Please I need your help on how to process the following transactions on Sage.
1. One of my client just bought a motor bike and the sage his using is Sage accounts which does not have Fixed asset register , I posted it diectly into Motor vehincle nominal code and also he also bought some Laptop computers which I posted to Office equipent nominal code.
2. There are pension contributions from both the employees and the employer, I was thinking of using Journal to process it. please help me on the best way to process pension contributions.
3. And, the processing of Salary and wages. I was thinking of using journal to process it.
Please let me know from the above which of them is alright to use journal to process and which one is to be posted directly into the nominal code.
Thanks you in advance your assistance is highly appreciated.
1. Debit the asset account (0050 / 0030 ) and credit the bank
or
2. If you have an invoice, credit the Purchase Ledger and debit the asset account. Then raise a supplier payment, thus debiting the Purchase Ledger and crediting the bank.
I'm going to take your salaries journal question first. I'm assuming that your employees' pension contributions come directly out of their salaries.
DR 7000 Gross Wages DR 7006 Employers NI CR 2210 PAYE - with tax deducted CR 2211 National Insurance - with total Employers and Employees NI CR 2220 Net Wages CR 2230 Pension Fund - with the amount deducted from salary for Pensions
On the Pensions issue
DR 7007 Employers Pensions - with the Employer's contribution to the pension fund CR 2230 Pension Fund
The
DR 2230 Pension Fund - when you pay the money to the pension scheme CR 1200 Bank
I'd be glad to provide some guidance on how to process the mentioned transactions in Sage. In Sage accounts, when you don't have a Fixed Asset Register, you can post asset purchases directly to the relevant nominal code. Posting the motorbike to the "Motor For pension contributions, it's recommended to use Journals to process these transactions. You can create a journal entry to record both the employee and employer pension contributions. This method provides better clarity and separates pension transactions from regular income and expenses. Be sure to use the correct nominal codes for pensions in your journal entries.Vehicle" nominal code and the laptops to the "Office Equipment" nominal code is a suitable approach. Ensure that you've chosen appropriate nominal codes that align with your chart of accounts.
When it comes to salary and wages, using Journals can be somewhat complex and may not be the best practice. Sage offers a dedicated Payroll module for processing salary and wages, which is designed to streamline payroll tasks. Using this module ensures proper calculations, compliance with tax regulations, and easy reporting. It's advisable to utilize Sage's Payroll functionality rather than processing payroll through journal entries.
In summary, for your client's Sage accounts:
Asset Purchases: Posting directly to the appropriate nominal codes for assets is acceptable.
Pension Contributions: It's best to use Journal entries to record pension contributions.
Salary and Wages: Utilize Sage's Payroll module for efficient and accurate processing of employee payments.
