Difference between revisions of "How do I post the wages journal?"

From Catalyst
Jump to: navigation, search
Line 26: Line 26:
 
* Enter the centre for Wages. If you would like to split the wages into departments or separate Directors pay from employees then enter the appropriate centres.
 
* Enter the centre for Wages. If you would like to split the wages into departments or separate Directors pay from employees then enter the appropriate centres.
 
* Enter the Total Gross Pay for the appropriate centre as a positive value.
 
* Enter the Total Gross Pay for the appropriate centre as a positive value.
−
* Enter a comment e.g. {{DataValue|Gross M6}} and press {{KeyPress|Enter}}.
+
* Enter a comment.  
 +
 
 +
{{Example|text={{DataValue|Gross M6}}.}}
 +
 
 +
* Press {{KeyPress|Enter}}.
 
* Enter the Wages Control Account centre and post the same Total Gross Pay again, but this time as a negative value.
 
* Enter the Wages Control Account centre and post the same Total Gross Pay again, but this time as a negative value.
 
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above and then press {{KeyPress|Enter}}.
 
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above and then press {{KeyPress|Enter}}.
Line 34: Line 38:
 
* Enter the Wages Control Account centre.
 
* Enter the Wages Control Account centre.
 
* Enter the Total Tax for the period as a positive value.
 
* Enter the Total Tax for the period as a positive value.
−
* Enter a comment e.g. {{DataValue|Tax M6}}. Press {{KeyPress|Enter}}.
+
* Enter a comment.
 +
{{Example|text={{DataValue|Tax M6}}.}}
 +
 
 +
* Press {{KeyPress|Enter}}.
 
* Enter the PAYE & NI Control Account and post the Total Tax as a negative value.
 
* Enter the PAYE & NI Control Account and post the Total Tax as a negative value.
 
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
 
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
Line 43: Line 50:
 
* Enter the Wages Control Account centre.
 
* Enter the Wages Control Account centre.
 
* Enter the Total Employees' National Insurance for the period as a positive value.
 
* Enter the Total Employees' National Insurance for the period as a positive value.
−
* Enter a comment e.g. {{DataValue|EE NI M6}}. Press {{KeyPress|Enter}}.
+
* Enter a comment.
 +
 
 +
{{Example|text={{DataValue|EE NI M6.}}  
 +
 
 +
*Press {{KeyPress|Enter}}.}}
 +
 
 
* Enter the PAYE & NI Control Account and post the Total Employees' National Insurance as a negative value.
 
* Enter the PAYE & NI Control Account and post the Total Employees' National Insurance as a negative value.
 
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
 
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
Line 52: Line 64:
 
* Enter the Employers NI centre.
 
* Enter the Employers NI centre.
 
* Enter the Total Employer’s National Insurance for the period as a positive value.
 
* Enter the Total Employer’s National Insurance for the period as a positive value.
−
* Enter a comment e.g. {{DataValue|ER NI M6}}. Press {{KeyPress|Enter}}.
+
* Enter a comment.
 +
 
 +
{{Example|text={{DataValue|ER NI M6}}.}}
 +
 
 +
Press {{KeyPress|Enter}}.
 
* Enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again as a negative value.
 
* Enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again as a negative value.
 
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
 
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
  
−
{{Note|text=Post any other values appropriately, e.g. Tax Credits should be posted as a debit (positive) to the PAYE & NI Control Account and as a credit to the Wages Control Account; Pensions deducted after tax could debit Wages Control and credit Pension Control; Student Loan Deductions could debit Wages Control and credit Student Loan Control etc.}}
+
{{Note|text=Post any other values appropriately.}}
 +
 
 +
{{Example|text=Tax Credits should be posted as a debit (positive) to the PAYE & NI Control Account and as a credit to the Wages Control Account; Pensions deducted after tax could debit Wages Control and credit Pension Control; Student Loan Deductions could debit Wages Control and credit Student Loan Control etc.}}
  
 
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
 
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
Line 63: Line 81:
  
 
==== Paying the Wages ====
 
==== Paying the Wages ====
−
* Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry".
+
* Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Cashbook Entry.}}
 
* Enter your Bank Centre and press {{KeyPress|Enter}}.
 
* Enter your Bank Centre and press {{KeyPress|Enter}}.
 
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
 
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
Line 69: Line 87:
 
* Enter the Wages Control Centre.
 
* Enter the Wages Control Centre.
 
* Enter the amount to pay (do not enter this as a negative value).
 
* Enter the amount to pay (do not enter this as a negative value).
−
* Enter the comment e.g. {{DataValue|WAGES PAID M6}}.
+
* Enter the comment.  
 +
 
 +
{{Example|text={{DataValue|WAGES PAID M6}}.}}
 +
 
 
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
 
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
  
Line 75: Line 96:
  
 
==== Paying HMRC ====
 
==== Paying HMRC ====
−
* Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry".
+
* Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Cashbook Entry.}}
 
* Enter your Bank Centre and press {{KeyPress|Enter}}.
 
* Enter your Bank Centre and press {{KeyPress|Enter}}.
 
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
 
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
Line 81: Line 102:
 
* Enter the PAYE & NI Control Centre.
 
* Enter the PAYE & NI Control Centre.
 
* Enter the amount to pay (do not enter this as a negative value).
 
* Enter the amount to pay (do not enter this as a negative value).
−
* Enter the comment e.g. {{DataValue|HMRC PAID M6}}.
+
* Enter the comment.
 +
 
 +
{{Example|text={{DataValue|WAGES PAID M6}}.}}
 +
 
 
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
 
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
  
−
== Paying money to other bodies e.g. Student Loan Company, Council, CSA and Pension Companies ==
+
=== Paying money to other bodies e.g. Student Loan Company, Council, CSA and Pension Companies ===
−
* Go to "{{NL}}" -> "Journal Entries" -> "Cashbook Entry".
+
* Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Cashbook Entry.}}
 
* Enter your Bank Centre and press {{KeyPress|Enter}}.
 
* Enter your Bank Centre and press {{KeyPress|Enter}}.
 
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
 
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
 
* Enter the date you are paying the money out.
 
* Enter the date you are paying the money out.
−
* Enter the relevant code to which you have been posting the payroll details e.g. Student Loan Deductions.
+
* Enter the relevant code to which you have been posting the payroll details.
 +
 
 +
{{Example|text=Student Loan Deductions.}}
 +
 
 
* Enter the amount to pay (do not enter this as a negative value).
 
* Enter the amount to pay (do not enter this as a negative value).
−
* Enter the comment e.g. {{DataValue|STUDENT LN M6}}.
+
* Enter the comment.
 +
 
 +
{{Example|text={{DataValue|WAGES PAID M6}}.}}
 +
 
 
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
 
* Press {{KeyPress|Escape}} and {{KeyPress|Accept}} to post the journal.
  
−
== See Also ==
+
== See also ==
 
* [[How do I Run a Payroll Period?]]
 
* [[How do I Run a Payroll Period?]]
 
* [[Posting Journals]]
 
* [[Posting Journals]]

Revision as of 17:02, 19 November 2013

Summary

The following article explains how to post a wages journal using Journal Entries. You should have the following Nominal Centres (or similar) set up in Platinum:

  • Gross Wages (Sales,W/S,Parts etc) (Profit & Loss Indicator – Overhead)
  • Directors Remuneration (Profit & Loss Indicator – Overhead)
  • Employers NI (Profit & Loss Indicator – Overhead)
  • Wages Control Account (Balance Sheet Indicator – Asset/Liability)
  • PAYE & NI Control Account (Balance Sheet Indicator – Asset/Liability)

More Information

There are three journals to carry out when dealing with wages:

  • First - to post the payroll costs, i.e. the Gross Wages and Employers NI.
  • Second - to transfer the money out of the bank account when you actually pay the employees.
  • Third - to transfer the money out of the bank when you pay the Inland Revenue.

Posting Payroll Costs

Go to " Accounts\Systems Nominal Ledger Journal Entries Multiple Entry."

  • Enter a suitable date for the journal.
The date the wages were processed.
  • Follow the steps below and post all entries on the same journal.

Gross Wages

  • Enter the centre for Wages. If you would like to split the wages into departments or separate Directors pay from employees then enter the appropriate centres.
  • Enter the Total Gross Pay for the appropriate centre as a positive value.
  • Enter a comment.
'Gross M6'.
  • Press <Enter>.
  • Enter the Wages Control Account centre and post the same Total Gross Pay again, but this time as a negative value.
  • Press <F6> on the "Comment" field to pick up the same comment as above and then press <Enter>.
  • Repeat as necessary if you are splitting Gross Wages into departments.

Tax (PAYE)

  • Enter the Wages Control Account centre.
  • Enter the Total Tax for the period as a positive value.
  • Enter a comment.
'Tax M6'.
  • Press <Enter>.
  • Enter the PAYE & NI Control Account and post the Total Tax as a negative value.
  • Press <F6> on the "Comment" field to pick up the same comment as above. Press <Enter>.
This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC.

Employees National Insurance

  • Enter the Wages Control Account centre.
  • Enter the Total Employees' National Insurance for the period as a positive value.
  • Enter a comment.
'EE NI M6.'
  • Press <Enter>.
  • Enter the PAYE & NI Control Account and post the Total Employees' National Insurance as a negative value.
  • Press <F6> on the "Comment" field to pick up the same comment as above. Press <Enter>.
This reduces the amount that you owe to the employees by the Employees National Insurance figure since you owe this to HMRC.

Employers National Insurance

  • Enter the Employers NI centre.
  • Enter the Total Employer’s National Insurance for the period as a positive value.
  • Enter a comment.
'ER NI M6'.

Press <Enter>.

  • Enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again as a negative value.
  • Press <F6> on the "Comment" field to pick up the same comment as above. Press <Enter>.
Post any other values appropriately.
Tax Credits should be posted as a debit (positive) to the PAYE & NI Control Account and as a credit to the Wages Control Account; Pensions deducted after tax could debit Wages Control and credit Pension Control; Student Loan Deductions could debit Wages Control and credit Student Loan Control etc.
  • Press <Esc> and <Accept> to post the journal.

Posting the Payment of the Wages

Paying the Wages

  • Go to " Accounts\Systems Nominal Ledger Journal Entries Cashbook Entry."
  • Enter your Bank Centre and press <Enter>.
  • Enter 'O' (Out) at "Money In/Out" as you are paying money out of the bank account. Press <Enter>.
  • Enter the date you are paying the money out.
  • Enter the Wages Control Centre.
  • Enter the amount to pay (do not enter this as a negative value).
  • Enter the comment.
'WAGES PAID M6'.
  • Press <Esc> and <Accept> to post the journal.

Posting the Payment to HMRC

Paying HMRC

  • Go to " Accounts\Systems Nominal Ledger Journal Entries Cashbook Entry."
  • Enter your Bank Centre and press <Enter>.
  • Enter 'O' (Out) at "Money In/Out" as you are paying money out of the bank account. Press <Enter>.
  • Enter the date you are paying the money out.
  • Enter the PAYE & NI Control Centre.
  • Enter the amount to pay (do not enter this as a negative value).
  • Enter the comment.
'WAGES PAID M6'.
  • Press <Esc> and <Accept> to post the journal.

Paying money to other bodies e.g. Student Loan Company, Council, CSA and Pension Companies

  • Go to " Accounts\Systems Nominal Ledger Journal Entries Cashbook Entry."
  • Enter your Bank Centre and press <Enter>.
  • Enter 'O' (Out) at "Money In/Out" as you are paying money out of the bank account. Press <Enter>.
  • Enter the date you are paying the money out.
  • Enter the relevant code to which you have been posting the payroll details.
Student Loan Deductions.
  • Enter the amount to pay (do not enter this as a negative value).
  • Enter the comment.
'WAGES PAID M6'.
  • Press <Esc> and <Accept> to post the journal.

See also


Feedback
Thank you for using our Knowledge Base, we value your feedback. Did you find this article useful? 'Yes' or 'No'
Keywords AND Misspellings
wages, journal, HMRC, gross, PAYE, national insurance
Retrieved from "https://www.catalyst-uk-support.com/kb/index.php?title=How_do_I_post_the_wages_journal%3F&oldid=19998"