When setting up a new company within Sage 200, there are be many settings that need to set up in order for it operate how you need it to and to ensure the sound management of the business’s finances.
Below is a summary of the settings that need to be looked at before you enter any new accounts or transactions.
There are two different elements of control settings… 1. For the company as a whole and 2. Specific ledger controls.
Let’s begin with Company settings…
1. Company Settings
Head to: Accounting System Manager > Settings > Company Details
- Setup the basic company details name, address and contact details along with information regarding VAT. This is important, as this is the information that will populate layouts, letters and reports within the company.
Then, head to: Accounting System Manager > Settings > System Settings
- Operational settings – Set the amount of accounting periods allowed open at one time, date of the next VAT return and how certain entries are treated.
- Invoice and credit notes – Setup of invoice and credit note numbers.
- Transaction settings – Any headings required for analysis. You can also setup transaction date validation to control whether entries dated in a certain time period can be entered into the system.
Next: Accounting System Manager > Settings > VAT Rates
- You can set up different VAT rates for different types of services or products. You can also assign whether each is included on the VAT return and which nominal code these are posted to.
The next section: Accounting System Manager > Settings > Currencies and Exchange rates
- Exchange Rates – Setup of the currencies used and the exchange rates between your base currency.
- Settings – How the currencies interact, whether they can be amended and whether they are used for new accounts.
Last, but not least: Accounting System Manager > Accounting Periods > Maintain Accounting Periods
- Setup of the accounting periods for the company (current and future) and whether they run on a monthly or 4/5 weekly cycle.
- Status of a period (open, closed or future) for each ledger and element effecting the nominal ledger.
For the specific ledgers can be found in Utilities in the specific ledgers
2. Nominal Ledger Settings
To begin, go to: Nominal Ledger > Utilities > Ledger Set Up > Ledger Settings
- Options – Configuration for account creation and enquiries.
- Defaults – Whether you want to be able to post to a previous year or keep aged transactions, length of time to keep them and if you want to archive them after this period.
- Budget Headings – Add names for your budgets.
- Budget Profiles – Enter the budget for the year and what percentage of the budget you want to allocate against each financial period.
- VAT Submissions – Setting up online VAT submissions and details for HMRC.
Next along: Nominal Ledger > Utilities > Ledger Set Up > Cost Centre Names
- Creation of the cost centre names and their code
Next: Nominal Ledger > Utilities > Ledger Set Up > Department Names
- Creation of your internal departments and their code
Then, head to: Nominal Ledger > Utilities > Ledger Set Up > Default Nominal Accounts
- Whether a specific nominal code should run through to the profit and loss or the balance sheet. Without having these set up correctly many transactions will post to your suspense account.
And finally: Nominal Ledger > Utilities > Ledger Set Up > Report Categories
- Whether a certain nominal code will run a report as a profit and loss item or a balance sheet item.
3. Purchase Ledger Settings
Go to: Purchase Ledger > Utilities > Ledger Set up > Ledger Settings
- Options – Do you want to allow electronic bank payments, batch processing, automatically generate supplier numbers and allow additional transaction analysis.
- Supplier Defaults – Settlement discounts, Account history, VAT codes and terms agreed.
- Ageing – Setup of the default payment terms.
- Processing – Revaluations based on a foreign currency and invoice authorisation limits.
- Payment Groups – Setting up payment methods and what documents are produced.
4. Sales Ledger Settings
Follow: Sales Ledger > Utilities > Ledger Set up > Ledger Settings
- Options – Whether you require copy statements for head office, do you want to allow batch processing, automatically generate invoice numbers and card processing.
- Customers Defaults – Settlement discounts, Account history, bad debt recovery, VAT codes and terms agreed.
- Ageing – Setup of default payment terms.
- Processing – Foreign currency revaluation, statements and finance charges.
Finally once you completed all of the above, before you enter any transactions into the new company, give all of the newly setup controls a once over to ensure that they are setup as you expect and there are no errors.
Take caution when entering your first account in each module and each transaction in each module to ensure they have been posted as expected.
Still wanting some assistance? Why not get in touch with one of our friendly team, we are always happy to help!
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