I was wondering if someone could advise how to correct my error on the wages journal I have just posted, for the first time in a year since I have started posting the wages onto Sage I had SMP figure and unfortunately I have posted it to 7000 gross wages instead of 7011 SMP, could someone help me please as I don't want to make bigger mess of this than already is.
Hiya, think the confusion is in the difference between SMP paid and SMP reclaimed. Take the paid reduce by reclaimed and the net is debited to SMP account in the profit and loss
Thank you for your reply. I am very confused now, could you please let me know how to calculate the reclaimed SMP? I have copied below the incorrect journal I have posted yesterday: DR - Gross Wages 7000 £37,120.07, SMP 7000 £1,730.80, Directors Wages 7001 £1,248.00, Net Er NI 7006 £3,065.58
CR £3,992.00 2210 TAX, £2,652.57 2210 Net NI, £12 2210 student Loan, £3,065.58 2210 Net Er NI, £33,367.30 2220 Net Pay, £75 7007 Pension
I would appreciate if you could help me fix the mess I have created. I wish they teach this staff in college!
Many Thanks!
-- Edited by Dagmara on Thursday 27th of March 2014 09:59:50 AM
You can reverse the journal completely -go into nominal and select reverse journal-put the relevant transaction numbers and date-this will reverse it out ready to start again correctly
Alternatively looking at the journal above to make the correction you just need to credit 7000 with the incorrect amount of £1730.80 and debit the SMP account
In effect what you should be doing is taking the p32 amount of NI and reducing it by the SMP claimed amount (so normally you would credit the paye account with the amount to pay hmrc but you are debiting the account with the SMP amount to reduce this)
