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You write a cheque, this is a payment, you pay by laser card, another payment. A direct debit or stanidng order taken from your account, another payment. All these must be recorded in your accounts software. You can not leave any out if you want to be able to produce a monthly set of accounts. Even if you are happy enough that you don't want to produce a profit and loss account, you still need to record these payments. There are two types of payments, a supplier payment (you have an invoice) and non supplier paymenst (wages and taxes) and these are dealt with differently in your accounst system. So how do you record these payments, here's how.
Use a hard backed red book Buy a hard backed book with 14 analysis columns and set it up as follows SUPPLIER PAYMENTS BOOK (Supplier Payments/Other Payments book) | Date | Supplier Name | Chq No. | € Total | € Creditors Ledger | Creditors Foreign Currency | Supplier A/c Code | € Discount Received | € Amount paid to Customers | € Nominal Ledger | Nominal Code | | 1/2/06 | | 501 | 100.00 | 100.00 | | JPD01 | | | | | | 3/2/06 | Electric Co. | 502 | 250.00 | 250.00 | | ELE01 | | | | | | 5/2/06 | Gas Co. | 503 | 505.00 | 505.00 | | GAS01 | | | | | | 7/2/06 | Wages | 504 | 1000.00 | | | | | | 1000.00 | 2016 | | | | | | | | | | | | | | | | | = | + | | | + | + | + | | Set up another page for all non cheques i.e. Direct Debits, Standing Orders, Bank Charges etc. The example shown here shows you were to write each type of payment. Each supplier payment is recorded in the Creditors ledger column and their account code writeen in the Supplier A/c Code column. Each non supplier payment is recorded in the Nominal ledger column and the nominal code (expense code) is written in the nominal code column. There are 3 other columns
Creditors Foreign Currency - The amount in the foreign currency (The Euro value is recorded in the Creditors Ledger column)
Discount received - to record any discount you recived when you paid an invoice
Amount paid to customers - if you make a refung to a customer you record it here At the end of each month total each column and the columns marked with a '+' when added together MUST add up to the exact amount in the Total column. Then this total must equal the amount on your bank paymenst report in your accounts software. This may seem a lot of work and duplicates the work of entering the payments into your accounst software. But this method ensures no payments are missed as you write the cheque numbers in sequence and can easily see missing cheques. Also anyone can write in a book, not everyone can use accounst software. article:100002 (c) Nilsson Denver Ltd 2007 |
