i am in a bit of bother, as i started my new job in an office where there is no one to teach me quite a bit of sage line 50. i am using a back up supplied by the out sourcer and trying to figure out from their work.
Is there any one out here, who could help me to understand it in detail. i am quite okay with accounting theories and principles, the real problem arises when its put into sage. from the back up, i have written journal enteries for quite a few things, but just a push fopr things like vat, nic, paye, gross wages calculation etc...
i am willing to pay for the services if needed. all helps and suggestions will be appreciated.
We're a friendly lot on here and like to help, we're not here for the money.
VAT is worked out for you by sage by using the T codes. The default codes are: T0 - for zero rated T1 - for standard rate T2 - for exempt items T9 - for outside scope of VAT
There are also various others defaulted for EU sales and purchases.
All above except T9 code appear on VAT return.
When you have done VAT return you need to do a journal to transfer the VAT liability from Sales Tax Control and Purchase Tax Control so that VAT liability is then cleared by Bank Payment or Receipt. (Newish versions of Sage have a wizard for this).
For Wages you need to do a monthly journal transferring net wages and paye ni to balance sheet codes (in 2000 range) to be cleared by Bank Payments and leaving Gross Wages and Employers' NI as expense items (in 7000 range).
Again thanks a lot for the reply. sorry if i offended with the money offer.
alright. so how often do we have to submit the vat return? every 6 months? if there is a sale, i reckon the entry will be
DR Cash AC 1000 CR SALES AC 851.063 CR SALES TAX AC 148.937
and for purchase, its the just the opposite with purchase tax control ac being debited. then i reckon, the sales tax ac and purchase tax control ac are set off against each other and the balance will be paid or received by the company? or is there any other entry that we have to do on a monthly basis or periodically?
VAT returns are generally done quarterly - the quarter date depending on the date of initial VAT registration.
When you enter a customer or supplier invoice sage enters the gross amount in the customer/supplier account, the net amount in the sales account and the VAT amount in sales/purchase tax accounts.
When you pay the customer or the supplier pays you sage posts the entire amount to the customer/supplier account.
At the end of the quarter you then transfer (via journal or the provided wizard) sales tax and purchase tax to vat liability which clears out sales tax and purchase tax and leave the difference in vat liability. When you pay or the VATman pays you this clears out the VAT liability.
do you know anything abt intercompany transfer? for eg: company A pays the entire bill of expense. say £ 500. it covers the a portion of expense of company B and C. so company B and C have to reimburse Company A for the same. firstly, i have to add the invoice if its a regular supplier, then make payment based on the payment instruction on invoice. so, for this, all we have to do is, go to the 'bank' option of company B and C, then payment, then choose the nominal code for intercompany and then pay the net value of the share to company A. once, its done, company A, should receive these payments from B and C, using bank options for the net amount.
are there any other enteries other than this?
my another doubt is regarding the entering of invoice from supplier and making payments. for eg; if we get an invoice dated 15th june for 200 gbp and it mentioned to pay it before 28th june. so, here, we enter the invoice, using supplier, invoice. then, go to make payment option, and putting the date as 28th june. is this right?
sorry for asking too many questions. looking forward to your replies.
If the companies are "buying"/"selling" to each other or charging each other rent, etc they should be treated just as any other supplier/customer by entering invoices and paying/remitting.
Supplier and payments
Enter invoice using invoice date through supplier module.
Enter payment through Bank/Supplier option on the date the money is paid either by cheque, bank transfer or cash.
okay...i thought the way you said. can i ask you if you dont mind?
for eg, comp A pays for it, and it means the vat liability should be on company A. lets assume the invoice is in comp A's name. so, does it relate to what i said earlier? its a sole owner, but has different companies a, b and c.
