suspense account

Hi
when i set up Sage, we were moving over from QB, the previous bookkeeper had made a mess of the accounts in QB, so I decided not to enter any opening balances, all n/l and customer and supplier accounts were nil.

I have 6 transactions in the suspense account

1 customer ob
1 supplier ob
1 customer receipt
1 supplier payment
1 vat payment
1 bank opening balance

I spoke to a Sage advisor last night, he suggest I reverse journal them, however when i  did this it created error messages about the debtors/creditors accounts? so i did a restore option.

i dated them all this year and entered the ob's via the ob column under each customer/supplier and bank box, now my question is where/how do I enter a journal to get them to where they should be?

Regards
Stephen

  • Hi Stephen

    When entering opening balances, the double entry posting always affects the Suspense Control Account (9998). After entering all opening balances, the balance on the Suspense Control Account nominal code should be cleared to zero.

    You would enter your outstanding customer and supplier transactions and then reverse these balances from the nominal ledger, before entering the opening trial balance (usually from your accountant).

    There's a great guide that details how to enter opening balances: https://gb-kb.sage.com/portal/app/portlets/results/viewsolution.jsp?solutionid=200519133605599

    If a journal is posted to the debtors\creditors control account, it changes the value on the nominal code. However, the same value is not reflected anywhere in the customer\supplier record.  The journal does not affect the aged debtors reports and creates a warning.

    Under normal circumstances, you would not post journals to the debtors\creditors control account. The only time it should happen is when entering and reversing opening balances. You should find that this warning is removed once you've entered the the full opening trial balance.

    Just to note also, opening balances should be entered with a date that is the last day of the previous financial year.  For example, if your financial year start date is April 2021, the opening balance date would be 31/03/2021.

    I hope this helps.

    Kind regards,

    Rachael

  • Thank you for your advice. If items are left in the suspense account, do they stay there forever or are they ever cleared down at year ends?

  • Hi Stephen,

    The suspense account is a profit and loss nominal code, therefore the balance will be journaled to your profit and loss retained earnings at year end. This is nominal code 3200 by default.

    I hope this helps

    Kind regards,

    Rachael