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

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(→‎Gross Wages)
Line 30: Line 30:
 
* In the {{DataPrompt|Debit}} column, enter the Total Gross Pay for the appropriate centre.
 
* In the {{DataPrompt|Debit}} column, enter the Total Gross Pay for the appropriate centre.
 
* In the {{DataPrompt|Comment}}, enter a comment.  
 
* In the {{DataPrompt|Comment}}, enter a comment.  
−
 
 
{{Example|text={{DataValue|Gross M6}}.}}
 
{{Example|text={{DataValue|Gross M6}}.}}
  
Line 40: Line 39:
  
 
=== Tax (PAYE) ===
 
=== Tax (PAYE) ===
−
* Enter the Wages Control Account centre.
+
On a line on the list:
−
* Enter the Total Tax for the period as a positive value.
+
* In the {{DataPrompt|Centre}} column, enter the Wages Control Account centre.
−
* Enter a comment.
+
* In the {{DataPrompt|Debit}} column, enter the Total Tax for the period.
 +
* In the {{DataPrompt|Comment}}, enter a comment.
 
{{Example|text={{DataValue|Tax M6}}.}}
 
{{Example|text={{DataValue|Tax M6}}.}}
  
−
* Press {{KeyPress|Enter}}.
+
On the next line:
−
* Enter the PAYE & NI Control Account and post the Total Tax as a negative value.
+
* In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Account and post the Total Tax in the {{DataPrompt|Credit}} column.
−
* Press {{KeyPress|F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above. Press {{KeyPress|Enter}}.
+
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
  
 
{{Note|text=This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC.}}
 
{{Note|text=This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC.}}
  
 
=== Employees National Insurance ===
 
=== Employees National Insurance ===
−
* Enter the Wages Control Account centre.
+
On a line on the list:
−
* Enter the Total Employees' National Insurance for the period as a positive value.
+
* In the {{DataPrompt|Centre}} column, enter the Wages Control Account centre.
−
* Enter a comment.
+
* In the {{DataPrompt|Debit}} column, enter the Total Employees' National Insurance for the period.
 +
* In the {{DataPrompt|Comment}}, enter a comment.
 +
{{Example|text={{DataValue|EE NI M6}}.}}
  
−
{{Example|text={{DataValue|EE NI M6.}}
+
On the next line:
−
 
+
* In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Account and post the Total Employees' National Insurance in the {{DataPrompt|Credit}} column.
−
*Press {{KeyPress|Enter}}.}}
+
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
−
 
 
−
* 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}}.
 
  
 
{{Note|text=This reduces the amount that you owe to the employees by the Employees National Insurance figure since you owe this to HMRC.}}
 
{{Note|text=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 ===
 
=== Employers National Insurance ===
−
* Enter the Employers NI centre.
+
On a line on the list:
−
* Enter the Total Employer’s National Insurance for the period as a positive value.
+
* In the {{DataPrompt|Centre}} column, enter the Employers NI centre.
−
* Enter a comment.
+
* In the {{DataPrompt|Debit}} column, enter the Total Employer’s National Insurance for the period.
 +
* In the {{DataPrompt|Comment}}, enter a comment.
 +
{{Example|text={{DataValue|ER NI M6}}.}}
  
−
{{Example|text={{DataValue|ER NI M6}}.}}
+
On the next line:
−
 
+
* In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again in the {{DataPrompt|Credit}} column.
−
Press {{KeyPress|Enter}}.
+
* Press {{KeyPress|C-F6}} on the {{DataPrompt|Comment}} field to pick up the same comment as above.
−
* 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}}.
 
  
 
{{Note|text=Post any other values appropriately.}}
 
{{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.}}
+
{{Example|text=Tax Credits should be posted in the {{DataPrompt|Debit}} column to the PAYE & NI Control Account and in the {{DataPrompt|Credit}} column 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 85: Line 84:
  
 
==== Paying the Wages ====
 
==== Paying the Wages ====
−
* Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Cashbook Entry.}}
+
* Go to {{Menu|{{NL}}|Journal Entries}}
−
* Enter your Bank Centre and press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Entry mode}}, choose {{DataValue|Cashbook}}.
−
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Money in/out}}, choose {{DataValue|out}} as you are paying money out of the bank account.
−
* Enter the date you are paying the money out.
+
* On the highlighted line, enter your Bank Centre.
−
* Enter the Wages Control Centre.
+
* On the next line:
−
* Enter the amount to pay (do not enter this as a negative value).
+
** In the {{DataPrompt|Centre}} column, enter the Wages Control Centre.
−
* Enter the comment.  
+
** In the {{DataPrompt|Date}} column, enter the date you are paying the money out.
−
 
+
** In the {{DataPrompt|Debit}} column, enter the amount to pay.
 +
** In the {{DataPrompt|Comment}}, enter a comment.
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
  
Line 100: Line 100:
  
 
==== Paying HMRC ====
 
==== Paying HMRC ====
−
* Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Cashbook Entry.}}
+
* Go to {{Menu|{{NL}}|Journal Entries}}
−
* Enter your Bank Centre and press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Entry mode}}, choose {{DataValue|Cashbook}}.
−
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Money in/out}}, choose {{DataValue|out}} as you are paying money out of the bank account.
−
* Enter the date you are paying the money out.
+
* On the highlighted line, enter your Bank Centre.
−
* Enter the PAYE & NI Control Centre.
+
* On the next line:
−
* Enter the amount to pay (do not enter this as a negative value).
+
** In the {{DataPrompt|Centre}} column, enter the PAYE & NI Control Centre.
−
* Enter the comment.
+
** In the {{DataPrompt|Date}} column, enter the date you are paying the money out.
−
 
+
** In the {{DataPrompt|Debit}} column, enter the amount to pay.
 +
** In the {{DataPrompt|Comment}}, enter a comment.
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
  
Line 115: Line 116:
 
{{Example|text=Student Loan Company, Council, CSA and Pension Companies.}}
 
{{Example|text=Student Loan Company, Council, CSA and Pension Companies.}}
  
−
* Go to {{Menu|Accounts\Systems|{{NL}}|Journal Entries|Cashbook Entry.}}
+
* Go to {{Menu|{{NL}}|Journal Entries}}
−
* Enter your Bank Centre and press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Entry mode}}, choose {{DataValue|Cashbook}}.
−
* Enter {{DataValue|O}} (Out) at {{DataPrompt|Money In/Out}} as you are paying money out of the bank account. Press {{KeyPress|Enter}}.
+
* At {{DataPrompt|Money in/out}}, choose {{DataValue|out}} as you are paying money out of the bank account.
−
* Enter the date you are paying the money out.
+
* On the highlighted line, enter your Bank Centre.
−
* Enter the relevant code to which you have been posting the payroll details.
+
* On the next line:
−
 
+
** In the {{DataPrompt|Centre}} column, enter the relevant code to which you have been posting the payroll details e.g. Student Loan Deductions.
−
{{Example|text=Student Loan Deductions.}}
+
** In the {{DataPrompt|Date}} column, enter the date you are paying the money out.
−
 
+
** In the {{DataPrompt|Debit}} column, enter the amount to pay.
−
* Enter the amount to pay (do not enter this as a negative value).
+
** In the {{DataPrompt|Comment}}, enter a comment.
−
* Enter the comment.
 
−
 
 
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
 
{{Example|text={{DataValue|WAGES PAID M6}}.}}
  

Revision as of 17:26, 14 February 2014

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 " Nominal Ledger Journal Entries"

  • At "Entry mode", choose 'Multiple'.
  • At "Date", 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

On a line on the list:

  • In the "Centre" column, 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.
  • In the "Debit" column, enter the Total Gross Pay for the appropriate centre.
  • In the "Comment", enter a comment.
'Gross M6'.

On the next line:

  • In the "Centre" column, enter the Wages Control Account centre and post the same Total Gross Pay again, but this time in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.

Repeat as many times as necessary if you are splitting Gross Wages into departments.

Tax (PAYE)

On a line on the list:

  • In the "Centre" column, enter the Wages Control Account centre.
  • In the "Debit" column, enter the Total Tax for the period.
  • In the "Comment", enter a comment.
'Tax M6'.

On the next line:

  • In the "Centre" column, enter the PAYE & NI Control Account and post the Total Tax in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.
This reduces the amount that you owe to the employees by the Tax figure since you owe this to HMRC.

Employees National Insurance

On a line on the list:

  • In the "Centre" column, enter the Wages Control Account centre.
  • In the "Debit" column, enter the Total Employees' National Insurance for the period.
  • In the "Comment", enter a comment.
'EE NI M6'.

On the next line:

  • In the "Centre" column, enter the PAYE & NI Control Account and post the Total Employees' National Insurance in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.
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

On a line on the list:

  • In the "Centre" column, enter the Employers NI centre.
  • In the "Debit" column, enter the Total Employer’s National Insurance for the period.
  • In the "Comment", enter a comment.
'ER NI M6'.

On the next line:

  • In the "Centre" column, enter the PAYE & NI Control Account and post the Total Employer’s National Insurance again in the "Credit" column.
  • Press <Ctrl+F6> on the "Comment" field to pick up the same comment as above.
Post any other values appropriately.
Tax Credits should be posted in the "Debit" column to the PAYE & NI Control Account and in the "Credit" column 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 " Nominal Ledger Journal Entries"
  • At "Entry mode", choose 'Cashbook'.
  • At "Money in/out", choose 'out' as you are paying money out of the bank account.
  • On the highlighted line, enter your Bank Centre.
  • On the next line:
    • In the "Centre" column, enter the Wages Control Centre.
    • In the "Date" column, enter the date you are paying the money out.
    • In the "Debit" column, enter the amount to pay.
    • In the "Comment", enter a comment.
'WAGES PAID M6'.
  • Press <Esc> and <Accept> to post the journal.

Posting the Payment to HMRC

Paying HMRC

  • Go to " Nominal Ledger Journal Entries"
  • At "Entry mode", choose 'Cashbook'.
  • At "Money in/out", choose 'out' as you are paying money out of the bank account.
  • On the highlighted line, enter your Bank Centre.
  • On the next line:
    • In the "Centre" column, enter the PAYE & NI Control Centre.
    • In the "Date" column, enter the date you are paying the money out.
    • In the "Debit" column, enter the amount to pay.
    • In the "Comment", enter a comment.
'WAGES PAID M6'.
  • Press <Esc> and <Accept> to post the journal.

Paying Money to Other Bodies

Student Loan Company, Council, CSA and Pension Companies.
  • Go to " Nominal Ledger Journal Entries"
  • At "Entry mode", choose 'Cashbook'.
  • At "Money in/out", choose 'out' as you are paying money out of the bank account.
  • On the highlighted line, enter your Bank Centre.
  • On the next line:
    • In the "Centre" column, enter the relevant code to which you have been posting the payroll details e.g. Student Loan Deductions.
    • In the "Date" column, enter the date you are paying the money out.
    • In the "Debit" column, enter the amount to pay.
    • In the "Comment", enter a comment.
'WAGES PAID M6'.
  • Press <Esc> and <Accept> to post the journal.

See also


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Keywords AND Misspellings
wages, journal, HMRC, gross, PAYE, national insurance
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