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Expenses on Sage - set up debtors?

Whenever I need to pay staff expenses I put it through Sage via 'Bank' & 'payment'. A friend who also pays expenses & uses Sage says I should have set up each staff member as a supplier & pay via 'bank' & 'supplier'.

I have 2 questions; which way is correct?
and if it's the supplier route, do I have to make up invoices from the staff or do the expenses forms become the invoices?

Our accountants have never commented on treatment of expenses...

I apologise if this seems like a daft question, but I'm not an accountant, just another small business owner trying to get it all right!!!
Sue Stephens


Number of comments: 5

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Sue Stephens, 16 May 2005 @ 08:07 AM

great idea - thanks
It had never occured to me to set up a cost centre for the expenses, thanks for the tip, it'll save the maths at year end!

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d painter, 14 May 2005 @ 18:14 PM

Staff Expenses on Purchase Ledger
I use the Purchase Ledger as well. I group them all together at the bottom of the list by prefixing each account with an X (for Expenses) and then staff name or part thereof. I make sure number of miles etc is recorded to enable preparation of P11d's very easy indeed. Staff expenses are paid straight away, so no need to worry about including within trade creditors.

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andrew randall, 14 May 2005 @ 10:36 AM

Cost centre
I would agree with what has already been said. I don't know what version of Sage you are using, but I use cost centres so that expenses for P11D purposes can be reviewed a bit easier.

Don't know if this will help.

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Sue Stephens, 13 May 2005 @ 13:26 PM

oops, meant creditors!
one of those days...

I collate the P11D info on a bit of paper in a file (old fashioned but only takes 5 mins per month) & pay all expenses the day they are submitted so don't need to make provisions, so on that basis I'll stick with what I'm doing!

Thanks for the reassurance.

sue

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Graham Kemp, 13 May 2005 @ 13:22 PM

I'm with you, Sue
Hi Sue
Staff are not trade creditors and so amounts owing to them should be kept separate from suppliers.
An advantage of setting up a supplier account is that it can be easier to collate data for P11D purposes. Additionally expenses get into the accounting system when they have been incurred and not when they are paid.
On balance I am with you, though, and if there are significant outstanding expenses when the monthly accounts are being prepared you can always accrue them.