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Post Info TOPIC: Wage payment within Sage 50 Accounts


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Wage payment within Sage 50 Accounts
 


Hi there

I am very new to Sage and would appreciate a little help. Basically I have paid an employee/director his salary for September 2010. How do i account for this in Sage 50 Accounts.

Is it a payment from the bank area with n/c of 7004/7005?

I have been reading up a few bits and pieces and am a bit confused when they speak of skeleton journals. Is this a feature I can use just with the basic Sage 50 acounts?

Or does it put transactions in there if you use codes for NI and PAYE etc?

So my idea on doing it would be as follows:

From the payment option under bank:

Wages: 1764.71 - n/c 7004
Employees NI: 164.95 - n/c 7006

Is there anything else i need to put anywhere for example PAYE and employee NI?

Any help would be grealty appreciated.

Thanks






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Guru

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you need to post journal similar to this:

dr 7000/7004 gross payment
dr 7006 ers nic (not employee)
cr 2220 net pay
cr 2210 paye + ers ni + ees ni

this should balance. It will leave credit balances on net pay and paye/ni. When you pay the employee/director from the bank, Sage will automaticall dr net pay (and thus clearing it) and credit bank; and similarly pay PAYE/NI from bank to dr paye and credit bank and clearing the balance.

Rob

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Rob
www.accounts-solutions.com



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Hi Rob

Thanks for you response.

Excuse my ignorance but when you mention dr and cr does this relate to receipt and payment under the bank section?
Cheers

Paul


-- Edited by djzolla on Wednesday 6th of October 2010 04:25:56 PM

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Just read some tings and it looks like i need to learn how to create journal entries it seems....

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Guru

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Hi Dozilla,

Yes you need to create journal entries for the wages as Rob stated.

Nominal - Journals.

You then need to post journals for the wages as Rob said:-

Put in a reference, such as "Wages", the date of the wages payment (usually last day of the week/month).

N/c 7000 Gross wages Tax code T9 Debit xxxx
N/c 7006 Employer's NI Tax code T9 Debit xxxx
N/c 2220 Net wages Tax code T9 Credit xxxx
N/c 2210 PAYE/NI Employees' & Employer's Tax code T9 Credit xxxx

Your codes will differ slightly possibly.

Then when you actually make the wages payment from the bank you go to Bank - Payment, enter the correct bank account, the date and N/c 2220.

When you pay the PAYE and NI to HMRC you go to Bank - Payment, and do the same but enter N/c 2210.

Hope this makes things a little clearer smile.gif

Pauline

-- Edited by Stardoe on Wednesday 6th of October 2010 04:54:59 PM

-- Edited by Stardoe on Wednesday 6th of October 2010 05:38:01 PM

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Pauline



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Hi, think all talked of manually entering in Sage (apologies if not), can also set up in the nominals area of payroll to automatically enter in Sage accounts.
If stuck can email me on: info@completebookkeeping.co.uk and I will reply.


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Donna - Complete Book-Keeping Ltd & CBK Training - 07939 101900

Payroll & bookkeeping solutions.

www.completebookkeeping.co.uk/ www.cbktrain.co.uk



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That rather assumes that everyone who has Sage accounts also has Sage payroll and that's not necessarily so.

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E&OE



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I think if you have Accounts Plus you can memorise a journal and then recall it next time and just re-enter the figures.



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Pauline



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You can only memorise journals (and invoices) with Line 50. There's no facility to do this in Instant or Instant Accounts Plus.

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E&OE



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Hi there

Yeah i don't think i have the option for Sage Payroll. I have the basic version of Sage 50 Accounts. Looking in the help file it stipulates Accounts Plus and Accounts Professional only to post salary journals:(

Any other ideas how i will do this?

Thanks for the amazing amount of responses by the way:)

Paul

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Can i post it under nominal ledger and click Journals to create a skeleton journal?

Tell you what i am gonna give it a bash under the practice account:)

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How about the attached example?:) Think it is correct...emphasis on the 'think'!:)

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oooo im so close i can smell it!:) Don't understand why nothing posted under Taxation/NI though....hmmmm?!!!

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Guru

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semsley wrote:

You can only memorise journals (and invoices) with Line 50. There's no facility to do this in Instant or Instant Accounts Plus.



In instant you can do recurring entries in the bank option and you can change it to recurring journal entries or invoices...



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Attila



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djzolla wrote:

oooo im so close i can smell it!:) Don't understand why nothing posted under Taxation/NI though....hmmmm?!!!




Not looked at the screenshot but if you follow Stardoe's (Pauline) instructions for the journal you can't go wrong.



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thanks

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Newbie

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Hi there,

Could you please explain how I would be entering wages in respect of work in progress? (i.e. wages paid to staff working on a property development) - In terms of the journal entries and then the corresponding bank payments.



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