Advance questons

Hi,

Have employee, company paid by company visa travel costs to get him here.  Employee is to pay this back.  How do I post this as a pay advance without sage wanting to take it out of the bank?  I know I would have to process separately from the pay cheque.  But when I tried to do it today it wants to withdraw money.  I normally post in the newbie section so step by step please.

Thank you.

Wendy

Parents
  • 0

    so you paid the travel expense with visa, which

     db travel

     cr visa payable

    what are you trying to do with the paycheck advance ? do you want a deduction from his paycheck to pay the visa bill ?

  • 0 in reply to Roger L

    I didn't mean to confuse the question with the visa thing. Sorry about that. That part is irrelevant other than the company paid the employees expenses and now we just want to get them back and not post it as a loan to the employee, but as a pay advance instead.  So when I tried to post it as an advance in the payroll module sage wants to take it out of the bank and wants me to assign a cheque #. I need to be able to so this so the is no "paid from bank" choice and just somehow post it as an advance debt as he already received the money by us paying the expenses.  I would like the advance to show on his pay stub.  (the company visa charges related to this were posted to proper accounts)

    Thank you

    Wendy

  • 0 in reply to WWynn

    you can use a regular bank account since it will show both transactions, net 0.00
    or you can use a 'clearing bank account', and pay the advance from it

    for a cheque#, use something like 'moving expenses'

    so if the moving expenses were 1000$, payroll entry would be
    (based on deductions, you need to adjust the advance to get the correct bank amount)
    Account Number  Account Description                Debits         Credits
    _______________ _________________________  ______________  ______________
    1220            Advances & Loans                 1,207.57               -
    5420            EI Expense                          31.78               -
    5430            CPP Expense                         52.56               -
    5440            WCB Expense                         48.30               -
    1069              Clearing Bank Account                 -        1,000.00
    2180              EI Payable                            -           54.48
    2185              CPP Payable                           -          105.12
    2190              Federal Income Tax Paya               -          132.31
    2230              WCB Payable                           -           48.30
    Additional Date:Additional Field:                                        
                                               ______________  ______________
                                                     1,340.21        1,340.21


    now use a journal entry to record the credit card transaction
    Account Number      Account Description              Debits         Credits
    __________________  _______________________  ______________  ______________
    1069                Clearing Bank Account          1,000.00               -
    2133                  Visa Payable                        -        1,000.00
    Additional Date:    Additional Field:                                      
                                                 ______________  ______________
                                                       1,000.00        1,000.00

  • 0 in reply to Roger L

    The expenses the company paid would be posted thru A/P purchase module to a liability account called something like 'employee purchases payable - this will include the GST as the company will not be claiming it.

    Then you would set up in payroll a deduction called something like Purchases Payable (you may need to shorten the name slightly) and link it to the liability account from above..

    Now when you pull up the paychq for the employee you enter the usual hours etc and then in the deduction tab you enter the amount in the Purchase Payable line. Look at the net pay first before entering the amount and then enter the amount and make sure you are reducing the net pay to employee.

  • 0 in reply to Smith and Co

    Smitco, just wondering when/how the company's visa payable is recorded ?

  • 0 in reply to Roger L

    I have the visa's in the general & admin expenses and then post to whatever like office supplies.

  • 0 in reply to WWynn

    Ok so after re-reading Smithco's reply - the visa expenses were not posted in the A/P module.  So did I need to go in and void the transactions that posted them to the visa accounts and expense accounts and then create the accounts as she has suggested to post the advance?

    If the above is what I am to do, what happens then with the amount I paid to visa out of bank?  How do I post that transaction then?

  • 0 in reply to WWynn

    This is my method when paying expenses by Visa :as an example for above using ABC Motel paid by RBC Avion Visa#1234

    Create a liability account 2222 called RBC Avion Visa #1234 and use the Class Tab to classify as a bank.

    Also create a liability account nbr 2345 called Employee Purchase Payable

    Then go to Settings, Company, Credit Cards, Used, and set up RBC Visa#1234 (you may be limited to nbr of characters) and for Payable Acct use the liability account 2222 that was created in the first step above. You don't need to worry about entering anything in the Expense column.

    Create a vendor called ABC Motel and in the purchase model as 'Payment Method' RBCVisa1234 post the expenses of 122.33 including taxes to a liability account #2345 Employee Purchase Payables (no tax codes as you are not claiming the GST).

    In Settings, Payroll, Deductions, - in the deduction column rename one of the deductions as PurchasePay (you are limited by nbr of characters) and make sure tick marks are in all of the columns cus you want to deduct this AFTER all the source deductions have been taken off.

    Now go back over to left column and select Linked Accounts under Payroll and select Deductions. Next to PurchasePay under Linked Accounts select the acct nbr 2345 Employee Purchase payable. Don't worry about the Payment Adjustment Account column.

    Now go into Employee Profile for the employee who is having the deduction and in the deduction tab make sure you have a tick mark next the payroll paycheque.

    Then in the Payroll module enter the usual earnings then under the deduction tab next to the PurchasePay enter the amount of 122.33. Before posting the chq click on 'Report' and verify the 122.33 is showing as credit to acct nbr 2345.

    And that's it.

    I pay all visa expenses this way - even fuel. I have vendors set up for PetroCanada and Esso and Husky and I have as Contact 'All Location' so it is only one vendor for Esso but all Esso locations are entered in same vendor. 95% of the receipts have an invoice nbr of some sort - you just need to look for it.

    I reconcile the liability account 2222 to the Visa Stmt every month - the balance of the G/L 2222 should be the same balance as the ending balance of Visa Stmt - sometimes there may be a couple entries made on same date as Visa Stmt date that has not shown up yet on Visa stmt but you would note that on your G/L print-out as part of the reconciliation.

    You can even set the G/L RBC Avion Visa#1234 to be reconciled just like your bank stmt.

    When paying Visa you would enter thru General Journal Entry a credit to Bank and a debit to G/L 2222 RBC Visa#1234.

  • 0 in reply to Smith and Co

    Sorry - wrong wordings used here - see corrections in capital letters..

    "Now go into Employee Profile for the employee who is having the deduction and in the deduction tab make sure you have a tick mark next TO PURCHASEPAY."

Reply Children
  • 0 in reply to Smith and Co

    Thank you.  I have read your reply and will go and follow the instructions.  With no problems doing that I will come back in and mark as "yes" answered.  

  • 0 in reply to WWynn

    Smithco

    a few questions

    why do you classify account 2222 as a bank, and not a credit card ? does it matter ?

    a purchase invoice will

     db 2345 employee purchase payable  122.33

     cr 2222 visa 1234                                 122.33

     but if the company paid a bill on the employee's behalf, it that a receivable ?

  • 0 in reply to Roger L

    by classifying as a bank then I can go into Payables Payment module and select the credit card as a bank. However you may be correct in leaving as a credit card.

    The company paid the bill so I treat it thru the payable purchase module to the account nbrs you showed. Now after the payroll has been processed you will now show nil as owing in the 2345 acct nbr.

    I believe showing it as a liability account was the only way I could get it to show in the deduction tab of payroll module.

  • 0 in reply to Smith and Co

    Hi Smithco,

    I have followed the instructions contained in your reply from Nov 22 at 7:47 am and I get to the below and find a problem;

    "Now go back over to left column and select Linked Accounts under Payroll and select Deductions. Next to PurchasePay under Linked Accounts select the acct nbr 2345 Employee Purchase payable. Don't worry about the Payment Adjustment Account column."

    Where I am supposed to - under linked accounts "select acct nbr 2345 Employee Purchase payable",  2345  is not in the list? I have checked and 2345 is created and as a liability account.  What am I missing?

    One other question is after I get all your instructions completed, do I go in and void the original entries I posted to the general & admin visa account?

    Thank you

    Wendy

  • 0 in reply to WWynn

    I'm not sure why 2345 is not listed to be selected as a deduction. Mine is a group account and class option is a liability. You do need to be in single mode and not multi-user mode but somehow I doubt that is your problem as you indicate that you can see other liability accounts - just not the 2345.

    You are not using that same account nbr anywhere else are you?

  • 0 in reply to Smith and Co

    2345 isn't used for anything else or sage would not have let me create it.

    But I just think I figured it out - I just went back in and in the linked account area, there is on the left the account you had me create as Purchase Pay and then the middle column where I thought I should find acct 2345 just sitting there in the list.  But this time I touched the top one and it took me to select it from the entire account # list and selected 2345.  I just thought it would be in the little list of about 5 accounts just sitting there for me to choose from.  I have set it now and will carry on with the rest of your instructions tomorrow and attempt a pay cheque for the employee to see if it has worked correctly.

    There is still left over questions concerning the visa expenses for this employee and now after seeing where these expenses show up on the dash board I want to move all visa's to how you are doing it.  But will finish with this pay issue first as pay day is Friday and I want this showing up on his pay stub.  But I do need to know if I should be voiding the transactions for this employees expenses from my 5000 # visa account where I originally posted them.  It was 3 transactions, for 2 flights and 1 hotel stay.  But when I moved them to his pay stuff, I just posted them all in one transaction and itemized them in the vendor module.  I named that vendor account you had me create Employee Expenses.  I look now at it in the vendor module in the list on the right of total debt to any given vendor and the 667.01 I posted to it is now showing a zero balance, but maybe that is because I am mid fixing this problem.

  • 0 in reply to WWynn

    HI- yes you do need to void your previous vendor entries but just so you know - I do not use 'Employee Expenses' as a vendor name. I have as an example - Sunshine Travel as a vendor name - invoice#1458 230.00 including taxes and then again under Sunshine Travel invoice# 1894 200.00 including taxes, and then another vendor called ABC Motel Invoice #8579 for 237.01 including taxes all coded to 2345 - and all paid by Visa (which would be why it is now showing a zero balance). Then a copy of the invoices is given to the employee. You must keep the original invoices for the company's records. This method is for audit purposes - if you are questioned about a charge on the Visa stmt for Sunshine Travel or for ABC Motel then you are able to pull it up immediately.

  • 0 in reply to Smith and Co

    ok I won't lump them together in the future.