Posted: September 8th, 2016

A practical computerised case using Xero.

Return to General Setting, click Chart of Accounts. Xero has suggested a range of accounts for your use. The account names may be slightly different to those you need to create when you are recording. This is okay, you do not need to standardise the names. Additional accounts will need to be added. To add new accounts, Click on new accounts and complete the necessary information. 6. Return to General Settings and select financial settings. Check that the financial yearend is 30 June. The tax defaults for both sales and purchases should read “tax inclusive”. Change these details if necessary. 7. Return to general settings. 8. Select Conversion Balances. Click on conversion date and change the month to potential Consequences. September (this means you will enter the opening balances based on the 31 August closing balances). Save. 9. Click on Add Comparative Balances (if necessary click on “Show all accounts”). Enter the opening balances by account from the opening Statement of Financial Position in the appropriate debit/credit column. Xero operates with only one GST account – “GST Clearing”, a current liability. Please net the GST Receivable and GST Payable account when entering the opening balances in Xero. Make sure the opening balances debits and credits are equal to each other. Save. 10. A new window will open that requires you to enter the opening balances for individual debtors and then creditors. Enter each debtor, the amount owning and the date of the transaction. Repeat for creditors. 11. Go to Accounts, Select inventory. Click on Add new item and create each inventory account. Then import opening inventory balances using the wizard available in Xero. You are now ready to start entering the transaction data into Xero. You should record transactions in date order. This is critically important for any inventory transactions (sales and purchases) as Xero calculates the value of inventory using the moving weighted average method. It is easiest to enter sales, purchases and cash transactions through the dashboard. Please note: you will have a free 30 day access to Xero. If you have already registered for Xero and started your practice with creating the practice case, the 30 day access will be only applied to that practice case from the date you have created that file. To do your assignment you don’t need to delete the practice and add new information, you have to create a new company for your assignment in week 9. To create a new organization in Xero, you have to click on “Home” option on top menu (you can get access to “Home” option from Account) of Xero and then click on green button “Add an organisation