I am new to sage 50 , i have got the basics down but i have an issue with a customer who hold back money sometimes on our remittance slips
hope this makes sense
the issue is once they release a payment they issue us a remittance slip breaking down the what is being paid so under the customer receipt panel i clear the invoice all under one payment receipt to reflect an accurate receipt in the bank, the problem is sometime they hold back money and they call it provisions for receivable. its to stop our account from going into debit, we owe them money for sales commission that get deducted from payment owed to us. there sales commission are logged as a credit in sage and are show on there remittance break down so its easy to clear when doing a payment receipt. the problem occurs when there is an extra transaction that appears on the remittance slip (Provision for receivable) , and not sure how to log these provisions, i manually add in these provisions before working through the customer receipt module, if i issue a credit for these payments, then on the final payemnt receipt the deductions are made and the receipt is accurate but then customer account wont reflect this value as being owed to us, as its a credit note, so if i post these provision as a sale invoice, then the customer account reflects the extra money owed to us, but when i clear the invoices in the customer receipt module and then try to add the temporary deductions made the total receipt comes out higher then the actual amount being paid that causes issues when reconcile bank later on.
Barry, if I were you I would not log the commission as a credit against sales, instead I would enter this as a purchase invoice under nominal code 6100 (sales commissions). I would set up a new bank account within Sage and name it 'Contra account'. When your customer pays an invoice but withholds an amount for commission that has been agreed, use the 'contra' bank to pay off the agreed withheld amount on the sales ledger and the same amount against the purchase invoice for the commission. The contra account will always be zero so will have no effect to your accounts and the ledgers will be straight. You will also be able to keep a much better track of the commissions should there be any queries.
I must add this, Im afraid - you posted your query on here at 23.21pm, which was immediately after Private Messaging me about the same query. Can I suggest in future that you post on here, give it some time for people to respond (which can be a couple of days quite often, more at certain times of the year eg January tax season), before you PM people offline. I really dont mind people approaching me offline but only if they have given the site a fair chance, as that is what it is for. I will certainly help where I can, although there are people who are far more capable than me on here, such as Rob and a few others I could easily name (but dont want to embarrass them ;-P )
Anyway - Rob I see has answered it. In simplistic terms as they owe you money and you owe them they are effectively a supplier and a customer, so I couldnt have put it better than Rob.
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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.
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