Dont know how to enter Finance in SAGE

E

EdMurphy

Guest
Hi

Would anybody be able to help me. I need to enter a finance Libility in SAGE but Im not sure how to. Below are the details:


ADVANCE AMT 21000.00
ADMIN FEE 63.49
CHARGES 4380.00
INSURANCE 1948.95
VAT PAID 102.16
FUTURE VAT 5240.97
DIRECT DEBIT 621.13
BAL INC VAT 32114.44


The Monthly Repayment is 544.31 (423+VAT = 511.83) + 32.48 income protection.

My Attempt at entering it in SAGE goes like this:


2300 LOAN 32735.57 (CR)
7304 ADMIN 63.49 (DR)
7905 CHARGES 4380.00 (DR)
7303 INSURANCE 1948.95 (DR)
2202 VAT PAID 102.16 (DR)
2201 FUTURE VAT 5240.97 (DR)
0050 ASSET 21000.00 (DR)

But im sure that isnt correct.

Thanks Ed
 
is this a new set of accounts you are starting with, and transferring info into?

the nominals seem ok to me, why do you think it is wrong?
where did you get the future vat from, have you entered journals to come to this in that nominal?
 
It is not a new set of accounts but the finance agreement is taken out on 02/01/08 and i havent worked it in yet. The agreement is over 5 years. The resaon I think it is wrong is, if i debit the charges and insurance in the 7000's then to me it is saying that the whole amount's for the 60 months is paid in the first year?

Also if i then make a monthly payment, 511.83 to the loan and 32.48 to the insurance then it will be a debit, again to the insurance?

Ed
 
i'm after taking ages writing a reply and the website timed out....arrrgghhh
i'll keep it short and write out journals for you to do, we've been using them ourselves when required.

enter ins invoice as normal
you will then need to create a journal entry to show the prepayment
JC 7308 Motor Ins Prepaid Jan-Dec '08 (full amount of X)
JD 1103 Motor Ins Prepaid Jan-Dec '08 (full amount of X)

You will then need to create a journal on a montly basis, showing your montly prepayment release, which would be as follows,

JC 1103 Motor Ins Prepayment Release Jan'08 (credit monthly payment of X)

JD 7308 Motor Ins Prepayment Release Jan'08 (debit monthly payment of X)

you might use different nominals, if so pls amend accordingly. try a doing a backup of sage and enter the journals above and see what you think.
 
Thanks for your help but im still struggling.
To save complications i am just going to use the loan amount, the asset amount and the insurance. I have rebuilt sage as a blank (after backing up :)) and entered them as you said so i only have the 3 transactions in there now. It is much easier to see.

0050 ASSET 12000.00 (DR)
7300 INS 1948.95 (DR)
2300 LOAN 13948.95 (CR)

Then i Journal'ed:

7300 INS 1948.95 (CR)
1103 PREPAYMENTS 1948.95 (DR)

That all looks fine, but the Balance Sheet now says I have 1948.95 Debtors and the money isnt owed to me, I owe it?

The other thing is if I make the monthly payment to the loan, from the bank i would need to split it, so that 32.48 is paid off the insurance and if i release it from the prepayments it will be doubled up.

If i make the payment from the bank and dont include the insurance amount, and transfer it from prepayments then the wrong amount will come out of the bank.
Ed
 
EdMurphy said:
Thanks for your help but im still struggling.
To save complications i am just going to use the loan amount, the asset amount and the insurance. I have rebuilt sage as a blank (after backing up :)) and entered them as you said so i only have the 3 transactions in there now. It is much easier to see.

0050 ASSET 12000.00 (DR)
7300 INS 1948.95 (DR) - Is this the monthly amt or total invoice amt
2300 LOAN 13948.95 (CR)

Then i Journal'ed:

7300 INS 1948.95 (CR)
1103 PREPAYMENTS 1948.95 (DR)

That all looks fine, but the Balance Sheet now says I have 1948.95 Debtors and the money isnt owed to me, I owe it?

The other thing is if I make the monthly payment to the loan, from the bank i would need to split it, so that 32.48 is paid off the insurance and if i release it from the prepayments it will be doubled up.

If i make the payment from the bank and dont include the insurance amount, and transfer it from prepayments then the wrong amount will come out of the bank.
Ed
Click to expand...
i would just enter the total amt including the insurance amt

inv €1000, entered as a supplier invoice to the insuance nominal (7300)
JC then enter a prepayment of €1000 to prepay nominal (1103)
JD then enter a prepayment of €1000 to ins nominal (7300)

what happens is, the invoice is marked down to 0 while the balance is shown only when the prepayment release journal happens. (figure of 1k, for illustration only)
 
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