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PaulT

Net wages not balancing

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Posted By

Hi all,

I having problems with my accounts as a result of payroll. I am using both Sage Business Cloud Payroll and Cloud Accounting. I have read several Sage articles about posting salary journal entries manually, but my payroll seems to do it automatically into my 2250 and 7000 accounts. However, i'm having an issue with my 2250 (Net Wages) account. I pay my employees weekly so each when after processing the pay run my 2250 account shows a credit and matching debit. However, I pay my employees from the bank and since I have my bank feed directly into my Accounting, I see those transactions. I have been creating transactions for them in my 2250 account, but as a result, it is not zero (as I believe it should be).

Also, when I could to reconcile my bank statement each month, it doesn't match. If I check off all my transactions from my statements it's fine, but in the table within Sage, there are single line entries each week for the total salary payment for that week. Since the actual transactions have come out of the bank as individual payments to each employee, the wage values match against the individual transactions and not against this single, total entry each week.

Can anyone help me understand:

1) What should I be doing with my individual employee wage payments coming in from my bank feed?

2) Should 2250 be zero and if so, how do I get it zero?

3) Should I be created a manual salary journal entry? Articles suggest so, but Sage seems to be doing it automatically?

4) What do I do about the line entries on my reconciliation screen?

Sorry for all the questions, but i'm pulling my hair out here.

Many thanks,

Paul

  • 0

    Hi Paul,

    May be worth waiting for a more experienced response than mine but i recently had the the same thing.

    Answers as far as i know:

    1) Post your wages from the bank feed to 2250 and it should be going to zero or look for when it stopped, it may be that a correction was made and needs a journal to correct within 2250.

    2) Yes, and as above, may need a journal to correct and the rest may automatically go to zero once this has been done. If you have had a correction on payroll, i find this is when i need to do a journal.

    3) Yes possibly, answered above

    4) Unsure, sorry. Maybe phone them.

    Thanks

  • 0

    I am having the same issue, does anyone know what thew solution is

  • 0 in reply to Seb Alam
    SUGGESTED

    Hi Seb,

    Thanks for using Community Hub.

    Hopefully this response to PaulTs original post will help you. 

    It sounds like you have the settings set to post the total wage payment into the bank account. 

    1. Since the journals already specify the total wage amount from the bank account, you can delete the individual employee transactions from the bank feed. 
    If you would prefer to post the employee wages as separate lines on the bank account, you can do the following: Go to Settings, then Apps and Connections. > Select Sage Payroll > Change the setting from post to the default bank account, to Post to Net wages > Select Save. When you post the bank feed transactions, you would use the net wages nominal code. 

    2. If you are posting the individual employee bank transactions, as well as the journal for the total coming from the payroll journal, it's being duplicated which will give you the wrong balance on the nominal code for net wages. My advice here would be to either delete the total payment from the bank (If you do this, it deletes all the payroll journals for that period, so you would need to post a manual payroll journal). Alternatively you could journal the amount out of the net wages and into the bank account. This will cancel out the auto posted journal for the total wages, but you will need to select both amounts on the bank account reconciliation. 

    If you want to keep the total wages amount as a bank transaction, you will need to delete the individual employee wages amounts from the bank account as duplicates. 

    3. It does sound like Payroll automatically is posting the journals for you, so no you don't need to post a manual journal as standard, but make sure its set up to the way you prefer. 

    4. If you decide to keep with Payroll posting the total wage bill to the bank account, you can delete the bank feed transactions showing each employees wage. If you change the setting to post the journals to net wages, you can go to each employee line on the bank feed, select create and use the net wages nominal code. 

    If you're in any doubt, give your Technical Support Team a call and they can talk you through everything. 

    If this helps, please select Verify Answer.

    Regards,
    Steven Kay
    Sage UKI

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