Work skills Sage Line 50- Bank Reconciliation

LeeLee Feels At HomeRegistered Posts: 29
Could someone please help. I have started working on Sage Line 50, live. I have entered a wrong opening balance on the Bank Current Account. When I tried to correct this error, the system was actually adding up the figures. Now the Bank current account is showing a negative balance.

How can I correct this?

To give a brief history, the company only started trading in November 2010. The director did not record any entries since then. I have entered all the supplier invoices and now need to enter payments already made to the suppliers, enter opening bank balance and all the receipts as per the actual bank statement.

Comments

  • RinskeRinske Font Of All Knowledge Registered Posts: 2,453
    Based on the bank account and the sage balance, calculate out the difference that you need to add to come to the right balance and add that as a difference instead?

    Not sure if you can adjust it differently in sage, as I got no experience with sage at all.
  • LeeLee Feels At Home Registered Posts: 29
    Work skills Sage Line 50- Bank Reconciliation

    Thanks Rinske for your response.

    What I am trying to do is to remove the balance on the bank account completely to zero and start afresh.

    This is how the mistake happened:

    Opening Balance £9 571.98 (entered twice in error) = £19 143.96
    Receipts £9 571.80
    Receipts £5 638.51

    The bank balance now showing on Sage is -£34 354.27. (which is wrong)

    The correct hard copy bank statements reads:

    Opening Balance £9 195.80
    Payments £9 571.98
    Commission £51.40
    Interest Paid £0.00
    Total receipts £5 638.51
    Closing Balance £5 262.33

    I was actually silly entering details this way.

    Please help. This is the first time I have used live Sage and messed it up.
  • RinskeRinske Font Of All Knowledge Registered Posts: 2,453
    I'm not sure if you can start fresh, but maybe the sage forums/ help database can help with that? http://support.makingithappen.co.uk/ has a free forum to browse questions asked and someone might have asked the same question before. http://forum.makingithappen.co.uk/viewtopic.php?f=1&t=1458&p=4459&hilit=opening+balance&sid=00d7838d0cc85345cb4d0f639031d01f#p4459
    seems promising!

    I don't know if you can correct it by cancelling original transactions, but I think I read on the AAT forums that you can't. In which case the easiest way to correct it would be to make a correction booking of the errors.

    I would, to keep it transparent what the error is (I never remember if I look back at it next year), so I would make a few transactions:

    1. To correct the opening balance:
    A negative balance of £ 19 143.96 (or two times £ 9 571.98, depending on if you can add descriptions).
    A positive balance of £ 9 195.80
    Which should provide the correct opening balance.

    2. To correct the receipts that should be payments:
    A negative receipts of £ 9 571.80
    Payments of £ 9 571.98
    To make sure that they are listed as payments.

    This would leave a balance of 5,262.33
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,069
    Go to Nominal and view the Ledger. look for where the other side of the bank transaction has been posted, it will likely be in 9998 Suspense. You can just do a journal to get the right amount, because if the bank is wrong then another account will be equally wrong in opposite.
  • NikdougNikdoug Feels At Home Registered Posts: 69
    Why do you need and opening balance, did the company not open a new bank account? I would start afresh (create new company) and enter each transaction from the bank statements. May take some time but at least you know it will be correct and easier to follow. Everyone likes a clean Sage.
  • LeeLee Feels At Home Registered Posts: 29
    I have already entered a lot of data in the system and to start afresh would be a nightmare. However, I will try to look at the journal as an alternative then make corrections from there if that's gonna work.
    Thank you very much for your help.
  • LeeLee Feels At Home Registered Posts: 29
    Hi, I will try the journal way. I haven't corrected the errors yet.
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