we pay to the City Council for rates for 5 offices on different locations . all payments have been set up DD. But only one supplier account and 5 project numbers for 5 offices set up on Sage.
After a few months, It is easy to get mixed up and misallocate the DD against the wong invoice.
Are there better way to deal with this ?
Thank your help in advance
Best regards
-- Edited by Grace2015 on Tuesday 12th of January 2016 08:42:56 PM
I don't tend to post the rates invoices and just post directly as a payment, however with 5 payments perhaps it becomes a little trickier. Do the DD's not have different references? If so can you not put the reference on the invoice details when you are posting it on Sage? I think usually there are only ten payments so come February hopefully the account will be zero in any case!
I have just checked the bank statements. there are no different references for DD. That is why I got it mixed up when I posted 5 rates to only one supplier.
Well Grace, I suppose you could make your own reference up, how about the reference being the normal monthly amount for that account then you would spot which invoice was what. Having said that everything should come out ok in the wash, i.e. the balance come February should be nil. Alternatively set up 5 different supplier accounts? Personally I wouldn't set up a ledger account and just post to rates directly from the bank statement.
Normally I would post direct from the bank statement for anything where there isn't an invoice, obvious examples are bank charges, salary etc but I will extend this to some suppliers like BT if I haven't received an actual invoice (everything tends to be downloaded now but I can never remember passwords!). The rates example is me just being a bit lazy, so I don't have to set up the accounts and then allocate the payments. Your way is better for management information but I tend to deal with smaller businesses where it's less of an issue.
If there are a lot of purchases from Amazon etc, and we are using Sage, I would definitely set up an account and post the invoices if they were sizeable and had VAT on them. If there are no invoices to be had which is often the case, then I would post direct from the bank rather than posting a dummy invoice. Of course you need to find out what the items are, it may be that most go to drawings.
Hi
How do you show that there is a liability if you don't set the rates up as a'supplier'? Do you just do this via journals?
Re Amazon I agree just post as bank payment unless of course you want to see the amount of spend through Amazon then you could also set up as a supplier. I wouldn't tend to do that though.. But also don't forget you can always get supporting invoices or documentation via Amazon which I would always make sure I got, failing that key to the DLA.
Re the lack of a reference on the Bank statements - depends what Bank you are with, but you should be able to get this. Might need go ask the , other than that the amounts might all be different so should tell you which invoice to allocate them to.
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Joanne
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Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
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