Microvet Accounting

Microvet’s accounting system has five types of accounts:  
·         Ledger accounts  
·         Supplier/Creditor accounts  
·         Expense accounts  
·         Bank account  
·         Petty cash account

How to set up Microvet’s accounting system

·         First add all your ledger accounts  
·         Then add your supplier/creditor accounts and expense
      accounts and link them to a specified ledger account  
·         Set up your bank account  
·         Set up your petty cash account  
·         Add your expenses  
·         You can now start adding your transactions and replenish
      your stock

The creditor and expense accounts are linked with your bank account and petty cash account. Payments to creditor and expense accounts are subtracted from the bank account balance or petty cash balance, whichever you select.

How to add a ledger account

These are category/group accounts like Pet Food, Drugs and Salaries. Decide how you want to group all your specific creditor and expense accounts. Give these groups names and then open a ledger account for each.

Tip: Use the same ledger accounts as your accountant used on your previous financial statements.

Click on ACCOUNTING on the main menu
Click on LEDGER
Click on ADD LEDGER ACCOUNT

Give the ledger account a name and specify the type of ledger account:  

• Income e.g. Dividends on investments
• Expense e.g. Stationary
• Cost of sales e.g. Pet Food
• Investments
• Long term loans
• Fixed assets
• Current liabilities
• Current assets
• Proprietary interest
• Bank

The type of ledger account will determine the input for your cash flow and income statements

Also see List ledger accounts report
Also see Detailed ledger report
Also see Income statement report
Also see Cash flow statement report

How to add a creditor or expense account

All your stock items are replenished through your creditor accounts. The current quantity of the stock will be increased by the quantity that you add. These accounts are part of the stock

control system of Microvet. If the stock item is not in the stock list, you have to add the item to the stock list first.

Also see How to add a stock item

All the items that are not part of the practice stock inventory should be added to the expense accounts. These are items like salaries, office stationary, tea money etc. Remember to change the tax rate to zero when accounts are added that have no sales tax e.g. salaries account.

When you do a transaction for an account, the application will look up the tax rate that you specified when opening the account and use this value to calculate the tax.

Click on ACCOUNTING on the main menu
Click on ACCOUNTS
Click on ADD ACCOUNT

Select the ledger account
Click on the LEDGER button to select the ledger account to which this account should be linked.
Also see How to add a ledger account

How to add the financial details of a creditor or expense account

Click in the FINANCIAL button on the account information window

Outstanding balance
An outstanding balance for this account will be shown.

TAX rate
Enter the appropriate tax rate. This rate will be used to calculate the tax amount when adding transactions to this account.

Calculate skills development levy
Tick this box if you want all the payments made to this account to be used in the calculation of the skills development levy. Tick this box when you add e.g. a salaries account.
Also see Skills development levy report

Calculate unemployment fund levy contribution
Tick this box if you want all the payments made to this account to be used in the calculation of the unemployment fund contribution. Tick this box when you add e.g. a salaries account.
Also see Unemployment fund contribution levy report

Calculate regional service council levy
Tick this box if you want all the payments made to this account to be used in the calculation of the regional service council levy. Tick this box when you add e.g. a salaries account.
Also see Regional service council levy report

Monthly debit order amount
Enter this field if you pay this account by monthly debit order.

Day of month for debit order
Enter the day of the month when the debit order is paid.

Also see Creditor balance report
Also see Summary by creditor report
Also see Transaction item listing report
Also see Supplier invoice summary report

How to add a bank account

Also see How to add a creditor or expense account

Only open a bank/cheque account if it is not already on your system. Add an opening balance to this account. This account should be specified as your bank account in your default setup.  

Link the bank account to your bank ledger account (type of ledger account: bank).
Also see How to add a Ledger account

Cheques, cash, credit card payments and transfers from your clients/debtors should be deposited directly through the banking function in the debtor’s side of the program. All the payment lines that you add to your creditor and expense accounts will be automatically subtracted from this account if specified.

Also see How to set up Microvet defaults
Also see How to bank client payments to a bank account

How to add a petty cash account

Also see How to add a creditor or expense account

Only open a petty cash account if it is not already on your system. Add an opening balance to this account. This account should be specified as your petty cash account in your default setup. Cash could be deposited directly through the banking function in the debtor’s side of the program or you can manually add cash deposits as credit lines to your petty cash account. All the payment lines that you add to your supplier or expense accounts will automatically be subtracted from this account if specified.

Link the petty cash account to your bank ledger account (type of ledger account: bank).
Also see How to add a Ledger account

Also see How to set up Microvet defaults
Also see How to bank client payments to a bank account

How to add an expense

Expenses are those items that are NOT STOCK items e.g. petrol, oil, motorcar service, car wash and a salary for a specific person. Expenses can be linked to different businesses.
Also see How to setup your business accounts

Click on ACCOUNTING on the main menu
Click on EXPENSES
Click on ADD EXPENSE

There are different types of expense accounts: expense, asset, liability, salary, tax and long term loan.

Expense
This expense type refers to expenses like stationary and groceries.
Fields applicable are: description, price and tax rate.

Asset
This expense type refers to expenses like x-ray machines and property.
Fields applicable are: description, price, tax rate, purchase price, date of purchase, depreciation rate, current value and current quantity.

Liability
This expense type refers to expenses like motorcar on lease and other short term liabilities.
Fields applicable are: description, price, tax rate, purchase price, date of purchase, depreciation rate, current value and current quantity. Note that the current value will be negative.

Salary
This expense type refers to salaries and wages.
Fields applicable are: description, price and tax rate.
Note that the net salary amount (amount after all deductions) is applicable here. The tax rate for salaries is zero.

Tax
This expense type refers to expenses like VAT, UIF, LBS, SDL, City of Tshwane, Compensation commissioner and income tax.
Fields applicable are: description, price and tax rate.
Note that the tax rate is zero. 

Long term loan
This expense type refers to expenses like property not yet fully paid.
Fields applicable are: description, price, tax rate, purchase price, date of purchase, depreciation rate, current value and current quantity.

How to add a transaction

User
Click on this button to change the user. This allows you to enter lines for different users. You can have more than one user per transaction.
Also see How to add user passwords

Location
Click on this button to change the location. This allows you to add stock for different locations.
Also see How to work with different stock locations

Business
Click on this button to change the business account. This allows you to add stock for different businesses.
Also see How to setup your business accounts

Supplier invoice number
Enter the supplier's invoice number.

Transaction notes
You can type notes in this space. You can click on the MESG button to select a pre-typed message.
Also see How to add messages to invoices and statements

How to view previous lines while busy with a transaction

Click on the PREVIOUS LINES button on the transaction window

Use this function to quickly view previous transaction line items while busy with a transaction.

How to do a balance enquiry while busy with a transaction

Click on the BALANCE button on the transaction window

Use this function to do an enquiry of the total outstanding balance of the creditor, without quitting from the transaction.

How to add stock to a transaction

Click on the STOCK PURCHASES button on the transaction window
Select the stock item

Remember, if you want to replenish your stock quantities, the stock item must already be part of your stock list.
Also see How to add a stock item

When replenishing stock, the current quantity of the stock will be increased by the quantity that you enter.

Additional quantity
Enter the quantity of the stock received.

Cost of additional quantity
Enter the total amount of the quantity that you received, excluding tax.

Unit cost
Microvet will automatically calculate this value for you. The COST OF ADDITIONAL QUANTITY is divided by the ADDITIONAL QUANTITY received and then tax is added to derive the value for the UNIT COST.

Batch number
Enter the batch number of the newly received stock. 

Expiry date
Change the expiry date to the expiry date of the newly received stock. Remember to remove any expired stock from your shelves.
Also see Expired stock report
Also see Stock received report
Also see Manufacturer summary report

How to add an expense to a transaction

How to add a payment to a transaction

Click on the NEW LINE button in the transaction window
Click on PAYMENT

Pay the entire transaction
Click on this button if you want to pay the full amount of the transaction.

Pay off creditor
Click on this button if you want to pay the whole outstanding balance of the creditor.

Type in the payment amount
If you only want to pay part of the balance enter in the amount in this field.

Method of payment
It is important to select the method of payment e.g. CASH, CHEQUE, CARD, TRANSFER or OTHER.
Also see Cheque list report
Also see List payments report

Cheque number
If the method of payment is by cheque, enter the cheque number.
Also see Cheque list report

Select the source for the payment
Specify from which account you want to pay the creditor, from your BANK ACCOUNT or PETTY CASH ACCOUNT.
Also see How to add a bank account
Also see How to add a petty cash account

How to add other types of line items to a transaction

Click on the NEW LINE button on the transaction window
Select one of the following line items

Debit
You can use a debit line when you want to open an account for a creditor or expense account with a debit balance.

Discount
Enter the amount of discount received from a creditor.
Also see Discounts report

Debit journal and Credit journal
Normally, if you make a mistake in a transaction, the transaction can be edited to correct the mistake, or the line item can be erased completely. However, when you are busy with an accounting month-end procedure, all transactions are written to the OLD TRANSACTION database table. Those transactions can only be viewed in PREVIOUS LINES and cannot be changed or erased. Thus, if a mistake has been made in an old transaction, and the creditor or expense account balance must be increased, a DEBIT JOURNAL can be added to correct the balance, OR if the creditor's or expense account balance must be decreased, a CREDIT JOURNAL can be added.
Also see Debit journals report
Also see Credit journals report

Select the line item on the transaction window
Click on the EDIT LINE button

Date
The default date is the date of the computer, which should be the current date. You can change the date of the line item and/or you can change the date of the transaction. Remember that when you change the date of the transaction AFTER you have added line items the dates of these items WILL NOT be updated automatically, only the items that you add after you have changed the transaction date will have the same date of the transaction.

User
Click on the USER button to change the user. This allows you to enter lines for different users. One can have more than one user per transaction.
Also see How to add user passwords

Location
Click on the LOCATION button to change the location. This allows you to add stock for different locations.
Also see How to work with different stock locations  

Business
Click on the BUSINESS button to change the business account. This allows you to add stock for different business accounts.
Also sees How to add different business accounts

Add TAX
If you click on ADD TAX button (while the tax is 0), it will change the tax rate to the system default and add the tax amount to the total.
Also see How to set up Microvet defaults

Deduct TAX
Click on the DEDUCT TAX button if the amount includes tax by accident. This is a function for practices that buy drugs at zero tax rate. If you click on this button, it will change the tax rate to zero and deduct the tax amount from the total.
Also see How to set up Microvet defaults

Note: Microvet calculates the tax INCLUSIVE price on EACH separate line. On some creditor invoices the tax could be calculated on the total of ALL the lines. Therefore, it is possible that Microvet’s tax total may differ slightly from the tax total of the supplier’s/creditor’s invoice. If this is the case, a debit journal or credit journal can be added to make up for the difference in the balance.

How to delete a line item from a transaction

Select the line item on the transaction window
Click on the DELETE LINE button

How to add transactions to your bank and petty cash accounts

Transactions to your bank account and petty cash account look slightly different. Only use these accounts to adjust balances. When you want to add bank fees and interest fees you have to open a separate account.

To add lines to the bank and petty cash transactions do the following:

Click on NEW LINE
Select BANK DEBIT or BANK CREDIT
Change the description to specify the type of line
Add the amount

Also see Bank debits report
Also see Bank credits report

How to edit a transaction

OR Click on the icon on the toolbar

Accounting transactions cannot be deleted

Accounting transactions cannot be deleted for stock control security reasons. Only line items in an accounting transaction can be deleted individually.

How to return goods

This function is used when purchased items have to be returned to the supplier/creditor for whatever reason. The amount for the items will be deducted from the creditor's balance and the stock quantity returned will be deducted from the current stock inventory quantity.
This function could be used for both stock items and expense items (non-stock items).

Click on ACCOUNTING on the main menu
Click on TRANSACTIONS
Click on ADD GOODS RETURNED
Select the account

Stock returned
Click on the STOCK RETURNED button to select the stock item to be returned. The amount of the stock returned will be subtracted from the account balance and the stock quantity will be subtracted from the stock inventory quantity.
Also see Goods returned report

Items returned
Items are non-stock items e.g. stationary. Click on the ITEMS RETURNED button to select the items to be returned. The amount of the items returned will be subtracted from the account balance.

How to do an accounting month-end procedure

All the transactions will be moved to an old transaction file. The transaction can still be viewed and printed, but cannot be edited.

Exit from Microvet on ALL the computers. All network users must log out of Microvet before you archive and remain logged out until the archiving is completed.
Go to the FILE SERVER and do the following:

Make a backup and keep this backup in a safe place. Do not re-use these disks.
Do a file maintenance
Also see Getting started with Microvet: When to do a file-maintenance
Open Microvet
Click on FILE in main menu
Click on ACCOUNTING MONTH-END