Help with transferring expenses to nominal account?

melb2902

I kind of know what i need to do but want to just confirm how to do it on Sage.

I have an expense account on my supplier list. There is a balance outstanding to pay. However, on the same persons credit card statement, they accidentally used it for a private purchase.

Rather than pay the expenses out and then ask for the money back, how can I transfer the money due on the expense account to the loan account, effectively clearing the money owed to the company with expenses due on Sage?

Ta for help :-)

(hope it makes sense...will clarify if need to)

Cudey

melb2902 wrote: »

I kind of know what i need to do but want to just confirm how to do it on Sage.

I have an expense account on my supplier list. There is a balance outstanding to pay. However, on the same persons credit card statement, they accidentally used it for a private purchase.

Rather than pay the expenses out and then ask for the money back, how can I transfer the money due on the expense account to the loan account, effectively clearing the money owed to the company with expenses due on Sage?

Ta for help :-)

(hope it makes sense...will clarify if need to)

I think I understand your question. Firstly, what Sage package do you use?

The way i'd handle this is by doing a Purchase Ledger Journal to clear the expense on the Supplier account. Effectively this will be a debit in the PLCA and a credit into Suspense.

Next, you have to clear the suspense account, so Debit suspense and credit loan account through a nominal journal. The private usuage on the credit card is an expense, therefore this should appear as a debit in the loan account, and the two should net off against one another.

Hope that makes sense?

melb2902

I totally get what you are saying. But I am not sure how to do the journal. From the supplier account to the suspense account. I am using Sage Instants. I guess that is where the main problem lies for me...have tried to find a step by step guide but if you could help that really would be super ;-)

Cudey

melb2902 wrote: »

I totally get what you are saying. But I am not sure how to do the journal. From the supplier account to the suspense account. I am using Sage Instants. I guess that is where the main problem lies for me...have tried to find a step by step guide but if you could help that really would be super ;-)

Ah dam, unfortunately I don't have knowledge of Instants. I gather there's a Journal section under the Purchase Ledger/Accounts Payable module?

crispy

Hello,

I don't use sage instants, but could you not just post the transaction as a supplier Credit Note and Nominal code it to suspense ? This would have the same effect as posting a journal (eg. by Dr PLCA (clearing the supplier A/c and crediting suspense).

Apologies if this not helpful :P

melb2902

Yeah I can do a journal, from the creditors control account to the suspense account but then that doesn't reflect in the actual supplier account itself which then makes it out. So i don't know how to effectivley show the payment on the expenses account itself. So if it makes sense I understand what I need to do just not how to do it gggrrr lol!

Cudey

melb2902 wrote: »

Yeah I can do a journal, from the creditors control account to the suspense account but then that doesn't reflect in the actual supplier account itself which then makes it out. So i don't know how to effectivley show the payment on the expenses account itself. So if it makes sense I understand what I need to do just not how to do it gggrrr lol!

Sorry, I'm still a little lost on what's confusing you? Do you know how to get into/find the Purchase Ledger journal screen?

Cudey

crispy wrote: »

Hello,

I don't use sage instants, but could you not just post the transaction as a supplier Credit Note and Nominal code it to suspense ? This would have the same effect as posting a journal (eg. by Dr PLCA (clearing the supplier A/c and crediting suspense).

Apologies if this not helpful :P

I use to do it this way, until an Auditor drilled into the credit notes and gave me a headache. :glare:

crispy

What I would do: -

Clearing the Expense A/c: -
Post Supplier Credit Note and Nominal Code it to the Loan A/c (Dr PLCA Cr Loan A/c - this will clear the supplier A/c)

Credit Card Payment: -
As personal item then post Nominal Payment from the Credit Card to the Loan A/c (This will Dr Loan A/c Cr Credit Card)

The loan A/c will show a debit against the personal items paid on the company credit card, and a credit against the expenses due.

Keep an audit trail of what you have posted and why.

melb2902

Yeah I can do the journal from the PLCA to suspense but then that doesn't reduce the individual supplier account. i.e if the starting balance on the plca was 100.00 and i reduce it by 10.00 to the suspense that is fine but if the individuals expense account was starting at 100.00 it would remain at 100.00 as it won't update it via the journal...if that makes sense..

crispy

To clear the supplier A/c you will have to either: -

Post Credit Note to supplier A/c (N/L Code to Loan A/c) or...
Post Refund (Or Void cheque?) to Supplier A/c (Then post Nominal journal to Dr Bank, Cr Loan A/c for the same to correct the Bank A/c balance)

Keep Audit trail.

Cudey

melb2902 wrote: »

Yeah I can do the journal from the PLCA to suspense but then that doesn't reduce the individual supplier account. i.e if the starting balance on the plca was 100.00 and i reduce it by 10.00 to the suspense that is fine but if the individuals expense account was starting at 100.00 it would remain at 100.00 as it won't update it via the journal...if that makes sense..

Hang on, sorry if I'm being pedantic, but it sounds like you're doing a nominal journal from the PLCA? You need to do a Purchase Journal which is into the individual supplier account. I recall some packages don't have a Purchase Journal option available, if that's the case do as Crispy said and do a credit note coded to the Loan A/C and keep a paper trail of what you've done.

melb2902

Cudey wrote: »

Hang on, sorry if I'm being pedantic, but it sounds like you're doing a nominal journal from the PLCA? You need to do a Purchase Journal which is into the individual supplier account. I recall some packages don't have a Purchase Journal option available, if that's the case do as Crispy said and do a credit note coded to the Loan A/C and keep a paper trail of what you've done.

Ahh yep you are right...I don't have this facility so there lies my confusion. Ok so will follow Crispy advice. Crystal Clear..thanks my lovelies ;-)