Can you talk me through how u would process directors expenses in sage
My dilema is that they don't want to be 'suppliers' on sage and they want there directors dividend 'bank accounts' (on sage) to show a defecit for the amount of there expenses at the end of the year..but they still want paying (payment to come from the company bank account)
thanks in advance
-- Edited by beckyb on Monday 13th of February 2012 12:03:42 AM
I set up separate bank accounts in the bank module for each Director. Credit this 'Bank' and Debit the individual expense codes.
Monthly I then either journal the total into the relevant Directors DLA, or if they take it in cash then transfer the amount from the company bank account into the 'expense' bank accoutn (Dr Company Bank, CR expense Bank)
Advantage of this method is you have an audit of the individuals expenses all in one place and you can easily distinguish between Dividends / DLA withdrawals and expenses paid personally.
would you set up a supplier for this ie. directors expenses or would you make the supplier the source ie. tesco/esso etc ?
DR Company bank CR expense bank..I get that but the expense bank would not show a defecit to this amount it would balance....somehow they want the expense bank to show a defecit ?
Why do they need to show it as a defecit when they are taking the payment in cash each month?
In my example I don't set up a supplier as the expenses tend to be just a mileage claim plus random subsistence / parking / Tesco ('it's stationery'...yeah right) greggs pasty type entries so I just Cr 'Mr XX expense bank' and Dr the P&L expense code direct.
Setting them up as a supplier would work, but you would need to change the nominal code each time (not relying on the supplier default code) and you would still end up with the supplier account at nil when you physically paid the expense.
I often do a nominal print of the 'Mr XX Expense Bank' nominal code which shows the year to date total 'claimed' in expenses for monitoring purposes should Mr XX ask for it.
I'm obviously missing something as to why they need it to remain as defecit, unless they aren't paying it to themselves until the end of the year and then doing some jiggery pokery with DLA / Dividends???
I havn't a clue why they want it to show a defecit..they just do :-/ lol ...if I showed you the internal emails you too may well loose the will to live and all brain function, like I have !! :-/
One final thing.....How would you DR the P&L expense code direct, without going through suppliers ?? would you make a bank reciept on the expense bank and then alocate the NC there? or would you make a bank payment on the company bank and alocate the NC there?
ha ha I know what you mean, it's part of our territory unfortunately.
So with Sage I do the following -
Regular suppliers I use supplier module, set them up properly, add the invoice, then pay using 'Bank' - 'Supplier' button.
I believe in simplicity so for one off items such as given in previous note I highlight the bank account I'm paying from (in bank module - in this case Mr XX Personal Bank 1220?) then simply click 'payment' button. Just use the correct nominal code (P&L expense, or B/S whatever) for each payment. So this immediately credits Bank, debits Expense code. Much easier for the scenario we are talking about. Then use 'transfer' button to move to Business Bank Account (1200?) on the day they withdraw the funds as cash, or do journal Dr 1220, Cr DLA 3015? for them to take in the future.
No defecits though - just say no - of course I'm my own boss so I get to do that whenever I want.......
