More Sage pain

[TheGriffalo]

So the cash could just go straight in my pocket and that's it dealt with? The balance will just rise and rise ad infinitum...

[smartie]

if the cash goes in your pocket......

You need to show the invoice being paid by cash (customer gives you cash which goes into the cash account)........then you take the cash yourself and post this to your loan account.

Invoice paid and cash balance back to nil.

[Eric Mc]

You issue a sales invoice to a customer.

Sage Entry -

Total Vat Inclusive value of invoice debited to Customer Sales Ledger Account.

Total Vat Exclusive value of credited to Sales heading in Profit and Loss account.

VAT element of invoice credited to Sales Vat Control Account


Customer then pays the invoice by cash

Sage Entry -

Clear Sales invoice by a cash payment entry. This will automatically zero the customer's Sales Ledger Account and creat a "Cash on Hand" balance in the Cash Account.

If you then physically take the cash out of the company for yourself, you need to make a final entry - possibly by using a journal. If the business is a limited company, this entry will be:

Debit Directors Loan Account
Credit Cash Account

If the business is a sole tradership or a partnership, the entry will be:

Debit Proprietor's Drawings
Credit Cash Account

These entries will serve to zero the Cash Account and put the cash withdrawl in the correct place in the accounts.

[TheGriffalo]

Thanks guys.... Now I know why I stick to monthly Standing Orders... Much more simple

[HRG]

Me again. Woohoo, I've received a refund from the tax man as I paid early. What code should I post this marvellous £3.93 refund under in Sage?

[Eric Mc]

Is it a genuine "refund" of tax already paid or is it the "Supplement" they give you (a form of interest) if you had overpaid or paid your tax slightly early?

Edited by Eric Mc on Wednesday 5th November 11:25

[HRG]

At the top of the letter it says "Repayment"

Interest payable to you
Amount to be repaid to you for this accounting period £3.93

Does that help?

[Eric Mc]

Sounds like it's a "Repayment Supplement". Therefore it is NOT a tax refund. It is an additional amount payable to you because the Revenue had their hands on your tax money slightly before the date they should have had it (because you paid early). It is therefore a form of interest income and not a refund of already paid tax.

This income should be allocated to an "Income" type heading in the profit and loss account area of Sage. I usually use a general heading such as "Sundry Income". I would be against posting it to a heading such as "Interest Received" as it is not "Bank Interest". The thing you need to remember is that Bank Interest received is subject to Corporation Tax. Interest paid to you by the Revenue is NOT taxable (makes sense when you think about it) and therefore you would not want to inadvertantly disclose it as part of the Bank Interest received. If the Tax Supplement gets bunched in with Bank Interest, you could be charged Corporation tax on it in error.

[HRG]

Thanks once again Eric, Is miscellaneous Income OK then, I have a N/C for that (4900). T9 or T0?

[Eric Mc]

It's actually classified for VAT purposes as "Outside the Scope of VAT" so it is technically neither Zero Rated or Exempt. I think T9 is safe enough.

[HRG]

Helpful as always... What would I do without you

[HRG]

Thanks to Darling's advanced fkwittery I've got to submit my VAT return soon which of course is at two differing VAT rates.

Will Sage handle this OK or do I need to do something special? I altered the VAT rate in Sage on the correct day before making any entries.

[BliarOut]

And today's conundrum, tiered pricing

We are selling some software that has a pricing structure from the supplier. For 5-10 seats it's (eg) £99.77 per seat, for 11-24 users it's £98.33, for 25-49 users it's £97.99 etc. How do I set the products up in Sage without having to have a different code for each level?