At the end of the month I reclaim expenses from my company. I submit my expense form along with relevant receipts. Some purchases are made on my company credit card. How are these best entered into Sage?
Currently, I create a journal, creditting the credit card account with the total and debitting the relevant nominal codes for each item. But in this way, although I can choose the tax code I am not convinced VAT is being considerd by Sage. For instance, I enter the net amount on code T1. When I look in "Maintenance and corrections" I can see the transactions with the full net amount, the T1 tax code but the tax paid is showing as £0.
The way you're doing it you would need to calculate the vat reclaimable and post it as a seperate line on the journal to a vat account.
You may want to consider posting a bank payment from the credit card bank account, this will allow you to specify the vat code against the individual expenses.
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Tony
Responses are intended as outline only. Formal advice should be sort from your Institutes Technical Department or a suitably qualified Accountant.
why don't you create a simple expenses sheet on excel which allows you to list all your expenses and split out the net, vat and gross for each expense and you can record all your expenses for each month on this, attach all the receipts and then load it onto sage with the relevant split as a journal.
I actually do have a comprehensive expense sheet which I compile throughout the month and then at month end enter into Sage and actually financially reimburse myself. Would you elaborate on 'load it onto sage with the relevant split as a journal'. You have confused me slightly here. Do you mean create 2 journal entries for each vattable purchase? The gross and the VAT? And code both as T1?
