Sage Line 50 tutorial is designed for book-keeping software, in this blog we will teach you how to use this software. In sage line 50 blog you will learn about how to install and operate Sage Line 50 and how to install on network.

How to print a bank statement

Select Bank > Statement.
The Print Output window appears.
Choose the type of print out you require and then click Run.
The Criteria window appears.
Enter a date range.
This has a default of a 'From' date of 01/01/80 and a 'To' date which is the program date.
If you accept these defaults, all reconciled transactions up to today's date are included in the report. You can change these dates so that only transactions within a specific date range are included, for example, a week or a month. To change the dates, click on the 'From' and 'To' boxes, and edit the date as required.

If required, enter a range in the 'Bank Ref' boxes to select the banks that you want to produce statements for.

Note: If a bank account is highlighted on the bank list, transactions for that account will be displayed.

Click OK to accept the settings and print the statement. Click Cancel to exit without
running the bank statement.

Reconciling Your Bank Account

Bank reconciliation is the process of matching your computer bank records with the statement
from your bank.
We recommend that you reconcile your bank accounts when you receive your statement from the bank. By reconciling regularly, you will not have too many transactions to check and you will
not have to make as many adjustments for possible interest charges or overdraft payments.
There are two ways to reconcile your bank accounts. You can use e-Banking Or, as described in this section, you can manually reconcile your bank accounts. Regardless of which method you choose, bank reconciliation is a formal check of the bank records you keep against the bank statement(s) you receive from the financial organisation(s) you deal with.

You don’t have to reconcile any of your bank accounts if you don’t want to. However, it is good
practise to do so ensuring:
Your bank records are accurate and complete.
Charges and/or interest applied to your account are identified and adjustments made to account for these.
Erroneous transactions are identified which can then be disputed with the financial organisation you deal with.
Missing transactions can be added to your bank records to bring them up to date.

To reconcile your bank statement

Select Bank > Reconcile Account.
The Statement Summary window appears.

Select the bank you want to reconcile from the drop-down list.
Use the Statement Summary window to record information shown on your bank
statement. You can enter the following statement information:
Statement Reference If you want to maintain a history of bank reconciliations, enter a statement reference. To associate the reconciliation to your bank statement, enter the reference shown on your bank statement.
Statement (End) Date The current system date appears. You can change this date to the date on your bank statement so that only those transactions up to and including the date are available for reconciliation. The date cannot be blank.
Ending Balance If this is the first time the bank account is to be reconciled the
account’s opening balance is displayed, otherwise the reconciled balance from the previous reconciliation is displayed. Enter the balance shown on your bank statement.
If your account is overdrawn, to record a negative amount place a minus (-) at the beginning of the value.

Interest Earned Amount Amount: If your bank statement shows interest earned, enter the amount. The amount is committed to the bank account when transactions are reconciled and appears as a bank receipt. Enter the date the interest was applied to your account. NC: From the drop-down list, select a nominal account you want to post the interest to.

Account Charges: If any bank charges appear on your statement, enter an amount for charges. The amount is committed to the bank account when reconciliation is reconciled and
appears as a bank payment. This amount is added to the reconciliation as a fixed amount, which cannot be split into separate charges. If you have several charges you want to record separately,
add them using an adjustment (explained later). Enter the date the charges were applied to your account. From the drop-down list, select a nominal account you want to post the charge to. When you have entered your statement information, click OK. The Bank Reconciliation window appears.

Transactions up to and including the 'Statement (End) Date' are displayed. An opening balance appears in the 'Matched Against Statement' area of the window. If this is the first time the bank account is to be reconciled the account’s opening balance appears, otherwise the reconciled balance from the previous reconciliation appears. It is displayed for information purposes only, it cannot be removed or changed. Any account charges or interest earned that have been recorded using the Statement Summary window appear in the 'Matched Against Statement' area of the window. They cannot be moved into the 'Unmatched items' area. To remove them click Edit, then set the charge/interest amount to zero on the displayed Statement Summary window and click OK. Confirm this action by clicking OK when prompted. Depending on your Sage 50 Accounts settings, transactions may be grouped and displayed as one transaction. Grouped transactions are indicated by the letter 'Y' in the 'Grouped' column. See hints and tips at the end of this section that explain how to view this column.

Work through your bank statement one line at a time. Match a transaction on your bank statement to a transaction in the 'Unmatched items' area. Select the item to be matched (left-click mouse button - the line becomes highlighted) then click Match Transaction. As you move transactions the 'Matched Balance' and 'Difference' values change automatically.

Transactions are positioned in the 'Matched Against Statement' area in the order in which they are moved into the area. Any transaction within this area that is associated with a negative bank balance appears red.
To move a transaction from 'Matched Against Statement' to 'Unmatched items', select the transaction (left-click mouse button) then click Unmatch Transaction.

To add a transaction to your bank records (bank charge, interest earned, payment or
receipt) click Add Adjustment.
Do not use an adjustment to add transactions that affect your customer or supplier accounts, for example, BACS receipts from customers, Direct Debit or Standing Orders to suppliers. You must use the Customer Receipt or Supplier Payment facilities to record such transactions. Caution: You cannot delete adjustments from the reconciliation.

Recording a Bank Receipt

Use Bank > New Receipt to record any money you receive that does not go to pay invoices you have sent. For example, you can record;
Bank interest.
Dividends received.
Money received for an insurance claim.
Money received from a grant.

The Bank Receipts facility is often used by cash businesses, for example, newsagents, bars and restaurants, where customers pay at the time of purchasing and no invoice is raised.

You can record details of this money received in one or more of the different nominal accounts. By allocating your income to different accounts you can see at a glance the different sources of your money and how much you are receiving from each source. For example, you would record money you received from an insurance claim to the nominal code 4903 (Insurance Claims). The window that appears for you to enter your receipts is the same, whatever the type of bank account that you select; Cheque Account, Cash Account, or Credit Card Account. However, each type of account records a different transaction type onto the audit trail. Make sure when you are dealing with credit card receipts that you have selected the correct credit card bank account.

Select Bank > New Receipt.
The Bank Receipts window appears.
For each receipt, enter the relative details one line at a time.

If you calculated the batch totals manually before you started entering them in Sage 50 Accounts, check your totals against those shown on the Bank Receipts window.

If you are using Foreign Trader and have set up foreign bank accounts, the Currency and the Exchange Rate are displayed as well as the standard information listed in this procedure.

To accept your entries, click Save. The details are 'posted' instantly to update the appropriate nominal and bank accounts, and the Bank Receipts window clears. If you don't want to save this batch, click Discard to clear the data and start again. The Discard button does not however cancel any batch entries you have already saved. To exit the Bank Receipts window, click Close.

How to Post Direct Debit and standing orders

The best way to record regular standing orders or Direct debits is to post them as a Recurring Entries.
Go to Bank> Highlight the bank account they are paid from and click the recurring tab> Click Add and you can enter the details of the regular payment. When these payments are due to be posted Sage will ask you if you wish to post these entries, by clicking yes Sage will automaticallly post them. However If you are VAT registered and not using cash accounting rules then you are best entering any invoices received which are subject to VAT in to the purchase ledger and then post the payment as a Supplier payment.

Sage Line 50 and Instant Accounts Add-ons

Are you looking for all your useful information in one place?

This dashboard will give you up-to-date realtime information on your data. Key features are;

  • Works with any version of Line 50/Instant from version 7 upto version 2008 (with support for future versions easily maintained)
  • Supports multi-company
  • Doesn’t require a user licence! (can have unlimited additional seats viewing the data)
  • Completely FREE - this includes all future releases!

How does it work?

You simply launch the application, then if you are running a single company you are asked for your username and password just as you would when starting Sage normally. If you are running multi-company then you are asked to select the company. Multiple users can run off of one sign-in.

You can download it from here:

How to use Sage VAT Codes

Sage suggests the following attributions for VAT tax code to use:

T0 zero rated transactions
T1 standard rate
T2 exempt transactions
T4 sales to customers in EC*
T5 lower rate
T7 zero-rated purchases from suppliers in EC**
T8 standard-rated purchases from suppliers in EC**
T9 transactions not involving VAT***

* This tax code can be used for VAT-registered customers outside of the UK but within the EC. You must have the customer's VAT registration number entered on the customer record if you want to use the T4 tax code. If your customer is not VAT-registered, then you should use one of the standard UK VAT rates.

** These tax codes can be used for suppliers outside of the UK but within the EC. In accordance with VAT regulations, EC VAT rate codes used for purchases are given a 'notional' rate that is linked to a UK VAT Rate. For example, Instant Accounts's T8 rate for standard rated purchases from suppliers in the EC is linked to T1, which is the standard rate of VAT in the UK.

*** These transactions are not included on the VAT Return. Instant Accounts also uses T9 as the default tax code for all the routines that are non-vatable, e.g. journal entries and error corrections. If you want to change the function of T9, you will need to set up another tax code that is non-vatable, for Instant Accounts to use for these routines.

Supplier Overpayment

For example a supplier sent an invoice for £105, mistakenly sent a cheque for £150 which was cashed. They have since sent a refund cheque of £45. In Sage already raised a supplier invoice for £105 but not sure how to post the payment of £150.

When enter the payment of £150 you should be asked if you want to post the difference as a payment on account, say yes to this.

1. Raise an invoice on the supplier for £45 with a T9 tax code to the suspense nominal code.
2. Go into Bank -> Supplier, select the supplier and pay both the payment on account and the invoice. This will clear the supplier account.
3. Raise a bank receipt for £45 with a T9 tax code to the suspense nominal code. This will correct the bank account and the suspence account.

The above assumes you are on standard VAT accounting, if you are on VAT Cash Accounting, you need to make the entries with the relevant tax and net amounts and tax code.

Customer Statement in Excel format

In the customers screen, click on statement, Select your required statement,
At the bottom of the Pop-Up box, (beside generate report)
Select 'File' Click 'Generate Report' You will be asked to save to a location
But, Under the file Name - in the Box 'Save As Type'
Select 'Microsoft Excel Files (.xls) and Save.

You will then have your Report/Statement in an Excel File

Previous Year Adjustments

If you already done the year end routine and you want to post some journals for the previous year adjustments try to use this method.

As a general rule you will put through Nominal > Journals the adjustments on the Balance Sheet codes & date them the last day of the previous accounting year.

For Example if you have been given Journal entries by your accountant after finishing the year financial accounts, Corp Tax : Credit the Corp Tax Code in the Balance Sheet & DR the Retained Profit A/c.

Make sure Don’t make any adjustments directly to the Sales or Purchase Ledger Control A/cs. If you have, for example, a debtor to write off – set up an Account near or next to the Debtors Control A/c called Credit Note Provision – or similar- Cr C/Note Provision DR Retained Profit ; & then in new financial year when you raise a C/N to remove the debtor you NL Code this to the A/c you have just set up – so it does not come off current years Turnover.

As you have only any other journals – Next year end get back-up to Accountant as soon as possible & get Accounts finalised as soon as possible & don’t year end until you have done this – you can continue inputting data post end of year – you simply get irritating message about it being a different Accounting year.

Sending Customer or supplier data to MS Office

If you wanted to send customer or supplier data such as phone no. emails or addresses to MS Office applications try this way.

Got to the Customer List and right click on the column headers. Select the eMail Address or any other column and it will be added to the list.

Now go to File -> Send -> Contents to Microsoft Outlook or any other MS Office applications. that will do the job for you.

Canceling cheques

If you have issued a cheque by mistake and wanted to replace with new then this is the method you ned to use it.

Take a backup of your data first!

Select Suppliers from the stack bar
In the tasks window above, select Write Off/Refund (this is in the top window)
Select Supplier Cheque Returns > Next
Select the suppliers account > Next
Highlight the payment you wish to cancel > Next
Enter a date for the return and a reference (optional) > Next
Check your details are correct and click Finish to post.

This will reverse the payment from the bank and reinstate the supplier invoice on their account. Now simply issue your new cheque and record the new details. I hope this should help you to cancel the wrongly issued cheque.

Deleting customer or supplier records

You can sometimes delete a record from the Suppliers screen by just highlighting the record and clicking delete.

If that doesn't work try going into the Suppliers Record from the Suppliers screen and clicking delete there.

If neither work, try posting a credit or invoice to the same supplier which will take the supplier balance back to ZERO. Then go to Bank, Supplier, select the supplier and in the Payment column click 'Pay in full' to them all.

Once it leaves a zero balance you could try the above two options again to delete the supplier record. At least the Supplier account will be back to zero again and you can start again although the correction you made will remain.

Even if you post a credit to canel the invoice or Visa-Versa, You still can't delete the account as it has a recent transaction on it.

The only other option is (and I advise caution on this) is to amend or delete it in the corrections menu. File > Maintenance > Corrections

But make sure you are 100% that it is the correct record, that you are going to delete or change

How to post wages and salaries

Post wages and salaries we need to use Nominal > Journals, this way we can create some double entries to post wages and salaries on sage line 50. Here is the example

------------------- Debit ----- Credit
Gross Wages ------2000
Employer NI------ 220
Net Wages--------------------1340
PAYE Inc e'rr NI--------------880

This basic example of double entries, now when you come to pay through bank or cash you need to make payment to net wages N/C and when we pay to Inland Revenue then you need to make payment to Paye N/C.

I think this should help you to post your wages and salaries.

Compressing Your Data

Use the Compress Data option from the File Maintenance window to return the unused disk space (created when you have deleted your customer, supplier, nominal, bank and product records) as free space. We recommend that you use this option if you have deleted a large volume of data.

To compress your data files
  • Ensure you have taken at least one backup of your data.
  • Click the appropriate shortcut button from the Year End option. Alternatively, open the File menu and choose Maintenance.
  • Click Compress. The Compress Data Files window appears.
  • To compress all data files, select the 'Compress All Data Files' check box. If you clear this check box, you can select the particular data files that you want to compress.
  • To continue with the compression, click Compress. To exit without compressing, click Close.

Running the Accounts Year End

The Year End option takes care of all of your financial Year End accounting.

Before running the Year End option, make sure you have completed all of your month end procedures first.

To prepare for your Year End, run your month end procedure choosing not to clear the audit trail. When you are sure that your month end figures are correct, change your program date to your Year End date. You are now ready to run your Year End. The Year End applies to all chart of accounts.

To run your Year End

Open the Tools menu, select the Period End option and then choose Year End. Alternatively, click the appropriate option from the Period End window.

The Year End window appears.

When you run the Year End, Sage Line 50 automatically resets the balances on all of your profit and loss nominal accounts to zero for your new financial year.

If you want to update your budget figures for each nominal ledger profit and loss account and/or each product record with the actual values from the year just ending, select the 'Transfer Actuals to Budgets' check box.

If you selected this check box and want to increase the budget values for the current year, enter the percentage increase you require in the 'Percentage Increase' box. Any percentage you enter here will increase the budgets for your nominal accounts and/or product records as selected.

Leave these as zero if you don’t want any increase in your budget figures.

In the 'Year End Journals Date' box, enter the date you want to appear on your Year End journals. Your financial Year End date appears here automatically, but you can change this if you want to.

If you want to keep last years data for purposes of comparison (it becomes read-only), tick 'Archive Company Data before Year End’. For a full explanation of this, read the next section.

An updated Audit Trail report is produced for you to view the Year End postings. Select the type of output you require: either Printer or File. To carry out the procedure, click OK. A confirmation message appears.

To continue with your Year End, click OK. When your Year End postings have been made, a warning message appears reminding you to change your Program Date back to the correct date. After you have entered the correct date, click OK to continue.

Changing programme Date

This feature is found in the Settings menu and lets you set any date to be ‘today’s’ date. The date you enter here will appear automatically every time you make a transaction in Sage Line 50, until you either change the program date again, or exit from Sage Line 50 (then it will reset itself to the correct date).

To change your program date

  • Open the Settings menu and choose Change Program Date. Alternatively, click the appropriate shortcut button from the Month End option.
    The Change Program Date window appears.
  • Enter the date you require in the box provided.
  • To change your program date click OK, or to exit without changing the program date, click

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