Payroll Journals with SMP

Jo Legg
Jo Legg Registered Posts: 20 Dedicated contributor 🦉
Hi



I have the following journals taken from Sage Payment Summary Report:

7001 (Gross salary0 7969.73 dr

7006 (Employers NI) 379.06 dr

7014 (SMP reclaimed) 699.58 cr

2210 (PAYE) 390.40 cr

2210 (Eees and Eyers NIC ) 700.90 cr

2220 (net wages) 7257.49 cr



But they dont agree by the SMP!!



Its driving me nuts, as I'm sure I include it in gross pay and then deduct it on the cr side.



Can some one help please!!

Comments

  • KaySarah
    KaySarah Registered Posts: 215 Beyond epic contributor 🧙‍♂️
    Jo Legg wrote: »
    Hi



    I have the following journals taken from Sage Payment Summary Report:

    7001 (Gross salary0 7969.73 dr

    7006 (Employers NI) 379.06 dr

    7014 (SMP reclaimed) 699.58 cr

    2210 (PAYE) 390.40 cr

    2210 (Eees and Eyers NIC ) 700.90 cr

    2220 (net wages) 7257.49 cr



    But they dont agree by the SMP!!



    Its driving me nuts, as I'm sure I include it in gross pay and then deduct it on the cr side.



    Can some one help please!!

    You would have needed to have set up at separate N/L code within Sage Payroll under : Company/Nominal Settings/PnL Analysis and enter it (the Nom Code number) in here before you processed the Payroll - otherwise it will throw out a discrepancy and put it into Suspense Account - you will have to do a manual journal to correct it out of suspense and into your unique SMP N/L Code
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    You need to also DR the PAYE due to HMRC account with the SMP amount because the way you recover the SMP is to reduce your payments to HMRC by that amount :)
  • uknitty
    uknitty Registered Posts: 591 Epic contributor 🐘
    I don't know sage, but I would say that the journal for reclaiming SMP needs to be

    Dr SMP Reclaimed (or HM Rev control account if you do things that way)

    Cr Wages Control
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    uknitty wrote: »
    I don't know sage, but I would say that the journal for reclaiming SMP needs to be

    Dr SMP Reclaimed (or HM Rev control account if you do things that way)

    Cr Wages Control
    Other way round, but yes :)
  • uknitty
    uknitty Registered Posts: 591 Epic contributor 🐘
    I thought money coming in from revenue (or a deduction from what is owed) is Dr to the revenue control account and Cr to Wages.

    Should it be Dr Wages Cr Revenue control ?

    confused.com:huh:
  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
    It's going to be DR Balance Sheet Money owed to HMRC (as you're reducing a liability)
    CR Profit and Loss SMP Reclaimed (a 'sale' on the P&L account).

    "money coming in from revenue (or a deduction from what is owed) is Dr to the revenue control account and Cr to Wages."

    Thats right, but that's not how I read your post. Your Cr to Wages Control is on the BS, as a control account isn't on the P&L.

    Now I'm confused.com!!
  • KaySarah
    KaySarah Registered Posts: 215 Beyond epic contributor 🧙‍♂️
    Monsoon wrote: »
    It's going to be DR Balance Sheet Money owed to HMRC (as you're reducing a liability)
    CR Profit and Loss SMP Reclaimed (a 'sale' on the P&L account).

    "money coming in from revenue (or a deduction from what is owed) is Dr to the revenue control account and Cr to Wages."

    Thats right, but that's not how I read your post. Your Cr to Wages Control is on the BS, as a control account isn't on the P&L.

    Now I'm confused.com!!

    Dr Gross Wages
    Cr SMP
    Cr PAYE
    Cr NI
    Cr Nett Wages
  • uknitty
    uknitty Registered Posts: 591 Epic contributor 🐘
    I think I am just failing to express myself correctly. Nothing new there then :D
  • KaySarah
    KaySarah Registered Posts: 215 Beyond epic contributor 🧙‍♂️
    Payroll Journal Example

    :huh:Sorry I was running a bit behind yesterday and only dashed off a quick response :
    below is a payroll journal example : hope it helps to clarify your thoughts :


    Wages Journal Example

    Nom Code Debit Credit
    2211 SPP Recovered 236.87 Cr
    2210 PAYE 232.87 Cr
    2211 Total SPP Recovered 236.87 Dr
    2211 NI ee + er 477.03 Cr
    2220 NET Wages 1910.75 Cr
    2230 Pension ee + er 174.38 Cr
    7000 Gross Wages 2184.70 Dr
    7006 NI er only 255.99 Dr
    7007 Pension er only 96.88 Dr
    7014 SPP 257.46 Dr
    TOTALS 3031.90 3031.90

    Apologies for the poor layout - it looks far better on a spreadsheet lol :glare:
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