Record cash payments

Find this screen

Open: Cash Book > Enter transactions > Nominal Vatable Payment for payments with VAT.

Open: Cash Book > Enter transactions > Nominal Non Vatable Payment for payments without VAT.

Watch a video

Cash book payments and receipts (video)

How to

Enter a payment

1. Select the Bank account.
2. Tab or click Clear.

3. Enter the details of the transaction:

   Transaction details

   • Date - defaults to today's date.
   • Cheque no - Enter a reference to help you identify the transaction.
   • 2nd ref and Narrative - Optional additional details you can add to the transaction.

   Nominal Transactions

   • Code - The nominal account.
   • Amount - Enter the Net (Goods value) or Gross value.
   • VAT Code - Defaults to the standard VAT rate.

   • Narrative - Enter the details of the purchase.

     Narrative - Enter the details of the purchase for your VAT report.

4. Click Save to post the payment.

   • If you entered a payment whilst reconciling a bank account using Sage bank feeds, you can click Save & Create Rule to create a bank feeds rule for this transaction, to save you entering it again the next time.

Enter a foreign currency payment

Foreign currency payments are always entered in the currency that they were paid in. When the payment is saved, the currency value is posted to the bank account and the converted value is posted to the nominal accounts.

When you choose a foreign currency bank account, additional cheque currency, exchange rate and bank charges boxes are displayed.

Enter the following additional details:

1. Exchange rate to base: Click to change the exchange rate, .

2. Cheque currency: Choose the from list.
3. Bank value: This is the amount that's posted to your bank account.

Enter bank charges with a foreign currency payment

If you want to enter a foreign currency payment and include any bank charges incurred, you can do this by entering the bank charge details here.

This creates a single transaction of the payment value plus the charge.

This can make it easier to reconcile your bank statement, if this is how these transactions are shown on your bank statement.

Note: Enter bank charges in the same currency as the bank account.

Note: If you want bank charges to be included in your VAT return, then don't enter your bank charges here. Instead, you should enter the bank charges as a separate Nominal Vatable Payment or Nominal Vatable Receipt, using the appropriate VAT rate.

1. Enter the full amount of the payment in the original currency.
2. Enter the charge in the Bank charges section:
   • Code: The nominal account for the charge. The Bank Charges nominal account is displayed by default.
   • Amount: The amount of the bank charge.

The total amount to be posted to the bank account is in the Bank Value box. This should match the amount shown on your bank statement.

Enter a payment in another currency

There may be an occasion where you make a payment from a currency bank account in a different currency. For example, you pay for something in Canadian dollars from your dollar bank account.

When you do this there are two exchange rates that you can change:

• The exchange rate between the bank account and your base currency. This is the Exchange Rate to base.
• The exchange rate between the bank accounts currency and the cheque currency. This is the Exchange rate.

To enter the payment:

1. Choose the bank account.

2. Enter the amount of the payment in the Cheque value box. This is in the currency of the payment, e.g. Canadian dollars.
3. Choose the Cheque Currency.

4. The Exchange rate is displayed. Click to change it.

   You need to enter the exchange rates from base to both currencies. This is used to calculate the exchange rate between your bank's currency and your cheque's currency.

   The value of the payment in the bank's currency is shown in the Bank Value box.

5. To save the payment without allocating, click Save.

   To save the payment and allocate it to an invoice, click Save and Allocate.

Print a cheque for a payment

If you're entering a payment in your base currency, you can also print a cheque for the payment amount.

1. Select Print cheque on save.
2. Save the payment.
3. Enter the Payee name and Date.

4. Click Print

   Tip: Make sure you've put the right paper in the printer as cheques can't be reprinted.

Note: You can't print cheques for foreign currency payments.

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Useful info

About cash payments

Use the nominal payments screens when you want to record money paid out of your bank accounts that isn't related to a customer or supplier account.

• If VAT is included on the payment, use the Nominal Vatable Payment screen.

  For these payments, don't forget you also need to make sure your enter the VAT registration number of the payee associated with the purchase and the details of what you've bought (Narrative). Both of these fields print on the VAT Transactions (Education) report that you send to your LEA.

• If VAT is not included, use the Nominal Non Vatable Payment screen.

You might want to do this to record payments such as:

• Salaries and wages
• Petty cash purchases
• Other purchases that are not from a regular supplier
• Expenses
• Loans and mortgage
• Rent and rates

Payments with bank charges

This is the amount that you are charged by your bank for processing a foreign currency payment. Depending on your bank, this charge can be shown on your bank statement in two ways:

To make it easier for you to reconcile your bank account, there are also two ways you can enter this into Sage 200.

• As two separate transactions.

  1. Enter the payment using the option.

  2. Enter the bank charge using a Nominal Non-Vatable Payment or Nominal Vatable Payment.

  This method creates two transactions which you can then match with the two transactions on your bank statement.

• As a single transaction.

  Enter the payment and the bank charges using the option.

  This method creates one transaction which you then match with the single transaction on your bank statement.

  Note: If you want bank charges to be included in your VAT return, then don't enter your bank charges here. Instead, you should enter the bank charges as a separate Nominal Vatable Payment or Nominal Vatable Receipt, using the appropriate VAT rate.

Whichever method you use, you record the payment amount in the original currency and the bank charge in the same currency as the bank account.

If there is an exchange rate gain or loss between the transactions, this is dealt with by Sage 200 automatically.

Create rules for bank feeds reconciliation

If you enter a payment whilst you're reconciling your bank account, you can click Save & Create Rule to create a bank feeds rule for this transaction, to save you entering it again the next time.

For example, if you make a regular payment for your energy bills each month, you could set up a rule that recognises your bank payment to the energy company, and then creates the matching nominal transaction for you.

You can create bank feeds rules whenever you add a new transaction in Bank Feeds Reconciliation.

See Bank feeds rules.

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Fix it

Why is the date highlighted in red?

This is because the transaction date does not fall within any of your accounting periods.

Check the date and try again.

Why isn't the save button available?

Before you can save you have to:

• Enter at least one nominal account line.
• Have an amount (more than 0) in Gross Value column for at least one nominal account line.

What happens when

Save a payment

The following table shows the nominal account postings:

Nominal Account	Debit	Credit
Nominal Account	Payment Value
Bank Account		Payment Value

Save a payment with VAT

The following table shows the nominal account postings:

Nominal Account	Debit	Credit
Nominal Account	Net Value
VAT Input Account	VAT value
Bank Account		Gross Value

Save a foreign currency payment

The following table shows the nominal account postings:

Nominal Account	Debit	Credit
Nominal Account	Payment value in base currency
Bank Account		Payment value in base currency

The bank account balance is updated by the payment amount in the bank's currency.

Save a payment with bank charges

The following table shows the nominal account postings:

Nominal Account	Debit	Credit
Nominal Account	Payment value
Bank Account		Payment value + charge
Bank charges	Charge

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