How to handle this transaction in Sage?

Evening all,

I require some advice please with posting the correct transactions for a process in Sage. Several similar transactions have been done over a number of years with the same company but a) I feel they were posted on Sage incorrectly, and b) the staff member who posted them has left the company and c) the Director doesn't get into the mechanics of the accounting system so cannot explain how to do it.

On 12 April we paid 45000 to Company A which I understand was for a Remuneration Trust. I entered this as a Bank Payment or Cr. Bank.

We also received an invoice from this Company A for the Minerva Trust fee of 10% or 4500. This I entered as a supplier invoice.

On 23 April, we received 40500 back from Company A. I think this was because we had a cashflow issue and couldn't pay other suppliers but it may be the way the trust works - I must confess I don't understand it despite asking some questions and will seek further info from the director. But either way, I entered this amount as a Bank Receipt or Dr. Bank

Now clearly the invoice of £4500 should be offset by that difference to clear the Purchase Ledger. But I am unable to relate the two together. And I think this is because I have done them as BP and BR and probably should have posted those entries on to the supplier account.

In previous years, it seems they did not get the funds back and simply did a BP for the outgoing funds, and then a Supplier Payment for the 10% Minerva Fee.

So far my bank account is reconciled but the supplier still has the open balance of £4500 which I am unable to pay because that would throw out my bank balance and reconciliation.

Can anyone help?

Thanks

Comments
Witch-Queen's picture

Re: How to handle this transaction in Sage?

Witch-Queen | | Permalink

I agree that it would have been easier had you posted these to the supplier account.

However, IMO you have 2 options to fix this:

1) Assuming you have posted the bank payment and bank receipt to the same nominal, change the £40500 you received on 23rd April to £45000 in corrections, then post the payment to the supplier. This will make your bank right, the balance on the nominal into which the payment and receipt were posted will be Nil, and the cost of the Trust fee will show in whatever nominal you put it to as an expense.

2) Delete the supplier invoice altogether and the balance remaining in the nominal to which you posted the bank payment and receipt will show the difference of £4500 being the trust fee expense

 

 

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