I'm relatively new to dealing with journals on Sage and am struggling with the wages journal.
From researching the internet and various forums, can someone let me know if I've got the right idea with the following:
Dr Gross Wages
Dr Emp'er Nics
Cr Net Wages
Cr PAYE
Cr Emp'ee Nics
Cr Emp'er Nics
THEN......
Cr Bank
Dr Net Wages
.... the above I do understand, however it's posting the net wages payments from the bank which is causing me problems. Previously I have always created a payment from our current acc in Sage to account for the net wages payment, when doing my monthly current account reconciliation.
Do I continue to create the payment from Sage to account for the net wages or does the 2nd part of the above journal negate the need for this?
Your first journal is pretty much correct - though your credits for PAYE, Employees' and Employers' NICs might be better placed all in a single nominal code: That's really down to you and the specific needs of the company's record keeping.
The second one is also correct, but to answer your question: If you did that, it would indeed negate the need for the payment (since it effectively covers what the payment is - a credit to the bank and a debit to the net wages account) - and it's probably simpler to just continue posting it as a payment (or as payments if appropriate) and not as a journal.
__________________
Vince M Hudd - Soft Rock Software
(I only came here looking for fellow apiarists...)
Thanks so much for responding to my post - I think I've spotted where I've been going wrong now and feel a bit silly!!
I was posting the net wages payments from the bank to (for example) nc 6000 (which we have as Sales Wages) and not nc 2220 which is Net Wages. I couldn't work out why my net wages balance in the tb kept increasing - now it is all clear!
Also, Im wondering if you know - on Sage 50 there is a Wages Journal Wizard .. which just prompts you for the amounts, and does all the journals for you - even tho I always do mine manually, you could always use the wizards to check youve got your journals correct.
