We never came across this type of accounting before. Net pay is generally accounted into balance sheet. In quickfile it is accounted into the P/L (expenses). We detagged the transactions and retagged them using 2220. This was to no avail. The amounts remained into 7003 creating havoc with the P/L. We also entered usual month end journal entries for net wages and paye/nic and also noticed some automatic entries from P/L into net wages. We do not know where these are from and cannot reverse them. We are starting to regret no to strongly advise clients to stick with sage…
It recently started happening, it was working perfectly, perhaps a minor glitch in system @Glenn can have a look
You find the following howto guide helpful:
http://community.quickfile.co.uk/t/how-do-i-enter-payroll-paye-journals-and-entries/53
We’ve not made any changes here for at least a year. In fact the system did used to journal the net wages to the balance sheet code (2220), but some users (example here) were asking why net wages weren’t getting deducted from their profits so we later modified the system to post net wages to a P&L code. This wasn’t on the basis of one user’s request but a recurrent theme on our old forum.
We may add an account-level option in future so each user can decide where to post net wages. In the mean time if you’d prefer these to be allocated to 2220 you can post them directly to the nominal code using the option Something else not on this list.
Then select the Net Wages account within the drop down list.
I agree with ElpisBS. There must be the option to post/tag Net Pay paid from the bank feed to a Balance Sheet account. The best account for this is 2220, This is what I was asking for in my post Tag bank payment to balance sheet account.
I don’t think this will be a problem, I’ve entered this as a feature request in our planning software. Hopefully the option should appear in the next couple of weeks. I will update this thread when it’s live. In the mean time I would recommend just posting directly to 2220.
As of today you can now invoke an account wide setting so that any “Net Wages” items tagged from the bank will only be posted to 2220 (Net Wages) and any subsequent movement to the P&L will be left to the user.
The new setting can be found in Account Settings >> Company Settings.
Here’s the annotation on the above page for this setting, it should provide some context:
By default Quick File will post any net salary tagged from the bank to the balance sheet code 2220 (Net Wages) a simultaneous posting is then made to move that balance to the profit and loss code 7003 (NET Staff Salaries Paid). This means your P&L will always account for any salary adjustments. If you are running your own payroll journals you can tick this box to only post to the balance sheet, you can then move this balance yourself later via your payroll journals.
Just a small comment on this. I tried using ‘Something else’ and ‘Net wages’ in the bank tag yesterday and found that it actually posted to 7003 and not 2220! Would it be possible to show the nominal account number in the Account drop-down and not a text description?
I’m not sure how that would happen? If you’re posting directly to a nominal code and you selected ‘Net Wages’ it should have gone to code 2220.
7003 is NET Staff Salaries Paid.
I do think however showing the nominal code in the drop down selection for posting directly to a nominal account would be beneficial. I’ve recommended this to our dev team.
I must apologise - I just tried it again, and it behaved as you describe! I’ll swear that yesterday it did not…
Oh well.
Thanks for the quick replies.
Discovered the ‘problem’ - posting direct to a nominal account does not stop the additional P&L posting triggered by the ‘salary’ category, so if you do not enable ‘Post to balance sheet only’ and select ‘Net wages’ you still get an additional posting to 7003 as well as 2220 (I missed the balancing 2220 entries yesterday)
Yes I see that, this shouldn’t actually happen when you post direct to the nominal. It shouldn’t make any additional adjustments. I’ve reported this and hopefully we can get that problem addressed.
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