Waste Cardboard Disposal - The Book-keepers Forum (UK)

AnitaP · Veteran Member

Waste Cardboard Disposal

Cheshire · Master Book-keeper

Hi Anita
This type of question is a recurring theme and one I feel that you need to get much more confident about, which all comes from knowing your customer (plus knowing about bookkeeping).

I notice from past posts that you have not completed an introduction so that we do not know anything about your training - can you please let us have a little information - have you been studying/who with/where are you up to as well how many clients you have (is it just this one off licence?), how long you have been in the industry/which professional body you are with. Or are you doing this for a family member/its your own business?

Now in the past we have talked about the need to find out more information about costs so that can help you (and anyone on here offering suggestions). You need to know - does anyone need to have them split out (management accounts or does the owner for example ask 'how much have we spent on 'x' this month/this year. You also do need to know if these sorts of things are a one off or more regular, so that even if you have not been asked the above, you are making an 'executive' decision about its separation in the bookkeeping software.

I personally would have thought that cardboard waste disposal would be a regular occurance for your off licence client - but I am having to assume that it is for this client as the the information is not detailed more within your question. For all I know you could be asking for a waste disposal company (unlikely given the way its phrased, but the coding I am sure you understand would be very different.

You need to find out if it is likely to be regular.

Then to aid your development, rather than us answering the same type of question all the time - perhaps you can suggest a code (or an subset of codes) and peeps on here can then give you a steer as to whether you are right or wrong. Doesnt matter if you are wrong as long as once the explanation is given that you understand the reasoning or merits behind it - this will increase your confidence next time you get something similar.

Look forward to hearing a bit about your background.
HTH

AnitaP · Veteran Member

Hi,

Thanks for your reply to my question.

My background is from management accounts and reconciliation manager. I have not used Sage software so am unfamiliar on the coding side hence I ask the question on this site. I am currently doing ACCA, but taking a break at the moment.

I am just helping out a family friend business with the bookkeeping side of it even though there is an accountant. But, I thought it would be a good to know such things and seeing it from another perspective view of accounting. I was thinking of coding it within the 7000 range but not confident on it.

The waste disposal of cardboard will be a regular occurrance for the business.

Thanks

Anita

Cheshire · Master Book-keeper

Hi Anita
I'm sure Shaun will be along to ask where you are up to with your ACCA at some point.

So with the management accounts you will be used to seeing the categories or subsets of indirect costs and sage works in the same way in that it groups things together, although when you are inputting it doesn't look like that.

You can create as many individual indirect cost nominal codes as you want based on what is required, because even though they are then grouped, you can drill down easier if they are separated. Works the same also for sales, so your client could have two separate sales nominals, or ten (or more). Not that I'm advocating splitting everything of course.

Usually these types of retailers have the big waste bins from the council, so I will assume they have those as well as the cardboard disposal costs and you can put them together.

7000 is the right area as this covers all indirect costs. But now to narrow it down. I would suggest in the 78xx type of region, call it 'refuse' or something similar.

To see how the 7000 nominals are grouped, best place to look is the COA. Go to nominals screen, then there will be a COA icon somewhere (maybe across the top, sorry can't recall what version of sage you are on). This will then pop up with a default chart, double click and this will open up the chart, split between profit and loss and balance sheet. Go to the expenses section and then underneath it will give you the bands of nominals for each category. So now if you go to overheads , then maintenance you will see that the maintenance groupings pulls in nominals from 7800 to 7899. Or something similar(different sage versions have slight tweaks or your might do if someone else was using it and made adjustments)

HTH