Payment in advance - Supplier

SUGGESTED

Does anyone know how to configure Sage50 book PA - Payment in advance (Supplier) go to Supplier Deposit ( Asset ) instead Trade Supplier ( Liability )? Thanks

  • 0
    SUGGESTED

    Hi Deyvis,

    Thanks for using Sage City.

    If you're using Sage 50 Accounts, a payment on account made to a supplier would, by default, credit your bank account and debit the Creditors Control Account, normally code 2100. You could move the value to a different nominal code using journals but we wouldn't recommend posting manual journals that affect the Creditors control Account.

    Regards,

    Andy
    Sage UKI

  • 0 in reply to Andy Rickeard

    Hello Andy. Thanks for your answer. In accounting Payment in advance should go to Asset Account not Liability. On Balance Sheet should that amount appears as Asset ( Debit balance ). Ageing and creditors balance amounts should be the results of two accounts. As well should happen with trade debtors ( payment in advance with customers ) liability BS side.

  • 0 in reply to Deyvis Rossi Penteado

    Thanks for coming back. Sage 50 Accounts has always recorded a payment on account to a supplier as a credit to the Bank Account and debit to the Creditors Control Account. I'll leave this thread open though in case the community can share a different approach or set of postings that might achieve what you require.

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    For our monthly management accounts I use exported data from our Customers and Suppliers to create our aged debtors and creditors, pushing unallocated credits and debits into the correct part of the aged report.  This can, and does, lead to some customers/suppliers ending up in both parts as there are unallocated invoices and payments (mostly because they have been forgotten to be matched - it is a useful tool in that respect).

    I'm not sure it would be possible.  Sage holds the transactions of the memorandum sales/purchase ledgers (Customers/Suppliers) in the relevant control accounts.

    What you are suggesting seems to be a double control account for [summarising] your memorandum sales/purchase ledgers - one which holds all the invoices and the other which holds all the payments, and then someway of removing (from the totals) those which are matched off; I know of no accounting software (or practices) which do this (in the nominal ledger), perhaps you know differently?

    At year end we do a correction (for the accounts and auditors) by putting through correcting journals (on the last day of the financial year, which auto reverse on the following day at the start of the next financial year) moving supplier debits and customer credits from the relevant control account to the relevant BS nominal (and back again).

  • 0 in reply to Robert N

    In my point of view, sage should do this automatically. Accounting rules must be respected. Simples as that! PA payment on account ( payment in advance ) should go through  asset account and the allocation as well. Aged report will be result of two accounts, one from trade creditors and other from supplier deposits in Asset(advance payments). On the other hand, same happens with deposits in advance from costumers, credit balance in liability. I think people from Sage should change that. The system is prepared to save our operational time not otherwise!

  • 0 in reply to Deyvis Rossi Penteado

    Hi Deyvis, appreciate your comments, I can see that you've submitted this to the ideas board as well, thank you.