Starting Again

Starting Again

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Good Evening,

I have started to enter all of our customer and supplier details onto Sage and just need a little clarification.

I dont have any opening balances yet, so any invoices i have prior to April i am entering into the supplier account. However after chatting with Sage, they advised me to use nominal code 3200 for profit or loss.

Can someone please explain why.

Replies (11)

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By petersaxton
18th Apr 2015 00:04

No idea

If you are entering opening balances you should use a suspense account as the other side of the entry.

Enter sales ledger and purchase ledger invoices with no VAT and date of invoice and the other side to Suspense.

Enter bank accounts by putting bank statement balance as a receipt or payment and any reconciling items as receipts or payments with relevant date and the other side to Suspense.

Enter credit card balances as a payment (charge) and put the other side to Suspense.

Then enter the rest of the trial balance with the balancing entry as Suspense.

Now the Suspense account should be zero.

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Replying to Matrix:
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By Hannah_J
18th Apr 2015 08:26

Thank you,
I have never used Sage before, so I am having to keep googling lots of things I cannot find on Sage.
We don't have a trial balance at the moment, so I am relying on all unpaid invoices to act as the trial balance and the bank statement.
When I post the individual balances ( because cash accounting) does sage not automatically place the transactions in a suspense account.

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By petersaxton
18th Apr 2015 08:46

How?

How can you post individual balances without completing the double entry?

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By Hannah_J
18th Apr 2015 09:45

Sorry, i am lost

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By andy.partridge
18th Apr 2015 10:50

Assuming you are talking about 'old year' supplier invoices that were not paid before the 'new year' started, you should code them to 9998 suspense account.

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By Hannah_J
18th Apr 2015 11:11

Hi Andy,

 

I have entered the unpaid invoices now. Once i have checked the Aged Debtors/Creditors are correct, I am then going to reverse the nominal balances.

 

Sorry - i probably havent explained myself to well.

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By andy.partridge
18th Apr 2015 11:14

@ Hannah

When you say 'reverse', do you mean you will 'edit' (ie. amend) the nominal account you have used? Do you know how to do that on Sage?

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By Hannah_J
18th Apr 2015 11:51

I am following the instructions/order on opening balances.

In this order, i have:

 

Entered a default date for opening balances - 31st March 2015

Entered opening balances for customers

Enter balances for suppliers

Check the customer and supplier opening balances

Next  step i am about to do:

 

Reverse the nominal balances in preperation for entering the trial balance ( Although i wont have an actual trial balance until June) Dont want to forget.

 

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By Hannah_J
18th Apr 2015 11:58

I have just been thinking....

Sage was not up to date last financial year, so we were relying on a detailed cashbook on excel. This cashbook only shows debits/credits taken from the bank statement. So with regards to a trial balance how will supplier/customer balances be accurate.

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By andy.partridge
18th Apr 2015 12:26

I think you need to agree with your accountant what opening balances will be supplied. I would assume that the accountant will be able to provide you with a trial balance for the year-ended 31 March 2015. If that is the case, and no other transactions have been posted to Sage for that year, my advice is correct.

If that isn't what is happening, the best advice I can give is for you to discuss with the accountant how to plan things, because there could be many different ways of doing things, but most of them could end up causing confusion and extra work.

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By Hannah_J
18th Apr 2015 12:34

Ok, thank you for all your help.

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