I am new to Sage and have the pleasurable task of maintaining my company's accounts. I am not a trained book keeper or accountant :(
I have been using Sage Line 50 for some time and started to set up suppliers to record their invoices, etc.
When processing my bank satement I entered a payment to a supplier from the bank account (I did not process it as a payment to the supplier from the Suppliers screen) and have reconciled the bank account
The Supplier account still shows an outstanding balance of £150.00 as the payment was not allocated to this account.
Is there a way of allocating that payment to the supplier account thus reducing the suppliers balance but not affecting the bank account?
As I said earlier, I am not a trained book keeper and hence any book keeping jargon will be wasted on me. I just need a Step 1, Step 2, Step 3 answer.
1. Use the maintenance screen and amend the transaction, posting to the correct supplier account (not sure where you initially posted the debit), I think you can do this in Sage.
Or
1. post a Bank receipt to the same nominal you posted the incorrect payment. 2. post a correct payment to the supplier code. 3. contra/ allocate 1 and 2 against each other next time you do a bank rec.
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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.
Additional to the above question, if I have a supplier account showing a balance and the invoice was for the previous tax year, how can I remove this balance.
Is it a simple case of writing off?
Can I use the solution provided by Tony, simply using a date from the previous tax year or will this have implications to the previous year end?
Why is this balance still showing as owing? Has it been paid but the payment was incorrectly done as a bank payment as you detailed in your first post? If this is the case then you can write it off using a dummy credit note with a T9 tax code. But it must be written off in this financial year.
Having said that, the Aged Creditor balance on the Balance Sheet would have been incorrect at the end of last year, so if this is a substantial amount it may be worth mentioning to the accountant (or whoever did your year end accounts).
