How to post a bank payment in Sage (directly from the bank to the nominal code, without going through the purchase ledger module):
From the Bank module, ensure that you have the appropriate bank account highlighted (normally in blue) – although this can be over-written with a different bank account, click the “Payment” icon/button near the top.
Bank – will default to the bank account code that was highlighted as above, but can be over-written.
Date – the bank transaction date in dd/mm/yyyy format (the default is current date)
Ref – hopefully put a meaningful reference in this field!
Ex-Ref – this is an optional additional reference field which can be left blank if not required.
N/C – this is the nominal code for the type of payment. You can access the drop down list by clicking on the downward arrow.
Dept – if you are using “departments” in Sage, then input the appropriate department number (or select from the drop-down list by clicking on the downward arrow). If you are not using “departments”, then leave the field as it’s default value of 0.
Project Ref – similarly, if you are using “projects” in Sage, then input the appropriate project code (or select from the drop-down list). If you are not using “projects”, then leave the field blank, which is the default.
Cost Code – If you are using “cost codes” in Sage, then input the appropriate cost code (or select from the drop-down list). If you are not using “cost codes”, then leave the field blank, which is the default.
Details – this is a text field for you to write a brief but meaningful description.,
Net – this is the net amount (excluding VAT) if you are VAT registered – or the gross amount (including VAT) if you are not VAT registered.
T/C – this is the VAT code. If you are VAT registered, it’s usually T1 or T0 (but there are others – see previous post on Sage VAT codes). If you are not VAT-registered, then use T9.
VAT – this is the VAT amount, which Sage calculates from the net amount and the tax code. Occasionally, there are rounding errors, which can be corrected by overtyping the amount. If you are not VAT registered, then this field must be zero.
When you are finished, click on “Save” in the bottom left of the window.
How to post a bank receipt in Sage (directly from the bank to the nominal code, without going through the sales ledger module) the process is almost identical to above – just click “Receipt” instead of “Payment”. Although, note that the entries will exclude the field for “Cost Code.”
Do not use bank payments to make payments where an actual purchase invoice has been posted in the Purchase Ledger module.
Similarly, do not use bank receipts” to record monies received from customers, where you have posted a sales invoice (either by batch entry or using the invoicing module) in the Sales Ledger module.