Sage 50 Payroll

FPS Adjustments

If you have changed an employee’s wages and the amount of PAYE, NI, Student loan deduction etc might have changed, so you need to inform HMRC about the changes and this is done via a FPS adjustment.

The FPS Adjustment

When you submit an FPS Adjustment, it sends the corrected values for your payroll to HMRC.  This ensures they have the latest information for you and your employees and makes sure that the values HMRC are expecting are correct.

The liability on the FPS is made up of the following information:

• PAYE + Employer’s NIC + Employee’s NIC + Student Loan + Postgraduate Loan

Values in the submission

The FPS Adjustment wizard will show the difference in this liability for the current pay period and will submit the latest year to date values for your employees in the background of the submission.

This means that although you only see the values for the most recent period during submissions, any prior periods you have amended are included in the submission.

Example

You have rolled an employee back for months 4-2 to correct some processing.  When you submit the FPS Adjustment, the FPS Liability screen will only show the changes in liability for month 4 (the difference between the original values and the new values).

In the background of your submission, it will include the latest year to date values, which will include the changes for months 2 – 4.

If you need sending an FPS Adjustment or need any other help or advice with your payroll, please contact us

We can also provide a remote access service where we can link into your computer to help you resolve your Sage Accounts or Payroll problems.

Sage 50 Accounts

Manual contra entries

If you do not have the feature to do an automatic contra entry you can do a manual entry in SAGE 50 Accounts, to offset outstanding customer and supplier invoices etc.

If you have a customer who is also a supplier, you can offset outstanding customer invoices (SI) and supplier invoices (PI).  You can also pay off Sales Payments (SP) or Purchase Receipts (PR) that post when you refund a customer or supplier.  This is a contra entry.

Create a contra entry bank account.

1. Go to Bank accounts, then select New.
2. Enter the relevant details for the new bank account:

A/C Ref * The nominal code you want to use for the new bank account.

Note: If you are using Sage’s default nominal ledger structure, use a number within the range of 1200 to 1239.  These numbers are in the existing bank account range in the Chart of Accounts.  This ensures that the bank balances appear correctly on your management reports.

Nominal Name Enter a description for the new bank account, for example, Contra Entries bank account.

A/C Type Select Cheque Account from the drop-down list.

No Bank Reconciliation If you do not want to run a bank reconciliation for this bank account, select this.

3. Click Save then click

Post a sales receipt using the contra entry bank account

To clear the outstanding sales invoice(s) (SI) or Sales Payment(s) (SP) on the customer’s account, post a Sales receipt (SR) using the contra bank account.

1. Go to Bank account, select the contra bank account, then click Customer receipt.
2. Complete the Customer Receipt window as follows:

Account Ref     The contra bank account appears.

Account           Choose the required customer from the drop-down list.

Date                 Enter the date of the sales receipt.

Receipt             Enter the required value in the Receipt field for the relevant transaction(s).  This is the lower value of the contra entry.  For example, if the SI is £250.00 and the PI is £200.00, enter £200.00.

3. Click Save then click Close.

Post a purchase payment from the contra entry bank account

To clear the outstanding PI or PR on the supplier’s account, post a Purchase Payment (PP) using the contra bank account.

1. Go to Bank accounts, select the contra entry bank account, then click Supplier payment.
2. Complete the Supplier Payment window as follows:

Account           Enter the required supplier’s account reference.

Date                 Enter the date for the purchase payment, use the same date as the customer receipt

Payment          Enter the same value as the SR in the Payment box of the invoice item line.  For example, enter £200.00 against the relevant outstanding invoice(s).

3. Click Save then click Close.

The balance on the contra entry bank account will now be zero.

Reverse a Contra Entry

To reverse a contra entry, delete or reverse the transaction posted to the contra entry bank account in the normal way.

If you would help with creating a contra bank account and or doing contra’s entries, or reversing a contra entry or if you need any other help with your Sage 50 Accounts, please contact us