A client has set up sage payroll and sage accounts to transfer wages to the accounts programme each time an employee is paid. However the posting are coming through as a credit to the profit and loss account wages nominal, a debit to employers payee and nic and a debit to mispostings account. The wages are paid by cash what is the correct procedure for the programme to do.
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Set up of nominal codes needs to be changed on payroll
The wages journal entries are transferred via lots of piddling little figures from the payroll to the accounts if you use this option.
Any payments of net pay to employees by cash or cheque or other means should be made to the net pay control account.
I prefer to work out the wages journal manually- in effect many fewer entries - and post that.
If the client insists on using the automatic option from the payroll, they will need to go into the nominal codes set up on the payroll to make sure their own codes replace the ones currently being used. I can't believe they don't pay for Sage support, so they should ask Sage for help with this.
Nominal Link Settings
Your client just needs to go into the Nominal Lnk settings in their payroll programme and enter the correct codes in the right boxes - so if using default sage codes - gross wages goes to 7000, Net wages to 2220, PAYE to 2210, NIC to 2211 etc etc.
This will not correct the transaction already posted but you can easily post a correcting journal within the accounts programme to fix it.
Your client should always have sage voer with payroll, in order to get the legislation updates, so if you are still not sure what to do - get them to phone sage.
@Holly
Yes that is correct the entries from payroll credit the balance sheet, then when you post the bank payments they should also go to the balance sheet codes.
In theory the only transactions shown in the P&L wages code are the gross amounts from Sage payroll.
If you need any more help please shout!
setting up new nominal codes on Sage Payroll and Accounts
Hello everyone,
I'm new to sage Payroll and accounts.
I have set up the payroll and I would like to devide code 7000 and add more codes as per cost centre as I have set up few dif ones like -admin,gym floor,housekeeping,FOH and Poolside.
Is there anyone that could help me setting up new codes on Sage payroll and link them to Sage accounts to be posted automatically when I run the payroll?
Many Thanks,
R