Can anyone advise what would be the best way to record employee expenses in Sage? They pay for the goods then a bank transfer is done to their account.
Hi you say expenses but the mention they pay for goods so am a bit confused. But if you are happy with what is going on just key the bank items using the 'bank payments' icon using the nominal code of the account you wish to debit.
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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 Joanne, sorry about that. They pay for materials now and again out of their own money if they are working away and then the company reimburses them with a bank transfer.
So Im guessing you key the invoice into suppliers - I would just pay the supplier invoice in the usual way - this makes sure the cost goes to the correct nominal as usual. I tend to mark up the Bank statement next to the staff members name with the supplier being paid and you could add their name in the 'ref' box when paying as thats a cross reference method then.
If you dont key the invoice (eg if its just a small receipt) - then key as Ive suggested above - again just putting the staff members name in the 'ref' or 'ex ref' box when you make the payment.
Hope that makes sense.
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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
I deal with this in a similar way to Joanne but I create the employee as a "Supplier" and post the expenses to their supplier account, analysing receipts into different nominals as required, usually by total, not individual receipts.
Agree with Pauline on this as the best way to do it although I do it by individual receipts particulalry when VAT is involved. I find it easier this way especially when dealing with receipts from supermarkets etc where some items are VATable and others aren't.
Doing it this way also enable you to produce accurate expense reports for each employee.
But they are not all employee 'expenses' in this scenario. If you put standard supplies through the 'employee as supplier' route then you cant get the accurate reports for spend via your standard suppliers. Im not saying one or the other way is incorrect - depends on the nature of the business and what it is you actually wish to report/analyse (without having to do manually). But remember if you have proper employee expenses that you do need to analyse for eg P11D then you might be including things that shouldnt be in there as they are just re-imbursements rather than expenses.
Plus you can set up the small supermarket receipts as suppliers if you wish (I have one as there is a big spend and its good to analyse) - you can still key the VAT/non vat easily enough - you just over-ride the default setting and manually key it, just as you would if its done as a bank/cash payment. Only issue with them as supplier - you have to key an additional entry to clear them from cash (if thats how they are paid) but as I say - its down to the business need for reports.
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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
