How to account for a wage 'sub'

Question

Good evening all, 
 I have already spoken to somebody in Sage who is looking into this for me but just thought I'd ask in here to so I can tick a job off his list if I find the answer. 
 Basically, there has been a &pound;300 bank payment to a member of staff as a sub from her wages. She wants to pay this back at &pound;10 per week from her wages. I know I can set a deduction in payroll (which is linked to accounting) but how would I account for this in the accounts please? 
 I can't just set her up as a creditor as its coming from her wages. 
 
 Thank you in advance 
 Gemma

Rob Smith. · Answer

Hi , 
 Thanks for using Sage City. 
 You can create a simple other payment or other receipt in your banking area. 
 Please see the following guides here; 
 https://help.accounting.sage.com/en-gb/accounting/Resources/MasterPages/SearchResults.html?q=other%20payment 
 we cannot advise on what ledger codes to use, please consult an accountant. 
 Regards, Rob Sage UKI

Gemma. · Answer

Hi Rob 
 I couldn't do it this way as it wouldn't have reflected in the accounting side correctly once the deductions from payroll had synced with accounting. I spoke to somebody on the helpline and they've told me how and it reflects the deduction so if anybody else has the same query, here is how it's done 
 Set your deduction in payroll 
 Send the sub from the banking to net wages 
 When payroll is ran, it'll understand the &pound;10 deducted each week and then once the &pound;300 has cleared, the net wages will correspond and reconcile with the &pound;300 sent from banking.

But thank you anyway Rob, 
 
 Gemma

Sage Accounting UKI

How to account for a wage 'sub'

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