New to a Wage journal in Sage - need help!!

mimlloyd · Post by **mimlloyd** » 02 Sep 2008, 21:05

I've been thrown in the deep end and have to show how to complete a wage journal in Sage which I haven't done before.

The details I have are:

N/C 7000 Gross Wages Â£3068.52
N/C 2210 PAYE Income Tax: Â£312.25
N/C 2211 Employees NI: Â£246.30
N/C 2220 Net Wages: Â£2509.97
N/C 7006 Employers NI: Â£345.20

I've tried the journal as:

Dr 7000 3068.52
Cr 2210 312.25
Cr 2211 246.30
Cr 2220 2509.97
Dr 7006 345.20

However the journal misbalances by 345.20 so obviously I'm missing some other kind of posting for the Employers NI.

Can someone please advise before I go mad!

Lady Bea · Post by **Lady Bea** » 11 Sep 2008, 15:29

see if you can find a previous journal within the nominal code and have a look in the financial module but your figures do not calculate correctly. You have your gross wages figure and everything underneath it should add up to this gross figure.

Hopefully someone more qualified that me may be able to help

mimlloyd · Post by **mimlloyd** » 11 Sep 2008, 18:12

I haven't got a previous journal as the Sage file is just a dummy set up as a training exercise. I also thought that the other figures should just add up to the Gross figure. The discrepancy of Â£345.20 is the amount of 7006 Employers NI. Am I supposed to post this twice somehow, or deduct it from the Gross or what?!

I just can't work it out and keep putting off the training until I know for sure.

Lady Bea · Post by **Lady Bea** » 12 Sep 2008, 07:43

Mim, I'm going to check my own wages journal for you and see what it does and then I'll be back later.

mimlloyd · Post by **mimlloyd** » 12 Sep 2008, 08:03

Thanks Lady Bea - you're a star!!

Lady Bea · Post by **Lady Bea** » 12 Sep 2008, 08:30

Mim, are you training in the practice data, I'm on Line 50 2009, its just so I can have a look around in it.

mimlloyd · Post by **mimlloyd** » 12 Sep 2008, 08:54

Hi

The practice file is just a blank company set up with a few customers, suppliers and the main nominal codes. It's in Sage Line 50 2007

Lady Bea · Post by **Lady Bea** » 12 Sep 2008, 11:51

Hi Mim

I've run a report from the demo company 'Computer & Stationery Mart' to see how they have entered their journals and I've put it into a spreadsheet.

It appears by your figures that the gross salary may be wrong as your first journal is correct, can you check the figures? Are you using Sage Payroll?

If you need the spreadsheet I'm happy to send it via email which you should be able to connect to via my name

mimlloyd · Post by **mimlloyd** » 13 Sep 2008, 16:17

Hi Lady Bea

I've just sent you a private message as my version of Outlook is corrupted so when I click to send you an email in your profile, it doesn't work.

Mim

michellet · Post by **michellet** » 14 Sep 2008, 13:07

The cost to the company is both the gross pay AND the employer's NI, so they should both appear in the Dr column of your journal.

Everything that appears in the Cr column is what the company have to pay out - net wages to the employee; PAYE tax, ee's & er's NI to HMRC.

therefore both sides of the journal will match

When you pay HMRC by bank payment, it will Cr bank and Dr the nominal codes for PAYE tax, ee's & er's, therefore taking them back to zero. the same happens when you pay your employee's (Dr net pay)

The entries for gross pay and er's NI (Dr from your journal) will add up throughout the year for your P&L a/c

mimlloyd · Post by **mimlloyd** » 14 Sep 2008, 15:24

Hi

I put the gross pay and the employers NI as Dr, and the PAYE, net pay and employees NI as Cr as they are costs to the company but it misbalanced by the amount of the employers NI.

Should I also be making a Cr of employers NI somewhere as well as having it as a Dr seeing as this is also something that the company is paying out?

From the remit I was given it's not supposed to be overly complicated to get over to others but it seems to be heading that way!

michellet · Post by **michellet** » 20 Sep 2008, 03:47

hi mim

yes the employer's NI is both a Dr AND a Cr as it is a cost to the company (shown in P&L at end of year) and a liability as it is due to HMRC

it goes into 2211 along with the employee's NI

Michelle

mimlloyd · Post by **mimlloyd** » 20 Sep 2008, 10:57

Thanks Michelle

So as well as posting it as a debit to 7006, I should also post it as a credit to 2211?

Post by **brucedenney** » 24 Sep 2008, 08:27

this may help

http://support.makingithappen.co.uk/gui ... .htm#Wages

mimlloyd · Post by **mimlloyd** » 24 Sep 2008, 09:36

This does help - thanks! It makes it easier to explain to others. I think I'll create a recurring journal and save it. It's not supposed to be too complicated as they are beginners to Sage and new to double entry bookkeeping. I really think that the original figures I were given were a little confusing and could have been explained to me a bit better. It's all got me very confused too!

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New to a Wage journal in Sage - need help!!

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