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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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.
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.
@ 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?
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.