UK Salaries and PAYE/NIC posting in Navision

This is more an accounting question than a technical one, really. I have taken over the book-keeping task of the business since 1st January of this year using Navision Vers 3.60. We got away with using Ms Excel before buying Navision. I had a go at entering the salaries manually but I have got a problem with PAYE and NIC. Salaries are entered at the end of the month and paid promptly but PAYE and NIC for the same month are paid on 19th of the following month. For January 2003, I entered a journal entry that posted a payment from the Bank Account into two different accounts : under LIABILITIES Paye and NIC payable, which showed an opening balance related to PAYE and NIC for december 2002 under OPERATING EXPENSES Staff salaries. But PAYE and NIC payable for Jan 2003 is not posted. I tried to enter a journal posting the figures under the first account (posting date: 31/01/03) and debiting the Bank Account with posting date on 19/02/03. But Navision does not allow different posting dates for the same journal. I am sure that this is very simple to sort out but I haven’t got any accounting background so I would be very grateful if somebody could help me out on this. Thanks in advance.

101 ways to do this deal with these kinds of transactions - just depends on your preference. If I understand your question correctly - then one solution would be to create a Creditor account for the inland revenue. Then post the journal, all lines dated 31/01/03, one side to the creditor and offset to the accounts you mention as you choose. Then when you actually pay the amounts due, post another journal between the bank and the creditor with the appropriate date in Feb. You could take a similar approach with your VAT by creating a HMC creditor as this is paid a month after the liability falls.

If you want to make it easy to match the amount due before posting, I would suggest that you create an account on the balance for each value witch can be matched, under the group “short termed debts” Tick in the box “reconcilation account” during creation. Use ctrl+F9 in the journal to reconcile. Use the same method as written above when you pay, credit the amount on the bank, and debit on the appropriate account. Regards, Karl

Thank you very much for your replies. These answer my initial queries. However, I need to do more research on Karl’s suggestions about creating accounts under the group “short termed debts”. I haven’t come across this as yet.