, the Job Description is not included in the MYOB invoice.
3 - Use Job Address for Invoice Ship to -
When this option is selected, Tradify passes the Job Address to the Ship to Address on the MYOB Invoice.
When the option "Use Job Address for Invoice Ship to" is deselected then the Customers address becomes the Ship to Address in MYOB.
3 - Synchronise items when an invoice or bill is sent to MYOB -
When this option is selected, Tradify synchronises the Price List Items on an Invoice with the Inventory Items in MYOB. So any changes in the description, unit price or buy price are updated in MYOB from Tradify accordingly. However, turning this option on increases the amount of time it takes to send an invoice to MYOB due to current limitations on MYOB's API (Application Program Interfacing Tool). For this reason we do not recommend turning this option on.
This option also works in conjunction with the "Invoice Layout" option that is selected above the Account Codes.
The two Invoice Layout options are:
- Item - Invoice lines are inventory item codes and required a Quantity to Ship to be specified.
MYOB Item Invoice Layout Example
- Service - Invoice lines do not allow for an item code nor do they allow a quantity to be entered. Rather the invoice line detail consists of a description, a line total and an Account Code that the line total will be posted to.
MYOB Service Invoice Layout Example
Typically the Invoice Layout selection is set to agree with the Invoice Layout selected in MYOB, however, it can be set differently.
Tradify only creates inventory items in MYOB to correspond with those that appear on an Invoice, if the Invoice Layout option is set to "Item". Tradify will also only update an existing Inventory Item record in MYOB, if the Invoice Layout is set to "Item" AND the option, "Synchronise items when an invoice or bill is sent to MYOB" is selected.
When the option, "Synchronise items when an invoice or bill is sent to MYOB" is deselected, Tradify does not synchronise the Price List Items with existing Inventory Item records in MYOB.
There is a distinct advantage to choosing the Item Invoice Layout option as this provides additional sales and purchase analysis by item reporting in MYOB.