Any bookkeeper/Sage 50 experts here?

Goose

Goose

Goose

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I started a Book Keeping course a few months back and I now have my final assignment to complete using Sage 50. Unfortunately the training provider is utterly useless and i'm probably being generous with that assessment. The assignment isn't too daunting but i'm stuck on one of the early tasks since it was never covered in the learning material. I'm not asking anyone to do the assignment for me I was just hoping from some guidance.

The first part of the assignment is as follows;

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All perfectly straightforward so far.

The second part;

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Again, no issue here.


The third part if where i'm a little confused.


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As you can hopefully see none of the payee's are to any of supplier accounts we set up previously so I dont understand how or where i'm meant to record these cheques in Sage. My only thought is that they would be Journal entries but again I dont know to which accounts I should be assigning the debit and credit entries. The first one in particular is to 'cash' and as far as im aware there is no 'cash' account?


I realise I might be clutching at straws posting this on computer enthusiast forum but if anyone can help i'd really appreciate it. I'll contact the training provider on Monday but they're criminally incompetent so who knows how much use they'll be.

Cheers.
 
I'm no Sage 50 guy, SUN systems and SAP are my area - do you have any more ledger accounts available than the ones listed above?

Line 1 should be easy.
CR Bank 100, DR Petty Cash 100.
 
Rids said:
I'm no Sage 50 guy, SUN systems and SAP are my area - do you have any more ledger accounts available than the ones listed above?

Line 1 should be easy.
CR Bank 100, DR Petty Cash 100.
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Sage generates a whole heap of default ledger accounts. A chap on another forum has suggested that they would be recorded as Bank Payments that i should assign either to the most appropriate default ledger or to a new ledger created by me.

For the 'Cash' one he suggested it might be a Bank Transfer but since the assignment says they're all cheques I think he might be wrong there. It just doesn't really make sense to me that a cheque would ever be involved with petty cash.
 
Goose said:
For the 'Cash' one he suggested it might be a Bank Transfer but since the assignment says they're all cheques I think he might be wrong there. It just doesn't really make sense to me that a cheque would ever be involved with petty cash.
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Just think it through.

You make a cheque out to cash, go to the bank and cash the cheque, put the money the bank gives you into petty cash. We do it all the time.
 
I'm an assessor for a training provider (hopefully not your useless one!) and also write computerised accounting exams...

They haven't explained it well but I would expect you to be doing bank payments for this, (bank - payments) using appropriate nominal codes. You should be able to use 1230 for the cash one. It's an old fashioned way, writing cheques for pcash, but then cheques are a little outdated overall, we still assess the bookkeeping of them though :)
 
Rids said:
Just think it through.

You make a cheque out to cash, go to the bank and cash the cheque, put the money the bank gives you into petty cash. We do it all the time.
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So it would be a Bank Payment like the rest, not a bank transfer?

Vix said:
I'm an assessor for a training provider (hopefully not your useless one!) and also write computerised accounting exams...

They haven't explained it well but I would expect you to be doing bank payments for this, (bank - payments) using appropriate nominal codes. You should be able to use 1230 for the cash one. It's an old fashioned way, writing cheques for pcash, but then cheques are a little outdated overall, we still assess the bookkeeping of them though :)
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Thanks for that.


I think i've found the second part of this assignment that simply wasn't taught to us all. I'll try and explain it as concisely as I can.

I have to process a number on invoices to customers and suppliers which I can do just fine with 'Batch Invoice' in Sage. For a couple of them discount terms are offered and I understand that the VAT amount payable is on the discounted amount regardless of whether or not they take the discount.

What I dont know is how to reflect this in a Batch Invoice. The invoice in question is as follows.

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The VAT amount on the above invoice is on the discounted amount as you would expect.


Below is how I have constructed the batch invoice so far;

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Clearly the VAT and total amounts are incorrect, i just dont know how to ammend them to take in to account the settlement discount.

Also, for an invoice with multiple items like the one of above is the way i've done it (duplicated the reference, date etc.) the correct method?

Thanks again.
 
If both items fall under the same N/C then you can just do it as one line. This will make it easier to process the VAT as you would just over write the Sage calculation. I think this is what they are looking for you to do in this situation.

The calculation of VAT with settlement discount is based on the discounted net amount. So you would work out 95% of the net amount then add 20% to that to get the VAT. I would say at this level they aren't looking for you to do that.

What qualification is it for and who are you with?
 
Thanks again guys.

The qualification is LEVEL 2 Award in Computerised Accounting for Business from IAB. The training provider is TDLC.
 
Cool, not my employer :) I would say at that level you would not be required to set up settlement discount within the customer record so hopefully you will find that each invoice item should go to the same nominal code. Good luck!
 
Rids said:
Are you planning on furthering your accounting studies by going the AAT route or equivalent?
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I was hoping to an entry level book keeping job and just go from there really. If I take to it and feel that it could be a career then i'd look to going down the AAT route.
 
Personally I would invoice the full amount then put through a provision against discounts allowed, i.e. Dr discounts allowed Cr creditors. Or raise a separate credit note on the sale ledger.

The way you have done the above you'd get people paying 5% less than the already discounted amount.
 
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Hyperseven, who are you studying level 2 with? I'm studying level 2 with Acacia. I have 2 units left too, then on to level 3. Are you currently employed in the industry?
 
I would put it all in one line, your reference would be the number you assign to the invoice in order to find it in your paper records, the description would be the invoice number, and I would change the vat figure to what it states on the invoice. As long as you have the settlement discount shown on the invoice and it conforms to HMRC guidelines then you would be fine to do this.
 
Participant said:
Personally I would invoice the full amount then put through a provision against discounts allowed, i.e. Dr discounts allowed Cr creditors. Or raise a separate credit note on the sale ledger.

The way you have done the above you'd get people paying 5% less than the already discounted amount.
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But the VAT has to be invoiced based on the discount offered, even if not taken.
My lecturer says this is going to change and get in line with the rest of Europe by issuing two invoices, one with and one without settlement discount.
 
If I enter the batch invoice with the original net amount and discounted VAT amount what happens when i process the payment for said invoice when the customer does take up the discount? The amount he pays wont tally with the amount on the invoice since Sage doesn't "know" there is a discount.
 
Goose said:
If I enter the batch invoice with the original net amount and discounted VAT amount what happens when i process the payment for said invoice when the customer does take up the discount? The amount he pays wont tally with the amount on the invoice since Sage doesn't "know" there is a discount.
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You enter the discount in the payment. It's a bit of a fiddle, but that is how it is intended to work.
 
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