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• # 93541
• Sat 14 Sep 2013 11:31 AM

Hi everyone

Got a query about nominal codes in Sage. I have an invoice for travel expenses which I have paid from my bank account (and put into 7400 - Travelling) but this is being reimbursed by my client. When I invoice my client for this expense what nominal code do I enter the invoice under? If I put it under 7400 again then it looks as though I have put through the cost twice.

Am sure I should know the answer to this but am having a 'blonde' moment :)

Thanks for reading.

 

• Heather Wilsher
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• # 93542
• Sat 14 Sep 2013 12:02 PM

Hi Heather

If you are posting it to travel costs then it would not be showing as a second charge as it would be on the opposite side. Remember the first posting was you purchasing the travel this time you are invoicing the client (sales).  

Regards

Liz

• Time can never be replaced. Spend it wisely.

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• # 93544
• Sat 14 Sep 2013 01:22 PM

Hi Heather,

In Sage when you invoice your client you will post travel to a 4000 nominal code - you may have to amend an existing 4000 code that you do not currently use to name it Travel. Or setup a new nominal in the 4000 series in the Chart of Accounts.
If you use an existing 4000 code you will still haveto amend the name in the Chart of Accounts so it will show on your P&L report.  
All the 4000 codes are for 'sales'.

Marilyn  

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 93545
• Sat 14 Sep 2013 03:28 PM

Thanks for your replies. 
Lizzie - yes of course, I realise that now!!
Marilyn - if I do that will it now show up as income?

Thanks for your replies ladies. Just want to get this clear in my head  

• Heather Wilsher
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• # 93548
• Sat 14 Sep 2013 05:53 PM

Hi Heather,


Yes it will show as income which it should do as that is what it is.

See below how Sage Nominal Codes are used - hope this helps.

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 93560
• Sun 15 Sep 2013 08:30 PM

I have to disagree with Marilyn and agree with Lizzie. This situation arises regularly with one of my clients and I post the travel he charges his client to 7400. My clients travel expenses are also posted to 7400 so the net effect on his travel expense in his P&L is zero. If the `income` travel expense were to be put into the 4000`s you would be over stating the sales and therefore your gross margin would be distorted.

Steve

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• # 93562
• Mon 16 Sep 2013 08:58 AM

In theory what you Steve is ok providing the travel is always going to be zero at the end of the year.

However, what happens if you charge the client more than it costs? The difference is income.

I prefer to allocate to income and then do a journal at the year-end.

Both ways are satisfactory but I like to see how much has actually been invoiced as reimbursement and that is why I would post to income.   

Just a note - there have been instances where HMRC have stated you cannot claim for this travel as it is to and from place of work. They seem to change the goalposts at every opportunity and therefore I prefer to make everything as transparent as possible.

Marilyn

   

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

• 
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• # 93565
• Mon 16 Sep 2013 09:24 AM

Hi 

I agree if you are charging clients for travel on a regular basis then I would do the same as Marilyn especially if you are charging the client more than it is costing you. Although I would do the journal on a monthly basis otherwise your revenue is going to be over inflated each month till year end. However in Heathers case where she is being reimbursed for the value of the invoice if this is the only type that is re-imbursed then using the same code makes it simpler.


Regards

Liz

• Time can never be replaced. Spend it wisely.

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• # 93567
• Mon 16 Sep 2013 10:23 AM

Thanks everyone. I have noted all your comments. As this is a one off and cannot be classed as travel to and from work (flying from Inverness to Luton!) I will put under travel. I am not charging anything extra on top so will not be any income from it. However, will bear in mind your comments if a similar situation arises that is more regular or has a difference in actual cost v repayment.

Thanks again. 

• Heather Wilsher
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