Entering the purchase of Property in MYOB

[Peter Noake]

I'm sure there are a few ways to enter the purchase of property into MYOB, but I'd like to work out which is the best way to do it.

Presumably I set up an Asset account, and then go to Purchases, Enter Purchases, and enter the details of the property into the description line of the Purchase Order.

Who would you record as the Vendor? The RE Agent or the actual vendor?

Then, when it comes to entering costs such as Legals, Stamp Duty, Searches etc, I assume that you simply enter all purchase costs as transactions against the relevant expense accounts against an Invoice in the Sales section of MYOB.

Any tips? Am I way off the mark?

Thanks,

Pete

 

[NickM]

Peter

Dont go there !

You only really need to use the banking module. The payables and sales will only complicate things for you.

Asset account is correct.
Then set up a liability account as a cheque account which will be your loan.
Then go to banking and change the account at the top to the loan account you just set up.

then all the drawdowns that came out of that account can be recorded.

I would also set up an asset acct under the property purchase for capital costs. EG Stamp duty, legals etc

Hope this helps

Regards
NickM

 

[Peter Noake]

Let me try to understand this ...

create the Asset Account -ie 1-3200 - 100 Bloggs Street (Header),

then create another account for the Building/Land cost, ie 1-3210 - Building Land, entering the purchase price in the Opening Balance section, and

then add more accounts for capital costs such as Stamp Duty, Improvements etc etc, each time, and then spend money via the Banking Module with the 'Asset' to be purchased recorded against that particular account.

Learning fast I hope.

Pete
MYOB Numpty

 

[NickM]

No peter
Try to avoid using the opening balance area.

To be accurate every entry is double sided. ie a debit and a credit.
The opening balance area allows you to enter 1 sided entries and i do not recommend it.

The rest of what you have stated is correct.

If it is an existing property, then the other side of the entry will probably be money you have put into the property and therefore can be credited to an equity type account

NIckM

 

[Peter Noake]

Got it, I think.

Liability Account (Detailed credit Card) for Loan.
Asset Account for Property.

All balances start at Zero.

Into Banking Module.
Spend Money.
Select Liability Account (from), Asset Account (to) and other details.

Thanks,

Pete

 

[Puppeteer]

The opening balance is used for moving accounts into MYOB in the first place.

For example, you may have been operating a business using another software package, and you want to change to MYOB. When you set up your banking accounts, they will already have a balance in them. This is when you use the opening balance.

 

[NickM]

yes the openeing balance function may be used then, however i still prefer to have the entry posted as a journal to ensure it balances correctly.

The opening balance function allows the difference to be posted to an account called Historical balancing which should always be nil.

 

[Nominees]

Hi Nick,

You are right, I had to find this out the hard way... spent about an hour 2 weeks ago trying to figure out why I has an amount in the "Hystorical balancing". Eventually I found out that I had put an amount in "opening balance."

I find MYOB great. It took me about 1.5 years to learn how to use it properly and I can get nearly all the info I want. (however it does take time to learn it all and can be VERY intimidating at times, especially if you have never done an accountancy course or even taken a MYOB course for that matter.). Now that I have learnt how to use it, it is worth the effort and I understand so much more about accouting now (very satisfying ).

I would love for some one to post their accounts somewhere. (MYOB will allow you to export this.)

I basically create accounts by alphabetic order to make it easier to find them (i.e the account codes and descriptions are in descending order.)
Is there an "official" list of accounts and their respective code somewhere? I am not quite sure about that.


Nom