SageForum for UK versions of Sage 50- Help and support.

Hi

We moved to using sage line 50 (2007) this year. In april we made a number of payments for invoices received in the previous financial. We have not entered any invoices for the old period into sage. How can ensure that payments appear in the bank reconciliation, but are not treated as costs in this year?

We have looked at the accruals function on the nominal ledger, but this seems to be more suited to an ongoing arrangement (i.e. monthly).

the nominal code relating to the invoices is subcontractors. So if we do a journal entry from subcontractors to the accruals nominal code, will this still appear as a cost in this year's accounts? Our concern is that when we assess subcontractor costs for this year, we do not want these transactions listed.

Any suggestions.

Cheers
Chris

Hi Chris,

Am I right in thinking that you changed versions at the start of a new financial year?

If so then you will need to post opening balances, and these old invoices should have been included as either creditors or accruals in last year accounts.

Provided this is the case, you need to post the payment as either a supplier payment (to off-set the creditor) or a bank payment coded to accruals. Either way the expense will not show in this years figures but will show for the bank rec.

I hope this helps.
Emma

the opening balances should be back dated to last year and posted against the retained P&L Acocunt eg 3200

Assuming you are not running cash accounting for VAT, they are outside the scope of VAT (as vat was accounted for in your old system) and should be posted as tax code T9 with no VAT