Sage 50 Help Please - Newbie

Sage 50 Help Please - Newbie

Didn't find your answer?

Hi everyone,

First of all I do apologies if I write any silly questions.

I have recently joined in a small company (VAT registered) and I am the only person to do all book-keeping and accounts. Having few Sage 50 bookish knowledge now I am struggling to perform my work and really confused whether I am doing right or wrong. Can anyone please help me the following queries -

1. Its a small company and we deal with student admission in Universities. So everyday lots of student and universities people visit us and we normally buy food, drinks or chocolate for them. So I am recording those invoices (tesco,asda) as 8205(refreshment) nominal code. Well I think these kind of expenses directly help to increase our sales. So is it the right one I am using now or I am doing something wrong. Now I can see in my P&L general expenses are more than £2000 and I believe it will be more over the year end. If is it wrong then can I edit it from maintenance tab as I have already reconciled one month. I have to reconcile rest 11 months.

2. What would be the tax code (T9 or T0) for rents and rates please?

3.The owner gave me the bank statements and few invoices . So my question is if go thourgh the bank statement only and enter them as Bank payments & Bank receipts then would I be able to prepare VAT return then? I can see some transactions in the bank but I do not hold any invoices for that so can I still record them in sage with VAT??

I would be eagerly wiating for kind response from anyone.

Thanks in advance

Mustak

Replies (37)

Please login or register to join the discussion.

Scalloway Castle
By scalloway
08th Jul 2014 15:15

My thoughts

1. How does it compare with last year?

2. T9 unless the rent has VAT on it

3. You can only claim VAT where you have a valid VAT invoice.

Thanks (1)
Replying to G Webber CTA:
avatar
By mustaksayed
08th Jul 2014 15:57

1. This is the first year we are going to use sage for all our accounts entry. So our year ending is oct-sep. I have only reconciled october but I had to do so many bank payments as I can see in statements director made purchase on small small unusal things that should be included in expenses.

2. Also I can see in bank statements director paid salary for his staffs but I do not have any payslips or anything. So shall I enter them as a Bank payment to net wages paid(2220)..??

Thank you

Thanks (0)
By Philip Hoyle
08th Jul 2014 15:19

Consistency is what matters

Best thing is to look back at how the previous person entered the transactions, and then just copy how they did it.  When you're more competent, you can start to change things around if necessary, but for a novice, the only way is to copy.

Thanks (0)
avatar
By Sandnickel
08th Jul 2014 16:03

.

Agree with Scalloway points 1&3 - I usually put rent to T0 as I thought it was 0% not outside the scope (the difference in the two codes is that T0 is still included within your VAT return, T9 is excluded).

Do you have an external accountant? They might be able to help you with where the transactions are/have been posted.

Thanks (1)
Replying to leicsred:
avatar
By mustaksayed
08th Jul 2014 16:08

Thank you for your response.

Yes we do have an accountant but he only does final accounts submission. I need to do all the book-kkeping and pass it to him every three months for VAT return and at the end of the year. Problem is the only way to contact him is email so it takes him ages to get back. Thats why I registered here for instant help.

Thanks (0)
Scalloway Castle
By scalloway
08th Jul 2014 16:15

Previous years books?

1. Do you have access to the previous years books? You may find a clue in there.

2. Do you use Sage payroll? That will do the entries to put through the wages creditor. You can then use 2220 for the payment of wages. If you use other software you will need to decide how best to bring in wages.

Thanks (0)
Replying to Stephen Vaughan DMJ:
avatar
By mustaksayed
08th Jul 2014 16:38

Let me explain in details -

1. I do not have any access to our previous book. All my director did bought a sage subscrption for me, gave me all bank statements and lots of invoice as well as sales. I have recorded all sales and invoices. our external accountant does the payroll and send us payslips every month. We have all payslips from last April till now. Director lost rest all of that. So shall I carry on wages payment from Oct-March as a Bank Payment so that at least I can do the reconciliation.

2. Also I can see so many transactions in bank but do not have any invoices. So shall I also make Bank Payments for that so can perform the reconciliation.

3. One more thing, how to record the VAT paid to the HMRC through bank??

Thanks a lot

Thanks (0)
avatar
By Sandnickel
08th Jul 2014 16:25

Agree

with Scalloway. If you can't find the previous treatment then continue the treatment you have adopted (it's better to be consistent).

With regards to the wages posting to 2220 is the correct treatment but you are missing a step and that's why you need to see the payroll information as Scalloway says.

Thanks (1)
Scalloway Castle
By scalloway
08th Jul 2014 17:23

Be consistent

Can you not ask the accountant for some guidance ? And the missing payroll records?

 

Anything you don't have a voucher for post as a bank payment.

 

I post VAT paid as a bank payment, code T9. Sage should have a code for VAT liability.

Thanks (1)
Replying to weuk:
avatar
By mustaksayed
08th Jul 2014 17:36

Thank you very much

My accountant - He seems like dont want to help at all. I dont know why.

Anyway I think I would be able to do most of it now.

Last few questions - 

Is the nominal code is for VAT liabilty is 2202 ?

Also some of our customers are universites and they say they are VAT exempt. So if they do not pay VAT then still do we have to pay VAT to HMRC? Should I use T9 code for those sales or continue with T1 calculating net sales??

Thanks in advance

Thanks (0)
Replying to Wilson Philips:
James Reeves
By James Reeves
08th Jul 2014 18:12

Unhelpful accountant...

mustaksayed wrote:

My accountant - He seems like dont want to help at all. I dont know why.

You are working for a boss that seems to have no historical books, has lost most of the information that your accountant has sent him, and has no invoices for many of his bank transactions, and on top of that, has just opted to start using Sage, possibly without (or in spite of) any input from the accountant.

It's possible that his accountant may be slightly fed up with your company...!

Thanks (0)
Scalloway Castle
By scalloway
08th Jul 2014 18:26

Answers

From memory it is 2202

 

It dosn't matter if your customers are VAT exempt, they pay VAT like everyone else. They're just not able to reclaim VAT you charge.

 

I second James Reeves comments. I would find it a struggle to sort out the problems you face.

Thanks (1)
Replying to Chris.Mann:
avatar
By mustaksayed
09th Jul 2014 09:18

1. Regarding the VAT - I sent an invoice to one of our university and they said they are VAT exempt so they will not pay VAT. Then I had to amend the invoice and send it to them again stating VAT exempt. But my point is when I record this sales in sage do I have to use T1 code calculating the Net amount or should I use T2/T9 ??

2. I have asked the owner today and he gave me last year unaudited financial statement and corporation tax computation documents from our accountant. So it is anyhow helpful to me to start this year account in sage??

Thanks in advance

Thanks (0)
avatar
By Sandnickel
09th Jul 2014 10:26

You need to take advice re the VAT

You can't cancel the VAT on your service if it is genuinely a VATable service. Whether the customer is VAT registered or not (or exempt) is irrelevant. Please take advice on whether the service you provide is VATable (some educational services are exempt) and if it is you have to charge VAT.

The previous accountants should give you an indication of where the expenses were posted last year - you need to compare the costs in each expense category.

Thanks (1)
Replying to Accountant A:
avatar
By mustaksayed
09th Jul 2014 10:32

We have registered as a VAT company last December but I am doing accounts from Last Oct this Sep. I do not know what did account do last year. He has nothing except our bank statement photocopy. As far as I know he has not got any invoices from us. All he does with bank statement. Is it possible to prepare account with only bank statement then? Please note all are sales are bank sales, nothing cash.

Also as you mentioned some educational services are VAT exempt so in that case can I charge them VAT??

Thank you

Thanks (0)
avatar
By Carolynne
09th Jul 2014 10:44

Course Needed

I would suggest that you ask your employer to send you on a Sage Course (you can do these on-line I believe, or go to a centre).  As your knowledge seems too limited to be able to succeed with your current job.  I believe you will just dig a deeper hole for yourself and your employer each week.  As you need to have knowledge of not just double entry book keeping, but also how the VAT system works and what items are vatable, what are zero rated and what are exempt. From what you say, I don't think you are very sure footed on any of this at the moment.  It must be causing you a lot of stress and worry. 

Thanks (1)
Replying to lionofludesch:
avatar
By mustaksayed
09th Jul 2014 10:50

Just wanted to ask if any educational service mention that they are VAT exempt so in that case can I issue them invoice charging VAT separately or it has to be VAT exempt written in the invoices?

 

Also no way I can get free sage training from my employer so I have to learn by exploring. I believe I can do most of it except some critical issue. I have got sage training CD so I do practice all the time.

Thanks in advance

Thanks (0)
avatar
By Sandnickel
09th Jul 2014 10:57

Agree with Carolynne

I think this will be the best thing and will make you a lot more comfortable in what you are doing. The VAT situation is really important IMO, you need to know when you should charge VAT.

EDIT - crossed with your post. As I said the question is whether your service is VATable. If it is, you have to charge VAT.

Thanks (1)
Replying to SteveHa:
avatar
By mustaksayed
09th Jul 2014 11:00

Well Our service is VATable so we normally charge VAT to all of our customers except some of them they said they are VAT exempt, they do not want to pay VAT. So in that case what to do?? Shall I ask them any letter or if they do not pay VAT then shall I record that sales as a T9 then?

Thanks

Thanks (0)
avatar
By Sandnickel
09th Jul 2014 11:30

If your service is VATable

then you must charge VAT on your services. As far as I am aware (and I'm not a VAT expert) the status of your customer is irrelevant. You can't use T9 as this would understate your VAT liability. You say that your accountant prepares your VAT returns, has he not raised this issue with you?

Thanks (1)
Replying to JazzyD:
avatar
By mustaksayed
09th Jul 2014 11:43

This is my question. I have no contact with our accountant and all he does, he ask the bank statement every three months and prepare VAT return and account end of the year. I do not how does he prepare that with only bank statements ??!! Is it possible to do that with only bank statements?? If it is then why I am spending times entering invoices and reconciling bank statements!!

Please help

Thanks (0)
Replying to jon_griffey:
Red Leader
By Red Leader
09th Jul 2014 11:46

VAT

Have a look at VAT Notice 701/30:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.por...

Without precise details of the service you provide and the type of business you are, it is difficult to determine regarding the "exempt" question. I suspect you will still have to charge VAT, though.

However as others have said, the VAT question is the sort that would normally be referred to your external accountant if there is any doubt.

Thanks (0)
Replying to jon_griffey:
avatar
By andy.partridge
09th Jul 2014 11:54

Impossible

mustaksayed wrote:

This is my question. I have no contact with our accountant and all he does, he ask the bank statement every three months and prepare VAT return and account end of the year. I do not how does he prepare that with only bank statements ??!! Is it possible to do that with only bank statements?? If it is then why I am spending times entering invoices and reconciling bank statements!!

Please help


It is impossible for us to know how the accountant prepares the accounts. You have had a lot of very good advice, but surely you need to communicate with the accountant? That relationship is vital for you to do your job well and for the accountant to do their job efficiently, and for your employer to get value for money from you both. What is stopping you?
Thanks (1)
avatar
By Sandnickel
09th Jul 2014 12:25

I second Andy's view.

From your last post it would appear that both you and the accountant are doing the same job in different ways. You need to speak to him sooner rather than later to sort this out. If you have no contact with him then you need to raise this with your manager/boss.

Thanks (1)
avatar
By Carolynne
09th Jul 2014 13:21

Vat query

Just to reiterate.  If your service provided is a Vatable service, it doesn't matter if the customer is VAT exempt.  To give an example, if this vat exempt customer goes to a stationery shop to buy paper for their photocopier, do you think the stationery shop knocks off the VAT element of the sale for them.  They do not.  And if your service is chargeable to VAT, then you should be billing them VAT.  In this instance, anyone you have reduced your invoice to reflect no VAT charged (for a vatable service), will mean that you have to pay VAT within the figure you have received over to HMRC, treating the amount now received as the Gross of VAT figure (cutting into your profits).  Unless you can re-invoice them the VAT element again, and explain that they have to pay the VAT element on top of what they have already paid.  But as others have said, only your accountant can confirm all of this to you, as he knows you business, we do not.  And you should not really act on information from me without checking it out.  As I do not know the full picture.

Thanks (0)
avatar
By mustaksayed
09th Jul 2014 13:21

Thank you everyone for your kind advices. I will speak to my boss and try to communicate with accountant.

I have one last question - We are VAT registered. So whatever would be the sales every three months we have to pay 20% VAT on that sales whether we charge customer VAT or not,yes??

Thanks

Thanks (0)
Replying to ocoughlan09:
avatar
By andy.partridge
09th Jul 2014 14:50

No

mustaksayed wrote:

Thank you everyone for your kind advices. I will speak to my boss and try to communicate with accountant.

I have one last question - We are VAT registered. So whatever would be the sales every three months we have to pay 20% VAT on that sales whether we charge customer VAT or not,yes??

Thanks


But speak to the accountant who is in the best position to advise you on your particular circumstances in detail. The accountant knows your company well. We don't.
Thanks (1)
Replying to ocoughlan09:
avatar
By Carolynne
10th Jul 2014 11:22

Vat on all Vatable Sales even if you didn't put VAT on the inv

mustaksayed wrote:

Thank you everyone for your kind advices. I will speak to my boss and try to communicate with accountant.

I have one last question - We are VAT registered. So whatever would be the sales every three months we have to pay 20% VAT on that sales whether we charge customer VAT or not,yes??

Thanks

  As mentioned in my early reply, even if you have not charged VAT on an invoice,  if the service was vatable, you have to suffer paying VAT over on the amount you charged without putting vat on.  EG  if your original invoice was £100 plus £20 VAT, and you were asked to remove the vat and instead charged them £100.  You would then have to do a sum to work out the element of the £100 you owe HMRC for vat on that sale.  £100 divided by 120 multiplied by 20 will give you the vat element of £16.67, your net element then becomes £83.33.  By taking off the VAT element of an invoice that should have vat on it is therefore costing your employer £16.67 of his sale price in this example. 
Thanks (1)
Scalloway Castle
By scalloway
09th Jul 2014 14:46

You charge the customer VAT

If you provide a VATable service you charge the customer VAT, regardless of whether they are VAT registered. If the customer says they should not pay VAT you need to determine why not. There are services that are VAT exempt.

 

You pay 20% VAT on sales that have VAT on them if you are VAT registered. You don't pay VAT on sales that are exempt.

Thanks (1)
Replying to frankfx:
avatar
By mustaksayed
09th Jul 2014 15:48

Thank you very much.

Have a nice day.

Thanks (0)
Replying to frankfx:
avatar
By mustaksayed
10th Jul 2014 11:12

About director salary and staff wages

First of all Thanks a lot for all your advises and help.

I am trying to record director salary and staff wages.All I am doing now from bank statement I am posting the wages for every month(from last year) as a Bank Payment to 2220(net wages) nominal code because I do not have any paysilips or payment summery to post it from journal. . I have also requested the owner to ask accountant to give me payment summery from last year so I can do it from journal.

My question is if I carry on now as Bank Payment until I get the payment summery would be it showing anything wrong later on in SAGE when I post the payment summery from journal (Think that time I do not have pay net wages from bank as I have already done it. Only record from journal the total breakdown such as gross,net,employers NIC,employees NIC) ??

Thanks

Thanks (0)
Replying to lesrobinson:
avatar
By andy.partridge
10th Jul 2014 11:33

Nothing wrong

mustaksayed wrote:

First of all Thanks a lot for all your advises and help.

I am trying to record director salary and staff wages.All I am doing now from bank statement I am posting the wages for every month(from last year) as a Bank Payment to 2220(net wages) nominal code because I do not have any paysilips or payment summery to post it from journal. . I have also requested the owner to ask accountant to give me payment summery from last year so I can do it from journal.

My question is if I carry on now as Bank Payment until I get the payment summery would be it showing anything wrong later on in SAGE when I post the payment summery from journal (Think that time I do not have pay net wages from bank as I have already done it. Only record from journal the total breakdown such as gross,net,employers NIC,employees NIC) ??

Thanks


You are doing nothing wrong, but without the journals Sage will not produce any meaningful profit information. If your director asks you for a profit and loss account the profit will be overstated because you will not be showing any wages in it.
Thanks (1)
Replying to johnhemming:
avatar
By mustaksayed
10th Jul 2014 13:08

Bank receipts in Sage 50

Hi,
Thanks for your all advises and help. I am entering some BANK RECEIPTS from bank statement to Sage as a bank receipts. Most of the receipts are sales except some transaction. I normally use all sales 4000 nominal code. But few receipts are refund or customer sent us money to send it to University on behalf of them. Now shall I record those bank receipts in 4000 code or shall I record as a bank receipts using appropriate nominal code like expenses??
Please advice me
Thanks a lot

Thanks (0)
avatar
By mustaksayed
10th Jul 2014 11:40

Thank you very much.

Have a nice day.

Thanks (0)
avatar
By mustaksayed
10th Jul 2014 13:07

..............

Thanks (0)
Scalloway Castle
By scalloway
10th Jul 2014 17:49

Refunds should go to the same code as the original transaction.

Thanks (1)
Replying to WhichTyler:
avatar
By mustaksayed
11th Jul 2014 12:37

Dividend entry....???

Is it the right way to record dividend ??

To record the proposed dividend

N/CNameDetailsT/CDebitCredit3201DividendsProposed DividendT95000.00 2290Dividend LiabilityProposed DividendT9 5000.00

To pay the dividend

 

BankDateN/CDetailsNetT/CTax1200Payment date2290Payment of dividend5000.00T90.00

 To journal the value from the Dividend nominal code to the Profit and Loss nominal code

N/CNameDetailsT/CDebitCredit3200Profit and Loss AccountDividendsT95000.00 3201DividendsDividendsT9 5000.00

 

Is the correct whole process??

Please advise

Thanks in advance

Thanks (0)