Another Sage query

DavePDaveP Feels At HomeRegistered Posts: 79
I seem to have 8500 as my standard dividends code but this does not clear out to the P&L at year end so every year I have to do a manual journal.

Does anyone know how to make a particular code clear out?

I'd rather do that than have to transfer the code to one within the range that already clears.

Many thanks.

Comments

  • Nilesh MandviaNilesh Mandvia Feels At Home Registered Posts: 91
    Coa

    Dave

    You need to amend your COA to include this code. Once you include as part of your default COA, I think, then this code will be included during y/e process.

    Nilesh
  • DavePDaveP Feels At Home Registered Posts: 79
    Thanks Nilesh

    That seems to work only if I add it to the P&L as, say, an overhead.

    Ideally I want the dividends shown as a capital item on the balance sheet (which is where I have now put them on the COA) however I suspect this will now not reverse on year end.

    Any other suggestions?
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,069
    AFAIK, if you want Sage to clear the balances at the end of the year, you have to make it a P&L account. If you want it to be a BS account you'll have to do a manual journal.

    Technically, a dividend appears on the P&L, after net profit and corporation tax, as the dividend reduces the shareholders funds on the bottom half of the BS.
  • BluewednesdayBluewednesday Font Of All Knowledge Registered Posts: 1,624
    Dividends don't appear on the profit and loss account anymore, just in the balance sheet as DaveP is trying to achieve. They should now be shown as a movement in reserves in the balance sheet notes.

    This is a change with FRSSE 2005 and FRS25 from June 2006.

    Unfortunately I'm not sure how my Sage is set up but I don't seem to have that problem, but then maybe I just ignore it as I do my final accounts on PTP.
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,069
    Cheers BW just shows how good my memory is!:blushing::001_tongue:
  • Nilesh MandviaNilesh Mandvia Feels At Home Registered Posts: 91
    Two COA
    DaveP wrote: »
    Thanks Nilesh

    That seems to work only if I add it to the P&L as, say, an overhead.

    Ideally I want the dividends shown as a capital item on the balance sheet (which is where I have now put them on the COA) however I suspect this will now not reverse on year end.

    Any other suggestions?

    Why not have two different COAs,

    1. With the dividends as an overhead in P&L,
    2. In a balance sheet as part of the reserves.

    This should work, clear the dividend account with year end process, and will show within balance sheet.

    Nilesh
  • DavePDaveP Feels At Home Registered Posts: 79
    Two COA's? You're brave!!

    Basically, I don't want it hitting the P&L at all. My statutory accounts are prepared using VT, I simply transfer the TB over at year end.

    However, when I look at the Sage P&L to compare I don't want to see dividends hidden in the overheads because it just distorts the comparison.

    I'm sure in other packages (Quickbooks perhaps?) you can change which codes revert to the P&L reserve at year end. I was hoping you could do the same in Sage.

    I guess I'm just going to have to do it manually!
  • Nilesh MandviaNilesh Mandvia Feels At Home Registered Posts: 91
    2 Coa's

    Hi Dave

    Have you tried it? I do use more than one COA.

    On first (Default) You include as part of the Profit and Loss Accounts. (But you not use this when print or view P&L)

    When you create another COA, you do not include as part of the Profit and Loss a/c. Instead include in Balance Sheet.

    When you want to print or view use COA 2, where you can see that dividend is now included as part of the BS.

    Eventhough, we have created a nominal accounts as overhead, still you can include the same account in Balance Sheet.

    I use Sage Line 50 V12, I do not know if they brought this change in newer version.

    Nilesh
  • PoodlePoodle Experienced Mentor Registered Posts: 711
    Hi

    Sage do have a knowledge base article on this as follows and they suggest using nominal code 3201

    "Dividends are part of the appropriation of a company's profit. The dividend amount is decided by the board of directors of a company, and then agreed by the shareholders of the company.

    Appropriation of profit appears on the Profit and Loss report after the net profit figure and Sage Accounts does not have any categories on the Profit and Loss report after net profit. Therefore, we suggest the dividend entries be posted to a nominal code in the Capital and Reserve section of the Balance Sheet report, and a liability nominal code on the Balance Sheet report, where it remains until paid.

    To record the proposed dividend - When you decide on the Proposed Dividend amount, you should record this in Sage Accounts. When posted, this value appears as a Liability on your Balance Sheet report, and updates the Capital and Reserves section of your Balance Sheet report.

    To pay the dividend - When you are ready to pay the dividend, you should post a bank payment to the Dividend Liability nominal code. This reduces your bank account balance, and the balance on the Dividend Liability nominal code.

    To journal the value from the Dividend nominal code to the Profit and Loss nominal code - After posting the dividend transactions, the balance remains on the Dividend nominal code, 3201. You may want to move the balance from this account, to the Profit and Loss nominal code either at some point during the year, or after running the year end. This ensures that the balance on the Dividends account only relates to the current year."


    Poodle
  • DavePDaveP Feels At Home Registered Posts: 79
    Hi Poodle

    Thanks for the info.

    Unfortunately, this sentence..

    "You may want to move the balance from this account, to the Profit and Loss nominal code either at some point during the year, or after running the year end. "

    ..is precisely what I am trying to avoid!

    I think I might leave it in the P&L account but try and change the report to show it separate from overheads. If that's possible..
  • archercarcherc Just Joined Registered Posts: 2
    Hi Dave

    Have you tried it? I do use more than one COA.

    On first (Default) You include as part of the Profit and Loss Accounts. (But you not use this when print or view P&L)

    When you create another COA, you do not include as part of the Profit and Loss a/c. Instead include in Balance Sheet.

    When you want to print or view use COA 2, where you can see that dividend is now included as part of the BS.



    Dave

    I think I am confused.:confused1: You have the solution as suggested by Nilesh. And still you are asking
    DaveP wrote: »

    I think I might leave it in the P&L account but try and change the report to show it separate from overheads. If that's possible..

    I am going to ask you the same question. Have you tried it?

    You can have a seperate category within the COA for the dividends. But It has to be part of P& L. Unfotunately sage line 50 would not give a flexibility as it is off the shelf product. :thumbdown:

    I tried and tested as suggested by Nilesh, it works fine.:thumbup:

    What you need to remember is when you print or preview P&L and BS you have to choose correct COA, i.e. the dividends as part of the BS.
  • DavePDaveP Feels At Home Registered Posts: 79
    archerc wrote: »
    Dave

    I think I am confused.:confused1: You have the solution as suggested by Nilesh. And still you are asking

    I am going to ask you the same question. Have you tried it?

    Having 2 COAs and cherry-picking the correct P&L and BS every time I want to look at either of those reports seems more effort than making a single journal entry to reverse out the dividends once a year.

    Reversing out those dividends is comparatively simple, I was just hoping I could get Sage to do it automatically.
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