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• # 80620
• Thu 08 Mar 2012 01:39 PM

Hi all,

Just wanted to check what the correct way of handing cash receipts in the following situation?

An employee submits a bunch of receipts with his time sheet for reimbursement.

This is added to his pay as a post tax payment using sage payroll.

Then:
Set up the nominal link
Override the payment type (expenses) in payroll to post the expense amount to a misc. expenses account
and leave the remaining net wages to be posted as normal to 2220 net wages account.

(the above would work but does not take care of the vat on the cash reciepts...)

The other way it could be done to account for the vat is to open a cash account in sage accounts (Bank screen) and post each paper expense receipt into the account as payments including the vat. 

When the payment of expenses is paid to the employee - the money would be paid out of the main bank and into the cash account (but to the employee)

But this payment will then not show on the payslip for the employee??

I have explained this in the best way I can, if someone could give me some ideas / pointers ?

Many thanks ....
x

 

• Tash :-)
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• # 80627
• Thu 08 Mar 2012 04:30 PM

Hi Tash,

I'm not a Sage guru, but may have an idea for you...

Can you post the salary without the expenses via the Sage Payroll Nominal Link? If so, you could then post a journal for the expenses:

N/C 2220 Net Wages - amount of expenses, incl VAT - T9 tax code
N/C as required for relevant expense - amount of expenses, excl VAT - T1 tax code
N/C 2201 Purchase Tax Control Account - VAT amount - T1 tax code

Hope that helps. 

• 
  Helen
  http://www.lookaftermybooks.com/
  
  

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• # 80634
• Thu 08 Mar 2012 07:18 PM

Hi Helen,

Thanks for responding :-)

Im not sure if sage will let me do the link without all the postings...?? will have to ask tsage technical support on that one! If it is possible, your journal route is an option :-)

But I keep thinking more along the lines that,  if I have a huge bunch of receipts every month from this employee, for record keeping purposes, it would be benificial to have some kind of account for him?

By recording each expense one at a time by receipt, I can deal with the expense code and vat accurately and if he ever quiries what he has been paid with his wages I will have an account to refer back to?

Its just getting it from payroll to acounts in such a way that I can still record each receipt.......??

Will have to give it a bit more thought...

Thank you!





Edited at 08 Mar 2012 07:31 PM GMT

• Tash :-)
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