How to add Accounts Receivable and Accounts Payable accounts in Magnifi

Receivable & Payable Accounts

How are Receivables & Payables calculated? 

If a profit and loss account is linked to a payables or receivables account under Chart of Accounts, there will be an option to specify the collection or payment terms.




Also ensure that the receivables or payables accounts have been assigned the correct account category and linked to a bank account. Although if a bank account isn't assigned, Magnifi will assume it's the trading account.





How are the Receivables & Payables reported in the Balance Sheet?

The Balance Sheet will report a breakdown of the calculation as per the following example;



Any Profit and Loss account that has been linked to the Balance Sheet account will show under the P/L link. For example, "Sales NSW" has been entered in the Profit & Loss at $99,000/mth which has a corresponding increase to Trade Debtors. The collections and payments will appear under the Payments section based on the collection and payment terms set for the account as per above. 

Are Receivables & Payables re-forecasted based on Actual Results?

Yes, all of the Receivables & Payable accounts will be re-forecasted based on the actual results. For example, if December had actual income was $100,000 with 30 day Terms, then the Receivables budget for January will now show $100,000 with the corresponding entry against the bank account. GST will also be updated.

Can you manually update the projected Receivables or Payables accounts?

Yes, you can make a manual adjustment by adding a Sub Account against the relevant receivables or payables account. For example, if you are expecting debtors to be $100,000 less than what's projected, you can add a sub account (eg Receivables adjustment) and enter -$100,000 which will have a corresponding adjustment to the bank account. 

How is GST & PAYGW calculated?

GST will be automatically projected based on any accounts that have been flagged as "GST" under Chart of Accounts. 

The projected GST & PAYGW inflows and outflows will appear against the designated account under Chart of Accounts. Eg:



You can review/update the % by clicking on the hyperlink. 

You set the payment terms for the GST & PAYGW under Cashflow - Payment Terms.