Terms
What are Terms?
Under Chart of Accounts, there is an option to enter the Terms against the Profit and Loss accounts.
The option to enter Terms will only appear if the Profit and Loss account has been linked to a Balance Sheet account that has an Account Category as Receivables or Payables.
The options that appear under Terms are;
- Immediate (paid in the same month as the PL value is entered)
- 30 Days (paid the month after the PL value is entered)
- 60 Days (paid 2 months after the PL value is entered)
- 90 Days (paid 3 months after the PL value is entered)
- % Split (the following box appears that allows you to enter a % across the above mentioned terms)
Magnifi will default to 30 day terms for both Receivables & Payables if it has not been specified.
How do I enter Payment Terms for GST, PAYGW, Super and Payroll Tax?
Under Cashflow, there is an option to select Payment Terms. This is where you can enter the payment terms for the automatic calculations including GST, PAYGW, Superannuation and Payroll Tax.
In the example below, the default terms have been set and the GST/PAYGW has been changed with Oct/Nov/Dec paid in Feb instead of January. Any changes will appear in red.
If you change the defaults, Magnifi will remember the defaults for future years. Eg, In the above screenshot, the GST for the Dec 18 quarter will be paid in Feb 19 and the default for Dec 19 will automatically be adjusted to Feb 20.
The "terms" will still appear against the above accounts under the Chart of Accounts. You can simply select the option called "Mthly/Qtrly".
The GST & PAYGW need to be specified as the relevant account type under Chart of Accounts.