I have troubles to understand how to cash receipts and cash payments should be properly recorded in sage. Sometime ago I was told that sometimes business sells to customers who don't have personal accounts in sales ledger in business's books. Those customers usually pay in cash.
In sage when you want to record cash recepits you are supposed to scroll down and choose nominal account to record cash receipt . Since a customer doesn't have personal account in our books why they want you to choose nominal account in sage when recording cash receipt ?
The same applies to cash payments. I attached screenshots so you guys know exactly what I mean.
Use the cash payments option in your bank section, choosing the cash account will credit the cash. How does the system know which account to debit. Try keying the stationery nominal code, around 75xx. Then check your TB (or account activity lists, or an audit trail) and you can see both halves of the double entry.
Same with cash receipts, if it's a sale you would credit the sales code. The system does your double entry for you- in a way that is dangerous as it stops you from thinking about it, but it's still done.
Hth
__________________
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
Use the cash payments option in your bank section, choosing the cash account will credit the cash. How does the system know which account to debit. Try keying the stationery nominal code, around 75xx. Then check your TB (or account activity lists, or an audit trail) and you can see both halves of the double entry.
Same with cash receipts, if it's a sale you would credit the sales code. The system does your double entry for you- in a way that is dangerous as it stops you from thinking about it, but it's still done.
Hth
thanks for reply Joanne.
1A . It looks like there is no account to record cash transactions at the top page menu of bank module. The only option I see is to use cash register account to record cash receipts from customers. Can I debit cash register account to record cash receipts from customers ?
1B . If I want to record cash that is paid out for purchases, is petty cash account my only option or have I other accounts to chose from ?
Cash register is for specific businesses such as cafes, so ignore this box for now.
Just use your petty cash bank option. Use this for bank payments, using the bank payments icon-for when there is no supplier set up, and bank receipts (using that icon) when there are no customer records set up. Example of those two-small payment to local shop for envelopes-they will give you a small vat receipt, but you won't have that small shop set up as a supplier.
If you have a supplier set up and you pay them cash then pay from the petty cash bank account then use the supplier icon, so you can link the payment to the invoice. If you get cash from a customer for a sale and they have an account set up showing their invoices, then use the customer receipt icon to show the money coming in, again so you can link it to the invoice.
Note the 'customer receipt' option is only for account customers, who then pay by cash (if that makes sense!)
Try one of each and see what happens.
edited for typos
-- Edited by Cheshire on Friday 17th of March 2017 09:30:26 AM
__________________
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
Cash register is for specific businesses such as cafes, so ignore this box for now.
Just use your petty cash bank option. Use this for bank payments, using the bank payments icon-for when there is no supplier set up, and bank receipts (using that icon) when there are no customer records set up. Example of those two-small payment to local shop for envelopes-they will give you a small vat receipt, but you won't have that small shop set up as a supplier.
If you have a supplier set up and you pay them cash then pay from the petty cash bank account then use the supplier icon, so you can link the payment to the invoice. If you get cash from a customer for a sale and they have an account set up showing their invoices, then use the customer receipt icon to show the money coming in, again so you can link it to the invoice.
Note the 'customer receipt' option is only for account customers, who then pay by cash (if that makes sense!)
Try one of each and see what happens.
edited for typos
-- Edited by Cheshire on Friday 17th of March 2017 09:30:26 AM
today we had cash sales in one of sage scenarios and they did : bank receipt Dr, cash sales Cr - so probably in case of cash purchases it is recommended to do : cash purchases Dr, bank payment Cr ?
today we had cash sales in one of sage scenarios and they did : bank receipt Dr, cash sales Cr - so probably in case of cash purchases it is recommended to do : cash purchases Dr, bank payment Cr ?
So in that case - use cash register in your Bank screen, choose the 'bank receipt' option (as here is no customer involved) and then choose your sales nominal - 4000, or in that range. You will probably be asked to set up a separate cash sales nominal for the exam, so you might have your nominal as eg 4003.
For the payments - again use cash register, choose 'bank payments' (as no supplier involved) and then choose the nominal code reolating to the expense - in the 7000 range.
Sometimes easier to go through your 'company' screen and then nominals to get a feel for the nominal codes, but sage use a fairly standard range ( or they do in sage 50!)
Ive posted somewhere on here about nominal ranges before, but if you cant find it and need it, then just shout up.
__________________
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
