Hi, I'm new to my current position and have to run the year end reconciliations for the Year End Accounts. We have private health care policy for managers (BUPA) and I code the BUPA invoices to 8817 Private Healthcare Liability NC; we also have a health insurance policy for employees (Health Shield) and I again post the invoices to 8817. There are only a few deductions from payroll - one manager pays for his family out of his monthly salary and this deduction is coded to 8817, this doesn't come off the invoice, nor is it mentioned on the invoice! Now at year end the account is out by £2935! Will I post the P11D payment to this account which will bring the balance down? What should I do with the remainder?
You mention nominals - does this mean you are using sage? I ask because your code 8817, if sage, is not a liability nominal, but an expenses code.
The costs sit in expenses, which is correct.
Re-imbursement can go to the expense account 8817, but it wouldnt 'come off the invoice' - you still need to pay the suppliers so it is correct that the outstanding supplier balances show in full (creditors) until they are paid. But that would never reduce the 8817 code.
You should go back to the supplier of the invoice to ensure they provide the correct breakdown on the invoice for the 'family' plan.
Im unclear what account is 'out by £2935'. Can you advise the account name, nominal code and whether the balance is a credit or debit balance. (easier to get answers when you talk d/e rather than nominals as not everyone uses sage!)
Unclear also what you mean by post the P11D payment. Please expand? Surely that is an employee matter or am missing something?
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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
