Home For accounting professionals General accounting discussion
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


Payroll Journals with SMP

Jo LeggJo Legg Settling In NicelyRegistered Posts: 20
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

  • KaySarahKaySarah Well-Known Registered Posts: 215
    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
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    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 :)
  • uknittyuknitty Experienced Mentor Registered Posts: 591
    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
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    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 :)
  • uknittyuknitty Experienced Mentor Registered Posts: 591
    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:
  • MonsoonMonsoon Font Of All Knowledge FMAAT, AAT Licensed Accountant Posts: 4,071
    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!!
  • KaySarahKaySarah Well-Known Registered Posts: 215
    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
  • uknittyuknitty Experienced Mentor Registered Posts: 591
    I think I am just failing to express myself correctly. Nothing new there then :D
  • KaySarahKaySarah Well-Known Registered Posts: 215
    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:
Sign In or Register to comment.