dividend posting in sage

wood1e2 · May 20, 2010

Hi,

Just looking at posting a dividend in sage. For which sage's help has got me a little confused!! Easily done.

Accordingly sage states this:

Cr Nom 1200 Bank Payment £x
Dr Nom 2290 T9 £x

Which I presume I have to post whatever as I need to show the payment leaving the bank account.

Then if I want to show the dividend as a reserve deduction I should post this as well?

Dr 3200 Profit and Loss Account T9 £x
Cr 3201 Dividends T9 £x

Jenni384 · May 20, 2010

I don't know what Nom 2290 is but...

If you are actually paying a dividend its CR BANK, DR Dividends (reserves)

Otherwise it will be in the balance sheet twice.

Edit: Dividends don't get shown in the P&L anymore.

wood1e2 · May 20, 2010

Hi Brilliant thanks

I am not so sure what Nom 2290 is now!! Will have another look at the sage help!! At some point.

So if I use:

Cr Bank Nom 1200
Dr Reserves Nom 3200

Nom 3200 is part of "Total Capital and Reseves" within sage, this will then be correct?

David Griffiths · May 20, 2010

No! Don't post anything directly to the reserves account. The accountants will expect this figure to be the same as the balance brought forward from the last final accounts and if you start posting things in there you will not be popular!

There are a few ways of posting dividends. If there's a dividend code that's already in use, stick to it, or ask the accountants where they prefer to have it posted.

Wild Goose · May 20, 2010

Account 2290 is usually a wages account. Not sure why sage would want you to debit that.

Cr Bank Dr Divs (reserves) is good as Jenni has said, but try creating your own "divs (reserves)" account. A/c 3201 would be good - anything in the 3201 - 3299 range should format to "Reserves" if you are using Sage's standard reports template.

If you debit directly to a/c 3200 (the Profit and Loss account) you artificially lower the a/c 3200 profits figure in eg a TB printout or a P&L report (don't lose sight of the fact that a/c 3200 P&L a/c is the profit figure, and as such appears in both the P&L and the Bal sheet - it's the balancing figure in a TB. Mustn't tamper with it!).

LATE EDIT: Overlap - David's saying a similar thing, but beat me to it. Wish I had your succinctness, D.

wood1e2 · May 20, 2010

Ok no really confused!!!

@David, you are saying ask the accountants?

@Wild Goose - you are saying:

Cr Bank
Dr Dividend Nom - 3201

If you debit directly to a/c 3200 (the Profit and Loss account) you artificially lower the a/c 3200 profits figure in eg a TB printout or a P&L report (don't lose sight of the fact that a/c 3200 P&L a/c is the profit figure, and as such appears in both the P&L and the Bal sheet - it's the balancing figure in a TB. Mustn't tamper with it!)

Are you saying that this is what happens if I posted to the 3200 instead of the 3201 (new Div nom)?

So therefore posting to 3201 is fine and dandy?

wood1e2 · May 20, 2010

David Griffiths said:
No! Don't post anything directly to the reserves account. The accountants will expect this figure to be the same as the balance brought forward from the last final accounts and if you start posting things in there you will not be popular!

This is the first year.

And the accountants change all the noms to fit their own software anyway, so come the new year I won't be too happy with them!! lol

So I am looking for the best to place to post the dividend to?

Wild Goose · May 20, 2010

Why not do as Uncle David suggested and ring the accountants?

Ask them if you can create an account for divs paid, in the range I gave a/c 3201 onwards (or any other range they might prefer - some post them on a/c 2800 onwards although I'm uncertain as to why). Suggest a different dividend paid account for each shareholder.

If you have already debited a/c 3200 then just put another entry through:

Cr a/c 3200 (so that you will have conta'd out the offending entry)
Dr a/c divs paid (a/c 3201 or whatever a/c number the accountants give you).

wood1e2 · May 20, 2010

All I want to do is post it to where I want it, (obviously posting legally/accounting correctly ).

So if the suggestion is that 3201 is the correct place to post then fantastic.

Where/What/When and how the accountants want it posted that is up to them. They use a completely different software package to Sage, some 'press a button end of year jobby' they import it into that software.

It is more a case of getting the posting in the correct range, so when it is imported the figure goes in the right place for their software. And not end up in the Reserves as I was initially looking at posting it to...lol

So many thanks for the help, I can get on and post now.

Wild Goose · May 20, 2010

wood1e2 said:
All I want to do is post it to where I want it... So if the suggestion is that 3201 is the correct place to post then fantastic.

Go for it, Dude

wood1e2 said:
It is more a case of getting the posting in the correct range, so when it is imported the figure goes in the right place for their software. And not end up in the Reserves as I was initially looking at posting it to...lol

Much as I don't want to ruin your day, a/c 3201 is in the Reserves. Just keep it out of 3200 and you'll be laughin' (although not necessarily all the way to the bank at the speed you're going today)

wood1e2 · May 20, 2010

YEs i know the 3200 are Capital and Reserves, that what made me wonder why 3201 would be so different

Never likely to be laughing all the way to the bank, I seem to be personally paying for 13 years of government on the knock!!! Added to that an ex-friend - pusdeo Scot thinks that the English should be able to vote as they don't know how too, being that the Scots and Welsh voted out the labour government...

I digress

Many thanks

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