Sage 50 2009 question

Sage 50 2009 question

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During the month client pays invoices and at the end of each month their bookkeeper enters invoices then payments from the bank statement (or vice versa). This seems a bit long winded but they assure me there's no other way of doing it. Are they right? Other systems I'm familiar with have a "paid invoice" function which allows both legs of the transaction to be entered in one hit.

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By ChrisDL
20th Oct 2011 09:56

In a word..

No!

It is possible to enter a sales invoice and a receipt (it's a little fiddly and can only be done with invoices created in Invoicing) but it can't be done with purchase invoices.

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By Eightoaks
20th Oct 2011 11:27

Thought as much

Thanks ChrisDL, guess that's another reason to bin Sage!

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By Cloudcounter
20th Oct 2011 16:36

Of course there is a way

Why do you need to enter a purchase invoice at all?  I tell my clients that they only need to do that for items purchased on credit terms where the invoice isn't paid at the same time that it's issued.

Ignore the purchase invoice routine and simply enter the payments as bank payments accounting for VAT at that time.  One entry instead of two.  It doesn't affect creditors lists as there is never anything owing.  The only thing that you wouldn't get is a turnover per year for the supplier, but you don't even have to set the supplier up anyway

This perceived need to enter an invoice for everything is one of the biggest wastes of time in processing Sage (and other systems)

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By petersaxton
20th Oct 2011 19:35

Cloudcounter

Obviously if they are using Sage and purchases are stock items then they need to enter purchase invoices.

I agree with you and would do it the same way but can you imagine most clients doing it sensibly even if you spent a lot of time explaining it?

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Replying to User deleted:
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By johndon68
20th Oct 2011 19:58

Purchase Invoices

petersaxton wrote:
Obviously if they are using Sage and purchases are stock items then they need to enter purchase invoices.

Purchase Invoices in Sage do not affect stock, the stock has to be adjusted in separately...

John

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By petersaxton
20th Oct 2011 21:32

Sage Accounts 2012

There's a tutorial for Purchase order processing life cycle which lists the following activities:

Creating the purchase order

Saving the purchase order

Printing the purchase order

Placing the goods "on order"

Recording delivery of the goods

Creating a purchase invoice from the order

From the above I realise that the recording of stock in is not at the exact time as creating the purchase invoice but it has to be done. I'm not saying that you can't simply do a stock count once a month or once a year but then you are not tracking stock.

 

 

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By johndon68
20th Oct 2011 21:47

Purchase Invoices

True but all of that only applies to Sage 50 Accounts Professional, it you are using either Accounts or Accounts Plus (or even Professional but not making use of Purchase Orders) then stock has to be adjusted in manually and completely separately from the purchase invoice so, as Cloudcounter mentioned, in this instance, as the requirement is for the payment to be processed immediately, there is no need at all to enter an invoice.

John

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By petersaxton
20th Oct 2011 21:58

I totally agree

that if you are not tracking stock then you don't have to worry about creating purchase invoices (unless they are on credit).

But if you are tracking stock you do have to create purchase invoices for stock items.

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By petersaxton
21st Oct 2011 08:02

Outstanding transactions

Then you'd be left with a big list of transactions waiting for purchase invoices. If you are happy with that - fine.

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Replying to Paul Scholes:
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By johndon68
21st Oct 2011 10:59

Purchase Invoices

petersaxton wrote:

Then you'd be left with a big list of transactions waiting for purchase invoices. If you are happy with that - fine.

I'm still not following :)

Why would you have a big list of transactions waiting for purchase invoices - entering a bank payment would do everything required from an accounting point of view...

John

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By petersaxton
21st Oct 2011 11:08

See above

The purchase ordering processing life cycle explains that.

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Replying to angusnicolson:
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By johndon68
21st Oct 2011 11:24

Purchase Invoices

petersaxton wrote:

The purchase ordering processing life cycle explains that.

Indeed it does but the OP makes no mention of Purchase Orders (or stock for that matter) both of which you refer to...

John

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By paulwakefield1
21st Oct 2011 11:23

The problem with just posting the payment

is that you don't have the supplier history. For the occasionally used supplier that may not be an issue but, for major suppliers, it could be quite a bind when the inevitable query arises.

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By petersaxton
21st Oct 2011 11:27

That's why I said

"if you are not tracking stock then you don't have to worry about creating purchase invoices (unless they are on credit)."

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By johndon68
21st Oct 2011 11:35

Purchase Invoices

Apologies, missed that.

However, given that purchase invoices do not (regardless of how they are entered) affect stock you can still track stock without ever creating a purchase invoice...

John

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By Eightoaks
21st Oct 2011 13:10

Fortunately no stock in our case

Interesting discussion, fortunately no stock in this case! As we know, many small businesses do their bookkeeping "backwards" i.e. driven from the bank. It works well enough, although there are benefits in using the purchase ledger, not least if they're on accruals VAT and use the purchase ledger for things like employee expenses. Or maybe Department in Sage could be used for this?

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By petersaxton
21st Oct 2011 13:49

Depends

Accruals accounting for VAT may mean it is better to use the purchase ledger but if the amounts are minimal then it may be more trouble than it's worth.

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