My hubby is a sole trader and pays himself £200 per week and pays quaterly NI and tax at the end of the year once the accountant has done his books. When I am entering this on Sage (and many other entries) should I be using a Bank payment from 3050 Drawings, journal entry 1200 cr 200, 3050 dr 200, or something else? I used to put everything in as PI's which I now know is wrong! I am in the same quandry for releases from our sagepay account. I put the online shop sales in as PI, then release the payments into our Sagepay account 1201 and then journal entry these into 1200..I feel like I am making a lot of work for myself but I cannot move them directly into 1200 as the payments are not only made up from shop orders but some previously invoiced customers ask for us to make a payment so they can pay online..does this make any sense?? I hope so! For this sometimes I use bank transfers (I cant use BP to go 1201 to 1200 ..I'll know for next time not to use registered my sagepay under a banking nominal code as this is effectively a holding and the money is always transferred quickly so should always be at 0) ..it just seems to me there are many ways to do one thing and I'd like to know which is correct!
Sorry if this is long winded - I'd really love some advice! Thank you
Firstly I think its fine to use the BP option when you record your husbands drawings.
I am not sure I fully understand your second issue: the process you outline DOES seem a bit roundabout. If you CAN use the bank transfer option that seems the simplest. You're right: there are often more that one way of dealing with some if these things.
