We have been posting the wages that were paid each month to an incorrect nominal code.
For each employee we enter a journal; Staff salaries (DR), Employers NI (DR), Net wages (CR), PAYE (CR) National Insurance (CR)
We than enter a bank payment for each employee for the wages they receive. This has been going to n/c 7003 Staff Salaries, we now realise that it should have been going to 2220 Net wages.
We are looking to run the year end on the accounts and want to correct this before we do so. Can we correct each bank payment in 'corrections' to the correct n/c or is there a journal that we can do? If a journal is best please show me the correct journal as I am still getting to grips with them!
If you are completely comfortable using Sage then the easiest way to correct them is through corrections (If you do use this option I would recommend that you take a back up immediately prior to commencing this as you then have a point of restore in case things go wrong.)
If you want to journal the correction, your would Dr Net Wages (A/c 2220) and Cr Staff Salaries (A/c 7003)
I would use corrections but that is not to say it is the best way to do it
If you haven't got too many to correct, then if you can I would use the corrections facility but if you made the payments by the journal method originally, you wont be able to (Jornal entries can't be "corrected" in Sage). If you have a lot to change then it might be easier to do a single journal for the full amount.
If you have to do a correction Journal it would be as Mark said (I am guessing that 7003 doubled as you have debited it twice)
Apparently... Sage 2012 classes corrections as "critical" (like changing a code) and "non-critical" (like changing a reference).
Journal entries can only have non-critical corrections. If you want a critical correction, you first would "reverse" the original entry - which lets you track it in the audit trail - then make the new entry with the correct details.
But... this "reverse" feature is only in the Plus and Professional editions; otherwise, you have to just do the reversing transaction yourself, i.e. the opposite of what was originally entered.
