Accounts, Tax and VAT infoblog! -

Sage tips and advice

September 8, 2009

Sage questions no longer available.

Thank you for all the Sage questions I have received on this site. My own business just keeps getting busier and busier and I am at the point where I just don’t have enough time to run my business and also offer advice on this website. I hope you can find an answer to your question on the site, I have answered many different questions over the past year or two, and I hope many more visitors find the site a useful resource.

Kind regards

Dave

  1. I’m using Sage Instant Accounts. I am trying to enter the info for a new company my boss has just set up. Most things like rent and phone bills are paid from the bank and therefore easily accounted for.
    Trouble I’m having is that he paid a lot of the set up costs from his own pocket and not the company bank account. He has receipts for everything and wants the company bank account to repay him… How do I put this through? How do I pay these receipts from way back last year?
    The company has only been established since July and had no staff until August, but many of the initial costs were from Jan.

    Comment by bubble — September 17, 2009 @ 4:02 pm
  2. HELP – i have a large amount of expenses to put onto sage – where would i allocate them? should i enter each one as a new supplier or is there another way to handle this. however if i can enter them as one entry will it still calculate the VAT i can claim back?

    cheers

    m

    Comment by milan panhcmatia — October 15, 2009 @ 5:39 pm
  3. Hi M

    It is always best to enter the transactions separately into Sage rather than enter them as one big entry. There are many reasons for this, the VAT man will find it much easier to work with if he visits, if you want to edit one entry you can and you can then reference each invoice to Sage, to name just a few.

    If you regularly have invoices from the same business, then you will be best to set up a supplier account. You haven’t given me very much information so I am just advising what is normally best.

    If you pay each invoice when it is received, rather than waiting for a monthly supplier statement, then I would enter the transaction as a bank payment (one transaction in the bank module), rather than setting up a supplier account, entering the invoice as a supplier invoice, then having to go into bank and entering a supplier payment. (this is slower)

    As long as you split out the VAT correctly you should be fine.

    Sorry for the delay in replying, I have been ’spammed’ by every spammer in the world it seems and I have only just deleted all of them and found your genuine message! I have hopefully sorted that now.

    Dave

    Comment by admin — November 4, 2009 @ 5:39 pm
  4. I started to use Sage in the middle of a tax year, I figured i would get some practice before i used it in anger. Now that i am 6 months into my real year, i want everything to tally up such as my current account balance. My year started 1 May. I have entered all of Aprils transactions so that invoice receipts and bill payments are accounted for on my bank statements etc. How can i force my known bank balance figures for 1 May, so that my real year starts from the right place?

    Comment by bryan — December 4, 2009 @ 4:08 pm
  5. Hi Bryan

    The simple way to make your opening bank balance to agree is as follows:

    Go to the Bank module, select the correct account, then click on ‘record’
    On the right hand side you will see ‘balance’ Then next to this is a button ‘OB’.

    Click the ‘OB’ button and then you can enter the opening balance. I would enter the date as 30 April rather than 1 May.
    Once this is entered you get crack on with reconciling your bank account. This is a vital part of Sage as it ensures that you have entered everything correctly.

    Hope that helps

    Dave

    Comment by admin — December 10, 2009 @ 5:56 pm
  6. hi im using sage, and i i put in 2,000,000 rather than 200,000 while converting to USD from euros is there any way i can undo the transaction as i had already reconciled the Euro account so i didnt know i had done it till working on the USD account, any infomation would be good thanks

    Comment by Adam — February 2, 2010 @ 2:06 pm
  7. Hi Adam

    As you have already clicked reconcile on the Euro account, the easiest way of correcting this is to enter the exact opposite transaction on the same day. This will then cancel out the transaction. Then you enter the correct amounts, again on the same day as the original.

    Normally you could simply delete the transaction in File Maintenance, however once you have reconciled a transaction in either the bank account or the VAT account, then the safest is to do a reversing entry.

    Be careful to ensure all the details of the reversing adjustment are EXACTLY the same as the original. So if you entered a 2,000,000 bant payment, then enter a 2,000,000 bank receipt on the same day.
    Hope that helps.
    Dave

    Comment by admin — February 11, 2010 @ 4:00 pm
  8. Hi, I have started using sage line 50. I am a director and pay myself a weekly wage up to my taxable annual limit (using sage payroll and the nominal link to line 50)and then top up my income by weekly payment classified as a ‘dividend’. What nominal codes should I be using for the entries from my bank account in line 50?

    Comment by Catherine — March 17, 2010 @ 3:30 pm
  9. Is it possible to delete “comments” on the file maintenance backup page – I have 78!!!!! Thanks

    Comment by K TURNER — March 17, 2010 @ 3:56 pm
  10. Hi Catherine,

    The wages you draw each week should be posted to ‘Directors salaries’, this is nominal code 7001 on my version of Sage, yours may be different so check that the account is called ‘Directors salaries’.

    The dividends you pay yourself should be posted to ‘Dividends paid’ which (again on my version) is nominal code 3102.

    I’m also a director (in a firm of Chartered Certfied Accountants) and I would suggest that if possible you pay your wages and drawings

      monthly

    rather than weekly, this makes your life so much easier as you only have 12 entries for each rather than 52! Sometimes cash flow doesn’t allow this at the beginning, but for the future, this would be best.

    Kind regards

    Dave

    Comment by admin — March 18, 2010 @ 1:33 pm
  11. Hi K Turner

    Sorry, I do not know how to delete the ‘comments’ from the ‘Check Data’ section of File Maintenance on Sage accounts.

    However, I do know that comments are not serious, so don’t worry. If you get ‘Errors’ or ‘Warnings’ then worry!

    With ‘Errors’ or ‘Warnings’ on Sage, these require your attention, if you don’t know how to fix these you may need to contact Sage or an accountant with Sage expertise.

    Kind regards

    Dave

    Comment by admin — March 18, 2010 @ 1:38 pm
  12. Hi, I’ve started working with Sage for a Company and there are lots of aged / unreconciled transaction in 2006 and 2007 – they only started reconciling in 2008. How best can I ‘get rid’ of the aged transactions so that the bank balance on Sage reflects the actual bank balance? The aged transactions are valid transactions, they have just never been reconciled. The Director has asked me to sort this out and after weeks of browsing the internet, I don’t seem to be getting anywhere.

    Would really appreciate a reply,

    Debbie

    Comment by Debbie — May 12, 2010 @ 9:31 pm
  13. Hi Debbie

    I know exactly how you feel! It sounds like a mammouth take you have there. Ok, when reconciling the bank account on Sage for a number of previous years, there is normally two approachs.
    Option A.

    This is often very time consuming. You go back to whenever it all began, and you start reconciling each and every bank statement…..very slow…terribly painful….and if there are lots of transactions, then you will be spending weeks doing it!

    Option B

    This option is much quicker….however, you can mess things up spectaculary if you are not careful. Firstly, take a backup of the Sage data, save it somewhere you can easily restore it from. The reason for this is that if you DO mess it up, you can restore back from the original data file and it is as if you didn’t ‘do’ anything.

    Although the bank hasn’t been reconciled on Sage, it should (I hope!) have been reconciled by your accountant, when he prepared the last set of accounts for the business. I don’t know what your year end is, but let’s say it is 31 December each year.

    Ask you accountant for a copy of the last bank reconciliation carried out by him, for the last set of accounts prepared. You will then run a bank reconciliation as at the last year end, eg. 31 December 2008. You will then need to put in a large ‘balancing figure’ as either a bank payment or a bank receipt, this will have to go to a 9999 code on Sage, ie a suspense or opening balance account. You will basically ‘DUMP’ the balancing figure into this account. Then you do a bank reconciliation as normal for the first day of your current financial year, it should show HUNDREDS of tranactions dating back to 2006 and 2007, plus your balancing figure.

    You will then select ALL of the transactions prior to say 31 December 2008 (this is just a made up date remember!). The only tranactions you do NOT want to select are those that were ACTUALLY outstanding on the year end. These should be shown on the bank reconciliation from your accountant. Then you will do a ‘global’ reconciliation. This means that all the 2006 2007 and 2008 (?) will now be reconciled.

    You should then be able to start from the first day of your current financial year with the correct bank account balance, then start reconciling the bank as you would normally do.

    This has been very difficult to explain in writing, so I really hope you can follow my explanation, if not, you may be able to ask you accountant to provide someone who can do it for you, this is not an easy exercise, so explain this to your boss and hope he understands!!

    I hope that has been helpful,
    Kind regards

    Dave

    Comment by admin — May 14, 2010 @ 4:52 pm
  14. Hi Dave, (please bare with me I am very inexperienced with Sage Accounts) At work whilst reconciling the bank account I entered a payment and marked it off against a supplier invoice and I have posted it with the wrong date, as it was posted on a different month to the bank statement it now will not reconcile. I went into ‘write off/refund’ and cancelled the payment but now I want to re-enter the payment with the correct date but no longer have a supplier invoice to match it to, Unsure if I need to re-enter the original invoice or if it will then show as if two invoices need payment? I’m really struggling with my new job and really do need help! Many thanks

    Comment by Hannah — May 14, 2010 @ 10:16 pm
  15. Hi Hannah,

    Ok so for future reference, if you enter the wrong date, rather than delete the whole payment, all you need to do is go into ‘File’ then ‘Maintenance’ then ‘corrections’. In this part of Sage you can amend the date for a transaction and then click ’save’. Your bank reconciliation would then have worked.

    I think the ‘write off/refund’ may have given you a little more problems. If I were you I would print off the supplier’s nominal activity, (say for the past few months) then check to see if the balance showing as owed by your company is correct. Sometimes, the only way to correct things things like this is to enter a ‘dummy’ invoice.

    If by going into ‘write offs/refunds’ you have in fact deleted the original invoice then you will need to re-enter the invoice.

    It could be that you have matched the incorrectly dated payment against the invoice, then ‘refunded’ the payment. If this is the case, then on your bank account, you will have a bank payment (the original incorrect one) and the also a ‘bank receipt’, which is the ‘write off/refund. If this is the case, you will need to enter a supplier payment so that you bank balances. This payment will need a ‘dummy invoice’ for you to match it against. So enter the supplier invoice again and then when you enter the correctly dated payment, it will tie up to the dummy invoice.

    I hope this is clear, it is difficult trying to help long range, without knowing exactly what has been entered on Sage.

    Before you enter anything, try to work out what the ‘actual’ amount owed to your supplier is, once you know for definite the correct balance, all that you then need to do is work out the entries to put into Sage to make the bank and supplier account balance.

    I hope this is helpful….all the best with your new job

    Kind regards

    Dave

    Comment by admin — May 16, 2010 @ 9:57 pm
  16. Hi,

    I am having a problem with slow performance whist reconciling bank accounts. My sage version is 14(2008); the data is stored on our company server which I should add has been updated recently; backup of data seems to perform fine.

    Any help or advice would be great!

    Many thanks,
    Mark.

    Comment by Mark Patton — June 23, 2010 @ 6:36 pm
  17. Hi Mark

    I have also had this exact same problem when working at a clients. Sage was linked to a number of computers and this seemed to slow things down as well.

    I’m not an I.T expert, however version 14 should normally run pretty quickly, you should definitely find it ‘gets on with things’ nice and quickly in normal operations like reconciling the bank.

    You may need to speak to the I.T people that handle your server, as they are the best ones to improve slow performance.
    (However they may ask you to turn your computer off then on again!!)

    Sorry I couldn’t be anymore help.

    Kind regards

    Dave

    Comment by admin — June 29, 2010 @ 10:33 pm
  18. Hi
    I keep getting this message everytime I try and reconcile my main bank account “Warning The bank account selected has been marked as not requiring bank reconciliation” The little tick box will not let me enable the bank reconciliation, any idea?

    Comment by Ed — July 23, 2010 @ 1:41 pm
  19. Hi Ed

    Normally the main bank account on Sage (Nominal code 1200) would be set up to do a bank reconcilation. So I am assuming that someone must have changed the settings at some point? Not sure why though?

    When you highlight the main bank account in the bank module, click on ‘Record’.

    On the ‘account details’ tab there is a button that you can tick so that Sage does not expect you to carry out a bank reconciliation. You would normally simply tick this and Sage would let you reconcile the bank account.

    From your question it seems that you have already tried this…….so I can only offer a couple of possible things to do next.

    1) Check that the copy you are running is a licenced version and not a copy……if is were a copy then it may be corrupt

    2) Contact Sage and ask them to help fix it.

    3) Set up a new bank account nominal code, with bank reconciliation enabled. Then enter an opening balance and use this as your main bank account from now on. At least you would be able to perform a bank reconciliation.

    I’m sorry that I can’t give you a more useful answer, however, sometimes, when it’s a software problem, and you are using the package correctly, it’s up to the sofeware provider to fix things.

    Hope that was helpful

    Kind regards

    Dave

    Comment by admin — July 27, 2010 @ 2:20 pm
  20. Hi
    I am useing sage line 50 for as a sole trader. I have a retail shop and employ staff. I think I am ok in entering there wages into the correct nominal accounts. But being self employed my Drawering need to show at the end of year on the profit and loss account not as expenses or operating cost but as profit. But I need to enter it so I can keep the bank account correct and cash flow. Is it best just to set up a new nominal account for drawerings and assign it to the bottom of the profit and loss account and balance sheet as I will need to show it for tax at the end of year. thanks

    Comment by Paul Nicholls — July 29, 2010 @ 5:48 am
  21. Hi Paul

    You are correct when you say that as a sole trader, your drawings from the business should NOT be shown as an expense in the profit and loss account, rather they are simply you drawing the profits from the business.

    In Sage 50 you should use a code (you may need to create a nominal code) within the nominal range from 3000 to 3999. Then any money withdrawn from the business, you simply post the amount to the drawings code.

    If you have already posted some of your drawings to an ‘expense’ code, simply go into File Maintenance, then ‘corrections’ and change the code so that it becomes your new ‘Drawings’ code.

    Kind regards

    Dave

    Comment by admin — July 29, 2010 @ 2:53 pm
  22. Thanks Dave,
    No I have not post anything yet as we start on the 1st August. And I just had a look using those Nominal code rage will put it in Reserves on the balance sheet.Thanks again reassuring to know it will be correct now.
    regards
    Paul

    Comment by Paul Nicholls — July 29, 2010 @ 7:03 pm
  23. Dave

    I am using Sage Instant Accounts and have a number of payments on account, rendering a number of customer accounts in credit balances. Since a few of the customers no longer purchase from us how do I enter up a repayment of said payments on account as in the “bank” – “Customer” tab there is only an option to receive money not to pay, and it is not possible to input a negative receipt.

    Thanks In advance

    Comment by Warren — August 5, 2010 @ 10:15 am
  24. Hi Warren

    Entering a customer refund into Sage Instant Accounting

    Thanks for your question! You made my brain work! Some versions of Sage (the full Sage 50 versions) have a simple button that takes care of slightly more complicated transactions such as this.

    However, Sage instant accounts sadly doesn’t so we need to do it manually. You haven’t mentioned two vital things, a) whether your business is VAT registered and B) If so whether you are on invoice or cash basis for VAT.

    Without those two bits of information I am going to assume that you are NOT VAT registered. If you are VAT registered then you will have to consider the VAT element of the following solution to your problem. (it’s not too much more difficult though)

    Ok, so let’s say that you invoiced a customer (Mr Blogs) £500, however when they pay you they pay £575.

    You think you will knock it off their next order but they never re order. So you decide to send them a cheque for £75.

    Firstly, enter a customer invoice in Mr Blogs account for £75. Instead of posting the invoice to a 4000 sales code, post it to a 9998 mispostings accounts.

    Then go to ‘Bank’, ‘payment’ and enter a payment for £75, post this again to the 9998 mispostings account. (This is the £75 refund cheque that you send to Mr Blogs)

    The net result of the above is that Mr Blogs customer account now shows a zero balance. The mispostings account now has a sales invoice for £75 (a credit entry of £75) and it also has a £75 payment (a debit) therefore the account balance is now zero.

    Hope that helps.

    Kind regards

    Dave

    Comment by admin — August 5, 2010 @ 3:29 pm
  25. Dave

    Thanks for your reply, I agree with your above solution and we are indeed VAT registered. A further question follows though…. Should the overpaid customer have gone out of business, and there was not going to be a refund, how would you propose clearing their account without affecting the bank A/c, VAT and also Turnover figures ie dummy invoicing.

    Sorry for working the grey matter so much today.

    Best Regards

    Comment by Warren — August 5, 2010 @ 3:55 pm
  26. Hi Warren,

    Sorry for the delay in posting, Wordpress it seems auto approves the 2nd comment made by my visitors, which I didn’t realise, so I have only just seen your second comment.

    If you have received more money from a customer than the original invoice and you are not going to refund it (because they have gone out of business) then there is only one way to sort this, you simply need to raise an additional sales invoice and pay the output VAT (for the total overpayment). That is the correct way and the treatment the VAT man would expect to see.

    Kind regards

    Dave

    Comment by admin — August 12, 2010 @ 11:36 am
  27. I have a customer with one invoice on the system (sage 50) for 204.35 but they sent in a cheque for 205 euro how do i deal with this if i enter it as 205 will it keep showing a credit balance on their account ?

    Comment by jan verwey — September 3, 2010 @ 6:40 pm
  28. Hi Jan

    Exchange rate variances treatment on Sage 50

    When you bank this cheque, the bank will have to change the money into sterling, and will then credit your bank account with the equivalent money in sterling. This may result in you only receiving say £202. The was that this is dealt with is to have a nominal code called ‘Exchange rate variances’. Then when you enter your £203 that has been banked, onto the customers account, you will be left with the difference of say 204.35 less 203 = 1.35. You will then need to enter a credit note for the difference of £1.35 and post this difference to the exchange rate variance account.

    By doing this, you then clear the customers balance and their debt to you is zero.

    If the exchange rate difference resulted in you receiving MORE money than you have invoiced in sterling, you would need to raise a sales invoice to the ‘exchange rate variance’ account.

    I assume that this invoice could be T9, however without checking I’m not 100%, I’m probably 98% sure!

    Kind regards

    Dave

    Comment by admin — September 4, 2010 @ 2:06 pm
  29. I have a post tax deduction for an employee for an overpayment of holiday pay, I am not sure which nominal code to post it to on Sage Accounts?

    Regards

    Comment by Vicky — September 12, 2010 @ 5:51 pm
  30. Dave,

    Sorry this is so basic but I use Sage 50 in the most basic terms – raising invoices/credits ONLY and I am self taught doing this.

    Company Accountant has to do the 2009 Annual Accounts for the Inland Revenue and he has asked me ‘what the total of sales owing to us was at 31 December, ie the total of the sales ledger print?’

    If I run a sales ledger report for 2009, the results only tell me what was invoiced for during that time which of course is not the same as what was owed at the end of the year, so I’ve spent 2 days trying to figure out how I would work it out but still no joy. I also no that Aged Debtors Reports wouldn’t be the correct way of find the figure he needs.

    Any advice gratefully received.

    Tanya.

    Comment by Tanya — September 15, 2010 @ 2:20 pm
  31. My year end is July 2010. When I try to save a payment to a supplier for an invoice received before my year end and try to save it with a payment date of August or September nothing is saved, if I change the payment date to July the payment is saved as normal. Can you tell me what I need to do so that I can allocate the payment to the date I make the payment.

    Thanks

    Comment by Adrian — September 20, 2010 @ 12:20 am
  32. Hi Vicky

    Normally wages are posted to a code in the 7000 range. If you have a ‘Misc wages’ account, or some simliar account that is separate from the main wages account then it would be best to post it there. This will help the accountant to identify it. Also ensure you put an explanation/ reference in the entry narrative.

    Kind regards

    Dave

    Comment by admin — September 20, 2010 @ 5:14 pm
  33. Hi Tanya

    So from your message, am I right in saying that you enter all the sales invoices, but you do not enter the money received from each customer?

    If that is the case then it is going to be very difficult using Sage to produce a list of debtors at the year end.

    The options you have are as follows:

    1) Enter each customer receipt for the year into Sage, this will then allow you to run an ‘Aged debtors report’. This report is the correct report to run at the year end as it shows who owes you money and how much.

    2) You could use a quicker method and print off all the sales via the ‘Sales daybook’ report. Then on the report , write the date the amount was received. This will be time consuming, but will show you the bankings received after the year end…..and it will highlight those invoices still unpaid.

    If it were me I would lean towards the second option…there may not be much point bringing sage up to date when you don’t enter any bank payments or purchase invoices.

    If you want an easy manual way of keeping on top of your debtors…..file a paper copy of each invoice on a lever arch file….the front section for unpaid invoices….then once they pay you, write the date paid and amount paid on the invoice, then refile the invoice in the back section of the file )in invoice number order). If your accountants wants to see who owes you money at the year end he can review this file.

    Kind regards

    Dave

    Comment by admin — September 20, 2010 @ 5:29 pm
  34. Hi Adrian

    Sage works in ‘year ends’ which means that until you close down the ‘year’ Sage will warn you that the entry you are making is ‘outside the year end’.

    It is normally still possible to enter a payment after your year end date of 31 July 2010. However, Sage will warn you and say ‘this entry is outside your year end, do you still want to proceed’ or something similiar.

    All you need to do is post the payment using the correct date, then when Sage gives you the warning, you just say ok and that should be fine.

    I hope that helps.

    Kind regards

    Dave

    Comment by admin — September 20, 2010 @ 5:33 pm
  35. Dave,
    Thanks for your reply. I have had this message before but now when I click the save button I get no response until I change the date to one before 1st August, If I save then everything works fine.

    Thanks

    Adrian

    Comment by Adrian — September 20, 2010 @ 7:17 pm
  36. Hi Adrian

    I haven’t come accross a problem like this before, it sounds pretty odd. It could be a corrupt file on Sage? It’s hard to say as there could be a number of problems….you may have to contact Sage as unless I am mis-understanding you, it sounds like Sage is being ‘Glitchy’….you should normally be able to enter a payment date after your year end with out any problems, I’ve done it a thousand times.

    Kind regards

    Dave

    Comment by admin — September 22, 2010 @ 11:10 am
  37. Hi, I need to print off a sales ledger report from Sage Instant Accounts : ie sales, receipts, returns for each customer on one report. I am unable to find such a report.
    can you help?
    Catherine

    Comment by Catherine — September 22, 2010 @ 5:17 pm
  38. Dave,

    I have uninstalled the program and cleaned the registry. After reinstalling everything seems fine now.

    Thanks

    Adrian

    Comment by Adrian — September 24, 2010 @ 6:09 pm
  39. Dave, using sage 50 Accounts 2010, is there a report that I can run to detail any invoices that are unreconciled for vat purposes, Client has posted late invoices into periods, and I dont know if these have been included in a subsequent return, if I could run a report to shown me unreconciled invoices this mght just give me the info, is this possible. thanks in advance.

    Comment by Con — September 28, 2010 @ 9:21 am
  40. I can’t find the ‘Drawing’ account to input my drawing amount. Dont’ know if my sage is out of date or something else? Can I change other account into ‘Drawing’ and input my data? if I can which account I should use to replace it??

    Many thanks in advance for any advice.
    Regards
    Tongsai

    Comment by Tongsai — September 29, 2010 @ 8:50 am
  41. Hi Tongsai

    It may be that when you setup Sage you chose a ‘template’ which doesn’t have a ‘Drawings’ accounts, for example if you have chosen a limited company template, then this won’t have a drawings account.

    You can setup a ‘Drawings’ account within the ‘3000′ section, just create a new nominal account. You do not want your drawings showing up on your profit and loss account as a business expense and this is wrong.

    Kind regards

    Dave

    Comment by admin — October 1, 2010 @ 12:53 pm
  42. Hi Adrian

    Thanks for the update, very useful to other users.

    Kind regards

    Dave

    Comment by admin — October 1, 2010 @ 12:55 pm
  43. Hi Catherine

    Have you tried the ‘Customer activity – Detailed’ report? It has all the sales invoices and all the customer receipts, split out for each customer.

    Kind regards

    Dave

    Comment by admin — October 1, 2010 @ 12:59 pm
  44. Hi Con

    The simplest way to get this information is to run a VAT return, and then print the detailed VAT report. If you have done a previous VAT return and ’set the flags’ correctly, then any other later items will then show up on the VAT return as unreconciled. I don’t know of any other specific reports as I tend to use Sage Instant, Sage 50 may have some extra reports.

    The other option is to go to ‘Financials’ then click ’search’ then set a search which identifies those entries where ‘VAT reconciled Flag’ is ‘unreconciled’. This will then give you a list that you could also print out.

    Kind regards

    Dave

    Comment by admin — October 1, 2010 @ 1:06 pm
  45. Hi Dave,
    Firstly – great site, very informative – so thanks!!
    I have been using Sage for 15 years but doing accounts for Ltd companies. A friend has asked me to keep his books for him, he is a sole trader, no employees. He has a lot of expenses which are personal and wants a report on these every month to see what the company owes him back. At the moment he has not reimbursed himself anything.
    How would it be best to record his transactions in Sage? Should i set him up as a supplier in his own company and put his personal expenses through that way?? HELP!!!! :)

    Comment by Clare — October 4, 2010 @ 7:39 pm
  46. Hi Clare,

    I’m very pleased you find the site useful.

    For a sole trader, normally any personal expenses are posted to a nominal account called ‘Drawings’. If you cannot find it (it may be that the wrong template was chosen when Sage was set up) then set up a code in the 3000’s.

    (You do not want these personal expenses showing up in the Profit and Loss section.)

    Then post all personal expenses to this account.

    (I’m abit confused as you said alot of his expenses are personal, and that his company/business owes HIM for these expenses, but if anything, if his business has paid for his personal expenditure, then he would owe the business?)

    I hope that helps. Any more questions, then please feel free to ask.

    Kind regards

    Dave

    Comment by admin — October 6, 2010 @ 12:41 pm
  47. Is there a way to set up Sage to auto generate a debtors report after 31 days.

    Comment by Alistair Steggles — October 7, 2010 @ 3:19 pm
  48. I am running a P&L report and it shows the Net Profit but how can I then have the report showing the taxation showing after this figure to show the correct Profit. If I post it in Overheads it would give me the correct figure for the Balance Sheet but tax is worked out on the Net Profit/Loss figure so it should be deducted from this figure. Any suggestions would be useful.
    Thanks

    Comment by Tracey — October 7, 2010 @ 4:28 pm
  49. Hi Alistair

    There may be but I have never come accross that. The only ‘auto’ processes I know of on Sage are the recurring entries, however I don’t us these as they can be more hassle than they are worth.

    I would just put a reminder in my Outlook calendar and generate the report myself.

    Kind regards

    Dave

    Comment by admin — October 7, 2010 @ 4:29 pm
  50. Hi Tracey.

    I prepare accounts for Limited companies as part of my job, so I know exactly what you are trying to achieve, however I don’t know if it’s possible to do this on Sage. I always take the information from Sage and enter the data along with the Corporation Tax charge in my accounts production software. I have had a look around Sage and it doesn’t appear to be possible.

    As you say, if you enter it as an overhead, then this isn’t technically correct, however, to me, it seems like the only way of getting the corporation tax charge onto the P and L account, so you may need to do that.

    Sorry I couldn’t be any more help.

    Kind regards

    Dave

    Comment by admin — October 8, 2010 @ 1:00 pm
  51. Sage instant accounts, i have entered two payments into the bank account and i want to delete one..how can i do this and will it change my bank balance?

    MAny thanks

    Comment by Becky — October 18, 2010 @ 1:56 pm
  52. Hi Becky

    To delete a bank entry go to ‘File’ then maintenance’ then ‘Corrections’. Find the incorrect entry and delete it there.

    It WILL change your bank balance, but this is good as your bank balance will currently be incorrect as you have a duplicate payment in there.

    Kind regards

    Dave

    Comment by admin — October 20, 2010 @ 8:42 pm
  53. Hi
    Fantastic site, just read all of the items above. My question is simple. I have a Ltd retail company with an epos system. We are into our first year of using the epos system and also Sage 50. Looking on the internet, it appears that we should really have Sage Point Of Sale. In other words, how do we link from the epos system to Sage? If we do a trade sale we raise an invoice and then match the subsequent payment to the invoice. What should we do with the day’s takings in the shop, which are recorded on the epos system? Should we raise an invoice maybe every week to match the bankings to? Would Sage POS automatically do this? At the moment our bookkeeper enters the cash and card receipts into sage and allocates to a nominal code such as Sales Type A, b, c etc. Codes 4001 onwards I think. Is this enough or should we be doing something else?
    Kind regards
    Richard

    Comment by Richard — November 13, 2010 @ 3:09 pm
  54. Hi

    I work for a new company and the payroll has been previously run by the accountant. I am now going to be running the payroll myself using sage and i wondered if you could tell me the best way to enter the year to date values onto the sage so that the p35 and other year end information will be correct.

    Many thanks

    Comment by Lucy — November 17, 2010 @ 12:25 pm
  55. Hi Lucy

    Many thanks for your question. Sadly, I have never used Sage payroll! So I can’t really help, sorry.

    I do use another payroll package and it has the facility to enter the figures midyear. I am sure that Sage will have this as it’s the type of function that ALL decent payroll software would need. You would enter the final months figures from the P11 in as ‘opening balances’. Eg, if the wages were done up to October, then take the cumulative pay to date and tax to date figures and then enter these.

    I hope that is of help!

    I use Moneysoft and it’s a very good program…nice and easy to use and very quick, much quicker than using the HMRC CD.

    Kind regards

    Dave

    Comment by admin — November 18, 2010 @ 11:16 pm
  56. I have instant accounts v16 and I want to send an invoice to a customer in the Netherlands in Euros. I have found the currency screen where I can enter the exchange rate, but I have not found anything that allows me to enter a currency for a Customer invoice.

    All help will be gratefully received.

    Philip

    Comment by Philip — November 25, 2010 @ 6:31 pm
  57. Hi Richard

    It sounds like you could save yourself a lot of time by using a Sage program to link the EPOS system to Sage. Although there will be a cost involved, automating this process has two advantages, firstly, this will reduce the time manually entering the information and secondly, human error is always a possibilty, whereas normally computers (if set up properly!) don’t make errors.

    I haven’t used a Sage add on program, but I’m sure a suitable program exists and EPOS is very common these days.

    Kind regards

    Dave

    Comment by admin — November 27, 2010 @ 4:15 pm
  58. Hi Philip

    Sadly I haven’t used V16 yet, I’m still on an older version. If you have recently bought this version (I assume so as it’s pretty new) you should have some free Sage support, so it’s probably best to speak to Sage. Sorry.

    Kind regards

    Dave

    Comment by admin — November 27, 2010 @ 4:24 pm
  59. Hi,

    I have overstated the amount of a bad debt written off and this leaves the customer account in credit, if I simply create a dummy invoice for the overstated amount will that be acceptable or would there be any repercussions to this that I haven’t considered?

    Comment by TIna — December 9, 2010 @ 12:39 am
  60. Hi Tina

    Raising a dummy invoice would be the best way to deal with this. Check the overstated write off entry and ensure that when you put in the correcting dummy invoice, overall the VAT needs to be right. That would be the only issue to worry about.

    Kind regards

    Dave

    Comment by admin — December 9, 2010 @ 2:03 pm
  61. I have just received the trial balance from my previous accountant and have gone about setting up opening balances etc. One of the accrual figures was recorded as £1100 instead of £1163. I have set up using the £1100 from the trial balance but don’t know how to record the extra £63. Also, when doing the reconciliation, I realised the opening bank balance wasn’t quite right and has therefore been posted incorrectly, how can I change it? hope you can help!

    Best regards

    Phil

    Comment by Phil Jones — December 17, 2010 @ 5:43 pm
  62. Hi Phil

    You need to know what the £63 was for. Once you know this, post the credit to the relevant expense heading and the debit to accruals.

    I haven’t got enough info in your comment to answer very fully, so I’ll try my best, how much is the bank out by? If it’s small (say under £50) I wouldn’t spend too long looking for it, just enter a dummy payment to drawings or a dummy receipt to sales and move on. If the difference is larger you need to find it. If you can do this then you will need to enter a dummy bank transaction. But if the difference is in the opening balances you have received, then for your trial balance to actually balance, there will be TWO accounts that don’t balance, ie the bank and another account by the equal and opposite amount.

    Hope that helps

    Kind regards

    Dave

    Comment by admin — December 22, 2010 @ 11:03 am
  63. Hi Dave,
    What’s the best way to record a mortgage and associated monthly interest payments? I have been using bank payments which are fine, but the business owner has been making reduced interest payments and there are now arrears to be added to the original debt. Never come across this before, any thoughts?

    Comment by Phil — December 29, 2010 @ 10:11 pm
  64. Hi Phil

    The bank payments method is the simplest. However, the best way would be to show the mortgage as a ‘bank’ account. Ie set up a new bank account on Sage. You then do a bank transfer from the current account to the mortgage ‘bank’ account each month for the total payment.

    Then when you receive the mortgage statement, you then make a bank payment FROM the mortgage account to the ‘loan interest’ nominal account.

    By doing it this way, any arrears of interest will be easy to adjust. Also, you can then reconcile the loan account easily each time you receive a mortgage statement. You will need to enter the opening loan account balance to the new bank account, but I assume that this balance will already be shown somewhere in your accounts, so it’ll just be a matter of journalling the balance accross.

    Kind regards

    Dave

    Comment by admin — December 30, 2010 @ 2:38 pm
  65. Hi Dave,

    I have encountered this problem before and have to always set up new bank accounts and do transfers to solve it, I wonder if you can help?
    I have a Euro bank account on Sage and every so often it seems to convert to sterling and there is no way of changing it back! I do not know when or why this happens it just does every now and then.
    Hope you can help,

    Jane.

    Comment by Jane — February 8, 2011 @ 10:47 am
  66. Hi Dave

    Really great website! My problem is, I am doing the books for a limited company using sage, the previous administrator left and it seems the accounts are in a mess. Firstly, though, one of the directors puts her home telephone bill – which is not a VAT receipt – through the company books, and it’s paid by the company bank account. Previously this has just been posted to the regular business telephone nominal from the bank module. My question is, is that correct? Shouldn’t it be posted as director wages or something similar. And how do I deal with the VAT element of the bill if the company expect me to carry on posting it how it’s always been done.
    Thank you
    Michelle

    Comment by Michelle — February 10, 2011 @ 9:16 pm
  67. Hi Michelle

    If your employer wants you to carry on posting the director’s telephone bill to the telephone expense code, then that’s up to them and the companies accountant to ensure that it has been dealt with correctly. However, you should not claim the VAT on this expense. If the company actually makes a contract with a phone company to have a telephone line in the director’s house, then that is a different matter. But if the telephone bill is clearly in the name of the director, who is not VAT registered, then you are not permitted to claim the input VAT. If a VAT inspector came to visit, they would make the company repay this VAT.

    Kind regards

    Dave

    Comment by admin — February 11, 2011 @ 3:22 pm
  68. Hi Jane,

    Sorry I haven’t come across that problem before. When visitors to my site have these type of questions I have to ask them to contact Sage because it sounds more like a ‘program’ glitch, and although I use computers a lot, I am not a computer whizz.

    Kind regards

    Dave

    Comment by admin — February 11, 2011 @ 3:25 pm
  69. Hi, I have posted a cheque with an incorrect date – December rather than November, as it was cashed in November the value of the cheque is the difference in the bank reconciliation. I cannot change the date of the cheque to the correct date as it was for a contractor and has been included in the CIS return to HMRC, can you recommend a solution? One options is that I do not reconcile November but include and reconcile in December. Is this something that would be okay? TIA Janice I

    Comment by Janice Walker — February 15, 2011 @ 1:58 pm
  70. Hi there,
    I am quite new to Sage Instant Accounts and was wondering how you log expenses that are entertainment (i.e. no offset against Corporation Tax ) ?

    thanks
    Justin

    Comment by Justin — February 24, 2011 @ 4:43 pm
  71. Dave, thanks for the response re the telephone bill enquirey, after looking into it further, there are 3 home telephone bills (and internet)that come direct to the company. Two of these belong to directors and one is the operational managers bill.
    One of the directors phone numbers is included in the business account with the phone company, the other 2 are classed as residential lines.
    From your reply I would guess that I can re-claim the VAT on the one home number that is included in the business account, but not the other two, would you agree? The bills are addressed to the company, and don’t have the home addresses or names of the owner of the phone on them, but clearly state they are not VAT receipts, unlike the business lines.
    I want to get this right, before I approach them, if this is the case, then their VAT has been wrong for years. I feel it’s my responsibility to finally get this right.
    Many Thanks for your help, Dave.
    Michelle

    Comment by Michelle — February 26, 2011 @ 12:41 pm
  72. I forgot to say, they do claim part of their telephone bill as use of home phone for work, the accountant sorts this out at the end of the year. In that case, can part of the home phone bill be reclaimed, or is it all just a non VAT expense, are they are reimbursing the user for phone calls or part paying the bill to the phone company?

    Thanks again
    Michelle

    Comment by Michelle — February 26, 2011 @ 12:52 pm
  73. Hi Janice

    Option A would be to do what you suggest, which should be ok as long as your later data all balances. Or Option B, you could enter a dummy bank receipt for the total cheque, date it on the incorrect date in December. Then date a dummy payment on the correct date in November. When you do the bank rec you reconcile the dummy payment in November. Then in December when you do the bank rec you reconcile both the original payment and also the dummy receipt. That would work.

    The dummy receipt and payment would be coded to 9998 nominal account.

    Kind regards

    Dave

    Comment by admin — March 1, 2011 @ 10:56 am
  74. Hi Justin

    I would post them as normal to the ‘entertainment’ nominal code. Then when your accountant prepares the accounts, he should ‘add back’ the entertaining expenses in the Corporation Tax computations. You need to leave them in the entertaining code so that when you run a Profit and Loss account they correctly show as a business expenses, which they are.

    Kind regards

    Dave

    Comment by admin — March 1, 2011 @ 11:00 am
  75. Hi Michelle

    Your question is a really getting into VAT rather than just Sage and I have to be careful about giving too much advice on VAT.

    If the company pays for the telephone bills and the bills are in the name of the company, then all you need to do is request that the phone providers send you a ‘VAT receipt’. By the phone provider putting ‘this is not a VAT receipt’ it means that they have intentionally not put certain information on the invoice so that it does not count as a VAT invoice.

    With your ‘issue’ there are lots of other things to consider other than just VAT….you need to think about the P11d’s, the way the Corporation Tax has been calculated, plus the VAT. So I really can’t give a complete and 100% definitely correct answer without knowing how the accountant has dealt with it all.

    So in summary, you really need to speak to the company accountant, because this is more involved than it first sounded.

    Hope that helps.

    Kind regards

    Dave

    Comment by admin — March 1, 2011 @ 11:24 am

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