Entering Sales Invoices and Purchase Invoices

These are fairly straightforward processes in Sage as long as sufficient detail is entered for each transaction (date, reference and nominal ledger coding) and the invoice is entered against the correct customer or supplier.

Entering Credit Notes

These can be a bit more tricky so if your company issues or receives credit notes on a regular basis. It is important that you follow the correct procedures (see Sage help).

Entering Receipts

It is important that customer receipts are allocated to the correct invoice and that the accounts for those customers who make payments on account are reviewed regularly.

The Aged Debtors Report should also be run regularly and any old or negative balances investigated and adjustments made where necessary.

Entering Payments

Payments to suppliers should normally be made against specific invoices. The account for any supplier to whom you make payments on account needs regular review.

The Aged Creditors Report should also be run regularly and any old or negative balances investigated and adjustments made where necessary.

Set-offs

Setting off amounts between the Sales Ledger and the Purchases Ledger in respect of the same customer/supplier can lead to problems. It is usually best to keep the transactions separate and “swap cheques” if there is a bit of a stand-off!

As long as the Sales and Purchase Ledgers are maintained on a regular basis with sales invoices, purchase invoices, receipts and payments being recorded accurately and promptly then we do not normally have to spend a lot of time on these ledgers when preparing the Annual Accounts.