I can't work out how to enter the wages journals in VT
I have written in black what I would have done in Sage and in red what I think I do in VT - although I have no idea about the gross wages.
DR 7000 Gross wages 22,256.92
DR 7006 ER's NI 96.51 (expenses - employers NI)
CR 2210 PAYE/NI 962.12 (creditors - PAYE/NI)
CR 2220 Net wages 21,391.31(Expenses - wages & salaries) I'm hoping this goes here as when I have recorded wages out from the bank they have been posted in here??
I can't work out how to enter the wages journals in VT
I have written in black what I would have done in Sage and in red what I think I do in VT - although I have no idea about the gross wages.
DR 7000 Gross wages 22,256.92
DR 7006 ER's NI 96.51 (expenses - employers NI)
CR 2210 PAYE/NI 962.12 (creditors - PAYE/NI)
CR 2220 Net wages 21,391.31 (Expenses - wages & salaries) I'm hoping this goes here as when I have recorded wages out from the bank they have been posted in here??
Thanks in advance for any help
Rachel
As Matt says its the gross wages that appear on the PL. The way i do it is journal DR Gross Wages to expenses/wages and salaries
DR Expenses/Employers NI
CR Creditors/PAYE/NI
CR Net wages to bank or cash
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
CR 2220 Net wages 21,391.31 (Expenses - wages & salaries) I'm hoping this goes here as when I have recorded wages out from the bank they have been posted in here??
This is perhaps a quirk of VT but when doing the journal the CR to the bank is the same as you recording the wages in the bank screen. What I do is break down the bank payments in the journal to each employee. Fine when you're only doing 9 employees but a bit of a pain if there's a lot more. Shaun or someone else may know a quicker way of doing it.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi I use VT for a client and I'm pretty sure that the net wages is creditors, wages. You also put the bank payments there and the gross wages in the jnl to expenses wages.
Hope that helps
Nicola
-- Edited by Blonde Accountant on Tuesday 10th of March 2015 11:10:42 AM
Hi Rachel
Would it help to visualise which goes in your P&L and which would need to show in your Balance sheet and why?
Maybe try it with having net and gross wages being exactly the same and what entries you would need for each financial report.
Then if you understand the corrulation between them, take it one step further with say just an NI payment and then a bit more with PAYE and maybe even throw in the CIS tax payment too.
Sometimes doing it on a bit of paper helps, then take it to your software as long as you back and restore (if you can do that in VT) you can play around with it and see what impact each item has on each nominal or account, whether its sage or VT?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi I use VT for a client and I'm pretty sure that the net wages is creditors, wages. You also put the bank payments there and the gross wages in the jnl to expenses wages.
Hope that helps
Nicola
-- Edited by Blonde Accountant on Tuesday 10th of March 2015 11:10:42 AM
Which replaces the 2220 in sage. Oh $%6&. I think I'm going to lay down in a dark corner for several weeks
__________________
John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
