SAGE

COMPUTERISED
ACCOUNTS HANDBOOK

LEVEL 1
INDEX

Contents

Create New Accounts in the Sales Ledger (Customer Ledger).........................................................3

Create New Accounts in the Purchase Ledger (Supplier Ledger).....................................................4
Create New Accounts in the Nominal Ledger...................................................................................5
Nominal Codes...................................................................................................................................6
Customer (Sales) Invoicing................................................................................................................8
Supplier (Purchases) Invoicing..........................................................................................................9
Customer (Sales) Credit Note..........................................................................................................10
Supplier (Purchases) Credit Note.....................................................................................................11
Entering a Bank Receipts: Recording the introduction of capital....................................................12
Saving a transaction.........................................................................................................................14
Customer Payment...........................................................................................................................15
Supplier Payment.............................................................................................................................16
Payments..........................................................................................................................................17
Cash Sale..........................................................................................................................................18
File Maintenance: Corrections.........................................................................................................19
Correcting Errors – Posted To The Wrong Account........................................................................19
Correcting An Incorrect Gross Invoice............................................................................................19
Printouts...........................................................................................................................................21
The Audit Trail.................................................................................................................................21
Customer (Sales) Reports................................................................................................................22
Supplier (Purchases) Reports...........................................................................................................24
Bank / Cash Account Reports..........................................................................................................25
Trial Balance Report........................................................................................................................26
Useful Notes.....................................................................................................................................27

Tutor: Katrina McDonnell 2

Create New Accounts in the Sales Ledger (Customer Ledger)

Select MODULES and then select CUSTOMERS

Select RECORD from the CUSTOMERS window

Ensure that you have entered the correct ACCOUNT CODE (A/C) as this can not be changed once
you have saved
Enter all the account details for the CUSTOMER
Select SAVE

Tutor: Katrina McDonnell 3

Create New Accounts in the Purchase Ledger (Supplier Ledger)

Select MODULES and then select SUPPLIERS

Select RECORD from the SUPPLIERS window

Ensure that you have entered the correct ACCOUNT CODE (A/C) as this can not be changed once
you have saved
Enter all the account details for the SUPPLIER
Select SAVE

Tutor: Katrina McDonnell 4

Create New Accounts in the Nominal Ledger

Select MODULES and then select NOMINAL LEDGER

Select RECORD from the NOMINAL LEDGER window

Ensure that you have entered the correct NOMINAL CODE (N/C) – Sage has already RESERVED
ACCOUNTS setup which can not be changed
Enter the NAME of the nominal code – ensure you have entered correctly what is stated on the exam
paper
Select SAVE

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Nominal Codes

Reserved Accounts (Nominal Codes)

1100 Debtors Control 2100 Creditors Control

1200 Bank Account 1230 Petty Cash

2200 Sales Tax (VAT) 2201 Purchases Tax (VAT)

Understanding Nominal Codes

Nominal Code Description

0010 -0059 Fixed Asset Accounts e.g. Furniture, Vehicle, Premises, etc…

1001 - 1250 Current Asset Accounts e.g. Debtors, Stock, Bank, Accounts etc…

2100 - 2330 Current Liabilities Accounts e.g. Salaries, Tax and Short Terms Creditors

3000 - 3299 Capital & Reserves Accounts e.g. Profit & Loss

4000 – 4999 Sales Accounts – Anything you sell for profit such as stock

5000 – 5999 Purchases Accounts – Anything you buy to sell on to make a profit

6000 – 6999 Direct Expenses

7000 – 9999 Overheads – Heating, Stationery, Vehicle running costs etc….

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TAX CODES

Code Type Example

Newspapers, Public Transport, Sample
T0 Zero-rated transactions gifts for Business

Stationery, Heating, Stock, Sales etc…

T1 Standard rate (presently 17.5%)

Charities, Small Businesses

T2 Exempt transactions

Goods sold to the EC – Ireland France

T4 Sales to customers in EC Spain etc..

Goods purchased from the EC that are

T7 Zero-rated purchases from suppliers in EC Zero-rated

Standard rated purchases from the EC

T8 Standard rated purchases from suppliers in EC

Salaries, Postage, paying HM Revenue

T9 Transactions not involving VAT Customs & Tax

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Customer (Sales) Invoicing

Select MODULES and then select CUSTOMERS

Select INVOICE from the CUSTOMER window (SALES BATCH CONTROL)

Select the ARROW in the A/C column to find the correct Customer Account
Input the INVOICE NUMBER under the REF column
Input the NOMINAL CODE under the N/C column
T/C column will appear as T1 automatically do not change this unless the invoice shows No Tax, if
this is the case change the T1 to T0
Input all invoice given below one another
Select SAVE
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Supplier (Purchases) Invoicing

Select MODULES and then select SUPPLIERS

Select INVOICE from the SUPPLIER window (PURCHASE BATCH CONTROL)

Select the ARROW in the A/C column to find the correct Supplier Account
Input the INVOICE NUMBER under the REF column
Input the NOMINAL CODE under the N/C column
T/C column will appear as T1 automatically do not change this unless the invoice shows No Tax, if
this is the case change the T1 to T0
Input all invoice given below one another
Select SAVE

Tutor: Katrina McDonnell 9

Customer (Sales) Credit Note

Select MODULES and then select CUSTOMERS

Select CREDIT from the CUSTOMER window

Select the ARROW in the A/C column to find the correct Customer Account
Input the CREDIT NUMBER under the REF column
Input the NOMINAL CODE under the N/C column
T/C column will appear as T1 automatically do not change this unless the credit shows No Tax, if this
is the case change the T1 to T0
Select SAVE

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Supplier (Purchases) Credit Note

Select MODULES and then select SUPPLIERS

Select CREDIT from the SUPPLIER window

Select the ARROW in the A/C column to find the correct Supplier Account
Input the CREDIT NUMBER under the REF column
Input the NOMINAL CODE under the N/C column
T/C column will appear as T1 automatically do not change this unless the credit shows No Tax, if this
is the case change the T1 to T0
Select SAVE

USEFUL HINTS

If the row above has the same information as the row you are about to enter e.g. the A/C or DATE use
F6 to copy
F8 will delete an extra row – this occurs if you have tabbed to far after the last invoice/credit

Tutor: Katrina McDonnell 11

Entering a Bank Receipts: Recording the introduction of capital

You are going to put money into your bank account.

For your very first transaction, assume that you are paying £3,000 into your company bank account for
the business to use as capital. This amount is to be paid into the account 1200 - Bank Current Account.
However, to maintain the double entry principle, you have to book the corresponding amount against
another account number. So what is this £3,000?
In this case, assume you are introducing capital into your company £3,000 You need to make
the following double entry:
Account Description Debit Credit
1200 Capital 3000.00
3000 Capital 3000.00

The debit column represents money that is available to the company. The credit column represents
money the company owes to others. So, at the end of this transaction, the company will have £3,000 in
the bank, but owe £3,000 in capital.

Using the Bank Receipts routine, Sage 50 Accounts will do half the work for you. You need only enter
the second line of the transaction - Sage 50 Accounts will automatically create both transaction lines
from the information you supply.
You will now enter the bank receipt transaction.
Open the Modules menu and choose Bank, or click the Bank button or the
Bank icon at the bottom of the navigation bar.
The Bank Accounts window is displayed.

Notice that there are several accounts, and that the state of each account is shown - all are
at zero at the moment. Try adding the receipt.
In the Bank Accounts toolbar, click the Receipt button.
The Bank Receipts window is displayed.

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The top four boxes are filled in automatically by Sage 50 Accounts as you enter your receipts.
You just have to concentrate on entering the individual lines of information. The remaining
boxes are used as follows:
 Bank - records the bank account that is receiving the payment
 Date - the date of the transaction - by default today’s date will appear
 Ref - used to record a cheque number, or other reference number
 N/C - the nominal code for the type of transaction
 Dept - the department number to which the transaction applies (departments are
not used in this course)
 Project Ref - the project reference to which the transaction applies (projects are
not used in this course)
 Details - where you can type a description for the transaction
 Net - the net amount of the receipt
 T/C - the tax code for the transaction
 Tax - calculated automatically from the net amount and the tax code
Press the Tab key.
The tax amount is filled in for you automatically, but you could change it if necessary.
You have now completed the first transaction! The top of your Bank Receipts window should resemble
the following picture.

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As mentioned, accuracy is very important when dealing with accounts. The transaction hasn’t been
posted yet so you still have time to correct any mistakes.
Check the transaction carefully - if you find a mistake, click the entry
and correct it.

Saving a transaction
A transaction is not complete until you save it. This applies throughout Sage 50 Accounts.
Click Save.
The transaction is saved and cleared from the screen. You can now close the window.
Click Close.

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Customer Payment

Select MODULES and then select BANK

Highlight the BANK CURRENT ACCOUNT (N/C 1200)
Select CUSTOMER from the BANK ACCOUNTS window

Select the ARROW in the A/C field to find the correct CUSTOMER ACCOUNT – once you have
selected the correct Customer all outstanding invoices/credits will appear below.
Enter the correct date given
Enter the amount being paid in the AMOUNT field
Enter the cheque number given into the REFERENCE field
Allocate the invoice(s) being paid by clicking the RECEIPT column
Either select PAY IN FULL or manually type in the amount
Select SAVE

Tutor: Katrina McDonnell 15

Supplier Payment

Select MODULES and then select BANK

Highlight the BANK CURRENT ACCOUNT (N/C 1200)
Select SUPPLIER from the BANK ACCOUNTS window

Select the ARROW in the PAYEE field to find the correct SUPPLIER ACCOUNT – once you have
selected the correct Supplier all outstanding invoices/credits will appear below.
Enter the correct date given
Enter the cheque number given into the CHEQUE No field
Enter the amount being paid
Allocate the invoice(s) being paid by clicking the PAYMENT column
Either select PAY IN FULL or manually type in the amount
Select SAVE

Tutor: Katrina McDonnell 16

Payments

A general payment is when you are paying for goods/services but the supplier does not have an account
setup.

Bank /Cash Payment

Select MODULES and then select BANK

Highlight the BANK CURRENT ACCOUNT (N/C 1200) if paying by CHEQUE or highlight the
PETTY CASH ACCOUNT (1230) if paying by CASH
Select PAYMENTS from the BANK ACCOUNTS window

The BANK column should display 1200 (cheque) or 1230 (cash)

Enter the correct date given
Enter the CHEQUE No/REF given into the REF column
Enter the nominal code given into the N/C column
Enter the NET amount given
T/C column will appear as T1 automatically do not change this unless the payment states No Tax, if
this is the case change the T1 to T0
The TAX will automatically be calculated
Select SAVE

If you have been given the GROSS amount simply enter this amount into the NET column and select
CALC. NET

Tutor: Katrina McDonnell 17

Cash Sale

Select MODULES and then select BANK

Highlight the PETTY CASH ACCOUNT (1230)
Select RECEIPT from the BANK ACCOUNTS window

1. The BANK column should display 1230

2. Enter the correct date given
3. Enter the REFERENCE given into the REF column
4. Enter the nominal code given into the N/C column
5. Enter the NET amount given
6. T/C column will appear as T1 automatically do not change this unless the sales states No Tax, if
this is the case change the T1 to T0
7. The TAX will automatically be calculated
8. Select SAVE
9.
10. If you have been given the GROSS amount simply enter this amount into the NET column and
select CALC. NET

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File Maintenance: Corrections

Correcting Errors – Posted To The Wrong Account

1. Click on File and Maintenance.

2. Click on Correcting Errors.
3. The screen will show a list of all recent transactions.
4. Click and highlight the transaction that contains an error.
5. Click on Edit.
6. In the account reference type in the correct account the transaction is to be posted.

11. Click on Delete to erase the error.

Correcting An Incorrect Gross Invoice

1. Click on File and Maintenance.

2. Click on Correcting Errors.
3. The screen will show a list of all recent transactions.
4. Click and highlight the transaction that contains an error.
5. Click on Edit.

6. Click on Edit.

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7. Click on the Amounts tab.
8. Click on Edit.
9. Tab down until you come to the tax option and type in the amount of tax due.
10. Click on Close.
11. Click on Save.
12. To check if tax has been corrected double click on account reference.
13. Click on Activity.
14. Posting should be corrected.

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Printouts

Producing correct accounting information about a company is vital. Some of the main reports are
available via the Financials window.
1. Open the Modules menu and choose Financials.
The Financials window is displayed.

The Audit Trail

The Audit Trail is a complete list of every transaction made on your system. The transactions are
displayed in the order in which they were made. Your accountant may require a full audit trail at some
point, and you should certainly print it out from time to time so that you have a paper copy of all your
transactions.
2. In the Financials toolbar, click the Audit button.
The Audit Trail Report dialog box is displayed.

You can choose between four different types of report and change to landscape layout (paper lying on
its side). You also have the usual Output options, allowing you to print the report, preview it on screen,
or send it to a file.
1. In the Audit Trail Type options, make sure that the Brief type is
chosen.
The report will be 1 or 2 pages long. If you do not wish to print it, you can choose to preview it instead.
1. If necessary, click the Printer option so that it is chosen.
2. Make sure that your printer is switched on and ready to print, and then
click Run.
The Criteria dialog box is displayed. This gives you a chance to limit the report to a selected range. Just
accept the default settings for now.
3. Click OK to continue.
The Print dialog box is displayed.
4. Check the settings are correct, and then click OK.
The Audit Trail is printed.

Tutor: Katrina McDonnell 21

Customer (Sales) Reports
Select MODULES and then select CUSTOMERS
Select REPORTS from the CUSTOMER window

Select CUSTOMER ACVITITY REPORTS

Select CUSTOMER ACTIVITY (DETAILED)

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Select GENERATE REPORT

Select CUSTOMER DETAILS REPORTS

Select CUSTOMER ADDRESS LIST
Select GENERATE REPORT

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Supplier (Purchases) Reports

Select MODULES and then select SUPPLIER

Select REPORTS from the SUPPLIER window

Select SUPPLIER ACVITITY REPORTS

Select SUPPLIER ACTIVITY (DETAILED)
Select GENERATE REPORT

Select SUPPLIER DETAILS REPORTS

Select SUPPLIER ADDRESS LIST
Select GENERATE REPORT

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Bank / Cash Account Reports

Select MODULES and then select BANK

Highlight 1200 (Bank Current Account) or 1230 (Petty Cash) (depending what is asked for)
Select REPORTS from the BANK window

Select RECONCILED AND UNRECONCILED TRANSACTION REPORTS

Select BANK REPORT – RECONCILED & NON RECONCILED
Select GENERATE REPORT

If you are required to print this report for the Bank and Cash account just repeat the above procedure
making sure you change the highlight to the correct account.

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Trial Balance Report

Select MODULES and then select FINANCIALS

Select TRIAL
Select RUN

Select the PERIOD / MONTH you are working in by clicking on the arrow.
Select OK

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Useful Notes

Starting: Note what financial year you are working in – this will be displayed at the bottom right
hand side of the screen e.g. May 2007

Customers: Customer accounts will also be known as Sales Ledger

Supplier: Supplier accounts will also be known as Purchase Ledger

Nominal: Setting up nominal codes you enter into your nominal ledger and then
record

Journal: When a company starts it will start of with capital which will be divided up
in your bank account/petty cash/reserved account. You always Credit your Capital
& Debit your Bank Account/Petty Cash/Reserved Account. It should look
something like the following:-

Your business starts with a capital of £225,000. £220,000 was lodged into the business account and
£5,000 into your petty cash account.

A. N/C Name Debit Credit

3000 Capital 225,000
1200 Current Account 220,000
1230 Petty Cash 5,000

N.B. These are not the nominal codes you will use as they change pending on what the company
accountant wants.

Payments:
Where it tells you about the set up of your business (capital) it may also tell you that you purchased
items these are NOT to be entered as a journal. You enter into your bank account and from there you
enter them as a payment.

Bank:
You will have the following dealings with your bank and they are as follows:

Customer Payment
This is when you receive money. You go into the Bank and within the bank you have the option
Customer it is when entering into this you put the information given to you.

Supplier Payment
This is when you send out money. You go into Bank and within the bank you have the option Supplier
it is when entering into this you put the information given to you.

Tutor: Katrina McDonnell 27

Cash Sale
This is when you receive money. You go into the Bank (make sure you Petty Cash is highlighted)
and within the bank you have the option receipt it is when entering into this you put the information
given to you.

Cash Purchase
This is when you send out money. You go into Bank (make sure you Petty Cash is highlighted) and
within the bank you have the option Payment it is when entering into this you put the information
given to you.

Customer Invoice/Credit:
This can also be known as Sales Invoices or Sales Ledger. You go into your customer and then with
that option you will see invoiced/credit. When you have entered into this you input the information
given (make sure your amounts are right before saving)

Purchase Invoice/Credit
This can also be known as Purchase Invoices or Purchase Ledger. You go into your supplier and
then with that option you will see invoice/credit. When you have entered into this you input the
information given (always double check figures before saving)

Print Outs:
You will be asked for printouts but the question maybe worded differently to what you are used to
seeing. This is a list of what they require

Customer – Report – Customer Address List

Customer – Report – Customer Activity Detailed (N.B. Your dates)

Supplier – Report – Supplier Address List

Supplier – Report – Supplier Activity Detailed (N.B. Your dates)

Bank – Highlight Bank Account – Report – Reconciled & Non-Reconciled

Bank – Highlight Petty Cash Account – Report – Reconciled & Non-Reconciled (N.B. Your dates)

Financial – Trial (Don’t forget to select the correct month)

Transaction Code

SI Sales Invoice
SC Sales Credit
SR Sales Receipt
SA Sales Receipt on Account
PI Purchases Invoice
PC Purchase Credit
PP Purchase Payment
PA Purchase Payment on Account
BP Bank Payment
CR Cash Receipt
JC Journal Credit
JD Journal Debit
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Accuracy & Proofreading

Accountancy is all about being accurate. Standard of accuracy must be kept to the highest level as
marks will be lost for any inaccuracy.

Fred Higgins & Co. – This must be typed as you see it with the dot after Co.

Remember type what you see even if you think it is incorrect.

I (Incorrect)
l (lime)
1 (number)

Can you see the difference if not look again because the examiner can!

Oh…..and then there’s O. Or was it 0? Or was it even o?

O (for Oscar)
0 (figure zero)
o (for owl)

Can you see the difference if not look again because the examiner can!

Tutor: Katrina McDonnell 29