Hi Emma,

Yes, all salary payments and deductions that you make (outside of ones you don't create such as statutory / pension / loans / attachments / NI / PAYE ones) go to the default salary nominal of 7000. If you want to annotate particular payments or deductions to alternative nominal accounts for analysis purposes you will need to process an additional journal between a/c 7000 and your desired alternative a/c's.

If you want to see the default journals Sage Payroll processes on your behalf for the payroll - accounts integration, you can find the help and settings here ; https://help.accounting.sage.com/en-gb/accounting/settings/settings-payroll-integration.html?Highlight=payroll%20integration

Kind regards,

Tim

Thanks Tim. So basically I can leave it as it is or I can journal across the amount on the payslip paid for Expenses to another nominal code for us to see, i.e. Expenses? I am guessing there is nothing else to do with this?

Thanks Tim. So basically I can leave it as it is or I can journal across the amount on the payslip paid for Expenses to another nominal code for us to see, i.e. Expenses? I am guessing there is nothing else to do with this?

Absolutely - providing you have setup the payroll integration in Accounts, then the salary journal will process in the background when you complete the pay run. You can then just process a separate journal from the default salary costs (usually n/c 7000) to the appropriate expense nominals.

If on the other hand you haven't set up the integration in Accounting (or if for example, your accounting package is Sage 50 Accounts and not Sage Business Cloud Accounting)  then you would need to process a manual journal into that accounting software for all payroll transactions. Sage suggest the manual journal here ; https://help.accounting.sage.com/en-gb/accounting/adjustments/salary-journals-manual.html

Yes we have payroll and accounts integrated. I guess what I am trying to ascertain is if there is a need to journal the expenses over at all?  they are on the payslip as business expenses but I am wondering if there is a benefit to the company to journal them across?

Hi Emma - that will purely depend on how much these expenses total and whether you need to account for these separately within your P&L. This is a decision for you, as a Company. If you do not need to see these amounts outside of payroll costs, or they are quite insignificant and sporadic then no, you probably don't need to journal them. If however the costs are, or could be quite substantial over the financial year then you might want to separate them on your P&L to see how much you are spending in those cost areas. You could always check with your Accountant if you are unsure what your Company requires report wise.

Thank you