Incorrect posting (from Nominal Link) to Petty Cash

[NatJW2016]

Hi,

There is probably a very simple solution to my issue but everything I've tried so far, I've ended up with balances in places I don't want them!

Over the last few months, our Sage payroll has been posting expenses amounts to our Petty cash account, without me realising. (£80, £25 and £30). I only realised when I noticed that the Petty cash account had £135 DR balance. We do not use the petty cash account at all, so it should be at 0.

The amounts have already been posted manually as bank payments from our current account as I would have included them with the certain employee's wage figure and just posted it as a bank payment to Wages control. So the nominal code doesn't have to be a bank account at all

Sage will not let me delete transactions in the corrections window. Where should they be posted, so as not to create a balance in our petty cash account? Sorry, that might not be clear at all!!

Thanks!

[brucedenney]

If they are expenses and have been paid through a bank then why are they on the payroll?

[NatJW2016]

Hi,

Employee expenses. I.e. An employee buys himself a pair of work boots and needs reimbursing for them. In Sage Payroll, there is an option to pay the employee the amount owed, post tax. Sage Payroll then rightly included this in the nominal link, but posted it to Petty Cash as money in?? Where I wouldn't want it to go.

[brucedenney]

Why have they already been posted as bank payments if you are paying them via their wages?

[NatJW2016]

Well, the wages need to be posted as bank payments manually from our current account in Sage, so I posted the amount paid to that employee including their expenses, as I do not have the bank payment option turned on in Sage payroll, just the nominal link bit.

[brucedenney]

In that case you need to change the nominal link to post expenses to an expenses nominal code in future.

To deal with the current balance make a bank payment on the petty cash account to the expenses nominal code.

[NatJW2016]

Thank you, that's perfect thanks. Should have known that!

No worries if not (not sure if this forum covers payroll) but how do I go about changing where payroll posts the post tax expenses in the future?

[brucedenney]

There is a nominal link setup where you choose where each type of pay goes.

You could set up fuel separately to hotels and reimburse them independently and have expense posted to different nominal codes