One could argue that it shouldn't live anywhere, and all entries should be found their proper home. Otherwise they just build up in Suspense and don't get sorted.
If I really had to have one, I'd most likely stick it in Current Assets or Liabilities, as it belongs even less under any other heading. I'd also make sure that I kept it reconciled, so it doesn't end up as a dustbin for queries.
I agree John, if I have any advice Rachel it is try not to use a suspense account and if it is absolutely necessary make it your number one priority to clear it.
Unhelpfully Sage, in their wisdom, put Suspense and Mispostings (9998 and 9999) in the P&L under Overheads in their standard charts of accounts. Whilst that makes sure it is cleared every year, write-off without human intervention is not the way to do it!
Sometimes it is quite useful. If you are trying to reconcile the bank and some helpful person has not filled in a cheque stub you need to be able to put it somewhere that it will be flagged up until you find out what it is.
Obviously, it is better to find out the information at the time but sometimes this isnt possible
Nick
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Nick
Nick Craggs FMAAT ACA AAT Distance Learning Manager
To be fair to Sage, it provides a Suspense Account code. It doesn't force you to use it!
Exactly Liz.
Again, to be fair to Sage, I'd rather they provided one in their Charts of Accounts than didn't provide one at all. The first thing most people do when setting up a set of accounts in Sage is to use the OB options for Opening Balance postings. I'd rather have a dedicated "control" account called Suspense for this purpose than have to nominate some other account to facilitate the process. Sage's help files describe the account and its usage thus:
Records the opposing credit or debit when an opening balance is added to customer, supplier, nominal and bank records using the OB option.
You can use the account to post the value of something when it is not clear how to deal with it. This would only be a temporary measure as the value of transaction would need to be moved to the correct nominal account eventually. Indeed any balances on this account should be dealt with before the year end as the year end process clears the account, moving any balance to retained earning.
I think my only real beef with it is the P&L designation (which they warn about). Much better as a flip-flop current asset / current liability account, depending on balance. That way it'll not disappear because you "forgot" to look more closely at it at year end. (A small balance could mask bigger debits and credits lurking unresolved).
