Accounts, Tax and VAT infoblog! -

Sage tips and advice

September 14, 2009

Sage – How to reconcile the bank account

Why should I bother reconciling the bank account?  Well, throughout the weeks you will be entering lots of different types of information into Sage.  Even at our most careful and efficient level, nearly everyone makes a mistake!  So how can we find out if we have made an error?  In accountancy we take the information from the bank statement as ‘almost’ 100% accurate (ok banks do make rare mistakes!).

So the bank statement is a crucial document, as it is EXTERNAL to the business and proves exactly how much money the business has or owes!  Rather than the owner telling their accountant they have ‘enough’, ‘not enough’, ‘a few hundred’ etc…….. in reality, most accountants will usuallywant to confirm that the balance in the clients accounting system agrees to the bank account.

Therefore the bank  ‘Reconcile’ function on Sage is to me one of the MOST important areas to a business.  This function simply matches the information contained in Sage with what ‘actually’ went through  the bank account.  If you fail to reconcile the bank then your financial data will almost certainly be incomplete, contain errors and possible cost you a lot more Tax, Vat or both!

Bank Reconciliation – Sage

To find the reconcile function go to ‘Bank’. Then single click the account you wish to reconcile. Above you will see a ‘Reconcile’ button, click this.

Enter the statement reference.  This should be the bank statement number.

The ‘Ending balance’ should be the closing balance on the statement, say £2,000 on the 19th May.

The ‘Statement date’ is the date of the last balance shown on the bank statement, ie 19th May.  Click ok. Sage works completely on dates, therefore it will now only show you entries dated before or on 19th May.

You should see a list in the top part of the screen of all the items that have not yet been ‘Matched’ to the bank statement.  ‘Matching’ means agreed or found.

As you find each transaction on the bank statement, either double click it, or highlight it and then click the ‘Match transaction’ button on the right.

If you have to stop half way through, you may be interupted, or you realise that you have made a mistake, then you can click ‘Save’.  This will save all the work you have done, you can then come back to it at a later time.

Do not press reconcile until the ‘Difference’ figure equals zero.  This is VERY VERY important.   The purpose of the ‘Difference’ button is to highlight that the balance Sage ‘thinks’ is in the bank account, and the actual ‘Ending balance’ on the bank statement MUST be the same.

If, after ‘matching’ each of the transactions on the top half of the screen you still have a difference, then double check the bank statement and see if you have any entries on the statement that you have not already entered.  You should leave the ‘Reconcile’ screen, by pressing ‘Save’…go and enter the transaction, then come back to the ‘Reconcile’ module.

When returning to continue reconciling the bank account, you will again click ‘Reconcile’, however this time Sage will tell you that you have a previous ‘Saved’ reconciliation.  You can select to use or discard this.  Choose ‘Use’.  You will now see the transaction you have just entered.  Ensure it is selected, then hopefully the balance in the ‘Difference’ box should now be zero.

The ‘Adjustment’ button allows you to enter very simple items, eg. a bank charge, rather than you having to Save and then leave the reconcile module.

Bit by Bit is easier

A very helpful tip when reconciling the bank account on Sage is to reconcile the bank statement in say two or three steps.  Say your statement covers 10th to 19th May, rather than try and reconcile the whole page in one go, draw a line say half way down the page, at say 15th May,then reconcile using this date and ‘Ending balance’. This way you have less transactions to handle.

Is the date correct?

Finally.  If you cannot find a transaction on your Sage ‘Reconcile’ screen, but you are SURE you have entered the transaction but it isn’t showing up, then it may be that you have entered the transaction with a later date, ie 21st May.  This will mean that the transaction should not be re-entered, but rather you simply need to edit the date back to the 19th.  I always check this, otherwise it’s VERY easy to end up with duplicate bank entries!

  1. i have reconciled something that i need to change. is there anyway i can do this?
    any help would be great
    thank you

    Comment by louisa — April 1, 2010 @ 4:21 pm
  2. Hi Louisa

    Once a transaction has been reconciled on Sage, it is best not to change the item. However if a change is vital, then you can delete the transaction and re-enter it.
    If the transaction is a bank payment, then once you delete the entry it will ‘come back into the reconcilition’ as if it was a bank receipt.
    You can then re-enter the transaction correctly.
    When you next go to reconcile your bank account, you should see the new ‘bank payment’ and also a corresponding ‘bank receipt’. Highlight both of these transactions, and assuming that both of the ‘gross’ amounts are the same, simply match these off against each other, and your bank account will then agree.

    Comment by admin — April 12, 2010 @ 2:42 pm
  3. Hi,
    The person who was doing the book-keeping before me didn’t do any bank reconciliation. She couldn’t record everything because some of the information was missing. can i do the bank reconciliation of the recent months and than go back and do the previous months after I have filled the gaps and found all the information?

    Comment by Kheira — April 21, 2010 @ 6:53 pm
  4. Hi Kheira, thank you for your question on reconciling a bank account on sage.
    The best way to deal with this is to reconcile the bank account in date order. If you were to reconcile the most recent months, then try to go back, you will end up with incorrect brought forward balances and basically chaos!

    Your best plan would be to go back to the beginning of the accounting year, then you should start reconciling from the first day in your current year. If the bank has NEVER been reconciled, then you may have to enter the correct bank balance as entered on the last set of annual accounts prepared by your accountant, then move forward, reconciling each month in order.

    Sorry probably not the answer you were after.

    Kind regards

    Dave

    Comment by admin — April 25, 2010 @ 11:25 pm
  5. Hi,

    I have some unpresented cheques which have already entered onto sage, but haven’t come off the bank statement. What shall I deal with these when I do bank reconciliation?

    Many thanks.

    Comment by Yin — June 27, 2010 @ 6:04 pm
  6. Hi Yin

    Some times a business will send someone a cheque and for whatever reason, it takes a few weeks for this to clear the bank.

    You have correctly entered the cheques onto Sage. You should leave these cheques on Sage as they will no doubt be presented to the bank within the next few weeks. Then when the cheques do clear, you simply match these off.

    If an unpresented cheque is sat in Sage for over 6 months then you should delete the transaction as a cheque becomes ’stale’ after 6 months and the bank should not clear a cheque over 6 months old.

    Kind regards

    Dave

    Comment by admin — June 29, 2010 @ 10:39 pm
  7. Hi Dave, many thanks for your reply. In your article, you said:Do not press reconcile until the ‘Difference’ figure equals zero. This is VERY VERY important. If there are unpresented cheques, how can I make the difference figure become zero?

    Many thanks.

    Comment by Yin — July 1, 2010 @ 11:04 pm
  8. I have done something terrible when using Sage for the first time to do VAT returns for a family member.
    I didn’t have the bank statments and some of the invoices were from as much as 9 months ago. Although I entered an opening balance for the bank account, more invoices turned up later that were before this date. I ended up deleting the opening balance hoping to sort it out later.
    Because I didn’t know how to use Sage correctly, I reconciled all the amounts that I had entered that had appeared on the bank statements as I got them but did not realise the importance of the difference figure being 0.
    I have now flagged all my checked entries as bank reconciled but the balance figure is wildly out.
    How can I make an adjustment so that the balance is correct according to my bank statements at any point in time? For instance, I know that I’ve entered everything up to the 4th May and know what the bank statement says the closing balance is. How do I adjust the Sage bank balance to match this?
    Please help, I know I’ve got in a muddle but it’s always easy when you know how!
    Thanks.

    Comment by FiFiFu — July 15, 2010 @ 7:28 pm
  9. Hi Fiona

    Wow! What a muddle!

    Ok well I think you really only have one option here.

    option 2 could be to scrap what you have done and completely start again! But I won’t depress you by suggesting it! :o )

    Go back to basics. Print off a Bank payments and bank receipts report, this will show you exactly what figures have been entered into Sage. Then with a red pen, neatly tick off each item on the bank statement, and also tick the bank transaction on the Sage report.
    Then once you have finished, you should be able to see if you have missed any transactions that are on the bank statement. If you have missed any, enter them now.

    If you find that after this exercise you have items on the Sage report that do not appear on the bank statement, investigate these, if they are errors, delete them now.

    Then enter your opening balance at the beginning of the period (from the bank statement).

    Once you have tidied up the bank entries in Sage, go into Bank reconciliation. Run a bank reconciliation for a statement that you have not already ‘reconciled’. If there is a difference, work out whether you need to enter a dummy bank payment or dummy bank receipt. Enter this dummy entry, post it to nominal code 9999. (use a T9 Vat code).

    Now when you go back to bank reconciliation, you should select all the entries including the ‘dummy’ transaction. You should now (hopefully) find that the closing balance on Sage and the closing balance on the bank statement agree. If the difference box is zero, then click on reconcile.

    I hope the above helps. It’s quite difficult explaining this in a blog!

    Kind regards

    Dave

    Comment by admin — July 19, 2010 @ 4:19 pm
  10. Hi

    The difference figure will be zero as long as you do not highlight the unpresented cheques. Unpresented cheques should be left at the top of the screen and not selected during the bank reconcile task. Once you see the unpresented cheque clear the bank account, at that point, you highlight the cheque.

    Kind regards

    Dave

    Comment by admin — July 19, 2010 @ 4:22 pm
  11. Hi Dave,

    Thanks for your help. I’ve checked the bank statements (twice!) and everything that is on it is entered correctly in Sage. I’m confident that the VAT returns have been correct.

    I’m also getting to the post first now so there will be no more invoices turning up months late any more!

    I download the statements electronically now as I can’t always get the paper statements and this gives me the most up to date bank entry information.

    I just made the mistake of reconciling entries as I did them and saw they agreed with the downloaded bank statement rather than waiting to get everything entered to a certain date and then go through the statement and reconciling the Sage entries(hope that makes sense).

    I now know how to do it properly and will use your suggestions as a final check before entering a dummy amount to be able to move on from this very steep learning curve!

    I have one last query: what is the effect of deleting a bank and VAT reconciled entry? I haven’t found any such entries so far but just want to know what to do if I find something I’ve entered in error that has already been reconciled (bank and VAT).

    Thanks again very much for your help – I really appreciate it.

    Fiona

    Comment by FiFiFu — July 21, 2010 @ 3:38 pm
  12. Hi Fiona

    Sorry for delay in the reply. Your comment auto approved (I didn’t know that wordpress did this?!) , so I have only just today found a couple of further comments that I didn’t reply to.

    If a bank transaction is bank and VAT reconciled, I think it’s best not to delete it. It is preferable to enter a correcting adjustment, eg. if the original was a payment, then enter a bank receipt on the same date with the same details. This will then show up on the next VAT correctly. When you start going back and deleting previously reconciled items, it can mess us the VAT reports etc.

    Kind regards

    Dave

    Comment by admin — August 12, 2010 @ 11:30 am
  13. David,

    Thanks very, very much for your help and advice.

    I’ve printed the Bank Payments and Receipts report but the default sort order seems to be by transaction number and to corespond to the bank statements it needs to be sorted by date.

    Am I being too cheeky asking for help with this one last problem?

    Thanks again.

    Fiona

    Comment by FiFiFu — August 12, 2010 @ 2:37 pm
  14. Hi Fiona.

    No your not too cheeky :o )

    To be able to sort the data into date order, the easiest thing to do is to run the (eg bank payments) report on Sage….then save the report as a CSV file. This is a comma separated file.

    Then you open up the CSV file in Excel.

    Then resave the file as a normal Excel file. The data will look abit of a mess, but all you need to do in spend 5 minutes going through it and deleting columns of data you do not need.

    Once you have trimmed the data down. Then simply ’sort’ the data using the Excel ‘Data’ then ’sort’.

    If any of the above is not clear, please just ask.

    Let me know if it works ok.

    Kind regards

    Dave

    Ps. I see you work in Devon, I’m based in Devon as well! Small world!

    Comment by admin — August 12, 2010 @ 5:05 pm
  15. Hi Dave,

    Thanks for this. I have worked in a 3rd line IT Support function for 17 years (not a cowgirl, I have industry recognised qualifications) and was a Network Administrator until I was made redundant last year so working with CSV/Excel sheets is easy for me.
    I just REALLY don’t know Sage and I’ve been bumbling around for months now but think I’m finally getting it!!
    I find it really frustrating that having supported and maintained large networks and many quite complicated software packages, Sage makes me look like such a loser! I’ve never felt so dumb. The worst thing is, I could have written Excel VBA modules that would have performed most of the functions that I’m using in Sage but I wanted to do it the “proper” way and thought I’d better get stuck in.
    Your help has been wonderful as I’ve spent many hours trawling through the help and online but my phrasing never seems quite correct to find the answers I’ve needed.
    This blog and you have saved my sanity (I think!). Thanks again.

    Comment by FiFiFu — August 12, 2010 @ 10:11 pm
  16. Dave, I forgot to ask where in Devon you’re based? I’m from Plymouth originally but now live in North Devon.

    Comment by FiFiFu — August 12, 2010 @ 10:12 pm
  17. Hi Fiona,

    Many thanks for your comment, it makes me glad to have helped you out.

    I work in Ottery St Mary, and my wife is from Bideford. We are going there tomorrow to go ‘prawning’ in rock pools and crags!

    It sounds like the IT side for you is a doddle, but with Sage you also need training on how it functions, but also some accountancy training is handy as well. Often a business owner will buy Sage with the idea that ‘it’ll save me loads in accountancy’ but sadly the truth is it can often cost them more because it’s possible to get things into such a muddle! Then the accountant has to unscramble things at the year end.

    I think a business owner should buy the program, then pay someone to come in and train the staff on how to run things, otherwise it can cause decent employees a lot of stress! ( small plug – I do this at a discounted rate!)

    If you come across any further problems just let me know. I have run out of ideas of topics to write about on this blog, so I just rely on people to ask questions. I started the blog a year ago, my friend started his about IT at the same time, it was more an experiment than actually trying to make any serious money from Google adverts.

    Have a good weekend.

    Kind regards

    Dave

    Comment by admin — August 13, 2010 @ 2:57 pm
  18. Hi, I have recently took over from a rather imcompetant accounts girl and she has made a massive mess of the bank recs. Is there anyway I can cancel previous bank reconciliations to a date where i can confirm the balance to the bank statements? (The date would be 24/5/2010). I feel it would save a lot of time if I could do this. Thanks.

    Comment by ruth_e — September 13, 2010 @ 4:16 pm
  19. Hi

    As far as I know, you cannot cancel bank reconciliations on Sage, they are set in stone.

    You would be best to print off bank reports for the period since the last correct bank reconciliation, then tick these to each entry on the bank statement.

    Then once you have identified any missing entries (unticked items left on the bank statements), enter these. Then once you are sure that all the entries on the bank statement have been entered, and once you have deleted any duplicate entries (or entries on Sage that have never cleared the bank), you should be able to carry out a bank reconcilation.

    Sadly sometimes, the ‘tick and bash’ approach is the only way to fix the error.

    Kind regards

    Dave

    Comment by admin — September 20, 2010 @ 5:20 pm
  20. Hi,
    I am new to reconciling my bank ststement but have managed to wade my way through one month. The problem I have is that I dont know what action to take when I come across an entry which is on my sage nominal ledger but not on my bank statement and also visa versa ( on my bank statement but not on my nominal ledger ),any advice in helping me understand how and why to fix these would be great.
    Thank you.

    Comment by thomas — September 29, 2010 @ 11:58 am
  21. Hi Thomas

    Ok, so firstly, if you find something on the bank statement that is not in Sage, then this is something you haven’t entered. When I enter a bank payment I always make a small neat red pen mark next to the figure on the bank statement. This then lets me know in the future that I have already dealt with this item…..if you are new to Sage then I would recommend you go one step further and actually write the Sage transaction number next to the item on the bank statement. The transaction number is a unique number, you find this at the bottom right hand corner of the Sage screen.

    If you find an item on Sage which is not on your bank statement you need to ask yourself the following questions….how was this actually paid? If it WAS paid from this bank account, will it show up in a week or twos time on a subsequent statement….ie if you have written a cheque, someone may not bank it for a few weeks.

    You may have paid the invoice by cash, but actually entered it as if you have paid it from the bank. When I enter an item, I put something in the ‘reference box’ ie the cheque number, or if paid by card I enter ‘card’….internet transfer I put ‘IB’

    This way you then clearly see if the item really has gone through the bank.

    Hope the above helps. Any more questions please feel free to ask.

    Kind regards

    Dave

    Comment by admin — October 1, 2010 @ 12:48 pm
  22. Thanks so much Dave,I checked my bank statement for the next month and found that the Items I was missing showed up in that month.
    Thanks again,
    Thomas.

    Comment by thomas — October 1, 2010 @ 1:07 pm
  23. Hi

    My colleague completed 2 cheque stubs but unknown to me she has written them the wrong way round. One has already been reconciled as it has cleared our bank account, it was a bank payment and not allocated to an invoice. The other has been allocated to an invoice.

    This means that both cheques are for the wrong amounts and the paid invoice has the wrong cheque number against it.

    Can I delete both transactions and start again? & how will this work when I reconcile the bank account next time?
    Thankyou

    Comment by Nicky — October 6, 2010 @ 4:35 pm
  24. Hi Nicky

    Yes that would be the easiest solution. Delete both and re enter them correctly. When you delete the reconciled payment, Sage will then put in a ‘receipt’, ie the money coming back into the bank account. So when you then enter the correct payments, you will simply reconcile the new correct entry and the Sage receipt and the bank will then balance fine.

    Kind regads

    Dave

    Comment by admin — October 7, 2010 @ 4:32 pm
  25. Thanks for your help Dave! It is all sorted now.
    Nicky

    Comment by Nicky — October 7, 2010 @ 7:00 pm
  26. Hi

    I have an unpresented cheque which was posted to Sage in the last financial year. It was outstanding at the year end but was subsequently never presented. I cannot delete the transaction as it was in the previous year – how do I now ‘cancel’ the transaction so that the bank balances? I know I have to add it back into the bank account but what is the other side of the transaction?

    Thanks in advance for your help.

    Joan

    Comment by Joan — October 9, 2010 @ 9:57 am
  27. Hi Joan

    You will need to find the details of the original payment. Once you know which nominal code the original entry went to, then you will need to post a receipt (dated the first day of the new financial year) to this nominal account. Then when you prepare the bank reconciliation you can match the original payment against the new receipt.

    If you have an accountant, you may want to just mention to him that you have done this if the value is fairly large.

    If the original payment was to a supplier, let me know and I will try to explain as it’s a little more involved that the above.

    Kind regards

    Dave

    Comment by admin — October 10, 2010 @ 9:23 pm
  28. Hi,

    I’ve had minimal training on sage but my employer possibly like many others is just hoping I will learn as I go!!
    There are lots of payments already on the system that date back a few months that were entered into petty cash but the owner paid them on his private credit card and then just transferred the money from the company bank back to the card. Once he gives me the statements to reconcile this will obviously show but how do I sort the reconcile to clear the petty cash entries?
    and 2nd question – As I add an invoice it always states “Product Invoice” in the top right, how do I select to produce a “Service Invoice”

    Many thanks for any help in advance
    Carol

    Comment by Carol — October 13, 2010 @ 7:37 am
  29. Hi
    The bookeeper before me was reconciling and i came in and everything is wrong, from the balances from Nov last yr to the present day…can someone help me PLEASE…

    Many thanks

    Becky

    Comment by Becky — October 19, 2010 @ 11:54 am
  30. Hi Carol

    If your employer has now re-imbursed himself by paying the balance from the company to the private credit card, the simplest bookkeeping entry would be to enter the payment to the credit card as a bank transfer, from the bank account to the petty cash account. This will then clear the payments that you have entered as petty cash.

    To change a product invoice to a service invoice and visa versa, there is a drop down box called ‘format’. This will allow you to toggle between the two types.

    All the best.

    Dave

    Comment by admin — October 20, 2010 @ 8:40 pm
  31. Hi Becky

    Sounds like you are going to have a nasty job trying to sort out the mess! You will need to print out the following day books: a bank payment, bank receipts, supplier payment and customer receipt report. The go through and tick off each transaction from the bank statement to the reports to identify any incorrect, duplicate or missing transactions.

    Once you have found an error, go into ‘File’ ‘Maintenance’ ‘Corrections’ and correct the amounts.

    It’ll take you quite some time but this is the only option if the bank has been messed up badly. It may be worth asking your boss (if they know Sage) to have a quick look at it before you spend too long ‘ticking and bashing’!

    Kind regards

    Dave

    Comment by admin — October 20, 2010 @ 8:46 pm
  32. hey, wondering if you can help me , am doing recon on the bank and im only out by a .01 – have gone into the Adjust button and entered the right amount to bring it back to zero but it keeps bouncing back to the date and not saving it – have tried the date of the statment and todays date but nither are working – hoping you can shead some light on it for me
    thanks
    clare

    Comment by clare — November 1, 2010 @ 5:14 pm
  33. Hi Dave
    I have started work for a new business with the role of reconciling the bank and running VAT returns. My problem is that the bank rec has not been run correctly for about a year. I have identified entries that have not yet been entered and have been slowly working through to try and make it all correct.
    My question is – The year end has been run, not sure by who, but many of the missing entries in the bank account are from the previous year. I understand that the Accountant has been given the Sage year end run info, so presumably this means that if I make changes to last year – extra entries etc., then the information that the Accountant has is incorrect?
    Any comments would be appreciated – don’t want to waste loads of time getting the bank right if it’s not appropriate?
    Also, how can I look for a point in time where the bank agreed to the Sage information? – do the individual reconciliation exercises get saved somewhere with the relevant bank opening and closing balances? (I think it is Sage Line 50 2006 – so before the top and bottom screen version of bank recs)
    Thanks so much.
    Anne

    Comment by Anne — November 2, 2010 @ 9:29 am
  34. Hi Clare,

    That sounds odd to me! If you cannot enter a receipt/payment adjustment with the statement date, then the other option would be to save the reconciliation…..then go and edit one of the transactions that are on the reconciliation. Add or deduct .01p from one of these transactions via ‘File’ ‘Maintenance’.

    Or an even easier option would be to go and enter a bank payment or bank receipt for 0.01p via the ‘bank’ module. Make sure you enter the date correctly so that it appears on the reconciliation. If you enter the date AFTER the bank statement date, the transaction will go through ok, but will not show up on your reconciliation.

    Hope that helps

    Kind regards

    Dave

    Comment by admin — November 3, 2010 @ 11:26 pm
  35. Hi Anne

    Thank goodness you are aware of the issues you mentioned, SO many people are not and it causes us accountants no end of grief! You are correct, if you have already given a Sage backup to the accountant and closed down the year, then if you go and change anything in the previous year (pre closedown) it will mess up the Sage data, and cause the accountant no end of hassle.

    Your best plan would be to speak to the accountant and ask what they want you to do. Basically they will have to go through and find all these errors and correct them so that they can prepare a decent set of accounts. There are a couple of ways of sorting this, so I cannot tell you wish one to do without knowing how they propose to correct the data.

    Normally the last reconciled balance is shown on the bank reconciliation screen. Find is balance, then go back through your bank statements until you find the matching figure. As a system I always write a small red ‘R’ next to the bank balance on the bank statement to show where I have reconciled to.

    If you go to ‘Financials’ you can set up a search with ‘where x is greater than’ etc. This search can be used to find items that have or have not been reconciled. Bit time consuming, but it is possible.

    I hope that helps

    Kind regards

    Dave

    Comment by admin — November 3, 2010 @ 11:36 pm
  36. Hi,
    I accidentally posted some purchase payments to the wrong bank account. I went into maintenance to make the necessary corrections and then returned to bank. The payments have now moved to the correct ledger but when I go to cheques in order to print out said payments they do not appear. However they do still come up on the incorrect bank accounts cheque list. How can I move them to the right place? If I press clear on the incorrect bank account will they then appear in the correct one?
    Thanks
    Emily

    Comment by Em — November 12, 2010 @ 11:27 am
  37. Hi, I’m new in my role and my first month is the 1st month in new financial year on a new sage package.
    I am trying to reconcile the Bank balance but there are a huge number of cheques on this month’s Bank statement that were unpresented at year end so are not on this month’s sage to reconcile. Therefore I am a little lost as to what to do! The bank balance is way out compared to sage. Does this mean the opening balance for the new year was incorrect? Should the unpresented cheques now be posted against last year and a new opening balance be used?
    I would be most grateful for some advice. Thank you!

    Comment by Helen — November 15, 2010 @ 10:11 pm
  38. Hi Emily.

    Sometimes it is best to delete the payment completely and enter it again. This may be a pain if you have already reconciled the bank, but hopefully, if you haven’t then this would be the quickest way to correct the error.

    Kind regards

    Dave

    Comment by admin — November 27, 2010 @ 4:10 pm
  39. Hi Helen

    Ok, so in this instance you will need to enter some opening balance adjustments. There are a couple of ways of dealing with this, however the following is the quickest, as far as I know!

    Once you have identified all the outstanding cheques from last year, enter these dated the first day of the new financial year, and post all of these individually to the 9998 mispostings/ suspense account. You then prepare the bank reconciliation as normal.

    Then after your first 12 months accounts have been prepared, your accountant should provide you with an opening balance journal. This will then clear all the outstanding cheques that are now sat in the mispostings account.

    Kind regards

    Dave

    Comment by admin — November 27, 2010 @ 4:21 pm
  40. Hi there,

    As Sage automatically calculates VAT when net values are input and other accounting systems have different algorithms that they use, this can result in rounding differences of admittedly only 1p between what a customer says they owe and end up paying versus what I think they owe and should be paying.

    This means that the bank and sage will be out by pennies if this happens with respect to a few suppliers. Now obviously this is completely immaterial, but my question is whether there’s a quick way I can deal with this to get rid of the extra penny sitting on a customer account? Do I have to just issue them a credit for 1p (which would obviously never be sent)? Or can I do something via the reconciliation stage?

    Apologies to bother you with what I know are immaterial amounts. I’m new to Sage and didn’t get a full handover and so am just wondering how this simple issue would generally be dealt with.

    Thanks.

    Comment by Sarah — November 30, 2010 @ 11:01 am
  41. Hi Sarah

    You are right, pennies are not normally worth wasting any time on. Usually year end accounts are only prepared in whole pounds, so it doesn’t matter what you do with the odd penny.

    That said, your bank reconciliation does need to balance to the penny! So if you are not too worried about your debtors account showing the odd penny difference I would normally enter an adjustment when reconciling the bank account, putting the odd penny to sales. There is an ‘adjustment’ button shown in the bank reconciliation module which is useful for this as it means you do not need to leave the bank reconciliation to make the small adjustment.

    Kind regards

    Dave

    Comment by admin — November 30, 2010 @ 9:52 pm
  42. Hi

    I’ve come to do my August bank rec after sucessfully completing July a few months ago.
    The problem is, when I’ve checked my last reconciled balance it has got a completely different figure in, an amount which is a fraction of what it should be

    It looks like someone has deleted and re entered some figures that we already reconciled, these figures were in my unmatched items but adding them to get to the figure i need does not get it anywhere near what it should be.

    Can you help please

    Ben

    Comment by Ben Jones — December 8, 2010 @ 11:25 am
  43. Hi Ben

    This is a tricky one, and very difficult for me to sort without actually being sat at your computer, so all I can do is give you a couple of ideas of what to try.

    How many people use Sage? The first thing to do would be to ask the other users if they has been deleting reconciled items. Sage gives a warning message if you try to delete a reconciled item….so it’s hard to do this without actually being aware of what you have done! Hopefully this will be a big help…but no one may own up….

    If items have been deleted, there ’should’ be an entry showing up in the unmatched items section.

    I would go to ‘Financials’ and then set a filter to identify items that have been reconciled on the bank rec you performed for August, then try to see whether these have been amended?

    You can run a report to show all the unreconciled items in the bank account, this may be useful.

    I’m sorry I can help anymore….I would be able to ‘fix’ this if I was sat there with you, but not without looking through the figures. If the above suggestions don’t work, you may need to ask a manager, or the businesses accountant to come and sort it out.

    Kind regards

    Dave

    Comment by admin — December 9, 2010 @ 1:46 pm
  44. Hi Dave

    I wonder if you can help me. I am a chippy and do my own accounts.

    I have brought the Sage Self Study books, but it’s not as clear as I had hoped, in fact my head is spinning.

    I have a DD for Water, Gas, Rates etc and not sure about the repeated enteries part.

    I have asked my sister who is AAT qualified and she says put the charge against the gas code or water code, think it’s called nominal code?

    What I don’t understand is how does Sage know I have paid South Staffs water for instance when the nominal code thing is not the account number of South Staffs water. The books don’t really explain it.

    My sister has tried to explain it to me, but I just don’t get it.

    I’m begining to think I may need a bookeeper.

    Oh, I’m using Sage 50, which my sister got for me.

    Many thanks

    Jon

    Comment by Jon — December 13, 2010 @ 8:53 pm
  45. Hi Jon

    Firstly, there are two ways of entering information into sage. If you have a supplier invoice, which you pay a while after the invoice date, then you can enter the invoice when you receive it via the supplier module. Then when you actually pay the invoice, three weeks later, you go to the bank account, then make a supplier payment, ie you pay the invoice and clear the money owed.

    Or you can do things the simple way, when you pay a supplier, enter the payment as a bank payment. This was is quicker. If you don’t owe many people, or pay quickly then this is the simplest way by far. For bigger companies who end up with 25 invoices for Bradfords, 30 for Jewsons etc, each month, then it’s best to use the supplier module.

    You didn’t mention how big your business is…..if your business is fairly simple, just you, no staff etc, then it may be that Sage is more than you need. If I’m doing some DIY a hand saw is pretty good, £10, job done. If you are working on wood all day for your job, then you may want a £750 Dewalt. So in some cases Sage is the Dewalt! Unless you business is massive, a good solid, Excel spreadsheet would be more that adequate. I have a simple one I could email you if you want?

    Sage is a very good program, but it’s sometimes way too complicated for what many smaller businesses actually need.

    A bookkeeper may charge you £10 – £15 per hour. However, if it takes you 10 hours to do your accounts each month, a decent bookkeeper may be able to do it in 5. (and you sister may do it if you sweet talk her!) So sometimes it makes sense to save yourself a headache and get someone else to do it.

    Hope that helps.

    Kind regards

    Dave

    Comment by admin — December 22, 2010 @ 10:55 am
  46. Hi there,

    I’m wondering if you can help me, I’m currently working on the yr end accounts in sage, I’ve reconciled my bank to the end of the yr and have quite a few unreconciled transactions… which is fine as I am investigated them to see what they are and if they have been entered else where. However there are a couple of purchase payments that need to be deleted and the balance left on the creditors accounts, but the original transactions have been reconciled for VAT so Sage wont allow me to delete them. Please can you advise the best way to handle such transcactions?

    Many thanks,

    Jodie

    Comment by Jodie — February 8, 2011 @ 11:22 am
  47. Hi Jodie

    Ok so firstly you will need to enter a dummy supplier invoice for the total of the purchase payments, post this dummy invoice to code 9999. This will then correct the supplier account and show the money that is correctly owed to the supplier. Include VAT on the invoice.

    Then enter a dummy bank receipt to code 9999. Ensure the VAT for the receipt matches the VAT claimed on the previous supplier payments.

    Then when you come to reconcile the bank account, you should highlight the supplier payment that has never cleared the bank….and the dummy bank receipt….match these off and click reconcile.

    I hope that is clear?

    Kind regards

    Dave

    Comment by admin — February 11, 2011 @ 3:36 pm

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