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Recording a finance lease in sage

lease recorded as a trade creditor, need to change before year end

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Hello all,

i have just taken over a new role to cover maternity, the lady has set up a trade creditor to record a finance lease and recorded several payments against it, what would be the best solution to this?  i am using sage 50, usually i would create a new nominal code for each of the asset and liability, the deposit and several payments have already been recorded on the creditors ledger.  Would i just journal this out too? any help would be greatfully appreciated.

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Psycho
By Wilson Philips
05th Jul 2020 21:32

I think you need to clarify exactly what entries have already been made.

If all you’re worried about is the creditor sitting under the wrong heading, just post a credit note against suspense and then a reversing journal to recognise the F/L liability.

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By KR303
05th Jul 2020 21:54

invoice has been posted as a 0050 nominal code with full invoice value including finance costs acceptance fees etc as the value and 8 months worth of poa posted against it, would i then just post as normal ie setting up liability account etc

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Replying to KR303:
Psycho
By Wilson Philips
05th Jul 2020 22:03

You haven’t really answered my question, which was to clarify exactly what entries have been made. I agree with the others therefore - leave it to be sorted out at the year-end.

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By frankfx
05th Jul 2020 21:45

Nike motto.
Just do it.
Or perhaps pause...see below.

Do you set up a long term creditor too?
Do you set up the interest " suspense"?
With a monthly recurring journal.

Pause for thought:

I ask this because some accountants, who know their clients and their book keeping foubiles do the sweeping- up at year end.

There may be much ''correction" work
that you undertake that may be deemed as unnecessary!!!

It happens. Ouch.

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By Paul Crowley
05th Jul 2020 21:58

Leave sorting ths out to the accountant.
Less entries made, easier to fix.

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Routemaster image
By tom123
06th Jul 2020 07:54

Trade creditors with 12 payments is probably easier to 'see' and adjust for at year end than a whole load of journals.

Might be best to carry on in the same manner for the year, unless you are doing monthly MI reports,

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By Wanderer
06th Jul 2020 09:56

KR303 wrote:

Hello all,

i have just taken over a new role to cover maternity, the lady has set up a trade creditor to record a finance lease and recorded several payments against it, what would be the best solution to this?  i am using sage 50, usually i would create a new nominal code for each of the asset and liability, the deposit and several payments have already been recorded on the creditors ledger.  Would i just journal this out too? any help would be greatfully appreciated.

Easiest to just leave it.
Sounds like you are confusing book-keeping entries, for which what has been done is fine, with disclosure required in financial accounts, which will be sorted out when they are prepared.
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