Sage 50 Accounting Complete Beginner to Advanced Training

1. Sage 50 Course Intro SkillShare: Welcome to the Sage 50 accounting training. My name is Sad, and I'll be leading you throughout this course. So in this course, I'll take you through the Sage 50 accounting from basic to advanced features, where we will learn, first of all, how you can start the software and how you can install the Sage 50 latest software so that you can practice and follow along. We will learn how you can set up a new company and configure the essential settings. We will then move on to managing the chart of accounts, entering opening balance, handling customers, and vendors, and processing transaction. So basically, this is not a theoretical course. We will take the example of a practical project where a company was operating for many years, but they were operating either manually or on some other software. So if you want to completely implement the CH 50 software, we will learn the complete methodology on how you can do that. As we progress, we will master the purchase and sales invoice all the day to day activities, whether it's payments, credit transactions, inventory management, and financial reporting. And not only that, we will also cover some advanced topics. That is, prepaid expenses, handling any kind of purchase or sales returns, all kind of credit management, dealing with bad debts, and so on. And also, we will learn how you can reconcile the accounts. So by the end of this training, you will gain the complete confidence and knowledge of the CH 50 accounting software for all the day to day accounting task, financial analysis, and all kind of business management and extracting of reporting. Oh, let's get started and learn this amazing software. 2. How To Install Sage Accounting Latest Version: Video, we are going to see how we can install the Sage 50 accounting latest version so that you can practice and follow along. So first of all, what you need to do is just head over to Google on your favorite browser and just search Saget accounting student version, which is specially designed for students so that they can fully practice and get command over this software. So we will get this simple results. First of all, let's click on this first link that is ss.com About S and Education program. Let's click on it. And once we are in here, we need to register for the education program. Click on Register. We will choose the version. So for this particular training, we are covering Sg 50, which is designed for small businesses, and it says, click Below to register for the student version of the software you will use in your class. So once approved, you will get or receive your activation key code for the Sage 50 product. That's awesome. Like the version here your instructor has indicated will be used in the course. So that means by the time you are watching this video, you will get the latest version from their website. So double check that your email address is correct. It might take up to 48 hours to receive a response. So just consider that. And also, you will get up to 14 months of valid registration. So this is great. Just click on Register for student version. We will simply fill in the simple details like our email address, our first name, last name, and the company. Click on next. You need to select your country, address, city, and all the other details. After that, just click on, I certify that I'll only use these resources for educational purposes. Click on Register now. I filled in all of these details. After that, just click on. I certified that I'll only use this resource for the educational purposes. Click on Register now. It says, thank you. We have received your request. You will receive an email from the Sage Education partner team with more information. Let's close out of here and let's check the email. We have received an email here, which contains the software link and the activation code. Now, I'm hiding this at the moment. That's because you need to follow and register your software, and you will get the unique activation code for your PC. Let me just copy this one. And to get the Sag software, I'll just click on this particular link, which will take you back to this area. From here, you will click on Download the software. Let me just make it full screen. Click on Download software. Again, it will ask you that this is Sage 50 for educational purposes. This is the specifications. Click on this version, right here, button we will show you the download option just like this and it shows unverified download block. Don't worry because we're downloading it from the official website. We don't need to worry about anything. Click on Download Unverified file and it will immediately start the downloading process. It might take some time depending on your Internet speed, so it's only of 456 MB. Let's open this. It might show you this message, so we have to wait for a while because it plays the setup automatically after downloading, so we just have to wait. After that, it will show you this screen, click on show you where the files will be extracted for the setup. So just keep it default and click on Install. I've already installed that earlier as well, so I'll just overwrite that files. Click, yes. Now it shows us the welcome screen to install Sagine 50. But before we begin, it's recommended that we turn off the antivirus software during the installation process so that it doesn't disturb the software installation. Let me just quickly do that. Now, I'm using a vast one. So just right click on that our shield, and I'll just click on Disable until the computer is restarted. Click Okay. This is the externals off here. But what you can do is go to the Start menu and right here Windows Security. You can go to this virus in Threat Protection option, Microsoft Defender Antivirus options. And basically, you need to turn off the defender. We also need to go to the Start menu again and right here Windows Defender firewall, which will take you to this particular section, just go to turn Windows Defender firewall on or off. Just make sure you turn off both of them, and that's how you. If you are facing the problem in disabling the Windows Defender, you can just search it on Google and you will find the easy way of doing this. So anyways, after turning off all the antivirus and defenders, let's continue with the installation, click on next, and I agree. Click Next. Now it says to ensure that the Sage 50 installs and runs correctly, turn on the firewall software. When prompt, allow or unblock Sage 50. That means that firewall should now be turned on, and when it asks you to unblock Sage, we will allow it. So let's write again Windows Defender firewall. Just go in here. Let's turn back on both of them. Click Okay. And now let's continue with the installation. Click Next. And here it will ask you for the serial number. We just have to paste the one we received in the email for the student version. I'll just paste it right here. Click Next, and it says, how do you want to use it? Are you a single computer or a network? Will this be the only computer you're using for Cage Line 50? Yes, I'll keep it to yes. Click Next. It has some default installation options. Just make sure to keep it as default because I prefer it that way. You can choose some other location if you like to, and after that, just continue with the installation. Now, it might take some time, so just sit back and relax while it installs the software. After the installation is complete, we will see this completion confirmation, and we can start the Sage 50 accounting software right now and clic on finish. And here is the main interface where we can work on any existing company. We can connect to the shared company and we can create a new company as well. We also have the option to explore some of the sample companies that Sage offers by default so that you can practice different functions on the sample company with the sample data. So this is how you can install the software described by yourself, and then I'll see you in the next one where you will create a new company. 3. How to Explore Sample Company: Video, we are going to see how we can explore a sample company or open a sample company if you want to practice some of the functions in Sage. So when we open the software, we get this interface right here where we can open an existing company if we already have one. We can also create a new company if we want to, and the other task is mentioned below. You can convert from an other accounting program as well. But let's explore a sample company. Let's say I want to see the sample transactions in this one, we have a garden supply company. So it says, This is a retail and service company that demonstrates CH 50 inventory and job tracking capabilities. So if your business is related to that, which manages inventory and also track some jobs, you can continue with this. Otherwise, there is other company as well, which is Stone Arbor Landscaping. This is a service company that demonstrate CH 50, time and billing features. Whatever is suitable for you, just continue with that one. I'll just select the first one and click Okay. It will extract the company data. Click Okay. It says you can use this company in the urn version, accounting for the next 14 months. Click Okay, and there you go. This is the interface of Sage, and this is where you can work on different areas, as you can see, on the right hand side, we have the customers. All customers are mentioned with some balances, so you will find every area, whether it's vendor, whether it's customer, whether it's inventory, with some entries as well. So it makes it so easier to explore the overall functionality of the software because you can explore different reports. You can see how different data looks in the software. So that's how you can explore the sample company, describe by yourself, and I'll see you in the next. 4. How To Create New Company: View, we are going to see how we can create a new company and start a new project from scratch. But first of all, we are already in a sample company. So if we want to close out of here, just go to the file menu and from here, just select close company right here. And there we have the main screen. Here, just click on this create a new company option. It will show you that this is a visit which will ask different questions about your business type, about the accounting method that you want to follow, accounting periods or fiscal year. It looks pretty much the same like you see in Pete if you have used it before. So let's click on next. And here you can enter all the company information like company name, address line, and all the other fields. But the ones with SAC is the required field or compulsory field, and you can fill in all the other information later on. So in this complete software, we will work on a practical project, and our first company project is Ali traders in which we are taking an example that the company was operating for many years, but they were either working on some other software or manually, and now they are planning to shift on Sage 50 accounting software so we need to transfer the last year closing balances as an opening balances for this new year. So how will the complete procedure work and how the day to day operations, along with the inventory work, we will completely see that. So let's continue with the company creation. We'll just copy the name here and paste it right here. Now, the latest information we can fill in as we get it in the future. Business type is sole proprietorship and click Next. Now here it will ask you select a method to create your company. This is basically about your chart of accounts preference. If you want to use the pre generated chart of accounts or you want to transfer from an other accounting company or whatever you want to do. So the first option is use a sample business type that closely matches your company. Most companies choose this it is mentioned here. That's because it will just ask you for the specific business type, and it will automatically create all the chart of accounts related to that specific business. After that, if you need to customize some of them according to your business, you can just simply customize that, and later, you will keep it as it is. You can also copy the setting from an existing Cg 50 accounting company. Let's say I already have a working company in Cagine 50, where I have created all the chart of accounts, so I can just copy the chart of accounts from that company as well. Option is convert a company from any other accounting program. You can do that as well. And the fourth option is build your own chart of accounts. So this is designed for accountants and advanced users only, although it is a great feature which allows you to completely set the chart of accounts from scratch. But at this specific stage, I don't prefer this because I'll just select a business type and then customize the chart of account according to my business. So that's best. Select the first option, click Next, and here it will show you all the business types. Now, this business is a retail company which buys and sell car parts. So you can either select the simplified type we just mentioned that either it is a construction company, retail company or whatever, or you can also choose the DDD types in which we will specify exactly what is the nature of the business. So it has auto repair shop, automobile, dealer, daycare center, dentist office. So if we have any particular business that exactly matches our particular business type, we can choose that. Otherwise, we can use the generic type, let's say this retail company. Just continue with that. Click Next. The next one is choose an accounting method. Accrual method. Now, we already know what accrual method is and how it records the income and expenses. It's mentioned here as well. You can read all of these details. But just to let you know that most businesses only works on accrual method, not on the cash. Let's continue with the next one. But if you want to learn more about accrual and cash accounting method, I have attached the document of word with the link of this video, so you can just read through all of this. It explains you all the scenarios and examples in which the accrual method works and how the case accounting method works. So I advise you to read through it if you don't know the concept of accrual. All right. Let's continue with the next one. Click Next. Now, it says how you want the posting method to work. T means each transaction is posted as it is entered and saved. So most companies choose this. Best transaction, we save the transactions and post it as a group. So some companies prefer that one as well. So it's according to your preference, but I'll just continue with the first one, which is preferred. Click Next. And normally, we have a 12 monthly accounting period per year. Again, most companies choose this. It might be different, but I'll continue with this one. Click Next. And now it says, choose the first period of your fiscal year, which is January. So most companies start in January, but if your region or your country follows some different fiscal years, you can change and customize it accordingly, click. And we are ready. Now, it says, based on your configuration, the company will be created. So let's click finish and click Okay. It will take some time to create the company, and once it is done, it will lend you to this main interface just like this. So that's how we set up and create a new company in Saget. Just write by yourself, and I'll see you in the next one. 5. How To Reaccess Closed Company: Video, we are going to see that if we close out of this company, how will we re access that? So let's say we are logged into this particular company, but for whatever reason, you need to switch to some other company or maybe sample data to see some of the functionality or test some of the functionality of Sage, you need to switch to sample data. So how we can do that and how we can re access this company, let's see. First of all, just go to the file menu right here and click on Close Company, which will take you to this interface. Now if we want to open an existing company, after exploring the sample company, we can simply click on open an existing company, and here we'll show you the details along with the sample company of all the company data or company files you have. So let's continue with this one. Click Okay. And that's how you can re access the company files. Describe by yourself, and I'll see you in the next one. 6. How Chart Of Account Coding Works Reexported: Video, we are going to see how the chart of account coding works in Case Line 50. So for that, we will consider a light traders assignment, and this assignment is about a trading business which deals in car parts. They buy the finished goods from wholesalers of these car parts and then retail it. So as we all know, that trading business is very simple. They don't manufacture anything. They just buy the stuff from the market and then retail it. We are considering the scenario that this company might be trading for many years, but now their business has expanded. So they are planning to shift on a computerized accounting software, and they have chosen Sage for that. So what we have to do we have to close the last financial year manually, where we will extract all the ledgers, closing balances and then make them opening in the new financial year on Sage line 50. So let's see how the complete procedure works. Just to consider that if the client request you to transfer the data that is four or five years back, just remember that you will follow the exact same method every single time, you cannot shift four or five years of back data into the software. What you will do is you will ask them to close the last financial year manually. And extract the closing balances of each ledger so that we can put it as an opening balance and work on the software moving forward. So that's how the implementation system works. Now, since when we created the company, it asks us for the business type, and we have selected it as a retail business. That means it has created many chart of accounts according to the trading business. So what we need to make sure is whether all of these accounts with the same name already exist, or do we need to customize, edit or create a new one? So let's to access the chart of accounts in CAH software, what we need to do is just head over to the left area where we have different modules. We have the customer and sales module, we have vendors and purchases module. So all of the activities regarding vendors can be found here, whether it's creating new vendors, creating purchase orders, entering bills or paying bills. Also have a flow chart just to show you how the purchase cycle works. So it's very convenient for the new users or non accountants. We have inventory and services where we can create all the inventory items and we can follow the complete cycle. But if we want to access the chart of accounts, we need to go to the banking area. Either we can access the chart of accounts from here or otherwise, on the top, we have the menu right here. So from the list, we have the chart of accounts option right here. Let's click here, and these are all the chart of accounts that is already created based on the nature of business that we have told at the starting that our business is regarding retail sales. So this means before creating any chart of account, we need to make sure whether it's already exist or not. When we go in here, we have the account ID, description, type, and running balance. So these are all the fields. But as we can see, there are a lot of chart of accounts either we have to follow a sequence of coding to easily identify in which area the chart of account should be, or what you can do is just use the search function right here and search by either account ID description or whatever. So first of all, if you want to identify the chart of accounts by account ID, there is a generic thumb rule which works for mostly all the softwares. See here some of the chart of accounts are starting from one sequence while the other are starting from two and the numbering goes on. Now, here is the chart of account coding that works in most of the software. In every software, you will notice that there are some chart of accounts starting from a specific starting number like one. So these all are in one series. Then comes two series where we have a couple of accounts in the two series, but they mean something. What does this mean? Chart of accounts coding sequence. All the chart of accounts that are starting from one is for assets, two is for liabilities, three is for equity. That means all the chart of accounts starting from three number should be equity. Let's check that. As we can see here, this three contains owner's withdrawal, owners contribution. So all are related to equity. Food is for revenue, so we will notice here four is for sales income, interest income, any kind of revenue is starting from four sequence, five is for cost of goods sold, six is for expenses, seven or eight is for other expenses, and nine is for adjustment account. Now, it doesn't mean that every single software follow the exact same sequence. They might be different a little bit, but most of the time, this is the generic sequence that most of the accounting software follow. Now, our first account is debtors, which is account receivable, that is a current asset. If we want to find it, according to the coding sequence, we should find it in one sequence. So here it is account receivable under the account ID of 1,100. Now, otherwise, if we still have a lot of accounts as an asset and we still find it difficult to find one asset account, what we can do is either search for the account ID if we already know one, or otherwise, we can find it with description as well. So let's say we only remember receivable and nothing else, make sure the spelling is correct. And after that, just search for it. So let's just double click here. You just have to confirm whether all of these ledgers exist or not. We will then later on, add the beginning balances or opening balances once we finalize and configure all the ledgers. So just close out of here. And if you want to clear the search, just clear it from here. The next one we have is creditors, which is accounts payable as well. So this is liability. We can find it under two category, and under 2000, we have the accounts payable right we can open this, view all the details of it. If you want to change any name or make any changes to the description, we can do it from here and even we can change the accounting code and disclose out of here. So like I said, the liabilities are all starting from two sequence, and by the way, guys, this document, I'll attach with the link of this video so that you can memorize all of this chart of account coding sequence that will make it very easier not just to use the Sage Line 50 but any other software as well. One we have is stock or inventory. Now again, inventory is an asset, so it should start with one coding, and here it is on 1,200, we have the inventory right here. If you want to zoom all of the chart of accounts, just to see it clearly, what you can do is just hold the control key and then scroll your heel of the mouse so that we can see all the account IDs and description clearly. Now, the next one we have is building at cost, and the amount is 750000 as a debit. This is a fixed asset account. Let's see how we can deal with this in Cage 50. First of all, we need to check it in the account ID of one because all the one category starts for assets. We have the account type as cash account receivable inventory, and other types. But in the fixed asset category, we only find one, which is property and equipment. So we need to create one new ledger for buildings. Now, how will we create new ledger and what account ID will we give here? First of all, we need to observe the account coding sequence. First is 1,400, then 1,500, then 1,900. That means minimum of 100 numbers gap is there, and that's because many times we need to create new ledgers to meet our company requirement. So that's why there is some gap. Now it's your choice if you want to create it on 15 50, 15, 20, 15, ten, whatever coding sequence you like, or let's even create it for 1,600, because we have a gap here, so let's create new and 1,600, I'll piece the description here, the account type, I'll just scroll down and select fixed asset here. Let me just find it fixed asset is right here. And if you want to create new one, we can click on Save and New. Otherwise, if you want to exit out of this window, we can click on Save. But right now I want to create new one because we know that if buildings is not there, so is the case with accumulated depreciation of buildings. So let's copy the next one. Now you might be thinking why I haven't entered all the opening balances. That's because we need to make sure all the ledgers are there, and then we will put all the balances together. Window is open, let's create it on 16 50, paste the name, and in most of the softwares you categorize as fixed asset, but you put the balance in negative. But here in Sage 50, we have the accumulative depreciation nature separately mentioned. Basically, accumulated depreciation is tra acid, which is treated as an asset ledger, but it will reduce the overall asset by the depreciation charge each year or each month. If you want to learn more about accumulated depreciation and how it is treated and what it is all about, you can find this document with the link of this video or resources section of this video. It's a complete, short explanation of how it is treated in accounting software. So let's continue. Click on Save or let's click on Save and New. Now the next one we have is motor vehicles. So let's check the fixed assets list, and we only have property and equipment. We don't have motor vehicles, so let's create a new. This is the ones we have created, 1,616 50. Now, if you don't see the ledges that you have just created, just click on the refresh icon right from the top. After that, let's create a new one. Let's create it on 1,700. This is motor vehicle. Choose the nature as fixed asset. Here it is and save and new. Next one is 17 50, which is for accumulated depreciation of motor vehicles. Now, the nature of this one is accumulated depreciation because it is a contra asset. Click on Save and New. Next one we have is machinery. Let's create it on 1,800. This one is machinery. Let's copy and paste. Let's select it as fixed asset, save and new. Next one we have is 18 50, which is used for accumulated depreciation of machinery. We can simply write here accumulated depreciation as well, press A, which will take you to this A area and save it. I'll just close out of here because the next one is case. So maybe in the ledges we already have cash. As we have in 1010, we have cache on hand. Now, depending on the version or type of the company you have selected at the starting, your coding sequence or the numbering might be different, so you just have to locate it according to yourself. So cache in hand is already there. If you want to change the name, let's say, double click, I want to change it to cache in hand. So whatever you want to change it to, just write by double clicking and opening it, and you can simply change the description and save that afterwards. Close out of here, and here it is up. One we have is standard Charted Bank. Let me just copy that and click on New. But before clicking New, we need to check whether we already have one or not. Now, the checking account means the bank account. The nature is cash. That's because the bank and case have similar nature, which is used to receive the payments or pay for something. So they are both categorized as cash in Sage 50. So just double click here. I'll use this one for standard chartered bank, copy that and paste it right here. We can check for other suitable areas as. As we can see, we don't have a bank nature, so it's most closely related to cash because the nature of cash and bank is same. That is to receive the payments and pay for the bills. So let's click on safe and close. The name is changed, but if you don't see the updated name, you can refresh it from the top. Let's click on New and now we have a lot of space here, 10101020, and we can create 1030 as well, because the next ledger starts from 1,100. Oh 1030 is the new ledger. The name is UBL Bank. Let me just paste it right here and let's select the nature of it as cash, save and new. The next one we have is accrued expenses, which is basically the bills payable. This account is mostly used when the bills are due in any particular month but is actually paid for later on. Let's say electricity bill, you pay the bill in February, but that is an expense of January. It should be recorded in January, so you record electricity expenses, but it's still not paid yet, so you credit it as accrued expenses. If you want to learn more about accrued expenses, I have attached a document with the resources section of this video that you can check out. Here I have explained all the things with examples of accrued expenses. So basically, accrued expenses with other current liabilities, you can say. So let's check for the liability category which starts from two category or two coding sequence. Let's locate accrued expenses. If we don't have it right here, click on New or we can even search it with description and just write here accrued. We don't have it, click on New and make sure the code you want to select is not already there. We have 2310 til 2,500, which is allocated for current liabilities or other current liabilities. Let's say we want to create it on 25 50, which is just before the starting of the long term liabilities. So let's create a new one. We will create it on 25 50, which is used for accrued expenses. Now, the nature of it, we will find one, which is most closely related to the nature of asset, and this is other current liabilities. We don't have any suitable category other than that. Let's select this one and click on save and new or you can save it and close it to check the new ones. And the final one is capital invested. Now, this is not actually capital invested. This is net owner's equity. So basically, if you know the accounting equation, its asset is equal to capital plus liability. So if we want to extract the capital, we need to do a simple math, which is asset minus liabilities equal to capital. So this is about net owner's equity. What we will do is just scroll down to find this particular area. Three is for equity, right so net owner's equity, I'll change this name net owners contribution to this one. So just double click and copy and paste this name right here, and we will select equity gets closed. Now, since this capital account or net owner's equity account is, according to the accounting equation, that means asset minus liabilities. So if we consider all the assets in here and all the liabilities should be minus, then the remaining balance should be equivalent one. So that means not only now but in future as well, whenever asset minus liabilities occurs, it should be posted in equity. So this means equity doesn't close should be the suitable one because it's not a one time balance. It will keep on adding when we add more assets and more liabilities to the ledgers. So 3920 capital invested, and the account type will be equity doesn't close. So click on Safe. So that's how we can create the chart of accounts in Sage 50. Just try by yourself and I'll see you in the next one where we will create or enter all the opening balances of the ledgers that we have just created. 7. How To Delete Extra Ledgers: Video, we are going to see how we can delete the extra ledgers that we don't want before finalizing the opening balances of the ledgers. Because after entering the opening balance in any particular ledger, you cannot delete it. You need to clear the balance first, and then you should be able to delete the account. So here we are taking the example of property and equipment, which is created by default when we selected the nature of business as retail, so it automatically created some chart of accounts, and the part of this was property and equipment. But we noticed something that the fixed asset account is created right here, and according to the coding sequence, accumulated deprecton is right at the bottom. So let's say I don't want this. Let me just double click this and from here, you can simply delete. Click, but make sure you don't have any balance, only then you should be able to delete it without any problem. Just close out of here, and then let's delete the accumulated depreciation account as well. So just double click here. Click on Delete, click, and that's how you can do it. So just write by yourself, and I'll see you in the next one. 8. How To Put All Opening Balances: This video, I show you how we can put all the opening balances of all chart of accounts in Sage 50 accounting. So let's see. First of all, we need to move to that area where our chart of accounts is. So if you're on the main section, just click on the banking area, and from here, you can access chart of accounts but otherwise, if you don't want to go in any particular module, you can click on list from the top and click on Chart of Accounts from here. In the earlier videos, we have seen how we can create all the new chart of accounts and configure the existing chart of accounts. Let's say if we want to edit some names or make some kind of customizations. So now, according to our project, all the accounts are here. We have created some of the chart of accounts, some of them were customized, and now all of these chart of accounts right in this sequence is ready. Now we just have to put the opening balances. So let's see how we can do this. First of all, just open any chart of account. Just double click on any chart of account and click on account beginning Balances. This will show you this particular screen, select the period to enter the beginning balances. Now, this one is for 2025, so I'll just draw down as this is the closing balances carried forward from December 2024, so I'll select this period from first of December 2024 till 31st of December 2024. Because if we select January, it will show us 31st of January as of 31st of January. Let me just show you first. So if I select says beginning balances as of 31st of January 2025. So that's not the case. So I'll just select from first December till 31st of December. When we click Okay, it says beginning balances as of 31st of December. Now, this is the area. It looks very old fashioned just because they have followed the same kind of interface which was in Pestry because Pstre was a very successful software, so they have incorporated some of the functions directly from Pectre. Before we enter all of the ledgers with balances, there's something we need to consider. In most of the softwares, the control account don't need to be entered. Now what is control account? When we see account receivable, it's 195,000. But how this 195,000 is made, that is made up with customer details. So we have each single customer with their opening balances, and the total gets to 195,000, which is exactly that. So in most of the softwares, when we update the customer with their balances, the control account automatically updates. Same goes for vendors and stock. But here in PT, it's different. We need to enter this balance separately, and then we will configure and enter the opening balances again the customer separately, and then they will match. So this means that we need to enter all the ledgers balances, whether it's control account, whether it's net owners Wikity, whether it's net owner's equity, whatever. So I'll follow the sequence according to our project, and not according to the ledger sequence, we have it right here. The first one is debtors. I'll just highlight this as well. It's 195,000. I can directly copy from here. Now, here you see the ledges, along with the fields. Some of them are gray, some of them are white. So white is the area where you will paste this, since it is an asset, only the debit side is active and the other one is grayed out. So that makes it more convenient and error free. So let's paste it right here. When we press tab, just make sure that the balance shows up here as well. Now, next one is creditors. This is credit. We need to scroll down a little bit. But let's say we have a lot of ledgers, how will we find any particular ledger? You can use the fine function as well. We can move to two section, click on Okay. We can write payable here and click Okay, which will take us to this area. So if you are having some problem finding any ledger, you can do that. Press tab. Next one, we have a stock. Just copy that, scroll up to the S section, and we have inventory right here. Just paste the balance. Next one is building at cost. So this is building at cost. Let me just paste the balance. Now, you see in the starting, we have created all the ledges, so it makes it so much convenient for us to now just copy and paste the balances. Land in buildings. Next one we have is accumulated depreciation of buildings. So let me just paste that. Next one is motor vehicles, which is 380,000, just copy that. And this is motor vehicles. Let me just paste it here. Next one is accumulated depreciation of motor vehicles. So 45,000 is amount. Let me just paste that. Next is machinery, 290,000. Just paste this. Next is accumulated depreciation of machinery. Just copy this one, paste it in the credit. Now, the good thing that I like about Sig is since the other side of the field is grade out, there is no chance of error that you accidentally put the credit balance on the debit side, so that's very helpful. Next one we have is cash, copy this. Locate cash. If we don't find it, we can use the fine function as well, but here it is on the top. Just paste it right here. Next one is 16 50,000, which is four standard chartered bank. Let me just copy that and paste it right here, United Bank limited, which is off 350000. Next one is 53,000, and that is for United Bank Limited. Next one is 53,000, which is for accrued expenses. So since it is a liability, we need to move down. So there it is accrued expenses, paste it right and the last one we have is capital invested, which is approximately 4396 730. Now, in others of it, it automatically balanced out and you don't need to enter this. But since in Sage, we are entering each and every single balance, we see here that the trial balance is out of balance with this particular amount, which is 4396 730, exactly this amount. When we paste it right here and we press tab, the trial balance difference is zero, and that's exactly what we want. Click Okay. And there you have it. Now the balance is updated in each and every single ledger. Let me just show you from here. If it is not updated, you can use the refresh button here, and there it is. There's all the running balance showing right here. So this is how we can enter all the opening balances in the relevant ledgers in CH 50, describe by yourself, and I'll see you in the next one. 9. How To Extract Opening Trial Balance Report: This video, we are going to see how we can extract the opening trial balance report in Cage line 50 as we have seen in earlier video that we have completed all the ledgers along with the opening balances, and now we need to match the balances from the Sage report. So what we need to do is just go to the report section and extract the trial balance report. So from the top menu, just click on this report section and go to Journal Ledger. I will open up this window where we are in the journal section, click on the Journal ledger Trial Balance report, blick here. And this is it. This is the trial balance. Now it is showing as of 28 of February. That means the current month status will be shown till the end of that particular month in which our system date is set. So right now we don't have any kind of other balances. Like data rate transactions, we only had opening balances at this point. So the balances should match. Now here on the debit in cred side, it says 4762 730, 4762 730 exactly matching our project. But later on when we entered the date to rate transactions, as you can see here, transactions during the month, you won't be able to extract this opening balance report directly by clicking on the general ledger report. We have to specify the time period on which we will set all of this to first of January because otherwise it will add the D two transactions in the trial balance as well. So what we will do is just click on options at that point, and on the date, we will write here specific date, and from here, we will mention it as first of January and click Okay, and now it should show first of January of the year. And as you can see that it's still showing this balance. This is how you can check the opening trial balance report now and even later on in Sage. Just drive by yourself, and I'll see you in the next one. 10. How To Customize Report: Video, we are going to see how we can reposition and customize the report. As we have seen in the previous video, we extracted our trial balance, right. So let's extract it again from the top menu. I'll click on reports and click on Journal Leger, and from here, I'll choose Journal ledger. And under journal category, we will choose Journal eger Trial Balance. So as we can see, we have this trial balance. But if we want to reposition the columns, for example, if you want the account description to appear first and then account ID, or you want to enable some more fields, what we can do is first of all, just click on the columns from the top menu right here. And once we click on it, if we want some further details, let's say that I want to show account type or the current balance or any kind of debit credit adjustment or the ending balance with each particular ledger, we can enable all of these types. So for example, I want to enable the account type as well. So let me just enable this. Similarly, I want to activate the reference. I can activate this. And as you can see, the column break is applied. This is the column breaks like the separator. Title and field will be shown, and the column position is this. First of all, we have the general ledger ID. Then comes the account description. Current balance account type is on fourth number, and reference will be on fifth. So as soon as I click Okay, all of these fields will be inserted right here. That's how you can customize and enable more columns in CH, but let's say that I want to reposition any of them. Let's say on the account type, I want the account ID and then the account type, so it should be on second number. Let's go to the columns again and let's choose the account type, and we can move it up. In the order of columns, you can see that if you move up or down, it will change the order of the fields. So let's move it up. Now it's on the third number. Let's move it one more up. So first, we have the ledger account ID, and then now we have account type. So click Okay, and now it is reposition. We can also do is we can increase the size of the field. If you feel that you can't see any field properly, you can adjust the size of the fields as well. But just remember that whenever you are trying to print after that, this red line indicators are of the page size. So if you expand it too far, it will be shifted to other page, and the print might not be correctly printed. So let's adjust it within that field. But just remember that this page limit is because of the portrait mode. That means it will be vertically printed. But if you still need more space, maybe because you need additional fields or maybe that account description is too big, which is not fitting in in the current alignment. So what we can do is just go to the setup here and just change the orientation to landscape. You can choose the page size or print size as well for the paper. If we have a bigger paper, that's even better. Just choose to landscape and click Okay, and now we can easily expand the size, just like that. And now you can see that the red line indication is not shown even if we increase the size. So now I'm seeing this. But if I only reduce the size a little bit, it should be able to print even that much of a large details on a single paper. So this is how you can reposition and increase the size or the page capacity of CH reports. Just write by yourself, and I'll see you in the next. 11. How To Enter Customer Balances: This video, we are going to see how we can enter the customer balances in Sage 50 accounting. So as we can see on the left hand side, we have a navigation pane, and we have different sections like customers and sales, we have vendors and purchases, and in whatever section we go, we see all the activities related to that particular activity. For example, for vendor and purchases, we see all the activity from creating a new vendor to following the complete purchase cycle. But this video is about customers, right? So same goes for the customers. Let's go to the customers and sales, and we get all the customer tasks and details from creating a new customers to creating jobs, managing sales taxes, and also following the complete cycle in which we have the quotes, sales orders, sales invoices, finance charges, receiving money, and finally, depositing it in bank. We also have the credit and returns options, reports, customer statements, whatever you want. So we also have the customer management pane, where whatever we have entered, we see all the activities down here, where we see all the sal invoices which we can filter from the advanced searches and date ranges. And we also have the receipt section where we can do the same for receipts. So here we are going to see how we can create new customers and then put their opening balances. Now, when you click on this particular section, you don't see this particular details right away, rather you will see something like this. Let me just show you in the vendor. You will see something like this, getting started. If you want some assistance by set, they will guide you through it. But since we are already here to learn completely from scratch how to do that, so let's click on close, and after that, you will see this kind of area. Let's go back to the customers and sales, and right now we don't have any customers, right. So whenever we enter all the new customers, the detail will show up here. Let's go to the customers and click on New, and this is the customer creation wizard. Just remember all the blue fields which has asteric with it is the compulsory fields, and rest all of the fields are not mandatory. That means you can skip it for the moment and you can enter all the information later on as well. So we will try to stick with the basics so that you completely understand the overall procedure on how you can create the new customers. We will keep it as simple as possible. First one is customer ID. You can enter any kind of unique ID. Depending on your company policies, let's say that you configure it by any random number, you configure it by C 100, whatever. So in this scenario, we are taking an example of C 100, let's say, is the customer ID. And the first customer, according to our project is Justin. Now, just remember we will enter all of the customers. We will update their balances like this, and this 195,000, which is total of all the customers should later on match with the control account balance that we have already entered four. So let me just continue with it. Justin, just copy the name here. New window is already open. Now when we try to switch between Sage and the project that we have in the browser, that window might be lost somewhere. So what you can do is just hold the alternate and click on tab to locate that. So this is the window. Let me just open it. Just space the name right here. As I said, the account number, billing address, city country, it's pretty basic and straightforward. You can enter all of these fields later on as well. But we are just concerned with the customer type. Even the customer type is not a compulsory field. It is blue, but it doesn't have a steric with it, as you can see. Let's straightaway, go to the contacts. You can enter the details of different contact persons for that customer, for that company. You can enter all the nodes, build two, and ship to addresses, whatever you like. Let's go to this history. All the activity of that particular customer, when we start entering the sales, they will all appear here according to different periods. So here we also entered the opening balances of the customer, but let me just get to this point later on. First of all, let's see and understand all the tabs. Let's go to sales info. Now, by default GL sales account, that means when we will make the sales to the customer, all of that will go to the sales income, which is 4,000. As I said, as we've already discussed in the previous videos, that one is for assets, two is for liability, three is for equity, and four is for revenue. So it's following the complete same sequence. Have the pricing levels that we have the shipping details, order number, and pricing level details. So nothing to change here, payment and credit terms. There you feed all the credit card information of the customer. We can enter the bank details as well. We can set the preferred payment methods and in which account the payment will go. Can also specify the terms and credits. By default, the payment is due in 30 days after the invoice, and we don't offer any kind of discount and we don't offer any kind of other benefits. So the credit limit is 2,500 rupees. After that, it will notify that this customer is over the credit limit. So if you want to make any changes with it, you can customize the terms for this customer, and let's say I want to change it to let's say 250000. So this is how you can do it and you can play around with all of these policies. Now let's go back to the third tab, which is history. As we can see, this customer has some opening balances, right? So that means this customer exists already before we started implementing the Sage. So we will write here this customer is since whatever date you want to write. But if you don't remember any particular date, how the customer, when the customer joined in, you can just specify it first of January. That is from this year. And after that, we will click on customer beginning balance. Soon as we click here, it will ask that you have modified the current record and have not saved it. Do you want to save this record first? That means it is asking you to save the customer first, and then you should be able to put the balances. So let's click. It will ask you to specify any invoice number. You will just enter one double 01. The date will be the opening date, which is first of January, no need to enter the purchase order number, and here we will just copy and paste this balance. Just paste it right here, and here we will copy and paste this balance. If you're unable to write here, we will write it manually. The account receivable is already set, so we will enter the customer details one by one. Let's click Save. And as we can see the customer balances is showing right here, which is 85,000 for the first customer. Let's close out of here and save in new. So now we have created the first customer. Let's follow the same for the second one. And the second one is Albert. I'll just copy the name from here, C 200, past the name. This customer is with us from, let's say, first of January. That's because we don't remember the date. Click, yes. Enter the invoice number, first of January, and the amount is 30,000. Account receivable is already selected, so click Save and you can check it in the customer balances, not only this balance, but the earlier balance of the previous customers showing here as well. Let's close out of here. You can see the summary of this balance on this specific period as well. Let's go to the other tabs. Journal, we don't need to do anything here. Contacts, we don't need any adjustment right now because this is pretty simple. This depends on different companies and different scenarios. Sales info, the ledgers are already selected, no need of the changes here. If you want to change the default credit terms here, we can customize this. Let's say I want it to be 25,000. That's about it. Click on Save and New. And similarly, we have the new customer now, which is Victor. This is C 300. Let's space the name here. General, we'll keep it as it is, contacts as it is, customer is from first of January, customer beginning balance. Let me just save it one double 03 as of first of January, and we will simply write the balance here, which is 65,000. Just be careful with the zeros. Account receiv is already selected. Click Save and you will see the customer balances so just make sure that the totals are correct. Close out of here. Sales Info, all set, payment credit. If you want to customize this, we can change it or change the credit limit to whatever we like, and click on Save or you can also click on Save and New if we have more. So C 400. Now we have Walter, paste it right here. Don't need to do any changes in the general tab. Contacts we will keep it as it is. And on first of January, customer bidding balance, click yes, one double 04, as of first of January. And the balance is 15,000. Let me just write 15,000 here. Account receivable is set. Click Save, close out of here. Sales invoice and payment credit are all set. If you want to save it like that, I'll just customize it to 25,000 and save. Now, if you want to close out of here, just close like this. And now after that, we can see that we are on the main section. But on the right hand side, we still don't see any customer details. Why? Because sometimes you need to refresh it from the top right here. Just click R and you can see all the customers along with the balances here. Now, if you want to check the opening trial balance again, just to make sure that this is now linked to the customers, I'll just click on the report section and then go to the journal ledger section where I will click on the Journal ledger Trial Balance. As we can see, the account receivable is here. When we double click here, we see it like this. Means at the starting position, you don't see the details of the customers in the account receivable when you drill down. But in future, this will be automatically linked. So that means you need to enter the control account balance separately and customers separately. And when the day to day transactions happens, then all the sales amount will automatically go to the receivables as we enter it. So this is how we can enter all the customers along with the opening balances in CH 50 accounting, described by yourself, and I'll see you in the next one. 12. How To Enter Vendors And Their Balances: This video, we are going to see how we can enter the vendors and their balances in Sage line 50. So what you can do is just go to the vendors and purchase section, and as we can see, all the activities regarding the vendors are right here. But first of all, we need to create the new vendors. After that, we can enter all of the details later on. So click on the vendors and click on New. It will open up this maintained vendors or the setup wizard, where we have some compulsory fields. Actually, there is only two compulsory fields which has a steric with it, and the rest of the information, we have the choice either we can enter it now or we can enter it later on whenever we like. So let's mention a code, something like V 100, and the vendor name is Daniel. So let me just space it right here. We can enter all of these information later on. Now, the expense account, it looks like you need to enter the cost of goods sold here, but we will enter the inventory. If that vendor is directly connected to the purchase of the items that we are planning to sell, then whatever we have purchased with this vendor should be an inventory. So let me just choose inventory, which is on 1,200. Depending on the version you have, your code might be different, so you have to locate for it. So after that, just click on the second tab, which is address. We can set all of these address retails default address later on. It's pretty straightforward. It's pretty self explanatory. So let's go to the history, and we will enter that this vendor is since, let's consider first of January because at first of January, we are implementing the software. So we can choose any other data as well, but we will choose it like this. So click on vendor beginning balances, click Save and yes, let's enter two double 01 as an invoice number, first of January. No need to enter the purchase order number, and the balance is 50,000. So let me just write 50,000. Accounts payable is already set, but let me just make sure that the correct account is selected. Yes, it is. Click on Save and Close, and we have the balance right here. Purchase Info, we don't need to make any changes here. Click on Save and New, and now we will enter our second vendor, which is V 200. This is the unique code, and the vendor name is San. This copy this paste it right here. And we can specify all of these details. Inventory, we will select the inventory account. Let's go to the address. We don't need to make any changes. History. Let me just make it worst of January. And when did beginning balances? Like, two double zero, two, first of January. And the amount we have is 80,000. So 80,000 accounts payable is already selected. Click on Save, close out of here, and purchase info is all set. Let me just save and this is how you can enter the vendors along with the vendors details. Now, let's go to the main section under the vendors and purchases, and we can see that vendors are still not showing here. What we need to do is refresh from the top, and there we go. We have it right here. So this is how we can enter the vendors along with the balances in Sage 50. Just write by yourself, and I'll see you in the next. 13. How To Enter Inventory Items: This video, we are going to see how we can enter the inventory items and put their opening balances in Sage 50 accounting. So I am on the inventory and services module. You can switch to this module by just clicking on the left hand corner and we have different modules here. So Inventory and services, we have all the inventory activities right here. If you want to enter the inventory, you want to get some reports, purchase order, receive inventory, whatever, you will get all the activity here. And on the right hand side, normally, at the time you first started, you will get something like this to get started, but just close out of here. And you will see this screen right here that when we enter inventory, it will all update here. So let's go to inventory items and click a new inventory item. It will open up this window where we can create new item. The first field is item ID. We can mention any item ID here. Let's look at the project. In the project, on the starting, we have entered the stock inventory balance, which was a control account. Of 453000 was the total balance. But against that, we have to enter the individual inventory items as well. So at the time we implemented or transferred the last year closing onto the Sage. Since we are moving all the balances to Sage, we had four inventory items. That is Croll windscreen, headlights, wheel cups, and real lights. We had the opening quantities at the opening point, which makes up the total to 453000, matching exactly this one. So we need to enter these inventory items. Let's move to Sage and click on New. Item ID, I'll just consider it as IT 001. Let's copy and paste the item name. Item class, we have to define whether it's stock item, master stock item, whatever. So in this case, it's a stock item, but we have many options here that we will see later on. Now, costing method is FIO, LIFO is already abolished, but the most common one is average costing. We will choose average costing. And here we can define a description for purchases and for sales. So let's say at the time of purchasing, whatever you want to mention as a default description, you can mention that. Let's say I want to mention this one right here. And on the sales as well, I want to mention this one. On the right hand side, we have the ledgers, by default selected. Sales account is linked to the sales income, which is right. Inventory is linked to inventory, and cost of sales are already linked to cost of sales. Custom fields, we can define any special fields as well. We can define some further details. And it says field labels can be changed or enabled on the item default window. So we will do all of these customizations later on in history as all the balances records that we enter. So let's go back to journal. Now, basically, in the item greion, we just entered the I the description, selected the item class, and now we will just enter the beginning balances. But what I'll do is I'll save all the inventories first. I'll create all the inventory items, and then together we will enter the beginning balances. That makes the process so much convenient. So let's save it and click on New now. Next one we have is IT 002. This one is civic headlights, just past this stock item. You can mention the same description right here and for purchases as well, all the ledgers are selected, all done, only the costing methods needs to be changed, so average costing, save and new. The next one we have is previous real cups. Let's copy that. It's IT 003. Paste it right here. This is a stock item. Make it average, and let's paste the description right here in the purchases as well. And let's click on safe and new. And finally, our fourth item is rear lights. It is a stock item. We'll paste the same description here in the purchases as well, make it average costing, all the ledges are selected, and let's save it. Now we will enter the beginning balances, and you will see that we should be able to see all the inventory items along with the fields that allows us to enter the quantity and rates. So let's click on the beginning balances right at the bottom. And here we can just select every one of them. Right now, we have zero quantity and zero unit cost. So when we select any particular item, it will open up at the top, and we can simply fill in the details. Like, for example, quantity of Cara windscreen, it's 470. Unit cost is 400, so this makes the total to 188000. Click Okay. Click Next. Next one we have is civic headlights. The quantity is 950 and the unit cost is 150. So let's make it 150. The total is 142500. Click Next. Previous field cups. Quantity is 250 and the rate is 50. This makes the total 212500. Click Next. And now we have the last one, which is 550, and the unit cost is 200 and this makes the total to 110000. So press tab. And as you can see, all updated, the total beginning balances is 453,000, which exactly matches this one right here. So let's save it. So let's click Okay here, and we have all the inventory along with the opening balances updated. So close out of here, and now let's visit again the inventory and services module. As you can see on the right hand side, we don't have any inventory updated. That's because we need to refresh it manually from here. Now we can see all the inventories here. Number of units sold is zero, obviously, because we haven't sold anything during the period, we just created the opening stock. So if you want to check the detailed field or the detailed information, we can click on this one. View Detail list. And it will take us to this area where we can see the detail about it with item ID description item class and the last unit cost and other fields. But you can see here that we only see the unit cost and not the quantity. So if you want to see the quantity, you go to the settings at the top, and here we have the available columns, and on the right, we have the selected columns. So if you want to add some more columns like we want to see the quantity on hand, just like so, just select that and click on ad and you can reposition it on any point. Let's say after item ID comes to description item class, and then I want the quantity on hand. I don't want the price level because it's zero. We haven't configured anything. Then comes the unit cost, and then we should see, let's say, the cost. Click Okay. And now we can see the quantity as well. So this is all the quantity, which matches this one. Similarly, we can add some more things like minimum order quantity, reorder quantity, and item type or costing type. So we have all the fields available right here, but we don't have this total amount field that I wanted to insert. So let's remove this one, and this is how you can reconfigure the columns in inventory. So basically, that's the complete procedure on how you can enter the inventory along with entering the opening balances of inventory in Sage 50. Just write by yourself, and I'll see you in the next one. 14. How To Reconcile Final Opening Trial Balance: Video, we are going to see how we can reconcile the final opening trial balance before continuing further with the day to day entries. So as you can see that we have put all the ledgers along with the opening balances, we have also updated the customers, vendors, and inventory along with their opening balances. That means now we are live on the system, and from the next video, we will start working on our day to day transactions. That means now we have fully implemented SH and we will continue to enter all the day to day transactions, whether it's sales invoice, purchase invoice, some kind of adjustments, some kind of journal entries. All of the examples are there, but before that, we need to make sure that our trial balance at the opening point should be at this position and dbdend credit should be the same. So from Sage, just click on the reports and click on Journal ledger. And here in the journal ledger, we will extract the Journal ledger trial balance. Just click here. And if you have already entered some day to day transactions as well, even then you can extract the opening trial balance. Right now, it's just showing as of the current date or current month. Let's say that you have entered some of the transaction, and now we want to extract the opening dry bins. It's very simple just go to the options, and here we will set it to the specific date, and under here, we will mention it first of January and click Okay. So that way you can get the opening dry balls. So this is 4 7 6 2 7 3 0 and 4 7 6 2 7 3 0 exactly matching this one. Now we can confirm it. And from the next video, we will start working on our day to day transaction. So just try it by yourself, and I'll see you in the next one. 15. How To Enter Day To Day Transaction: This video, we are going to see how we can enter the day to day transactions in Sage. As you can see in this transaction, it says, on third January, purchase furniture by giving cash, and the amount is 10,000. Now, there are two types of activities. One is trading activity and one is non trading activity. Trading activities, as the name suggests, it is directly involved in the core business transactions. So for example, you are buying the stock, you're paying for the stock, you are selling the stock that are all trading activities. But all the side activities, however, will be non trading activities like purchasing a furniture, giving the rent, security deposit, paint and renovation expenses for shop. So these are all non trading activities. Just remember that trading activities will be done from proper modules. That means we have a module for customers, vendors inventory, and so on and so forth. But for non trading activities, most of them will be either dealt in the banking section where we pay directly for the goods or any kind of services, or we will simply book a journal entry, and that option will be found either in the list. From here, you can access the journal entry option or from the banking area, we have the journal entry option right here. So this transaction is purchase furniture by giving cash. It is a non trading activity because our main business is buying and selling the car parts. So let's enter a journal entry for it. Let's click on journal entry. Click on new journal entry, and from here, just mention the date. The date is third of January. Reference number, you can mention any reference number, for example, one double 01, and now we will find the furniture. Just scroll down to find the fixed asset. You can also use the fine feature for it. Let me just write here furniture. No, we don't have it. As you can see, if I write machinery here and click Okay, it's able to search for it. So that means when I write furniture, it's not there. Let me just create one. So just select a suitable area and suitable code which is not already in use. So the account ID I'll use is, let's say, 1,900. So click New and just choose 1,900 here, and the description is furniture. The account type will be fixed as it. You can just directly write here as well, and it will automatically search it. Click on Save and Close out of here. Now we can simply search for it. We can write furniture. We can use a fine function as well, right furniture here. Click Okay, and choose it. Just copy and paste this description right here and paste it here. The amount is 10,000. So let's write 10,000 here. Just be careful with the zeros. And press tab and press tab to go on the second line, and it is paid by cash. So let's select cash here. Cash is right at the top. You can paste the same memo here as well and put it on the credit side. Like so. And this is the complete entry where it says, purchase furniture by giving cash. So since by purchasing the furniture, asset is increasing, so it's debit, and other asset which is cash is decreasing, so it's credit. Let's save it. It says that the transaction is not in the current period. If you want to save it, do you want to continue? Click. And that's how you do it. Now to set a correct period, you need to go to the main area, and from here, you will find this period one or system date one and two. So click on period, and you can choose the period. Right now it's set to February. Let's change it to January and click Okay so that it won't show this message over and over again. So just remember the particular month you are working on, you have to change the relevant period from here. Click Okay, and that's how you do it. So just try by yourself, and I'll see you in the next one. 16. How To Deal With Advance Rent: This video, we are going to see how we can deal with the advanced rent or prepayments in Sage. As you can see here in this transaction, it says on fourth of January 2025, it says, advanced rent paid for six months by giving cash. So $1,000 per month is the rent, and we have paid six months in advance. So this makes the total to 6,000. Now, what is prepayment? Prepayment is all the kind of expenses which will be converted in future to expenses, but right now, since we haven't consumed the benefit yet, so that's why it will be treated as an asset. Now, if you want to learn more about prepaid rent or prepayments as a journal, you can find the resources section and I have attached this document right here, where I have explained the accounting treatment and how the prepayments works. So you can read that anyways, this transaction is a non trading activity. That means it is not connected to the normal course of business. Our normal course of business is to buy and sell the car parts. So it's not connected to that, so that's why we will do a journal entry. Let's go to the banking section from the corner and from here and Clicon journal entry. Now, the date of transaction is fourth of January. So let's write four here. If you want to mention the complete date, you can just write it without dashes, as well. So let's write 401. So as you can see, it picked up the right date. Reference, I can use one double 02, and this one is a prepayment, right? So we have to find it in an asset. If you want to find it directly by name, we can use the fine function as well. So let's write here prepayment or just write pre here. Click Okay. So we have prepaid expenses here, and it's under 1,400 code, which is starting from one, hence it is an asset. So let's use this one. Description, I'll just simply copy this one right here and paste it right here. And the debit amount is 6,000 that we paid as a prepayment, which is an asset, press statab, go on the second line, and here we are paying it by cash. So let's credit cash. Choose this one. You can paste the same description here as well, and paste it in the credit or just write it manually. I'll write here 6,000, and let's save it. So this is how we can deal with the advanced rent or the prepayments in Sage. Just write by yourself, and I'll see you in the next. 17. How To Deal With Other Assets: In this video, we are going to see how we can deal with other assets, which is neither a current asset nor a fixed asset. As you can see in this transaction, it says on fourth of January security deposit paid by cash for shop taken on rent. Obviously, when acquiring a new shop or a new premises, you have to give some security deposit. But security deposit is neither a fixed asset nor a current asset. Because it's neither contributing in the day to day operations like plant and machinery, motor vehicles, something like that, and neither, it is for less than one year, which makes it current assets. So you can call it an other asset because it remains with the owner until we leave the premises, and only then we can get this asset or security deposit back. So let's see how we can deal with this in Sage. I simply make the journal entry because this transaction is a non trading activity, right? So we'll go to the banking section and click on Entered Journal Entry, or we can click on List and enter the journal entry from here. So either way is correct, new journal entry, and the transaction is of fourth of January. So let's change the date here, fourth of January. Reference is automatically set, which is the third transaction, and it is security deposit, so we have to locate an asset account, but that should be other asset account. So let's scroll down until we see the right area. This is under expenses, other current asset. Okay. What we have elsewhere. Okay, what we can do here is after the other current asset, I'll just mention it as 14 50 because 14 50 is free. First is 1,400 code and then comes 1,600. So either I can create it on 14 50 or we can create it on 1,500. So let's choose 1,500 as a code. Click on New and let's write here 1,500. So this is security deposit and the account type, I'll select it as other assets and click Save and Close. Now I can choose that 1,500. Security deposit is selected. Let's quickly copy the description and paste it right here. The debit amount is 18,000. So let's mention 18,000, but just be careful with the zeros because zeros after decimal prices as well. So just don't confuse it with that, and credit is cash. Let's credit it here and just mention the same amount. Now the beauty of accounting software is when you put the debit or credit and either of the balance is incorrect, it will not allow you to save the transaction. Always the out of balance should be zero. If the out of balance is not zero, it will not execute the command. So this eliminates a lot of errors, which we normally have in the manual accounting. So that's the power of it. Click Safe, and that's how we deal with the security deposit in Sage. Destroy by yourself, and I'll see you in the next one. 18. How To Deal With Renovation Expences: You, we are going to see how we can deal with the paint and renovation expenses in Sage as you can see in this particular transaction, it says on six of January paint and renovation expenses for shop taken on rent. Let's say that when we acquired the shop, we need some paint and renovation, and the owner refused for it. So what we did is get the paint and renovation ourselves. So this is our expense, right? But since this is a non tading activity, this is not directly connected to the normal course of business, which is buying and selling car parts. So this would be a non trading activity, which will be dealt with journal. From the making section, just click on Journal Journal entry, click on New, and the Det of transaction is sixth of January. Let's put sixth and January here. Since this is a four transaction, I'll just put the reference as one double 04, and let's search for repair and maintenance. If you want to quickly search for it, instead of scrolling, we can use this fined function right here. Just click on Find and we can right here. Let's try writing repair, click Okay, and there you go. 6350, we already have this account maintenance and repair expenses. But if you are using some different version, yours might be different, so you need to manually configure that. So for that, you just need to analyze the expenses area. Let's say that we have 6,650. So you can create a new ledger if you need to on 6030 or 6020, whatever code you like, but that should be empty. And then you can configure it. This by clicking on new, we can create new account from here directly. So in my case, I already have this ledger, so let me just choose this and let's copy this description right here, place it right here. Let's copy the which is 1,500 on debit, presstab, go on the second line, and cash will be credit. 1,500. Just make sure everything is correct, and after that, we'll hit save. So that's how we deal with any kind of paint and renovation expenses in sag Just wry by yourself and I'll see you in the next. 19. How To Receive Payments From Customers: Video, we are going to see how we can receive the payments from customers, as you can see in this transaction on seventh January, it says, Mr. Victor paid all previous balances by cash. Now, what is this balance of 65,000? Let me just scroll up and let me just check the ledger of the customer, Victor. So Mr. Victor is right here, and the balance total was 65,000, which was pending from the last year. Because we have imported all of this balance as the opening balance. We have entered this as an opening balance. So now, this customer is paying us the amount in full. So what we can do is just go to the banking section because we are receiving the payment or even if we go to the customer and sales section, we will see a complete flow chart from codes to sales order to sales invoice, then is finance charges. And finally, there is receive money. So at the starting point when we enter all of these balances against the customer, if we check the ledger and then go to Reports and click on customer ledger, can see that if we go to the options and set it to all dates and click Okay, we can see this particular transaction that is recorded as a sales journal. So all the opening balances, if it is for customers, it will be considered as a sales or some pending receivables, right? So against that, we are receiving the money. Click on Receive Money, receive money from customers, and we are receiving it by cash. So let's choose cash here. Click Okay. And if there is a deposit ticket ID, we can mention that. I have just given any random number, and let's choose the customer which is Victor. As soon as I select Victor, it will show us all the pending invoices or opening balances that are due to be received from this customer. So in this case, it's 65,000. So what I can do is I can put all the reference number, but since it's cash, it's not applicable receipt number, let me just mention any random one. And we are receiving this on seventh of January, right? So seventh of January, and we are receiving it by cash, all set, you can change the payment method, and after that, if you're receiving it in full, you just have to click on this pay dialog box or just check as soon as we check it, it will automatically put the amount here and in the receipt amount as well. So let's click Save. You must enter a reference number. So let's put any reference number here. Click on Save. Now if we want to check the journal entry effect, how will we go back? We can go back from here, the previous transaction. Let's just click here. Now the previous transaction is open. If we want to make any changes, we can make the changes here as well. But right now we are just here to check the journal entry effect. So on the top, you can see this journal option. Just click here. And it will show you the backend journal entry. So cash in hand is debit because we have received the money, so money is increasing or asset is increasing, so it's debit. And against that, receivable, which is 1,100, although you can't see it because it is grade out. So receivable is credit. Perfect entry. This is how you do it. So just try it by yourself, and I'll see you in the next one. 20. How To Deal With Credit Purchase Invoice: This video, we are going to see how we can deal with the credit purchase invoice in Sage. As you can see here in this transaction, it says, on eight of January, purchase of following items from Mr. Daniel. Now, since the vendor name is mentioned, it is obvious that this is a credit purchase invoice. Also, there is no mentioning of any kind of receipt. Let's see how we can book this credit invoice. First of all, just head over to the vendors and purchase this section right from the corner. Now from here, although you can see a complete purchase cycle starting from purchase order till Enter Bills and then pay bills. But it's not necessary that every time we follow the same sequence, sometimes we just order it over the phone, and there is no purchase order raised. Rather, the vendor directly delivers us the goods, and then we can enter it as a bill. Or maybe there is a regular fixed supply. So in that case, no order is raised, only we can enter bills directly. So let's see how we can enter this, click on Enter Bills and click on now let's enter the invoice details here. The items are purchased from Mr. Daniel, so let's choose the vendor ID, which is Mr. Daniel. The invoice date is eighth of January. Due date is automatically set after one month. So if you want to change or customize that, you can do that. Otherwise, we can change it at the bank and for all the vendors. This case, I'll just continue with this. Invoice number, I don't have any, so I'll just write two double 01, accounts payable is already selected on the right. We have drop ship waiting on the bill, but we'll see all of these options later. Let's enter the quantity for the first one. 20 is the quantity. Item name is Carula windscreen, and this one is coming from the inventory, as you can see in the ledger. The unit price is 400 as suggested, which makes the Rule 28000. Let's press tab, tab. And on the second line, we have civic headlights. 30 is the quantity, civic headlights, 1,200 ledger for inventory is already selected. Unit price now just guys make sure that every time you purchase from the vendor, you just confirm the rate because sometimes the rate are increased or decreased, so we have to cross check it every time. Don't just rely on the figures that pop up automatically on Cg. So this makes the Rule 240500. S press tab. The third one is previous heel cups. So 50 is the quantity, previous heel cups. Unit price is 50, and total is 2,500. All good. And the fourth one is preus filters. Quantity is 70, so let's press 70 here. And as you can see here, we don't have this item in the list. So do we have to cancel this purchase and just enter it from the starting? No. We can enter it directly from here. If we don't find the item, we just click New. And it will immediately take us to the inventory creation window. I'll just simply put IT 005, pace the name here, item class is stock item, and costing method is average costing. All the ledgers are set, and the beginning balance, remember that we will only enter the beginning balance just as a starting when we are transferring the system from old computerized accounting to the new one. So in that point, we have some balance already. So that is beginning balance. But during the period when the day to day transactions are occurring, we never put any beginning balance here. So I'll click Save, close, and let's choose one unit price is 50. This makes a Rule 230500. So before entering, just confirm that every total is showing correctly or not. So 8040520530500, 8040520530500. All good. Let's hit save, and it says, credit memo already exists for this vendor. Click Okay. So you can make it two double 02. And now, if you want to check the journal entry effect, just go back by clicking on this previous transaction option and click on Journal. So this is the journal entry effect. All the inventory is debit one by one. These are all the inventories. Since we have purchased inventory items, it has increased in our asset because we have received that inventory. So asset is increased, and against that, accounts payable also increased because the liability is increased when we purchase it on credit. So this is how we can deal with the purchase of inventory items on credit. Just write by yourself, and I'll see you in the next one. 21. How To Book Purchase Invoice: We are going to see how we can book a purchase invoice on credit from a new vendor. As you can see in this transaction, it says on ninth of January, purchase of falling items from Mr. Matthew, which is a new vendor, which we don't have in our accounts. So let's see how we can deal with this. The method is approximately the same as we have done earlier as well. I'll simply go to vendors and purchase module right from the corner and from here, just click on Enter Bills and click on New Bill. If you click on the search, we don't see this vendor, which is Mr. Matthew. Just click on Create New. The vendor ID is V 300, which is for Mr. Matthew. Let's write Mathew. Here as you can see that we are purchasing the stock items from this vendor. So in that case, in the creation wizard, when we purchase something from the vendor, which is an inventory item in the expense account, although it says expense account right here, we will select the inventory account. That's this one right here, and that is the only thing we need to configure, which is a must. After that, just close out of here. Click Save and Close. Vendor is created, that's select the vendor. The invoice date is ninth of January. So let's put ninth Due date is set by default. You can change it in the default credit terms. Invoice number is not mentioned here, so we can mention any invoice number for now. Now, let's enter the items now. The first item on the list is CRLa windscreen. The quantity is 50. Item is CRLa windscreen. GL account is already selected to inventory. Unit price is 400, which makes a total to 20,000. Press tab. Second one, we have civic headlights. So civic headlights, quantity is 30. Rate is 150, which makes the total to 4,500. Let's go on the third line, which is previous filters. Quantity is 100, item is previous filters, the rate is 50. This makes the total to 5,000. So overall, the total is 29,500. Just make sure that each amount is correct before saving it. And after that, just click on Save. But we just need to make sure that the general entry vect is correct. So let's go back to the previous transaction. Let's head over to the journal entry. And here we can see all the inventory items are debit, and against that, payable is credit. Perfect entry. That's how you do it. So just wry it by yourself, and I'll see you in the next one. 22. How To Deal With Cash Sales: Video, we are going to see how we can deal with the cash sales in Sage 50. As you can see in this transaction, it says, on 11 January cash sales of Carla windscreen. That means that sometimes the business is dealing in the wholesale and the retail business as well. So what happens is sometimes walk in customers comes and buys some items from you, but they are not repeated customers. Only came for one time, and it's not necessary that they will come back or they will be your regular customers. So in that case, it's useless to record the customer as a name. Rather, what we do is we will create a generic name for all the cash customers. For example, cash sales would be customer name or walk in customer or whatever you like. Let's see how we can deal with this in Sage. So first of all, the procedure we will follow will be the same. Just go to the customers in sales and from here, just click on the sales invoice and click on new sales invoice. As I said, the customer ID should be created for all the generic customers which are walk in customers. So click on search. Here, we only have this four customers. Let's create a new one. Since this is a special customer, we will name it as c999 so that it will be kept separately in the list. After that, just press Tab. And we can write here cash customer. Rest, all the information is selected correctly. We just save out of here and close. And now we can enter the sales like we normally do for all the regular customers. So select the cash customer. The date of transaction is 11 January. So let's put 11th here. Let's put any invoice number. The quantity is one item is Carola windscreen. Unit price is 560 and all done, the total should be 560 with no sales tax. And after that, we will save. But as we go back to this transaction and check the journal effect, what we see is that we have sold the items, so sale is credit, and against that, account receivable is debit. But we have directly received the cash against this sale right. So what we have to do is since we just considered this customer, the treatment will be same as we normally do for all the regular customers after that, immediately after entering the sales, what we do is we manually receive the money in the second step. Receive money from customer and immediately just choose cash customer. You will see a pending invoice, you disclare it from you just choose the account, which is cash, enter any receipt number or reference number, put the correct date, and we can just again check. Sometimes when you correct the date or mention some other information, the checkmark might be disabled, so you have to click it again, and after that, we click Save. Now when we go back, by clicking on this receipt option, go to the previous transaction, and we can see this transaction right here. Just make sure this is the right transaction, and after that, let's check the journal entry effect. And as we can see the receivables is reducing because at the time we booked the seals, there was a receivable against that generated. So we have reduced the receivables successfully, and against that, we have received the cash. As you can see, cash is debit. So that's how we do it, describe by yourself, and I'll see you in the next. 23. How To Book Credit Sales Against Customer: Video, we are going to see how we can book the credit sales against the customer for a single item. As you can see here on 12th of January, it says credit sales to Mr. Walter, which is our existing customers or previous rear lights. The quantity is ten, and the rate is 280. So let's head over to the customer and sales section, and here we will go to sales invoice because this is our regular customer, it is not necessary to raise the quotes and sales order every time. Rather, we can book the direct sales invoice as well. So click on sales invoice, new sales invoice, and let's choose Mr. Walter date of transaction is 12th of January, so let's make it 12. Due date is set in the customer depols. But if you want to change it, you can change that as well. Let's give any invoice number. Let's say this one. Now, the quantity of item is ten and the rate is 280. And the item is preousRar lights, ten previous rear lights, and rate is 280. This makes the total to 2,800. So let's save this. Just go back to check the journal entry effect. And once we are in here, click on journal from the top, and this is how you book it. Save this credit, and against that, receiv this debit. So perfect entry. This is how you do it. Just write by yourself, and I'll see you in the next one. 24. How To Deal With Customer Advances: Video, we are going to see how we can deal with the customer advances or cash advances in Sage 50. As we can see in this transaction on 13th of January, receive cash in advance from Albert, and the amount is 5,000. Why do you think that the customer will pay us anything in advance? That's because they might be ordering with us some bigger sales order. So as you can see in the same day transaction, we have received a sales order from Mr. Albert. Order number is 25, and that is nearly double of the amount that they have given it as advance. So this means that this will be our company policy to receive some advance against a bigger order. How will we treat this advance? This advance will be a liability on us. That means in future, we either have to deliver the goods or we have to return this money back. So whatever we receive as a cash from the customer will be a liability for us. So let's see how we can deal with this in Sage. First of all, just click on the customers and sales and we will use the receive money option here. Click on receive money from customer here we just select the customer which is Albert. Let's select it. And since we are not receiving the payment against any previous invoice, rather we are receiving a prepayment or the customer advances, click on the prepayment and here it should take you to this area. And here we paste it just like that, and 5,000 is the customer advance. Keep this one as checked. You can enter number and other details if you want to. The date of the transaction is 13th of January, and the total is 5,000. This is not 50,000, so just be careful with the zeros, and we have received it in cash. All set. Let's click on Save and click on Journal. Let's go back to this receipt, make sure you are in the right receipt, and click on Journal. As we can see that cash is debit, but against that, receivable is reduced. But actually, that's the shortcoming of Sage 50 that it records or reduces the receivables for the temporary timing. But otherwise, the accounting treatment should be customer advances for the timing should be recorded as a liability. But in Sage, there is no other treatment other than this, although it records it as a negative invoice, if you click on New and click on Albert, as you can see, it reduces that from the total invoices. So in future, it will adjust. If you still want to record it as customer advances, you can use the manual journal entry option, which is in the banking area like this one. So basically, this is how we can deal with the customer advances in Sage 50, write by yourself, and I'll see you in the next one. 25. How To Record Sales Order: For you, we are going to see how we can record the sales order from any customer in Sage. As you can see in this particular transaction on 13th of January, it says sales order received from Mr. Albert, which is our existing customer. So it's very simple to enter the sales order in Sage. It's almost the same as you are entering the sales invoice. That's because sales order in future will be converted to invoice, so they have made the same template. Just go to the customers in sales and click on Sales Order and click on New Sales Order. As we can see, the template is almost the same. Just select Albert here, and the date of transaction is 13th of January. So let's put 13th of January here. The order number is 25. First item is Carla windscreen. The quantity is 12, item is Carula windscreen. Unit price is 560, so this makes the total 26720. Just go on the second line. The quantity is ten. Item is civic headlights, and the rate is 210. Now, just make sure that even if the unit price pops up automatically, still, you have to confirm the rate from the project because the rates might differ from the previous prices when you are entering there. So 2,100, let's move to the second line. And here we have five as quantity. Item we have is previous filters, and 70 is the rate. This makes the total 2350. So just confirm the totals once, 6720, 2,103 50. All set. Let's save it. It sometimes show you this message that this transition will cause the customer balance to go over the credit limit. So if you want to reset the credit limit, we can just continue with this transaction, and then afterwards, we can reset or increase the limit. So click on, and that's how we book the sales order in Sage, describe by yourself, and I'll see you in the next one. 26. How To Book Direct Sales Invoice: Video, we are going to see how we can book a direct sales invoice. As you can see in this transaction on 14th of January, it says sales made of falling items to Mr. Justin. So as you can see, there is no sales order in the background. So sometimes we already know what to supply to customer, maybe because they are our regular customer. We supply them every week or every month the same amount. So that's why in that cases, there is no sales cycle followed, rather we book a direct sale. Let's see how we can do this in Sage. So let's click on the customer and sales and click on sales invoices and click New Sales. Let's choose the customer which is Mr. Justin, and the transaction date is 14th of January. So let's make it 14th. Invoice number since we don't have any invoice number in the project, so let's give it a random one. And now, simply, we will start entering the quantities and items. The quantity is 25 item is Carla windscreen, and the unit price is 560. So this makes the total 214000. Let's go on the second line. Here we have Civic headlights. Quantity is 15. Item is this one, and the unit price we have is 210. This makes Rule 23150, and the third one we have is quantity ten. Item is previous filters, and the rate is 70. So the total of this is 700. Just make sure all the totals are correct before saving it. So after confirming, just save and click save here. If you want to go back to the previous transaction, just to check the journal effect, go to the previous transaction and click on journal, as you can see here, here is a long entry, but don't worry. The basic concept is sales is credit, cost of goods sold is debit, and if we scroll down, account receivable is also credit. So this is the summary of this entry, and that's how we book the direct sales in Sage. Just write by yourself, and I'll see you in the next one. 27. How To Deal With Purchase Orders: Video, we are going to see how we can deal with the purchase orders in Sage. As you can see here on 17th of January, its es purchase order to Mr. Sian. Now, who is Mr. Sian? Mr. Sian is our vendor. So we have given an order to our vendor. Let's see how we can deal with this in Sage. So from the main screen, on the left hand side, we have the vendors and purchases section where we will go to find all the activities regarding the vendors right here. First of all, just click on the purchase orders right here and click on New Purchase Order. You can see, the interface is almost same for almost all the layouts, whether it's sales invoice, purchase invoice, sales order, purchase order. So let's choose Mr. Sian here, and the date of transaction is 17th of January. So let's make it 17 January. Goods should be delivered through 16 February 2025. Now, it is incorporated in the vendors terms and conditions or delivery terms. You can customize it or change it if you want to. I'll keep it as it is, and change the purchase order number to 49 right here, 49 quantity is 25. Item is Carla windscreen. Let's choose that and the ledger or GL account is already selected. Let's change or check the unit price if it is okay, 255 by 400, which makes the total 210000. All good. Let's go to the second line. And here we have 30 quantity. The item is civic headlights. So let's mention that, and the rate is 150. This makes the total 240500. All good. Let's move to the third item, and that is preus Val cups. So quantity is 20, and the item is preus Val cups. Let's select that. Make sure of the prices, even though if it is popped up automatically, you just have to make sure that it is according to the project because sometimes the prices might change with the different vendors. So this makes a total 2000 and all good. Just make sure that you check the amount once again. And after that, just click on Save and I'll not show you the journal entry because this is a purchase order. At the time we entered the purchase order, accounts is not affected because we just ordered to the vendor. We haven't received anything, so there is no impact on accounting or debit entrage. So this is how we book the purchase orders in Sage Just write by yourself, and I'll see you in the next one. 28. How To Deal With Bad Debts: Video, we are going to see how we can deal with the bad debts in Sage. As we can see in this transaction on 17th of January, it says Mr. Walter didn't pay the due amount thus treated as bad debts. So due to whatever reason you are unable to receive the money from your customers, it should be treated as a bad debts. Not only that, but the previous invoices against this customer should close against this bad debt. So that's a very important treatment. This means that we cannot just directly pass a journal entry in order to settle that. We have to close the earlier invoices if there is any, as well. So let's see how we can deal with this in Sage. First of all, we have to head over to the customers and sales section where we enter the bad debts. We are not receiving the money, right? But this is a way around because there is no direct treatment of dealing with the bad debts in Sage. So let's go in here in the receive money and click on receive money from customers. Well not actually receive the money. We will see later on how we can deal with this. So let's select Mr. Walter. Select Mr. Walter here. And as we can see here, this is two pending invoices, and the total amount 15,000 plus 2,800 makes it if we clear both of them, this makes it 17,800. So this whole amount is a bat. Now what we will do is we will put any reference number, receipt number, make sure the date is correct. Eighth of January, just check both of them again. And now we are not receiving the cash. We are receiving. Instead, we are trying to book it in the expenses at the bad debt. So what we will do is, after completing the entry before saving it, we head over to the journal. And here, as we can see the case in hand option is open, rest of them is credo. So we will change the letter from here and we will take it to bad debts. As we can see, under 6150, we have the bad debt expense. Just book it here, click Okay. And we can simply save it. Now, it will ask you you have selected an account with an account type that is not typically used for the cash account transactions. Do you want to save this transaction anyway? So it's just a warning. Click on and just go back to see the receipt. Maybe sometimes you see some other receipts. So just make sure that you select the right one, click on journal, and now we can see it recorded as a batt. So that's how you do it. Just write by yourself, and I'll see you in the next. 29. How To Deal With Purchase Of Services: Video, we are going to see how we can deal with the purchase of services in Sage, as you can see here. On 18, January, it says packing charges invoice received from Mr. Anthony. Now, we are dealing with car parts, right. So that involves oroula windscreen headlights, and you can see all of these items are fragile items. So that needs special handling and special care. But since we don't have the packing unit, we are buying these services from an external vendor. So this is a service invoice, where we have purchased the packing services from Mr. Anthony, and this is a new vendor. So let's see how we can record this. First of all, I'll head over to the vendors and purchase section. And we click on Enter Bills. Click on New Bill. If we see the vendor ID, we have three vendor IDs, but this vendor is a new one. So let's click New from the bottom. And this one is V 400, and the vendor name is Mr. Anthony. Expense account. Now, it doesn't matter even if you select the inventory because when the service item is configured, it will directly pick up the ledges from that item. By the way, we will create a separate service item for this. So it doesn't matter even if you keep the expense account to inventory here. Let's move through the next one. So all set, click on safe and close out of here. Now, let's go back to Enter Bills, select Mr. Anthony. Make sure the date is correct. Invoice date is 18th of January. Due date, you can change it to whatever you want. And let's put our random invoice number. Here we need to configure a new item. If you click on search, we have these kind of items, but that are physical stock items. We need to create a service item here. So click on New and I can write either IT 006 or if you want to configure the service items with SER 001, you can do that as well. Let's configure it like this. The name is packing charges. Item class will be not stock item. I'll just scroll down and select service p. Since we are purchasing the service, I'll just select this and we can copy this description right here, which is packing charges. It right here. Now, since we are not selling any kind of packing services, I'll keep the sales as it is, whatever it is configured, we are just concerned with the cost of goods sold, and that is linked to cost of sales for salary and wages. That's not correct. We need to link it to cost of goods sold for services. So we have cost of sales simple here, cost of sales for freight and salary and wages. What we can also do is we can just simply link it to any other account like cost of sales for freight. Then we can change the name later on. But instead, what we can do is just note down the account sequence and we can create a new one. We have 5,000, we have 5,100, let's configure a new one on 5,200. Let's click New. And here, let me just create it 5,200, which is cost of sales for services, and let's link it to cost of sales. This one right here, click Save, and then we can link it to 5,200. Not only this one, let's link this salary and wages also to this account. Let's save it and close out of here. Let's select this service item. We can mention any quantity and we can keep it blank as well. So this ledger is selected. Whatever we buy as a packing services, it will go to the cost of goods sold for services because this packing is directly applied on the inventory that we are planning to sell, right? So the total invoice is for 4,500. Let me just put 4,500 here. And as we can see, the total amount didn't flash up. That's because we need to enter a quantity. Instead. In this case, I'll just mention one here so that it shows the proper amount. Accounts payable is already selected. Let's save now. Let's go to the last record, previous transaction, and make sure we see the latest one. So this one is it. Click on Journal, packing charges as a cost of goods sold for services is debit, and against that, accounts payable is credit. So that's how we post the purchase of services in CH, describe by yourself, and I'll see you in the next. 30. How To Pay For The Purchase Of Services: Video, we are going to see how we can pay for the purchase of services, as you can see here on 18 January, paid Mr. Anthony B check of Sndard Chartered Bank, and the amount is 3,000. So we will go to Sage, click on vendors and purchases. We have already entered the bill before, and now we are paying for the bills. So let's click on Paybills, click on Paybills again, and we are paying by Strandard Chartered Bank. So let's click that. Click Okay. Let's select the vendor, which is Mr. Anthony. From this vendor, we have purchased the services of packing charges, and the total invoice amount was 4,500. Against that, we are doing the partial payment. So we can copy and paste this narration right here and paste it here, and the amount we are paying for it is 3,000, the partial payment. The date of transaction is 18th of January, so let's change that. Sometimes when you change the deed, the amount paid column will be reset, so we have to again write it. Just put any reference number here. We are paying by standard chart bank. Standard chart bank is selected. You can piece the memo here as well. But that has some limited characters as you can see, so we can shorten the version of it. And after that, just save it. If you want to see the transaction again, we click on the next transaction, so it will show us the last one. Click on journal to see the journal entry effect. And the journal entry, as you can see here, steady charted Bank is credit because we are paying for the services. So that's why it's credit, and payables is also reducing perfect entry. That's how you deal it. So this is how you can pay for the services in Sage. Just write by yourself, and I'll see you in the next one. 31. How To Convert Sales Order To Sales Invoice: This video of here are going to see how we can convert the sales order to sales invoice. As you can see here on 19, January it says, send all items to Mr. Albert, which is our customer against the previous sales order, and the order number is 25. Let's just scroll up a little bit, and this is the order number. Order number is 25, and customer has ordered all of these items. So against that, we are sending all of them items. We don't need to create an invoice at that time. Rather, we will use the old sales order and just simply convert it to invoice. What we can do is just go to the customers and sales and click on sales order to move forward to the sales invoice or otherwise, we can click on sales invoice and click on new sales invoice. From here, I'll just simply select the customer, which is Mr. Albert. And as soon as I select this, this all area turns gray, and it will ask you to apply to the sales order number. So we want to apply it to the 25 sales order number, you will see a list of sales order number if you have more select this, and it will show all the seals order quantities. So we just have to mention one by one, the quantity that we are sending them. In this case, we are sending them the complete quantities. So I'll just replicate one by one, all the figures. Now, let's change the date, which is 19th of January. Let me just put 19 January here. Due date is automatically set, but you can change it to whatever you want. Invoice number, let's change it. And this is how you do it, but just make sure to save it before moving to the next one. Click on Save. And again, it's showing you this message that this is over the credit limit. We can reset it later. We can increase the credit limit. So at this time, let's continue with it. So click on Save if you want to see the transaction again because now that the sales order is converted to sealed invoice, now it will affect accounts. So let's click on this one, next transaction. What it will do is it will show you the most recent one in some cases, but not in this case. So let's go to the previous one. We can click on this one. Previous transaction, click on journal entry, and this is the complete journal entry of it. So that's how you do it. That's how you convert sealed orders to sealed invoice, write by yourself, and I'll see you in the next one. 32. How To Adjust Credit Limit For Customers In Payment Terms: We are going to see how we can adjust the credit limit for the customers in the payment terms. So let's go to the customers and sales module from the left hand corner. And from here, just click on the customers and click on View and Edit customers because we have already created some customers, and for them, we want to adjust the payment terms or credit limit. So just double click to open any existing customer. And once you are in here, just go to the payments and credit tab, and on the right hand side, we can see the customized term for this customer because we have adjusted the credit limit manually. By default, it was 2,500. So let's say if you want to change the credit status to not just notify, but just hold over the credit limit. So what happens is after 250,000 limit has reached, it will not allow you to enter any future transaction. So if the customer has defaulted, you can put it on hold. So whatever is the credit limit, it will still not allow you to enter any transactions for that customer. If you're just doing the assignment and this option is disturbing you, you can also set it to no credit limit. So in this case, there will be no credit limit here. But if you want to just change this, let's say, to 500,000, we can change it from here, and also we can change how the payment is due. So it's due in number of days, which is 30 days. If you want to make it 45 days, you can customize like that, or even if you want to make the payment due on day of next month, for example, first day of next month, you can do that as well. But I'll just keep it to due in number of days, which is 45 days, let's say. So after that, you can save, and that's how you can make all of these customizations, describe by yourself, and I'll see you in the next. 33. Dealing With Purchase Returns In Sage 50: Video, we are going to see how we can deal with the purchase returns in Sage. As you can see here in this transaction on 22nd of January, return ten Carla windscreen to Mr. Matthew. Now, who is Mr. Mathew? Mr. Matthew is our vendor. So we have purchased some items before, and due to whatever reason, we are returning ten Karula windscreen back to. Either we don't find the quality that good or maybe there's some defect with the products. So what we need to do is we need to adjust these returns against the previous invoice. Let's say we have purchased 20 Carla windscreens or maybe 100 Carola windscreens, and against that, we are returning ten. So this returns should adjust in the bill. If you want to do this kind of adjustments, let's see how we can deal with this. First of all, let's go to the vendors and purchase a section right at the left corner. And from here, we have a separate area of credits and returns. Just go to that and click on new vendor credit memo. Let's select the vendor, which is Mr. Matthew. Credit date is 22nd of January. Credit number, I can put any number here. And since I want to adjust it against the invoice, we need to select any particular or previous invoice. In this case, I have only one. Select that. And as you can see, all the invoice items are shown up here. Against this item, which is Carla windscreen, I am returning out of 5010. So this should adjust in the bill. So as you can see, the return is created at the 1,200 rate, and the unit price, as we can see here, 400 per unit price, we are returning this all set, all okay. You can put this in the description also if you want to. Otherwise, let's click Save from the top. And if you want to check the journal entry effect, let's go back and open up this transaction and click on journal. And here we can see that since we have returned the item back, it's out from our inventory. So that's why inventory is credit, and against that, our payable is reduced, as we have seen, that the earlier bill was already there. Against that, we need to pay less now. So that's also adjusted, and that's how you do just try it by yourself, and I'll see you in the next. 34. Dealing With Sales Return In Sage 50: Believe we are going to see how we can deal with the sales return in CH. As we can see here on 24th of January, return five civic headlights by Mr. Albert. So the customer is returning some items back to us because they find it to be defective or for whatever reason, that means the seals is already created at the back end in previous transactions. So if we check that, we can see here that we have sent the items against the previous sales order. So the sales order was created against that sales invoice was made, and after that, they found some items to be defective they are returning back to us. Now what we will do is just go to the customer section from the left hand corner. And from here, if we scroll down a little bit on this flow chart, we can see this credits and returns option. Just click here and click on new credit memo. The customer name is Mr. Albert, and it shows you this message that it's over the credit limit. We can set the credit limit however we want. So let's ignore this. 24th of January is the transaction date. Due date, I'll keep it as it is. Credit number, I can just mention any random credit number because we don't have any in the project. We want to apply it against invoice. Now, there are two invoices. One is the beginning balance and one is the transaction during the year or during the month. I want to adjust against the second one, and the thing is that the customers since they are returning some items, but we want to adjust it in the previous bill. So now they have to pay less, right? So what we will do is we will just write next to civic headlights that out of ten supplied, five is returned, so let's fill it up here. Make sure the rate is correct at the rate of 210, all set, and that's pretty much what you have to do. Click on safe. And if we go back to check the journal entry effect, let's go back, and this is the journal entry effect right here. You can access that. Now, the journal entry is since the sales is reduced because they have returned the items, sales is debit. And against that, account receivable is credit because receivable is reduced. Same thing, it is the adjustment account of 12 and 5,000. So that's how you entered the sales return in Sage. Just write by yourself, and I'll see you in the next one. 35. Receiving Payments From Customers In Full: This video, we are going to see how we can receive the payments from the customers, whether full or partially, but in this particular example, it's full payment. As we can see here on 25th of January, Mr. Justin, who is our customer, cleared all of his previous balance by giving us cash. So he's being very generous. Let's see how we can deal with this. Go to the customers in sales and from here, we click on receive money and receive money from customers. Let's choose the customer. Mr. Justin, first of all, we fill in all of these details, like if they have any reference number, we have any received number, we can mention all of these details. We can change the date, and let's change the relevant account too. We are receiving payments in cash, so let's change it to cash Make sure you change it. On the bottom, we see one opening balance and one transaction during the year. So they are paying back all of this amount, so we will check those one by one. So click on the pay on the first one and on the second one as well. Now, if you want to post this one as a description, you can post it here as well. Let me just do that like this. And on the second transaction as well, if you want to check the journal entry before even saving it, you can do that as well. Click on the journal, and you can see that the cash received from the customer against the receivable. This account is for receivable, but this is grade out, so I can't show you this. So the total amount is this one. Let's save it. And that's how we receive the money from customers, destroyed by yourself, and I'll see you in the next. 36. Converting Purchase Order To Purchase Invoice: This video, we are going to see how we can convert the purchase order to purchase invoice, as you can see here in this transaction. On 26th of January, Mr. Sian, which is our vendor, sent all items against previously issued purchase order. So we have ordered something, and now they have delivered us. So what happens when they deliver, they send the bill. And when the bill is entered in the system, the accounting gets effected. So we have booked the purchase order in the background before. But at that spot, the journal entry was not made because purchase order doesn't have any financial impact. Since we have just ordered items, we haven't received anything. But now that we have received this thing, let's see how we can convert this. We don't have to make the bill. All we have to do is just click on vendors and purchases and click on Enter Bills from here and click on New Bill. Now one great thing, now one good thing about accounting software is even if you don't remember that we have created a purchase order for this particular transaction, we just need to select the vendor, and it will automatically show us here in the gray area that there is some pending purchase orders as well. So we can check that. But before that, just remember to fill in all the upper details first because otherwise, if you make some changes or mention some amounts and then change the date, it will automatically reset. So the date of transaction is 26 of January. Let me just change that. Due date automatically set, and we can mention any invoice number for the purpose example and the purchase order number is this one, and out of which, since it says all items are received, we will just write here that the remaining were this one, and we have received it completely. So just mention all of the same items next to it. Mention the same quantities and make sure that the unit price amount is correct. And after you have confirmed that, click on Safe, and that's how you convert the purchase order to purchase invoice, and just go to the previous transaction to check the journal entry effect, make sure you are in the right transaction, and then you click on journal entry. So this is the urnal entry, and that's how you convert. The purchase order to purchase invoice, just try it by yourself, and I'll see you in the next. 37. Recording Loss Of Inventory In Sage: Video, we are going to see how we can deal with the loss of inventory in Sage, and also we will see how we can adjust the quantity of one because it is damaged during loading and unloading, as you can see in this transaction. So from Sage, I'll just go to inventory and services, and from here, we go to inventory adjustments, and there we have it. Now, let's see what is the item one Corula windscreen. So choose Carla windscreen. By default, the adjustment account is selected to cost of seals, but I'll just scroll down and I'll link it to an expense account, shrink it spoilage or inventory loss, such kind of account I want. Now, I don't see any account related to that. So instead, what I can do is I'll just create a manual one on 7,200. We have the last one on 7,100, so let's create it. So click on New. So this one is 7,200 and the account name is loss of inventory, and let's make it expense and save it. Let's choose it 7,200, loss of inventory. Unit cost is 400 and we have 417 quantity. Don't worry if you see any other quantity because we will adjust that later on. When we see the final reports, adjust quantity by. Since we want to reduce one item from the stock, we will write here minus one. Press tab to make sure that the new quantity is one item less. And the reason to adjust is, let's write damaged inventory. After that, let's save it. And this is how we adjust the loss of inventory in Sage, describe by yourself, and I'll see you in the next. 38. How To Make Corrections To Existing Records: This video, we are going to see how we can make corrections to any existing entry. For example, in this project, the last entry was one Carula windscreen damaged during loading and unloading. Let's say that I made the correct entry, but the date was wrong. So what we can do is just head over to the inventory and services. If you want to check the report, click on the reports, and from here, just click on the inventory tab. You're already here, and then we will click on Inventory Adjustment journal. Just click here, and since it was an adjustment, this is the three. Just double click, as you can see here, the entry date is first of January wrongly put. Just double click here, and now we see this screen again. If we change the date to 27th of January, we will notice that the quantity also might change. So 27th of January here, the quantity didn't change, but it could be the case. Reference, just put any reference number and rest all is fine. Click Save. And if you just want to make sure that everything is saved correctly, what you can do is just refis from the top just to make sure that the date is correct now. Data is not showing correctly. So I think I need to close this and reopen this save and now it's showing correctly. Click refish and now it should update. So that's how you make all the corrections to the date or amounts in siege. Describe by yourself, and I'll see you in the next. 39. Unwinding Of Prepaid Expenses In Sage: All right, guys. In this video, we are going to see how we can unwind the prepaid expenses in Sage, as we can see here in this transaction, right here, on 31st January rent expense for January, adjusted from Advanced Rent account for an amount of $1,000. So what is this exactly? In the starting, if you followed the assignment, we have paid in advance for the rent for six months at $1,000 per month each. So the total was $6,000, but at that time, we didn't consume the benefit. It was only advanced rent or recorded as a prepayment, which is an asset. But now the January month has passed, and we have consumed the benefit of the premises. So only that portion which we have consumed the benefit of should be converted to rent expense against the prepaid expenses ledger. Since we didn't consume the benefit, the entry was prepaid rent as an asset debit. Against that, we credited bank. But now, since we have already paid, that prepayment is all in the prepaid rent. So debit will be rent expense, credit will be prepaid rent. By the way, guys, if you want to learn more about how the prepaid rent or prepaid expenses work, I have attached this document in the resources section so you can fully read it to completely understand the concept. What we will do is to end this journal entry, I'll just go to the banking and from here, we click on Journal Journal Entry, new journal entry. And now let's start entering this. So 31st of January, you can put any reference number here. We already have the prepaid expenses account created where we posted earlier. So prepaid expenses is this. This should be credit. First of all, rent expense should be debit, so let's find expense account. So rent or Lee's expenses here 6,300. Let's copy this narration, paste it right here, put debit as $1,000. Credit is prepaid expenses because prepaid expenses is now reducing with that amount, which we can resume the benefit of. So $1,000 and save it. Just make sure the deed is correct. Save it just like that. And that's how we deal with the unwinding of prepaid expenses in SID. Just write by yourself, and I'll see you in the next one. 40. Closing Month End Reports: We are going to see how we can reconcile the balances and extract some closing reports. Let's say the closing reports could be trial balance, balance sheet and income statement. As we have completed all of this project, let me just show you. So this is the complete project. We have entered the opening position of the trial balance, and then we entered the customers and their balances, wend their inventory from the old software. So we have shifted all of these balances. After that, we have done all the day to day transactions, and now we have completed all the transactions up til the end. Let's extract some important reports after that. So to extract any kind of report, just go to the report section and click on the general edit report or any section because in here, you get the section choice here as well. So let's extract the trial balance. Go to the journal ledger and from here, journal ledger, trial balance, double click here and you can set the period. By default, it is set to 31st of January, and that is for the current period. Means the period in which you are entering the transactions, it will be set at the end of that date. If you want to, let's say, extract it for a whole year, just go to the options at the top, and from here, you can select the specific dates. I'll select the specific date or specific period here as of if you want it till the end of the year, let's say 31st of December, I'll set it to that, and after that, you can extract the travel well. So click Okay, and now it is set to 31st of December. If you want to export it in the Excel format or PDO format, we have the choices here. So let's extract it to the Excel format. Click Okay. And it will create this trial balance for you that I will attach for you with the description or resources section of this video. So after this one is done, next important report is income statement or profit or loss. So go to the financial statements, and here we find all the balance sheet and income statement, even the cash flow reports here. So let's extract one of them. This is the income statement. Just double click here. You can set the same period in the way I have shown here. So let's set it to current period. You can make all of these settings show zero amounts, whatever. You can read through it. Now, show zero amounts means that even if the amounts are zero in that letter, still show it. So click Okay. I'll keep it as it is, but as you can see here, there are lots of zeros, even though we don't have any figures in that particular account. So that's not correct. You can change the options and you can just simply go to the options, you don't need to close it. You can select this from the top and click on check and click Okay, and now it's much manageable. So this is the profit and loss account. I'll just attach for you about this report as well. But this time, let's extract it on a PDF. So the profit and loss account looks something like this. This is the report. Let's close out of here. And the next one we have is the balance sheet. Click on the financial statements again, go to this section, select balance sheet, and you can extract it in the same way. I'll just set the period, click Okay, and let's extract it on an Excel file. Click Okay. Now, if you want to check through a particular balance how this balance was made, if you want to check the details of it, let's say, cash in hand, we can simply double click on it to drill down further, and we will see the ledger details from the beginning balance till all of these debit and credit transactions until the closing balance. So this makes it very convenient. If you're confused about some figure, you can just simply click on it and you will see all the balances detail. If I want to extract the ledger report of all the ledgers and not just the one that we double click and select and extract like this one, we want all the ledgers detailed. So close out of here, go to the Journal ledger and click on either transaction detailed report or Journal ledger. So let's select Journal Ledger, and here we see all the ledgers along with the details of the transactions the begging balances till closing balances. So I'll attach this one for reference as well. So let's say that you have any confusion or a problem with the particular balance, you can just check through it. And I'll also set the period to 31st of December. Why? Although all of transactions is within January, but let's say sometimes we make a mistake with the date. So due to that simple mistake, the transaction won't show up in first of January to 31st of January report, right? So that's why I have extracted up till 31st of December. Let me just export it to Excel, click Okay. 41. Introduction To Manufacturing Company Project: In this video, we are going to start our new company assignment, and that is of Empire textiles. Now, Empire textiles is a manufacturing scenario which buy the raw material from the market and then produces the finish codes. Now, they have two types of finish codes. One is shirts and one is pens. So the scenario is very simple. This company was using some manual accounting system or maybe they were working on Excel, and now they are planning to shift on the computerized accounting system, and they have chosen Sage for that. So what we will do is we will implement the complete system, and to implement the complete system, it's not possible to transfer all the years of transaction that they have entered before in whatever system they have. What they will do is they will extract the closing trial balance of the last year and then make it an opening balance of this year. So they will provide your client, let's say, for which you are providing these services of implementation, they will provide all the balances detail of all the ledgers. We have all the ledges here. They will also provide the closing balances of the customers, vendors, and also inventory. To that, what we will do is since they buy the raw material from the market and then produces it, and manufacture finish coats. So the most important area in the manufacturing scenario is bills of material, which is a connection between the raw material and finish coats. That's the most important thing. So what they do is they use the raw material in a certain proportion. For example, they want to manufacture shirts. So all they want is two meter cloths in the shirt, one bookrm in a single shirt. Thread is one cone, and they need eight buttons for a single shirt. Now, this can be a recipe of a shirt. So once you create one recipe, the same recipe will follow whether you want to manufacture 3,000 shirts, 2000 shirts, whatever is the amount. So we will work on this particular scenario on the sheet two, after that will be D two data transactions. So this will be a very interesting assignment, and I will attach this project with the resources section of this video so you can check that out. So this is the complete project. Now, I want you to download this particular project, and then we will move to the next video and start with the company creation process. 42. Creating A New Manufacturing Company: This video, we are going to see how we can create a new company in Sage before we were already working on a trading company. So let's also see how we can close this company and then start a new one. Not exactly close this company, but just I need to log out of this company. So just click on the file menu from the top and from here, just select Close company right here, and this brings you to this welcome screen where we can create a new company right from here. It will open up a wizard to create the company. Click Next. These are the only compulsory fields that we need to enter the company name. And the business type. Even business type is not a compulsory field. So this company name is Empire Textiles. Let's mention that, and this one is also a sole proprietorship. Rest of details, we can fill it later on. It's pretty basic. I don't need to explain you about this. So click next, and we will prefer the business type that closely matches our company. Click Next. If we select this option, it will open up the business type options that we have. If we have a manufacturing company, let's say, we will just simply choose the manufacturing company. They are simplified types like generic, all manufacturing companies business, or if you want to go with the detailed types, for example, you want to just narrow down into exact business like business management services, you can see here, chemical manufacturing company. So if you have this, it will specifically create the chart of accounts according to this business. But for our case, we'll just continue with the manufacturing company, and on the right, we can see all the relevant chart of accounts related to manufacturing companies are suggested here that it will be automatically created. So in case we don't need some accounts, we can delete that. And if we feel that some accounts are not there, we can create new ones. So that's best. Click Next. Now, accounting method. As an accountant, we already know what accrual concept is, but if someone don't know about this, it's mentioned here that income is recorded when the sale occurs regardless of whether you actually receive the money. So most businesses, even almost 95 per or 99%, I can safely say, uses this accrual method. Why? Because most of the businesses are on credit, right? So it's not necessary that they have received the sales amount, but still they would consider it as a sale in a particular month. For example, they have sold on credit in January month, but they have received the payment in February or let's say March, but they will record that income in that particular month, right? So that's why accrual method is used. Now, the cash method is exactly the opposite of it that income is only recorded when you receive the money. Now, there are some businesses that do that. For example, all the pharmacies you deal in cash even there you buy from the suppliers on credit. So it's preferable always to choose accrual method. Click Next. And the posting, I prefer it always to be in real time. What happens in batch is the transitions are saved. All the transitions are saved, and then you have to manually post it as a group. Here in real time, as we enter the transaction, we can save it so that they can enter the accounts. So click Next. You can prefer this if you are providing services as a bookkeeper, where you entered lots of transactions. So before confirming, you need to figure out and recheck all the entries. So I'll click on real time, click Next. Most businesses use 12 month accounting period, but if you have shorter or longer period, you can choose the other one option. Click Next. And the fiscal year starting date of the first period will be January 2025. So my financial year will be January to December. That happens in most of the countries, but some countries prefer June to July or something else. So you can choose according to that. Click next, and now it's showing that we are ready to create the company. As we click Finish, it will create a company for us. I'm using the student accounting version here, so I have the access to use the software until 14 months, and that's a great thing about this version that it has all the complete features, and it's also providing it for a complete year. So that's best. Click Okay. And now it will start creating the company for you. Initially, we also get a setup guide here, which is a quick guide on how you can work on different things. But since we are here to learn everything from scratch, we will close out of here. And again, getting started, you will see it on every single panel, whether you click on vendors and purchases, whether you click on inventory and Services, you will get this option everywhere, so you can disclose out of here. And then you will see this section, particularly related to the summary of inventory or summary of vendors here. Let me just close here. And as we enter all the details, whether it's vendors, customers or inventory, it will show up right So that's how we create a new company. Just do it by yourself, and I'll see you in the next one. 43. How To Customize Dashboard In Sage: Video, we are going to see how we can see, extract and customize the business dashboard in sage. Now, the dashboard reporting is a very important feature in every tool nowadays, which gives you a complete snapshot of the overall company performance. So as you can see here, we have the business status tab right at the top. And once we click here, it will take you to this area where you can see the summary of different things. Here we have the account balances, all the accounts that are used and along with the balances. Since this is a new company, everything is on zero. But on right hand side, we can see the year to date report and a kind of mini profit and loss account report. Also, near this report, we have customers who owe money. So these are the details about it. We also have the age receivables analysis, find a report, H payables, vendors to pay. So this is the default arrangement. But if you want to customize this on the top, you have the customized button here as well. If you want to change the preference, we can move it up or down however we want, and we can extract some other reports as well. So that's how you can make all of these customization and click Okay. After that, you will notice that all the sequence have changed according to your needs. Before the revenue report was up, now it's down here, and we have a new report here as well. So you can set on each tab that whenever you open Sage, whether you want this tab to open by default or this one. So let's say someone as a user is just working daily on vendors and purchases. So for their customized interface, they can prefer this one, vendors and purchases and set it as default. Every time they open sage like this, they will always land on this page or this tab. So that's how we can customize the dashboard in Sage tribe by yourself, and I'll see you in the next. 44. How To Customize Chart Of Accounts: Right in this video, we are going to see and learn how we can customize all of the chart of accounts that we already have in CAD and customize it according to our project. It's not necessary that we have all the exact ledgers in Cg created by default, so we need to edit some of the ledgers names. Even we need to create some new ones. So let's see how we can do this. First of all, if you want to extract the chart of accounts area or go to that section, we will click on Banking section before it was used to be a business category here, and now it's in banking. So most people get confused to locate this chart of accounts area. So it's right here in the banking section, we have chart of accounts. But if you're new and you don't know how to find it, most of the times, not only in CH but in most of the softwares, you go to list or some section from the top and there you can find that area. So we also have it in the list and chart of accounts section. Here, we have a detailed list of chart of accounts that is created according to our business type. We initially selected a business type of a manufacturing company. So it has tried its best to create all of the ledgers. But still, some of the names will be generic. Like here, it's checking account. Checking account means bank account. But we want a specific name, whether it's City Bank account or Bank of America account. So in that case, we have to change the name. So just copy this. If we want to change the name of a particular ledger like this one, just simply double click here. I will open up some area like this one, and there we have account ID already set. Account type is cash. Now, guys, the bank and the case have same kind of nature. They are used to receive or pay money. So that's why in Sage, the account type we only have is cash. We don't have bank. So in that case, we'll use this account type for the cash and bank both. But in QuickBooks, let's say, have bank only. We don't have the cache as type. So that's different for different software, but just understand the logic that account type is according to the nature of that particular ledger. So here, the purpose is to receive and pay money. So we'll choose account type as cash, so save it. We already had this ledger. We just edited the name, and now we can see the updated name if you don't see it or if we don't automatically refresh, you can refresh it from the top here as well. So let's click on refresh, and here you go. Now, even though we have created one, we still need an other account, and that one is the Bank of America account. So let's copy this name, and we need to create a new one. If you notice the account sequence, we have thousand and ten and then 1020. So there is a difference or gap of ten. So this means that if you want to insert a new ledger in between these two ledgers, we can create it to any number we want. For example, 1015, we can use. And similarly, any sequence we want to use, we can use that. So click on New and let's create it in thousand and 15. Description will be the ledger name, which is Bank of America. I just copied the name. Account type will be cash, as I explained earlier, click on safe and close out of here. Again, if you don't see it refreshed or shown right here, you can refresh it from the top. Just let me zoom it so that you can see all the ledges clearly. Just hold the Control key from the keyboard, and if you have a mouse which has a wheel, just draw the wheel to increase or reduce the size. After that, we can adjust the columns of each ledger details like this. So just hold it from the between area where you see this line right at the end of the column and just hold it from there and adjust it however you want. So I'll just make this room for other details. The next account we have is standard chartered bank. It looks like this is a bank account, but it's clearly mentioned in the bracket that this is a loan account. Sometimes you open a bank account just to apply for a loan with the bank. So there is a condition that you need to open a bank account with them, and then it will be considered as a loan account for automated payments or however you want it. But this account is a liability account or a long term liability account. We have took business loan from the specific bank. So the type will be the long term liabilities account. Here we have long term liabilities, long term debt, non current. We can do is just simply double click here and just change the name of it, Loan account. Sometimes there's specific limit of characters. So in that case, you can just shorten the name of the ledger. And if you want to mention the name like loan account, you can do that as well. But in my case, let's mention standard charted loan account. Let's mention that and click on Save. You notice here, some account IDs are starting from one sequence, and some are starting from two, and same goes on for three, four, five, six. So there's a specific sequence which has a specific meaning. All the account IDs which are starting from one will be asset. Two is for liabilities, three is for equity. Four is for revenue, five is for cost of goods sold and six is for direct or indirect expenses. I mentioned this coding sequence here and before as well, so you can check that videos out. But I'll also attach this document with the resources section of this video, and that will be very useful for you because not only in Sage you follow this sequence, but almost in 90% of the accounting softwares follows the same sequence of chart of accounts coding. Mostly the difference come right at the end, which is in the expenses, other expenses and indirect expenses. Some categorize it as 6-7, it's all combined, whether it's direct expenses or indirect expenses. But in some other they separately mentioned the six is direct expenses, seven is indict expenses, and nine will be adjustment account in most of the cases. So sometimes some of the charter of account coding sequence is different, but mostly all of them follows the same sequence. I'll attach this one with the link of this video. Alright, let's move forward, and long term liabilities name is changed now. It's standard tarted loan account. Next we have on the list is cash. Cash on hand is already there, so we don't need to change this name. Next one, we have debtors. This is also common for all the companies. All the companies has debtors account. So let's scroll down and search for the assets category. Assets, as I told you, should be in account ID, starting from one. If you have a lot of ledgers, I found this one in 1,100, but if we have a lot of ledgers and we are still unable to find it or we're finding it difficult to locate the ledger, we can do what we can search for it. We can change the ID to description, if you want to search by name, and if you want to search by ID, we'll keep it as it is. We also can search it with a balance and a specific type. So in this case, I want to find a receiv but with the description. So just mention that and right here, receiv and click Search, and here it is, account receivable. I don't need to change this whenever you want to clear this search, you click here. Next one is inventory or stock. Just copy this in case we need to create one or edit one. We just copy this and inventory, we have all the inventory types here. Raw materials, work in progress, finish codes, so we don't need to create new ones. In this case, we are considering that at this opening point at the point when we are implementing this system, we only had raw materials in the stock and not the finished codes. I know this is an ideal scenario for a manufacturing company that they don't have any kind of finished goods, but that's the way it is. We are just following this one that we only had the raw materials at the starting. Rent security. Rent security is the security, which is for the long term. Let's say we have acquired a building on rent, and the security that we paid the owner will be returned when we leave the building or leave the office. So this is kept with the owner. Let's see that we have it or not. We have different ledges, but I don't think we have this category. So let's create new one. Since it goes under asset, we can choose what? We can choose, let's say, 14 50 before starting fixed assets. Fixed assets are starting from 1,500 sequence, so let's make it 14 50. Make sure that is available and not already used. So this account ID is available. Description, I'll just put here, rent security and just choose the relevant one. Since I don't categorize it as a current asset, I can categorize it as other asset because the current asset is what is for the short term and convert it to some other form within one year. But that's not the case with security deposit, right? So just choose other assets and click Safe and that's how we create it. Close out of here. It doesn't show up here, you need to refresh. Next one is machinery, which is a fixed asset. We might already have it, but in some cases, we also need to create it. So we have property plant and equipment and accumulated depreciation for property plant and equipment only. So if you categorize the machinery as property plant and equipment, which it is, you can just change the name or just remember that you will enter the balance in the same area. Now, guys, you might be thinking that I'm just creating the ledges and not putting any balances here. That's because this is the beauty of this software. You just create all the ledges, and then we will enter all the balances together to make it so much convenient and also error free that I'll show later on. Let's continue with this. Let's actually make it exactly according to our assignment. Just double click here and paste it right here. L safe, close out of here. Next one we have is accumulated depreciation of the same account. Just double click here. Accumulated depreciation is a contra asset, which by default is an asset, but it reduces the value of it. If you want to learn more about it, I'll attach a resource with it, a document which explains how the accumulative depreciation works, what it is, and how the treatment will be done in accounting. So accumulated depreciation of machinery, the account type is selected to accumulated depreciation. Save. And these are the only fixed assets account, I guess, here, but we have more here. No, actually, we don't have more. We will move straight to the creditors, which is a payable account. Let's copy it in case we need to create one, and we have the payables right here. As I said, in the account code, two is for liabilities. So this is starting from two. Accounts payable is already here. We don't need to create this. Next is accrued expenses. Accrued expenses is what is spending to be paid. Like, let's say electricity bill. You receive the bill on the end of the January or we need to pay some of our employees. This is our expense for January, but we are usually paying at the next month, right? Let's say on third or fourth of February. But that specific expense is related to January. So that needs to be recorded in January, but still it is not paid yet. So what you will credit, you cannot credit cash or bank. So instead, we will create an account payable liability account, which can be called accrued expenses, which is called accrued expenses. Even if you name it as bills payable or whatever is the liability name, you name it as accrued expenses, or the nature of it is accrued expenses. So that's about it. You can read in detail. I'll attach with the link of this video. I've searched for it and we don't find it, so let's create a new one. But let's just note where we will create this. Since it is a current liability, we can create it anywhere here. So let's create it in 2315 new, 2315 is free. Let's create it here. Name of it is accrued expenses, and it goes under other current liabilities. Click Save, and they should automatically update. If it doesn't need to click on the refresh from the top right here. Right here is the refresh button. Next is sales tax payable. This is also a liability account. Next one we have is sales tax payable. The amount is 175,000, and we need to record it in the liabilities. If we check the liability section, we already have a lot of accounts in the current liabilities and some of them to Texas as well. But the name is different. So if you feel that you won't be using this tex account, so rather what you can do is instead of creating new one, just double click here and just change the name here. I'll just paste it right here. Click Save. That's done. Okay, next one is general reserves and the amount is 1 million. So if we go in the equity area which starts from three coding, according to our coding sequence, we see that we have 3910, which is retained earnings. Owners contribution is on 3920, while the 3930 is for owners withdrawals. So what we need to do is we need to create a new one. And as we can see, there's a gap of ten in each ledger. So I can categorize it as 3940 at the end, or if we want to configure it in the middle of the numbering sequence, so we can configure it on 3915 as well. So let's continue with this 3940. Let's click on New from the top. So this is 3940. Let's copy and paste the name here, which is this one. And let's categorize it as equity doesn't close. Just remember that whenever any ledger balance in the equity adds up in future as well, like the general reserves will add up in future. It's not one time contribution. So that's why it's equity doesn't close. If it is only one time balance at the starting when we imported all the balances or we put that manually, at that spot, whatever is a fixed balance, you can configure it as equity gets closed. So that's the logic of it. Click on Save. And the final one we have is net owner's equity, which is 21450 triple zero. Now, if we want to extract this balance according to accounting equation, which is capital is equal to asset minus liability because as we already know that asset is equal to capital plus liability is an accounting equation. So if you want to extract capital, you will just do a simple math and which is asset minus liability is equal to capital. So this means that at the opening position, there's no expenses, there is no income. Everything is shifted to general reserves or retained earnings. So we only have three accounts or three type of accounts in the opening balances or trial balance, we have the assets, liabilities, and capital. So whatever is from the profit or loss will be shifted to retained earnings, which is a capital. So this means that if you add up all the assets and minus the liability from that, you will read on this figure. Now, in some of the accounting software, you don't need to enter this balance. This will be automatically created. But in SAH you need to enter this manually as well. So we have an area for this, which is this one, net owner's contribution. I'll just double click here. And if you want to change the name to net owners equity, you can change that. Otherwise, you will keep it as it is. But since this is not a one time contribution, this is net owner's equity. So instead, what we will do is just copy the name. We'll paste it right here, and not only that, we will set it to equity dozen close and click on Save that's how we configure all the chart of accounts where we have created some new ones, we have edited the name, and we can also delete any extra accounts. Let's say that in the expenses category or let's say in the liability section, we don't need a couple of accounts. So what you can do is if you haven't yet entered any kind of balance here, just double click here on any ledger and you can delete it simply from here. Click, and that's how you do it. That's how you can create all the ledgers and make adjustments to the chart of accounts. Just write by yourself, and I'll see you in the next one. 45. Entering Ledger Opening Balances In Sage: Video, we are going to see how we can enter the opening balances in Sage. But for that, if you are working on a specific project, like I am working right now on empire Extles we need to configure all the chart of accounts according to our project, which means that if the specific name is not there, either we have to create new chart of accounts or we have to edit the name of an existing chart of account, which we won't be using. So any extra chart of accounts, you can change the name of it. As we have seen all of this before, now that I have configured all the chart of accounts, according to the project with the same name. Let's enter all the balances together, and that's the beauty of this software Sage, that you don't need to enter the balances ledger by ledger. Rather, what you can do is just configure all the chart of accounts and then we can enter the balances together. Now, in most of the other softwares, what you do is you don't need to enter the control account balances, and that's a good thing. But unfortunately, in Sage, you need to enter this separately. Now what's Control account? Control account, as you can see here, that is receivables total amount is 16 50,000, but the breakup of this is individual customer balances. So what other software do, let me give you an example like QuickBooks. So you just enter the customer with their balances, and this total will automatically update in the chart of accounts as the control account balance. Same goes for inventory and for the payables. But in Sage you need to enter all of these balances separately. Some people find it very easy because you don't have a confusion what you need to enter. So straightaway, we will enter all the balances. What we can do is just click on any ledger, like this one, double click here. And after opening the ledger, we will simply go in this area which says account beginning balances. Just click on this, and this will take us to this area where we need to select the period for which we want to enter the beginning balances. Since this balance or opening balances is before the start of this year, which is first of January 2025. So what we will do is we will put this period from first of December to 31st of December. Let's choose that because that's the closing balance of last year, right? So click Okay, and it will show us the date of 31st December 2024. We have chosen the other period, it will give us beginning balances as of 31st of January, which is not true. So this is the area where we will put all the balances. Now, one good thing about Sage is in whatever column you need to enter the balance, only that column is allowed to be entered. You cannot do the mistake of entering accidentally in the liability section. If it is related to asset, only asset category will be allowed, and same goes for the other ones. In liability section, asset is hidden or blocked, only the liability section is open to be entered. Let's enter the balances one by one. Now it's your choice if you want to highlight it one by one according to the project and then enter the balances, I prefer always to enter it by project. So the first one we have is, let me just highlight it in green, and this is 6 million balance of Citibank. So let's find Citibank. This one is it. Just paste the balance. Sometimes you might have problem in entering the balance. In that case, what we need to do, let me show you. If you are having trouble by directly copying the balance, what you can do is just open the cell by double clicking it and just copy this figure manually. Instead of copying it from the cell, just double click and go inside the cell and then copy the figure. After that, you can easily paste that press tab. Next one is 2,500,000 do the same for the Bank of America. Next one we have is standard charted bank account, which is a loan account. So let me just copy that and go in the liability section. It's right here, and here it is standard charted loan account. Let me just paste the balance here. Press tab. Before moving forward, we will highlight these what we have entered. Next one we have is cache. Just double click here, copy the balance and cache on hand. Paste it right here. At this point, if you want to enter these balances only and then continue later, you can do that as well. But since we only have a couple of balances, we will enter all of these together. So this is done. Next one is receivables. Just copy that. Account receivable. I'll paste it right here, press tab. Next is inventory. Just copy this. We are considering that at this opening point, we only had all the raw materials in stock and nothing in the finish codes. So raw materials inventory, I'll just put the balance all together here. Highlight that. Next is rent security. Let's just copy this balance and paste it right here. Next we have on the list is machinery, copy this and we need to scroll a little bit to find the right ledger. But if you're facing some trouble, what you can do is you can use this fine function as well. Let's use the fine function and right here machinery. Click Okay, and it should take you directly to this ledger. Just piece the balance right and you are good to go. In accumulated depreciation of machinery, since it is a contra asset, it's directly mentioned in this other side. Or you can say the credit side. Just paste the balance right here. But if you're facing some trouble, that's because you need to double click here and then copy the figure from inside the cell. Just pase it right here, press tab. Let me just highlight these. Next one we have is creditors, or you can say the accounts payable. Right next to it, we have the accounts payable. Let's pase the balance here. Again, we need to double click here, copy the figure, paste it right here. Accrud expenses. Next is accrude expenses, just copy the figure, paste right here, press tab. Next is seals tax payable, copy this. This one is it. Paste the balance. Next is general reserves, just copy this balance from inside, and we will paste it right here. And the last balance is 21450. Now, I apply the formula here, so let me just paste this as values and then double click here. The trial balance difference, we can see that the difference on the debit end grade side is exactly this one, two, 1450 triple zero, and this is this amount. So as I put this balance here and press tab, you will notice that this will become zero. So press tab, and now, debited credits are equal exactly according to our project. Let's click Okay, and that's how we can quickly update all the balances in all the ledgers for the opening amounts. So that's how you do it. Destrb by yourself, and I'll see you in the next. 46. Entering Customers And Balances In Sage: We are going to see how we can enter the customers and their balances in CAD. So what we need to do is just go to the customers and sales section right at the corner. Click on this section, click on customers and seals and click on new customers. You can also click on View and Edit customers if you want to see an existing list, but since we don't have any, it will show you blank. But the benefit of this area is you can just directly enter all the customers from here as well. And when we save any particular customer, it will be immediately shown in the list here. Click on New here, and the customer ID, first one we have is C 100, and the name of customer is HK Brooks and Company. Customer type, you can select any, but I'll just keep it blank. Let's go to History tab, and from here, we will change the date to first of January. In the Seals Info GL account is already selected. Payment and credit, you can set any credit terms, but I don't need to set any credit terms here, so just click on customized terms for this customer, and here I will click on no credit limit. Click on Save and New. The second customer is Ryan and Sons, so C 200. Just copy the name here, page it right here, go to the journal tab. This is all pretty basic information that you can enter later on whenever you want. Contact speeche is all about entering the contact persons for that customer. So in case you need to contact with the person, you can mention all the email addresses and telephone on which you can contact. You can make any notes of it, and you can set the built two and ship to address right here. So click on this history, and this customer is since first of January, since we are importing the opening balances, and we will not enter the balances yet from the beginning balance. We'll just move to the sales info. We have this sales account or ledger account selected. Payments and credit. I'll just customize the terms, and I will just set on no credit limit so that it won't disturb us when we enter the transactions. So click on Save and New. Next one we have is Archer and Sons, C 300, paste it right here. Customize the terms for this customer, which is set to no credit limit and go to the journal tab. Just make sure that all is set before continuing to save it first of January, save it new. And the last one is C 400, which is Scott Anderson. Just copy that. It right here. Terms credit is customize. I'll set it to no credit limit. Sales info AsetHtory. I'll just make it first of January, and all is set just like that. So click on Save and now we will go to the history and start entering the customer balances. So let's click on customer beginning balance. And what we can do is just enter any invoice number. Actually, we will start from HK Brooks, which is the first customer. So let's select that from the customer balances tab, going the balance. And right here, as you can see, HK Brooks is selected one double 01. Just give you a random number. And just put the balance here, which is 550000. If you are having problem copying the balance, just double click and go inside the cell and then copy the figure only. Paste it right here. It's set to account receivable account already, so that's perfect. Just go to this customer balances tab, and as we can see the balance is updated, click on the second customer now, go to the first tab on the invoices, and now we can enter the second which is, let's put the same date first of January, and the balance we have is 600,000. Place it right here, go to the customer balances tab, and as we can see, it's updated, go to the third customer, go back to the invoices section. Let's put the balance here. There is first of January, and the balance we have is 200,000 account receivable already set. Go to the customer balances tab, and let's click on the fourth one, which is Scott Anderson, go back to the invoices section and paste the balance here just like this. Just be careful with the zeros so it shows the proper amount. Account receivable is already selected. Go to the customer balances tab, and just make sure that all the amounts are showing correctly. As you can see, the total account receivable balance is on 16 50,000 exactly like our project here. We can save it all together just like that. So click on Save and just close out of here. Out of here as well. And now when we check the customer list, it should be updated. As you can see, it's updated right here, but if it doesn't can refresh it from the top. We see all the balances right here as well, but if we close out of here and go to the customers and sale section itself, on the right hand side, we should see the balance, but if it is showing this getting started option, just close out of here, and then you should be able to see this tab right here. If you don't see the customers details with the balances, just click on Refresh from the top, just right here and there you go. This is how we enter the customers along with the opening balances in S try it by yourself, and I'll see you in the next. 47. Entering Vendors And Balances In Sage: With you, we are going to see how we can enter the vendors along with the opening balances in Sage. So what we need to do is to enter the vendor section, click on the left hand corner and click on vendors and click on New vendor. Here we will create the vendors first, and then we will put the opening balances in the vendor ID, we can choose any ID like V 100. The first vendor name is Apex Enterprise. Just copy the name here, paste it right here. In the general info, we can add all the basic details that I don't need to explain. Now, this expense account is a compulsory field, as you can see here, it's with the steric. It seems like that we need to select any cost of goods sold account or an expense account. But since we are purchasing the inventory from this vendor, which is a raw material, I'll simply link it to raw materials inventory, and the code is 1,200. Your code might be different depending on the configuration that you have done. So let's go to the history, and here we can just specify this first of January date, and we can enter the balances later on. In the purchase info, we have all the terms and conditions and all the further details. That's pretty basic. In the terms and credit, I'll keep it as it is Picon safe and new. Let's move to the new one, which is V 200. The name of this particular vendor is Wallace and Sons and in history, I'll keep it as it is in the addresses, purchase info all as it is. In the journal feed, we will just select this ledger, which is 1,200 and click on Save and New. The next one we have is Start Extls which is V 300, PatitR here, expense account is 1,200 that goes under the raw materials inventory and rest all set. Click on Save and New. And we only have these three vendors. Now, if you want to see the vendor details, just click on the vendors under the vendors and purchase section, click on view and Edit vendors. Here it shows you all the vendors along with the name and the balances. Since we haven't entered any balances, it's zero, but just quickly enter in any particular vendor by double clicking it and just go to the history. Data is all set, click on vendor beginning balances. Have two tabs here. One is purchases from vendors, and one is vendor balances. What we need to do is just select the vendor one by one from the vendor balances tab and then go to the purchase section and enter the invoice number, any random one, I'll just put two double 01 because we have used one double 01 sequence for all the receivables or customer balances. So two is right for the vendors. So first of January is the opening balance state. Just copy and paste the supplier balance here, and AP account is selected to accounts payable. Let's go to the second one. As you can see the balance here, let's go to the second one, two double 02. Date is first of January, and the amount we have is this one, two double 75 double zero, press tab, go to the vendor balances, and as we can see, the balance is updated here. Now, the third one is start Excels, select this. Go to the purchase section and just right here two double 03, first of January. And this is the balance that I need to copy and paste right here. Accounts payable account is already set. Click on Safe. Go to the vendor balances to confirm all the balances are shown properly. Just confirm as well, the totals are correct, which is 10425 double zero. Match it to your project, just like this and just exit from it. And now if you check this vendor ID along with the names, as you can see here, the balances are updated. But if you close out of here as well, we also have a vendors and purchases a detailed section right at the corner. Time you will see the quick start option, disclose that, and then you should be able to see this window. But as you can see, the vendor balances, along with the details are not updated yet. That's because you need to manually refresh from the top, and then you should be able to see this. So that's how we entered the vendors, along with the opening balances in Sage 50. Just try it by yourself, and I'll see you in the next one. 48. Creating Raw Material Inventory: Video, we are going to see how we can configure all the inventory items as well as put their opening balances in sage for the raw materials because we are working on a project which buys the raw material from the market and sells the finished des. So this is a manufacturing company assignment. And we are considering a scenario that the company is trying to shift from the manual accounting system to computerized accounting system, or they are planning to leave their current accounting system and then shift their balances altogether to the new one. So we need to configure all the items which we have in stock so let's go to the inventory and services from the corner. And here, if we see and refresh, we don't have any inventory items yet. So let's go to the inventory items and click on new inventory item. Since all the items we have in the stock is raw materials, the item ID for all will be RM RM stands for raw materials. So RM double 01 is the first item. And the item name is cloth A. I'll just copy this and paste it right here. The item class will be stock item. And since this business only purchases the raw material from the market and not the finished goods, and they are not planning to sell the raw materials as well. So for the sales, I'll not mention any description. I'll just choose the purchases and paste it right here. The costing method will be average costing because that's what most of the companies prefer. GL account for sales is already set to sales income, while the inventory is set to finished goods. But whatever we purchase should go in the raw materials for inventory. So I'll change this one to 1,200, and the raw material cost will be set to cost of sales for raw materials. That's perfect. The unit cost, however, is 100. So I'll just copy and paste that. That I can go to the custom fields. If you want to create some new custom fields, we can create that as well and we can use all of these custom fields histories for the future where we enter multiple transactions regarding this inventory, then all the history will be shown here. So in the general tab, we only have to do this one. Now it's your choice if you want to enter the opening balances of each inventory item by item or we can create new ones, and then we will put all the balances together. So I'll just prefer this one. Click on Save and click on New. Next one we have is RM double 02, which is for cloth B. Let's paste here. Stock item. I'll only purchase this. So just copy and paste there, sales income, finished goods, and raw materials. Finish goods, I only need to change it for raw materials because we are only purchasing the raw materials from the market, and costing method should be set to average. The unit cost however is 150. So just paste it right here. Save, and we will put the balances all together at last. So click New. Next one we have is RM double 03. This one is bookrm. It is stock item. I'll only mention the description for the purchases. It's your choice if you want to mention for both of them, but since we are not selling anything, we will just keep it as it is. So costing is ten. It will be average costing. And the minimum stock and other opening balances detail, we'll mention later on. So click on Save and New. Next is thread. So this is RM double 04. Item name is thread. This is stock item purchases. I'll just mention this one. Costing method is average, and you can mention the cost here. Click Save and New. Next is Zips. So RM 05. This is ZIP, stock item. I'll use it for purchases mentioned there. The unit cost is 15. It will be average costing, and that's it. Click on Save, click New. Next one we have is button shirts, RM double 06 mentioned button shirts. It's a stock item, and it will be used for purchases only. Just mention and paste it here as well. The last unit cost is one, and the costing method is average. Sales account is already set, but since all the purchases we make for the raw materials will be in the raw materials for inventory, I'll change it to that. Cost of sales is already set to raw materials cost. So that's perfect. Cost is set. Later on, we mention all the quantities and opening balances, so click on Save and click on just remember to click on Save every time. Otherwise, the record will not be saved. The last one we have is button pins. Actually RM double 07. I'll mention here, and here I'll paste the description. It will be a stock item used for purchases mentioned there, and the cost is five. Costing method is average costing. Sales income is already set. GL inventory account should be set to raw materials for inventory, and cost of sales is also set. Click Save, and that's how we record all the inventory details. Now let's put the opening balances. Even if you are on the last one, just click on the beginning balances from here, and under the bottom, you can see the summary of all the items. So just click every one of them one by one and just mention the details. So clothe quantity is 8,000, unit cost is 100. This makes a rule hundred thousand. Let's select the second one, which is cloth B. Here the units are 7,000. So you might just copy it from inside if you're unable to paste directly 150. This makes the Rule 21050000. Press tab. The third one we have is Book rum. So let's write here, 15,000 quantity. Unit cost is ten. This makes the Rule 2150000, Prestab. Next one is 10,000 thread. Unit cost is ten. This makes it 100,000. Next is zips, just select 7,500 is the quantity, and the unit cost is 15. This makes it 2112500. Next one we have is 30,000 off shirts. So 30,000 quantity, this is buttons. One is the unit cost. This makes the Rule 230000. And the last one we have is 5,000. Unit cost is five. This makes the Rule 225000. Press tab and just make sure that all the total is equal to 26 750-026-7500 mentioned here as well. All perfect. Click on safe or actually click on O from here and save. And this is how not only the inventories are created, but also all the inventory balances is updated. You go to the inventory and services, first time you will see a get started screen. You can close out of here, and then you should see this window. But right now, we don't have the inventory showing up right here, so click on Refret from the top and then it should show up like this. And even if you want to check all the inventory from inside, go to inventory items, view and edit inventory items, go in here, and here you should see all the inventory details. If you want to customize the columns even further, what we can do is just right click on any of them, click on column set and here we have a lot of available columns. We can remove some of them and add new ones. So for example, price level one, as you can see, we won't be using this one, so let's remove this. And instead we want quantity on hand. So just choose from the available columns and add it to the list and click Okay, and after that, you should see the quantity on hand as well. So this is how you can make all the customizations as well. Just try this by yourself, and I'll see you in the next one. 49. Defining Inventory UOM: We are going to see how we can define the unit of Mu for each item. As you can see here that if we scroll down a little bit, what we can see is the unit of Myre for each item. Now, I have already created the items, but I didn't enter the unit of Myer. So let's now edit it and put the unit of Myer in each inventory. You can go to inventory items and click on View inventory or edit inventory items. Just click on any particular item that you want to edit. And under here, in the stalking unit of my year, we will define one. So here, since cloth is in meter, I'll just write meter here, click Save, and it's saved now. Next is cloth B, which is in meter. Double click, meter, save. Next one is bookrm. That's also in meter. Save, close out of here. Next one is thread, which is in. So let's write cone here, safe, and zips, button shirts and button pens is all in pieces, or you can say each is the unit of Myer. So just double click here, right, each safe and close. Next one is button shirts. Again, each. As you can see here, when we save some of these, now we have the drop down with all of these options because that's saved in the back end. And next one is, again, each all the unit of Me are now defined. If you want to see the unit of Mere on the front of this list, what we can do is just right click and click on column settings, and here we can just find the unit of Mayer here. Here it says stalking unit of Mayer, add it to the list and you can position it anywhere you want. Let's say I don't want the price level one because I haven't defined it, so I don't need it because right now it's zero. So let's remove this and let's position it to the fourth number. Click Okay. And now you can see the stalking unit of Myre for each inventory item. So just try it by yourself and I'll see you in the next one. 50. Create Finished Goods Using Bill Of Materials: Video, we are going to see a most important area of the manufacturing company assignment, and that is creating or manufacturing the finished codes from the raw materials. So how will we manufacture this? Obviously, that a finished code requires a raw material in certain proportion. So that means that it has a recipe for it. If you want to manufacture the shirts, the recipe is called Bill of Materials in accounting softwares. So the shirt recipe is they use cloth 2 meters. Bookrm is 1 meter, thread is one cone. There are eight buttons in a shirt. So this is the complete recipe. Now, why do we need to configure the recipe while creating the finished coats? That's because it will define that whenever we want to manufacture shirts, it will automatically take the raw materials in this proportion and transfer it to finish coats. So that way, once the recipe is defined for a single shirt, it will follow the same pattern if you want to manufacture, let's say, 1,000 shirts, it will automatically deduct 2,000 meters of cloth A similarly in the same proportion, it will take bookrum and thread. Same goes for pen. For one pen, this is the recipe. To mere cloth B, one bookrum, one thread, one zip, and one button. So if you want to manufacture, let's say, 3,000 pens, automatically, it will reduce this raw material, take this raw material. From the stock and transfer it to finished goods. So in 3,000 pens, it will deduct cloth B of 6,000. So let's see how we can practically configure this in SH. To create the inventory items of finished goods, we'll go to the inventory and services and click on inventory items and click on new inventory item. Here we can configure it using the item code FG 001. Before we used RM 001 because all were raw materials, and now we'll use FG 001. And the items that we sell is only shirts and pants. So item class will be an assembly because this requires a recipe to be manufactured. Costing method, we will choose average, and this is used for sales. So let's write the sales description which could be just the name of the item. In the GL account, it's defined in seals all perfect. GL inventory is set to finished goods, perfect, and cost of sales for finished goods is from raw metal because the cost will be deducted according to the raw materials that are used in the finished goods. So all set, and we don't have the opening balances at this point because we have considered in our project that at the opening position we didn't have any finished goods stock. We only had the raw metals. After that, all the custom fields and history can be set later. We'll just directly go to the most important area that is bill of material or the recipe of the shirt. Click on Add and we will simply enter the recipe. To manufacture one shirt, we need cloth A, how much, 2 meters, we need bookrmH much, 1 meter. We need one cone of thread, so thread one cone, and button shirts are eight. So we need button shirts, eight. This is a complete recipe to manufacture one shirt and click on Add. After that, you can just save it from the top and now click same goes for FG 002, which is pens. It will be an assembly item configured in the same way. Copy and paste this in the description for seals. Costing method will be set to average, and sales income inventory ledger is set to finish codes and cost of sales should be set to raw material cost. Let's go to Bowmedals. And the recipe for pens is we use cloth B 2 meters, bookrm which is used at 1 meter. We need thread, which is one cone, we need zips, which is one. We need zips, which is one and we need button pins one. So click Save, and you can close out of here. So click Save and we can close out of here. Now, if we refresh this, we should be able to see the finish codes as well here. So that's how we create the finished des. And not only that, we have also seen how we can configure the bill of materials or the recipe management system to manufacture the finished codes. Just drive by yourself, and I'll see you in the next one. 51. Payment For Liabilities From Cash In Sage: For you, we are going to see how we can deal with the payment for the liabilities cleared, as you can see here on first of January, accrued expenses paid by cash. Now, accrued expenses simply means bills payable. If you check the first sheet, we have the accrued expenses as a payable recorded as an opening balance, and now it's being cleared. But since this is a non trading activity, that means this is not connected to the normal course of business. Our normal business is buying the raw materials and selling the finished goods as shirts and pens. We buy the raw materials like cloth like bookrm and we sell the finished goods like shirts and pens. So this is not directly connected to d. So if the transaction is a non trading activity, we will use the journal entry for that. To enter the journal entry, we will simply go to the banking area, and from here, we see journal journal entry. Otherwise, you can go to this task and from here, you can access it as well. Once we click in here, the date of transaction is first of January. You can put any reference number here. So 001. Let's put accrued expenses here, accrued expenses 2315 description, I'll just copy and paste it from the particular section here. Debit is 200,000. The way, guys, if you're unable to copy directly, what you can do is just go inside the cell by double clicking it and then copy the figure and paste it right here, and credit is cash on hand. So cash on hand is now selected, and just copy and paste the balance here as well. Just make sure the transaction is not out of balance, out of balance should show zero, and after that, you should be able to save it. You are about to see if the transaction that is not in the current period, do you want to continue? Click, yes, but we will adjust the period as well. So in the next video, you will see how we can select the relevant period or make the corrections to the period. So this is how you can deal with the payment for the liability recorded in Sig, restrb by yourself, and I'll see you in the next one. 52. Entering Purchase Order And Choosing Right Accounting Period: Where we are going to see how we can enter the purchase order of the raw materials in Sage. As you can see here on second of January, it says purchase order placed of cloth B to start Extils. So we will go straight into Sage and vendors and purchases is the section where we will enter a purchase order and click on new purchase order from here. Let's select start Extils. The date of transaction is second of January, and goods should be delivered through This is the default date set, so I'll keep it as it is. Purchase order number. If we have any, yes, we have it here, it's 124. Let's mention the items now. We have only one item that we have given the order of. So the quantity of this is 40,000. Item name is cloth B. The rate is 150. This makes the total 26 million, and just confirm everything is okay before saving the transaction. And after that, just save it and click, yes. If you see every time the node to correct the right period, what you can do is just go to the main screen here. On the top, you can see the period. So relevant period is set to second of January till 28th of February. So that's right. So here the relevant period is selected to first of February to 28 of February, but we are entering the transaction for January. So that's why we need to adjust that. We'll change it to January. For now, click Okay, so that we don't see the message every time to correct the relevant period. So this is how you enter purchase order and also how we can correct the period in Cage. Just try it by yourself, and I'll see you in the next. 53. Convert Purchase Order To Purchase Invoice: We are going to see how we can receive the items against the purchase order. As we have seen in the previous transaction on second of January, we entered the purchase order, and now on third of January, it says receive cloth B from Star textiles. Order number is 124, but against this complete order, we are receiving the items partially. So we will also learn how we can receive the items against the purchase order partially. Let's move to the ST and click on vendors and purchases and click on Enter Bills. Once the items are received by us, that means the accounting entries will be affected. So let's click on Enter Bills, click on New and we will consider as if we don't remember that we have entered any order in the pain because that's the beauty of the software, it automatically will recommend you that as soon as I select the start Extils, it will make everything gray here, and it shows you here that you can select a purchase order here. This gray sign is an indication that they have some pending purchase orders. So let's choose this one. And against this remaining purchase order, we have received items, but how many? 25,000? So let's enter 25,000 here. Rest is all set because the unit will remain intact and amount will also remain intact. You can put any invoice number here. The invoice date is third of January. So let's make it third of January and make sure the totals are showing correctly 3750 triple zero, 3750 triple zero, safe, and this is how you can convert the purchase order into purchase invoice and that also partially. If you want to check the journal entry effect, however, because now at the purchase order stage, the accounting was not affected, but now since the purchase invoice is created, now it will affect the accounts. So let's go back to the entry from here and click on Journal. Entry is very simple. When you purchase the raw materials, as inventory is debit and credit is accounts payable. So that's how you do it. Just try it by yourself, and I'll see you in the next one. 54. Dealing With Direct Purchases With Early Settlement Disocunt: Do, we are going to see how we can deal with the direct purchases in Sage on credit, as you can see here on third of January, it says, purchase of falling items from Franklin Textiles on credit. If you notice, we don't have any kind of purchase orders or quotation from this particular vendor at the back end. That's because it might be a regular vendor. So we don't follow the formal process every single time. Maybe we order from them very regularly, so we don't need to follow that. So we directly purchase from Franklin Textiles, and the vendor offer 2% discount policy on the payment within ten days. So if we are able to pay them within ten days, we will get a 2% discount as well. So let's see how we can implement all of this. Enter the Bills directly, go to the vendors and purchase and from here, click on Enter Bills and click on New Bill. Since this is a new vendor as well, just click on New, you will create it on V 400. So V 400 is the code. Just copy the vendor name from here so that we don't make any mistake. Franklin textiles and the expense account since we are purchasing the raw materials from this particular vendor. So instead of expense account, we will choose the inventory account. So raw materials inventory, from this vendor we are purchasing during the day to day transactions. So there will be no opening balance for that. Click on Safe close out of here. Vendor ID is Franklin Textiles. Date of transaction is third of January, due date is set automatically. So it is second of Feb. That means one month after. Invoice number is 1,200. Let's mention that. And let's incorporate the policy here. By default, it's net 30 days. So let's click here, and the vendor offers us 2% discount, but here we cannot implement 2% if we click on this option. We have the option to mention the discount amount. So what we will do is we will manually calculate what 2% is of this invoice. This is the total. Just select all the items. So this makes it the total of 4710 triple zero, and what is the 2% of that equals to this cell? Multiply by 2%. So this is the amount, 94,200. What we can do is write 94,200 here. Discount date. We have the offer to aveail the discount if we pay within ten days. So until what date do we have the offer until 13th of January. Invoice date is third January, and if we pay within the date of 13th January, we can get the 2% discount. But the default days is 30 days. The displayed terms for this particular condition is, I'll write here two P ten net 30. That means by default, the due date is set to 30 days, but if we pay within ten days, we get 2% discount. So click Okay, and this is our new term. Let's start entering the items. First one is 8,000 quantity. Item name is Zips. Leger is selected to finished goods, but we will set it to raw materials because we are purchasing raw materials. Next item is cloth A, and we are purchasing 40,000. So let's go to the second line. We 40,000 here, and this one is cloth A. Legend is correctly selected, and unit price is 100, which makes the roll to 400,000. Just make sure every time you confirm the totals 40,000. So this is 40,000, and now it comes to 4 million. Next, book room. Quantity is 25,000. Item is Bokram. Ledger, we should select raw materials. Unit cost is ten. This makes the total 2250000. Next we have is threads. So quantity is 20,000. Item is threads. Correct the ledger. Just choose 1,200 as a ledger. Ten, this makes a rule two, 200,000. Next is button shirts, and the quantity is 90,000. So 90,000 is quantity, button shirts. Letter is already set. This makes the Rule 290000. And last one we have is button pens. Here the quantity is 10,000. Item is button pens, Leger is correctly selected. Unit price is five. This makes the role 250000. So before entering, just select all the figures in Excel. It should show you the total right at the bottom, which is 4710 triple zero. Just confirm that it is showing the same total in Sage 4710 triple zero. And after that, we can save it. If you want to check the general entry effect, we can click on this previous transaction option until we see this and then click on Journal. As you can see here, all the inventories are debit, and against that, accounts payable is graded. So that's how we entered the purchase invoices, along with the discount policy in Sage describe by yourself, and I'll see you in the next one. 55. Dealing With Finished Good Sales Order: Video, we are going to see how we can enter the sales order that we receive for the finished good, especially if we don't have the finished goods inventory. As we can see here on fifth of January, sales order received from Scott Anderson. Now, Scott Anderson is our customer, which has ordered us some items. But these items are finished goods, if you notice here, they ordered shirts and pens, but we don't have this in stock. Only created the bill of material, which is the recipe management system, but we haven't manufactured anything. And that's the normal practice in manufacturing companies that even though you don't have the manufactured items in stock, you still take the order because that's a continuous process. It will be ready in future. So we will take some time from the customer to deliver the manufactured items, and then we take the order. To enter this, just simply go to customers and sales and here, go to Sales Order, click New Sales Order, and this is received from Scott Anderson. So let's choose the name here. Date of transaction is fifth of January and the order number is 24. Let's select the quantity. I'll choose 3,000, right? 3,000 here. Item name is shirts, and the unit price is 400. This makes a Rule 21200000 press tab, go on the second line, and on the second line, we have Pence 2000 is the quantity, finish coats two, which is pence price is 500. This makes the rule to 1 million. Just make sure before entering this, the total amount is matching your project. So it's right here. When you select both of these figures in Excel, you will get the totals right here at the bottom, which is 2,200,000. 2,200,000 is mentioned here as well. So all good just make sure the dates are correct. Let's save it. It says here the ship by date cannot be less than the sales order date. So I need to make this correction. Obviously, we have to ship the items on a later date. So order date is fifth January. It should be delivered, let's say, by 31st. And now we can save it. So that's how we entered the sales order of finish quotes in SAT described by yourself, and I'll see you in the next one. 56. Transferring Amount From Bank To Petty Cash For Office Use: Video, we are going to see how we can do the entry where we transfer the money from one account to another, whether it's a cash account, whether you have withdrawn it for the petty cash purposes from the bank or even if you want to transfer some amount from one bank account to another. Let's see how we can do this. As you can see here, on sixth of January, it says, cash taken out of Citi Bank for office use. Just remember that they have only withdrawn the cash and haven't used it for anything. So let's see how we can deal with this. What we'll do is just go to the banking area and click on Enter journal entry and click on New journal entry. Here, just put the date, which is sixth of January. So sixth of January, reference number, we can put any number right here. Let's say one double 01, or let's say one double 02. Since cash is taken out of bank for office use, we only have transferred from Citibank to cash. So debit will be cash because cash is increasing, cash on hand is increasing. Just put the narration, copy and paste right here, and the amount is 225,000 per stab, go on the second line, and on the second line, we have Citibank as credit, select Citibank and the credit amount is 225,000 again. Out of balance is zero. Debit credits are matched, and let's save it. So that's how you do it. Try it by yourself, and I'll see you in the next one. 57. Receiving Customer Payments Against Open Invoices In Cash: In this video, we are going to learn how we can receive the cash or any kind of payment from a customer. As you can see here, on seventh of Denit cash received from HK Brooks and Company. Now what is HK Brooks? Who is HK Brooks? Let's see on the first sheet. So on the first sheet, we have some more details about this customer. So this is a customer which has some opening balances with us, and now he's paying us in partial. The total amount was 550,000 out of which we are receiving 120,000. See how we can deal with this. So from the main navigation, we just google customers in sales and click on receive money. As you can see here, we have a complete flow chart, starting from codes till sales order, then we make sales invoice, any kind of finance charges. And finally, we receive the money and deposit it in bank. So that's a cool thing that you get all the flow chart of the transactional sequence. Click on receive money, receive money from customers. We need to make sure that we select the right account. Here, it's not mentioned, so we will consider that it is in cash. In fact, let's mention it that we have received this in cash. Cash on hand, select this. If you have any specific ticket ID, you can mention that number. Can mention the check reference number if you are using or depositing it by check or any kind of received number. That's a pretty basic information. The transaction date is seventh of January, and we are receiving the amount from HK Brooks. As soon as we select HK Brooks, it will show us all the invoices with the duo amount. For this customer, we only had one as an opening balance. Amount due is 550,000 due by 31st of January, which hasn't been passed yet according to our dates in the project. So we are not receiving the payment in full. If we had received it in full, we just click on pay and it will mention the total amount. But since we haven't mention the amount manually, which is 120000. Received in cash, everything is good. Just select the payment method as case. If you want to check the journal entry effect before even saving it, we can do that as well. Just go to the top and click on journal, and here we see the journal entry effect where debit is cash and credit is receivable because we have received the case now, so the receivable is reduced. Mentioned the reference number is compulsory. Click on Save and that's how you do it. Just try it by yourself, and I'll see you in the next one. 58. Receiving Customer Payments Against Open Invoices In Bank: This video, we are going to see how we can receive the payments from customers against their pending invoices or maybe they have any kind of opening balances. So we are receiving the payment from Archer and suns in Citi Bank, which is a bank account. Let's go to the sheet one, and here we see the Archer and sun has 200,000 opening balance out of which they are paying 175. So that means we are receiving the partial payment rate. Let's see how we can deal with this. I've changed this payment. Instead of cash, we are receiving it in bank. So under the customers and save section, you click on receive money. We can do the same thing from banking area as well. We have the receive money option here where we can mention that we have received money from the customer. So you can use this one as well. Let's try this one. And it will open up this receive money window. You can mention all the information, whatever we have. If we have a deposit ticket ID, any kind of check or reference number, receipt number, you can mention all of this basic stuff. We are receiving the payment in Citibank, just remember to change the bank from here. Transaction date is ninth of January, so ninth of January, and we are receiving it in let's say check, we are receiving by check from which customer that's most important. Art and sons, we are receiving not the full amount, but the partial one. If we receive the full amount, we just click here on the pay button right here in the checkbox, it will automatically mention the amount. But as we are receiving the partial payment, we mention it manually right here. After that, you can also check the journal entry before saving it. Click on the journal from the top and from here, we can see that Citibank is debit because we have received the money and against that, receivable is reduced since the customer has cleared his balance. Let's save it, and that's how you can receive the pending amount from the customer's bank. Just try it by yourself, and I will see you in the next one. 59. Payment Against Vendor Pending Bills With Early Settlement Discount: This video, we are going to see how we can make the payment to our vendors against any pending invoices. So as you can see here, on tenth of January, payment made in check from Citibank to Franklin Textiles, against the credit invoice number of this. In full, that means we have paid in full within ten days to obtain 2% discount within ten days. What is this 2% discount? Let's scroll up. And on third of January, we have entered that purchases from Franklin Textile. So this is the invoice amount and quantities, and also the vendor offers us 2% discount policy of the payment within ten days. So from invoice date, let's see the payment date. On third of January, invoice was entered, so it was supposed to be due in one month. But since we are clearing on tenth of January, which is just seven days after, we are eligible to receive this discount of payment within ten days, so we can obtain this 2% discount. The time of entry of this purchase invoice, we have entered all of this discount policy and the discount amount as well. So if you want to make sure you understand that fully, you just go on that particular video to check that out. And now we are just paying for the amount. So let's see what amount it shows up. We simply go to the vendors and purchases section, and from here, we click on payables. As we see here, a full flow chart. We will follow that payblls, click on paybills. We are paying by Citibank. Click Okay. We are paying two Franklin Textiles, and the payment date we have is tenth of January. That's most important tenth of January. Mentioned the reference number, and let's click pay in full. So here we mention the memo. We just copy this transaction, paste it right here, and we paste it in the description as well. We put the reference number and all, and we are paying the vendor by Citibank, all set I think that the current period is actually in the clock is different from what we have in the project or what we have in the software because of that, it might not show the discount amount, so we have to manually write it. This multiply by 2%, so the discount amount should be 92,316. Let's mention it here. Let's scroll down to check the total amount. So the total amount, since we are eligible for 92,000 discount, 46158 double zero should be the amount after discount. 46158 double zero. Okay, the discount amount was on this amount 4710 triple zero. So 94,200, we need to mention here. 94,200. This makes 2461 5800, and that amount is exactly mentioned here. So as I showed you, because the system date is set to February, so maybe that's why it's not picking up the right discount amount automatically. So what we have mentioned is we have manually calculated this discount amount, and then we mentioned it click on Save. And if you want to go back to check the journal enti effect, we can go back, click on journal, and discount taken is mentioned in here, Citibank and payables. So payable is reduced, it's debit. We have paid it against the bank. So this one is credit, and the discount taken is credit. So that's how you do it. Destry by yourself, and I will see you in the next one. 60. Purchase Of Services On Credit In Sage: We are going to see how we can deal with the purchase of services in Sage. As you can see here on 12th of January, it says, purchase dying services from Shelby dying mills on credit. So these are dying charges. Our main business is to buy the raw materials from the market and sell the finished goods as shirts or pens. But we don't have dying unit that dyes the cloth in different colors. You all know that whenever we purchase the threads or cloth from market in its raw form, it's in white color. So we need dying services for that. Now, this is kind of services that we are purchasing from external vendor because we don't have this dying unit. So how we can enter this, just click on vendors and purchases and go to Enter Bills and click on New Bill. Since this is a new vendor, name is Shelby Dying Mills. Just copy the name. Click on New, and this is V 500 Shelby Dying Mills. Whatever we purchase from this vendor will be cost of sales for services. So we can create a cost of sales account on, let's say, 53 50 because that's free, we have 5,300, we have 5,400. So let's create a new one. Cost of seals, 53 50. And right here, cost of seals for services. Choose the account, which is cost of seals and click Save and Close out of here. 53 50, I'll choose this and rest all set, click on Safe, close out of here, select this vendor, and we also need to create an item for that. That will be a service item. We don't have it already, so click on New, and we can mention this code as SER or SRV, which is the abbreviation of service double 01, and this is for dying services. Services item class will be service item. So I'll choose this service right here. And since we are only purchasing this service, I'll just enter the description for the purchases. Rest all is set. GL sales account is set by default, salary or wages account is not applicable and cost of sales account, I'll just link it to cost of sales for services, which we just created and rest all is fine. Click Save and Close out of here. We just select this particular service item. Quantity, we can mention one, GL account, just make sure it is effected in cost of sales for services. And now we mentioned 25,000 here. You're unable to copy and paste, just double click on the cell, copy it from inside, and then paste it right here. Before saving, if you want to confirm that everything is fine, just make sure that the date is correct, I should change it to 12th of January. Due date is automatically set. If you want to check the adrenaline defect that it's affecting the right accounts, before even saving, you can do that. Click on the journal from the top and here, cost of sales for services is debit and accounts payable is credit. Perfect entry. That's how you do it. Click on Save. So this is how we can deal with the purchase of services on credit in Sage. Just try it by yourself, and I will see you in the next one. 61. Purchase Of Services On Cash From One Time Vendors: This video, we are going to see how we can deal with the purchase of any kind of services from a particular vendor, as you can see here, on 12th of January, it says purchase of dying services from Anderson dying on cash. We have dealt with a similar transaction in the earlier one, which is dying services from Shelby dying on credit, but this is our regular vendor. Anderson dying, let's say we have a bigger order to fulfill. So that's why we took the dying services from other dying units as well, but that's on cash. Maybe from this vendor, we won't be purchasing any services in future. So what we can do here is we create a generic vendor named Cash vendor. Here, we put all the purchase of services that we buy only one time. So what we can do is go to vendors and purchase this section, click on Enter Bills and New Bill. We are purchasing the dying services, but against cash vendor, take on new. Let's say it is only one time vendor. So it's your choice. Even if you want to create it, that's not a problem, but I just prefer to put all of these in cash vendor or even if you want to describe it as cash vendor for dying services this is our regular services that we take from the vendors. Expenses, we will put it in the cost of sales for services that I have created 5350 as cost of sales. All set, take on safe and close out of here. Just remember to change the date before even starting the transaction. 12th of January, due date is automatically set. Mention the relevant invoice number. In this case, I'm just taking an example of it. And we are purchasing the dining services. I've created a service item for that. So click on this one, service item, mention any quantity like one. Make sure the deal account is selected correctly, which should be cost of sales for services. Just choose cash vendor at the top, and the amount is 5,000. Let's mention 5,000 here. Offset. If you want to check the journal entry effect before even saving the transaction, we can do that as well. From the top, we click on the journal. Here we see the dying services is debit as a cost of sales and accounts payable is credit. Now you might be thinking that we are purchasing by cash and not the account payable. So that's why we created a cash vendor. As soon as we create this, click on Save and immediately we go to pay pay against that. Choose that cash vendor, and then we put the same date because at the same date, when we created the invoice, we are paying for it as well, and this is the due amount. Click on pay because we are paying in full, so just check that. And we are paying by cash, right? So just choose cash from this area and we can check the journal entry. Payable is debit, and now we are clearing it by cash. So in short, we can use this method to pay by cash. Description, we can copy this one, paste right here, and we can page in the memo here, click on safe. So that's one way of doing things. What we could also do is click on new check, and from here, just choose the vendor ID, choose the cost of goods sold for services. And if we put a sample amount here, for example, thousand and choose the date of 13th of January, we can check the journal enryeffect of it. So here you can see 5350 as cost of sales, and credit is cash directly. So whatever is preferable for you, I think this one is more easier to deal with. So you can continue with this method, also. So I've shown you both of the methods. So this is how you deal with the payment for services in cash. Just try it by yourself, and I will see you in the next one. 62. How To Deal With Customer Advances: We are going to see how we can deal with the customer advances or any kind of prepayment that customer makes against a sales order. So many times, what happens is the customer orders us some items, which is in huge quantity. So in such cases, what normally businesses do to keep themselves safe is they take some amount in advance. As you can see here, on Traveo January, we have cash received from Mr. Samuel Burns as advance for sales order. So 400,000 is the amount that we received. And on the very next transaction, you can see that a sales order received from Mr. Samuel Burns as well, the order number is 27 and the quantity is 1,800 of the items. 1,800 shirts they want, rate is 400. This makes the total to 720000. So since this is a big order against that, we have to receive something in advance. How will we record this customer advance? Let's see. First of all, we will go to the customers and sale section right at the corner, and from here, we click on Receive Money and receive money from customer like we normally do for all the customers. And from here, just choose Mr. Samuel Burns. Since this is a new customer, we have to create a new one. So click New and it's C 500, customer name is Mr. Samuel Burns. To make sure that we entered the name accurately, just copy and paste this from your project. Let me paste it right here. Rest all the information, we will keep it as it is because we can add them later on. We can adjust the payment in credit terms as well. So click C and exit. Now that we have recorded the customer, we are back into the receive money. Let's receive money from Mr. Samuel Burns. You can put any reference number, receipt number, and all the further details, let's enter the date, which is 12th of January. And we are receiving payment in cash. So make sure you change this cash account as well. So let's change it to cash on hand, and payment is by check it's by cash. Now, since this is a prepayment, we have to apply this one. We will tick on this one. It is a prepayment. So what this will do is now we don't have to mention any kind of item or quantity. We just have to mention the details which we can copy from here and paste it right here. And the amount, I'll straightaway mention the amount. Just copy this one and paste it right here. But if you are unable to paste that directly, just go within the cell and just copy the figures. Just double click on the cell and then copy the figures and paste it right here. Press tab. And after writing this figure, what we need to do is we can check the journal entry even before saving this transaction. So just click on journal entry, and here we can see that the account receivable is reduced and debit is cash. The correct treatment of receiving the customer prepayments or customer advances should be a liability. So because we haven't provide any kind of goods to them, we have just received the money. So either invited, we have to return the money back or we have to supply them the goods. So right now, if we have received the cash against nothing and against the future order, it's a liability. But unfortunately, in Sage, there is no way to directly read that. Either you can pass a journal entry, which is a separate treatment. So Sage use basically account receivable and record it as a negative receivable. So click Okay. And if I save it and just go back to the previous transaction, make sure we are in the right transaction. This is the transaction, right? So if we click on New Now and we click on Samuel Burns, you can see that we have a negative receivable recorded right here. What we can do is there is a work around here that if we want to hit a liability account with it, just go back to the new one and just search for the transaction that we have already entered like this one. And now we click on Journal. If you notice on the left hand side, where the account numbers are mentioned, this is free to be changed. So what we can do is we can change this manually. Just search for a suitable liability account. This is it. Customer deposits. We can change the name later on to customer advances, but this is the account I want to hit. So 2,400, let's choose that and click Okay. So now, cash is debit because we have received it from the customer, and since it is an advance, so it should hit the liability. So click Okay, and now save. So that's how you can do it. Now if you want to confirm, just click on the reports, and we want to check the most important thing, that is the balance sheet where all the details show up. Or we can even check the trial balance first. Just go to journal ledger and click on the Trial Balance. This is Journal ledger Trial Balance. Just click here, and this should show the liability. Where it is, it's right here, 400,000 shown as a liability, 2,400 customer deposits. So that's perfect. If you want to change the name, before checking it in the balance sheet, we can simply change that as well. Click on the list and click on chart of accounts from the top. From here, just scroll down until we see the customer deposits. So here it is, double click here to change the name, and let's change it to customer advances, right? Let's make it customer advances and click Save and Close. Now what we can do is disclose out of here as well, and let's check the reports. Reports from any section, you can go to the reports because basically it shows you all the sections wherever you want to switch. So we want to switch to financial statements and we want to check the balance sheet. You can set the current period or the current three months period, whatever you want. We can set the range here as well. So let's make it from first of January till 31 January. Click Okay. And there we should go to the liability section, which is the current liability, and under the customer advances as we have changed the name, we can see our liability here. So that's how you record the customer advances. Just try this by yourself, and I will see you in the next one. 63. How To Manage Sales Order: Video, we are going to see how we can manage the sales order if we have also received the advances from a customer. So as you can see here on 12th of January, it says, sales order received of shirts from Mr. Samuel Burns. So the quantity of the shirts that the customer ordered is 1,800, and the rate is 400. This makes a total to 700,000. But since this was a big order, so against that, we have received advance from the customer and that we already record it. But in future, we might forget that we have received the advance from this customer, right? So what we want to do is even though we know that sales order doesn't affect the accounting entries, we want to record the customer advances so that whenever we transfer that sales order directly to the sales invoice, that should be accounted for as well. So here we will learn two things. First of all, we will create a sales order, and against that, in future, since we know that this will be directly transferred to sales invoice, we will incorporate the advances received as well. Let's head over to Sage and click on customers and Sales in order to enter a sales order. Let's click on Sales Order and click on New Sales Order. Since we have already created the customer, so let's choose the customer, Samuel Burns. Transaction date is 12th of January, so 12th of January, ship B is automatically set, but it's set to an earlier date, which cannot be done, so we have to set a later date. And order number is 27. So let's change that. Let's quickly enter the details about this order. Customer has only ordered us shirts. By the way, guys, shirts is not in the quantity yet because this is a finished goods, and that's a normal practice in manufacturing companies. They take the order from the customers, even though the stock is not there because they commit to deliver all the finished goods later and then run the manufacturing process. So that's not an issue. As you can see, shirts and pens both are zero. So let's select this. And customer has ordered us 1,800 shirts. You can put any description if you want to, for this narration, you can put it here as well. Read that the customer agreed on is 400. Let's put that and you can change the text to regular. You can change it to exempt as well. But since as you can see here, it's not charging any text, we'll keep it as it is. So this is 720000 as a total. But later on, since we know that the purpose of sales order is to convert that to sales invoice directly in future. So at that spot, we might forget entering the customer advances or reducing it from the customer invoice. So what we can do here is we can just mention this narration or we can simply write customer advance received, it's -400,000. When we enter this, it's not showing us any ledger to alter. So if you want to customize that, just go to the journal, and here we can see this 400,000 entry, which is charged in the sales income, but that's wrong, we will change it to customer liability, customer advances when we entered the sales invoice, it should be passed like this. Account receivable should be 320,000 only because we have already received some advance. So now it's settled against the invoice so that liability is reducing and whenever the liability reduces, it's debit. And against that, the sales of overall amount, which is 720000 is credit. So this is how you can enter this. This is the perfect treatment for it. Click on Save and that's how you do. Even if we want to convert this particular sales order to a sales invoice, we can simply click from the top on invoice. And as you can see, it directly switches to invoice and converts that order to invoice. So in future, we will definitely have a benefit of it that we have already mentioned that the advance amount is already received. So, guys, that's how you do it. Just try this by yourself, and I will see you in the next one. 64. How To Deal With Indirect Expenses: Video, we are going to see how we can deal with the indirect expenses, which is spent by either check or cash. But that's a side activity. Basically, our company main business is buying the raw materials and then selling the finished goods which is shirts and pens. So this is all indirect expenses, any kind of traveling expenses, repair expenses, and something like that. So we have two treatments in Sage either what we can do is just go to the banking area, and here you get the journal entry option. So just simply pass the journal entry or otherwise, what we can do is we can use in the banking area, the right checks option, click on New check. And from here, we just enter the expense account and we enter how it is spend. So let's try this. We are spending it by check. So traveling expenses paid by check from Bank of America. So let's choose this. Maybe this is any null card subscription or any traveling card. So check number is 8,800. Remember, in this case, we will not choose any vendor ID, we will just see if we can enter it without any vendor ID. So here we just selected the mode of payment and memo, we can paste the complete description by just copying it from here and pasting it right here. We are paying by check all set. We can enter the details of the amount we spend, which is 5,000. Let's mention 5,000 here, and the expense account should be the traveling expenses. Let me just choose it right here. Let me just draw this. And this is traveling expenses. By default, we don't have the traveling expenses option. So what we can do is 6,400 and then after that is 64 50, then 6,500. So we can make it on 6410, let's say. On New, create a new account in 6410. We have already checked the availability of the ledger. So this is traveling expenses. Select the expense account. This one is it. Click Save. Close out of here. Let's choose this 6410. But before entering this or saving this, I want to check the journal entry. So in the journal entry, we have traveling expenses as debit and Bank of America is credit perfect treatment. But let's see that if you're able to save this without a vendor ID, click on Save and it says we must enter a vendor ID here. In that case, we will enter our random vendor, which is V 700, although it will not affect any transactions, all the cash expenses. We need to mention it here. We can choose any account. It doesn't matter like other office expenses, click on Save and let's enter this. All the cash expenses can be entered like that. Make sure everything is intact. Just remember to change the date as well. So Tal tho January is date, take the journal entry report. Here it says other expenses other office expenses debit, so we can manually change this to whatever we want, like traveling expenses, vendor is still here. Let's take the journal entry one more time. Click Okay, and then save it. Just to confirm it's showing correctly in the reports as well, access the reports from anywhere, even if you're in the banking section. Click on the reports and click on Journal Journal. Let's check the trial balance first, actually. Trial balance, we can see the traveling expenses right here in the debit. So that's perfect. Go to the financial statements and we can check this financial statement or income statement as well. So let's scroll down until we see this traveling expenses right here as 5,000. So this is perfect. This is how you can deal with this. Just write by yourself, and I will see you in the next one. 65. How To Deal With Repair Or Indirect Expenses: We are going to see how we can deal with all the repair expenses or any kind of indirect expenses that is paid by cash. Let's make it cash. It says repair office building by check, but let's just try the cash transaction. Right here, cash. And by the way, the assignment that you have or project you have will be updated with whatever I'm showing right here. So repair expenses paid by cash, let me just highlight this. What we can do is just go to the journal entry. Before we have seen how you can deal all the indirect expenses by using the write checks option, but we can also do this from the journal entry as well. So let's try Method two, which is journal entry. Click on the banking section. You get the journal journal entry option here and click on Journal Journal Entry. Let's put the date. In fact, let me just make it full screen. The date of transaction is 12th of January, 14th of January. Reference number, we can use any reference number since nothing is mentioned here. We will just use any random number just like that. And it's repair expenses. So we will just troll down to see and find the repair section. And by the way, guys, if you have a lot of ledges and you are still finding it difficult to locate the ledger, you can use this fine function right here. Right here, repair, click Okay, and that should take you directly through that section. Maintenance and repair expenses, that's it. This is what we want here. Let's select that. Let's copy the narration, paste it right here. The amount is 55,000. Move to the next line, and we are paying by cash. Credit amount is also 55,000. We don't need to check the journal entry board because we are already in the journal entry. So let's save it. And that's how you can deal with indirect expenses that is paid by cash from the journal entry option. Just try this by yourself, and I will see you in the next one. 66. How To Record Entry Of Fixed Assets: Video, we are going to see how we can record the entry of fixed asset. As you can see here. On 14th of January, we have the Suzuki pickup. That is a motor vehicle bought by paying check by Bank of America. So if it is a regular vendor, we can use the write checks option as well. But if not, we can use both. Either we can use the write checks option or we can also use the journal entry option. So in this case, it's more convenient to actually use the journal entry option. The problem with the journal entry is that you have to mention the check number within the description. So let's see the first solution that is entering it by journal entry. We just go to SAT, click on the banking section and click on Journal Entry and new journal entry. Here, we can put the reference number. Okay, we can put it here if we'd like to. So instead of transactional sequence, we can enter the check number here. 14th of January is the date, and we are purchasing what motor vehicle? If you want to club all the motor vehicles within a single ledger, you can do that. Otherwise, we can create a new ledger named motor vehicles Suzuki Pickup. But since we want to club it all, let's actually search for motor vehicles. Click on find motor, right here, click Okay, and we don't have it. In the fixed asset, we have one ledger and 1,500, then is 1,900. So let's create it on 1,600. 1,600 should be for motor vehicles. Let's write here motor vehicles. This is a fixed asset. Click on Save, Close, motor vehicles. Let's select that. And in the description, we will just copy simply this one and paste it in the description. Amount is 50,000. Let's write 50,000 here. We're paying by check. And on the second line, we have the check number. So we're paying by Bank of America. Let's select Bank of America here. The amount, however, is 50,000. So let's pace that or write that, and that's how we do it. We don't need to check any report because this is already a journal entry. Click on Save and that's how you do it. Just try this by yourself, and I will see you in the next one. 67. Dealing With Assembly Or Manufacturing Parts: Video, we are going to learn the most important aspect of the manufacturing company, and that is dealing with the assemblies or manufacturing part. As you can see here, from 15 January, we start producing the items. Before on Sheet one, we have entered the bill of material, which is a recipe management system, which basically forms a bridge between the raw materials and the finished goods. So when we set that recipe, how much quantity does it take to produce one shirt? This is the recipe for it. Following the same recipe, whenever the shirts are assembled, let's say, 4,000 shirts, it will automatically deduct the raw materials in the same proportion as we mentioned in the recipe. So let's see how we can build those. In the inventory and services, we click on the assemblies. In the inventory and services, we click on the assemblies and click on Build New assembly. Here, we just select the item, which is shirts, as you can see here, we don't have any quantity in the finished goods. We haven't produced anything yet. So finished goods one, which is shirts. I want to build this and the recipe for this is mentioned at the back end, we have the quantities shown right here. We have 8,000 cloth A, 15,000 bookrm we have, and all of these. But we are building on 15th of January. So let's put 15th of January here, 15th January. And as you can see, now the quantities has increased before when we enter first of January, it was showing 8,000. But now, since the manufacturing date is 15th of January, it will automatically calculate what raw materials were bought before that date, and it increases the quantity on hand. And that's a very important thing, guys. Sometimes people face this problem that we are trying to manufacture thing, but it's showing the error that you don't have enough quantity, maybe that you are entering the wrong date. So we have to check. And we can mention the reference as MR manufacturing run double 01, and the quantity that we want to build here is 4,000. 4,000. So automatically, quantity required will be calculated. Press tab, and as you can see, quantity required to be deducted from cloth A to manufacture the shirts is 8,000 meters. Why? Because one shirt required 2 meters, so 4,000 shirts will require 8,000 meters of cloth, and it follows through all the recipe just like that. As you can see, it's very interesting to manufacture this. Just save this and we will manufacture each item one by one. Click on Save. Next one we have is pens. Let's build pens here. And as you can see, when we check the list, 4,000 is shown in the shirts. So let's select pens. And again, just check the date first, 15th of January, manufacturing reference 002, and we want to build 4,000 pens as well. Quantity required is automatically calculated. Click Save. Next we have is, again, shirts assembled on 20th of January. Select shirts 20th of January, manufacturing run three. 3,000 is the quantity. It will automatically calculate the quantity required. Click Save. The fourth one we have is spends assembled. Again, on 20th of January. This is manufacturing run four, and we want the quantity of 2000 pens. It will automatically calculate the quantity required, all set, click Save, and that's how we run the manufacturing process. Click on reports and click on components use list, or you can check all the reports from here. So that's how you can manufacture the items in Cg. Just try this by yourself, and I will see you in the next one. 68. How To Record Bad Debts In Sage: This video, we are going to see how we can record the bad debts in Sage, as you can see here on 22nd of January, Ran and Sons was unable to pay thus treated as bad debts. The total amount is 600,000, so for whatever reason, the customer is unable to pay. We need to settle their pending balances. First of all, let me show you what we need to settle, and then we will select the right treatment. Let's go to the customers and sales and click on Receive Money, right? Click on receive money from customers. And if we select Ryan and Sons, as we can see here, there is an invoice here of 600,000. So when we settle the bad debts, because this all balance is now bad debt. But if we entered the bad debts, this spending amount should not show in the customer records. So not only we need to record it as an expense as a bad debt, also we need to close this invoice, the spending invoice. So that's why we cannot pass a journal entry. Even if we pass the general envy, it will still show the pending invoice in the receive money option. So basically, we will enter the receive money from customer. Now you might be thinking then we are not receiving the money. We are recording it as bad debt. But let me show you Trick. Customer name is Ryan and Sons. Let's enter that it's this one right here, Let's mention all the details, whatever it is. Just choose the right date which is 22nd of January. The receipt amount, however, is this one. So click on pay from the corner right here, and it will automatically show the amount right here and here as well. But we are not receiving the cash. So instead, what we can do is we can change this to bad debt expense. Click on the journal from the top, and as we can see the debit is what we can change. Now the debit is set to cash. We will change it to bad debt expense right here, Leo. And as you can see here in the cash account as well in the mode of payment option, there's bad debt expense showing here. Let's save this. It will do the right treatment. But in future, you have to remember to change this back to whatever payment mode it is. Click on Save. I will show you the caution as well. You are selected the account with an account type that is not typically used for cash account on this transaction. Do you want to save this transaction anyway? Yes. And that's how we record the Bate expense in CH Just try this by yourself, and I will see you in the next one. 69. How To Convert Sales Order To Sales Invoice: Video, we are going to see how we can convert the sales order to sales invoice. As you can see here, on 24th of January, this transaction says sold Pence to Mr. Samuel Burns against the order number. That means we already had the order. If we scroll up, this is the order, and against that, we have received an advance as well. We will completely learn not only how to convert the sales order to sales invoice, but also how we can adjust the advance. To learn how we can adjust both of these, just go to customers in sales. And first of all, let me just locate that order. Go to the sales order and click on View and Edit Sales Order. Here we have list of all the sales order that we have entered. Now, this one is from Samuel Burns. Let's go in here. This is Samuel Burns. Open up this order. What you need to do is just simply create the customer, enter the ordered items, and at the same time as you can see here, cash advance received. We have already received some advance of -400,000. You have to record it in -400,000. Why? At the order level, even though we know that sales order doesn't affect the accounts since we haven't yet received anything, so it doesn't affect the financials. Still, since we are converting this in future to invoice, that's why we record the advance at this level, because in future, maybe we forget to adjust the advance and just send the invoice of total amount to our customers. So to avoid that mistake, we have received the advance here. So enter -400,000, but after that, you need to check the journal entry, and by default, the cash advance received will be shown in debit, but it will be shown as sales. You need to put it on 2,400 ledger, which is for customer advances as liability. We need to record it as a liability settlement. So just remember that. And now when all is set, can either just open the order and click on invoice to convert that, or otherwise, if you want to convert a sales order to a sealed invoice, just select sealed invoice, click on new sealed invoice. And as soon as we select the Samuel burns, it will automatically turn everything gray. This is an indication that this customer also has some sales order. So let's go in here. This is the sales order. As we select this, you will see the items along with the cash received advance will be shown up here, and that's a great thing. So shipped quantity is exactly the same what the customer ordered. So I'll put 1,800 same amount here, and against that, customer advances will be settled. The date of transaction is 24th of January. So 24th of January here, due date is automatically set. You can put any invoice number here. Just check the journal entry to make sure everything is good. And after that, let's just save this. Save it. And this says this transaction will cause the customer balance to go over the credit limit. Do you want to continue? By default, we have a lesser credit limit. So let's continue with this. We can adjust that later on. But after that, we need to check the chart of accounts. So if we go to the chart of accounts, let's go to the list and click on chart of accounts. Here, we can see the customer advances. This should be zero. But still it's showing it as a liability. So what we need to do is just delete the sales invoice. I've already deleted it, but you need to go back and just delete that and just go to the sales order again. Let's locate the sales order. What other thing that we can do here is since we know that if we convert it directly to the invoice, it doesn't settle the customer advances. So instead, click on the invoice from the sales order, it will create the invoice. And it will also allocate this. Just we need to change the date, which is 24th of January, due date will be automatically set, and from here, we will just delete this line. Need to remove this from here and go to the apply to sales. And here we will apply that amount of advances. So just right here, customer advances, and straightaway, just mention it in the amount of -400,000. So here, since we have shipped the same quantity as the customer has ordered, you'll put the same amount here. And as you can see, now the invoice total is 320000, which is after deducting these advances. So go to apply to sales and then you can mention that here. To the journal to make sure that it is correctly treated. Account receivable is reduced to 320 because we have already received 400,000 as a customer advance, but that should be a liability reduction. So just choose the liability account. In the customer advances, we mentioned that. Rest all entries are the same. Credit is the sales amount which is 720000 that remains intact, and click on Save. So this way, not only the customer order is fulfilled, but also the treatment will be right. Click on list and click on Chart of Accounts, and we need to check the liability account again, customer advances, and now it's zero. So this is how you can transfer the sealed order to sealed invoice along with the adjustment of the customer advances. Just try this by yourself, and I will see you in the next. 70. How To Enter Simple Sales Invoice: Video, we are going to see how we can enter a simple sales invoice without even following the complete sales cycle. That means sometimes we don't need to enter any kind of sales quotation order or anything in the background. We just directly enter the sales invoice. And that sometimes happen for the repeated customer where we already know their order or sometimes for the new customers as well. To here, on 25th of January, it says sold shares to Mr. James Carter, which is a new customer, and we are selling them on credit. But without any sales order, we just directly selling that. Let's go to CT. Click on the customers and sales option and click on sales invoice. Since this is a direct sales invoice, we don't need to follow this cycle. Click on New sales invoice. This is a new customer. We need to create a new one, and C 600 is the code. Customer name is James Carter. We have just copied and pasted it here, and we don't need to mention any further information. We can enter all of this basic information later on. But that's only thing that you need to a safe and closes out of here. And now we head over to our invoice. Select that customer. Transition date is 25th of January, and due date is automatically set. We just entered the invoice number right here. The quantity is 500. Item name is since we're selling shirts to the customer, select shirts. Unit price is 400, which makes the total 200,000. If you want to check the journal entry effect, even without saving it, you can do it from the top. Just go in here, click on journal, and here is the journal entry where the credit is sales and debit is account receivable, and obviously some other accounts are effected as well, like cost of goods sold and inventory. Inventory will be reduced and cost of goods sold will also be affected. So this is how you can do it. Just save it. And if it shows you the customer is over the credit limit, that's because by default, the customer credit limit is to glass. You can adjust that in the back end. But right now, we can click Yes, and that's how we entered the direct sales invoice in Cg. Just try this by yourself, and I will see you in the next one. 71. How To Convert Sales Order To Sales Invoice: This video, we are going to see how we can convert the sales order to sales invoice. Also, if we have offered something like an early settlement discount offer to the customers, how we can adjust that. As you can see here on 26th of January, it says, sold garments to Scott Anderson, which is our customer. We have sold to them against the order number 24. That means we have an order number of 24, but let me just look later on. We have offered them 2% discount for the settlement within ten days to the customer. So this is offer for them, and we have sold it on 26th of January. The order number is 24. So if we scroll up here, this is the order of Scott Anderson. On fifth of January, they've ordered something which we have now delivered. Just remember that we will only incorporate this 2% discount policy in the invoice. But since we haven't received the payment from the customer, it will not show up here. In the very next transaction, it shows the payment from the customer as well. But let's just see how we can incorporate all of this. First of all, we go to the customers and sales section and click on sales invoice. Click on new sales invoice. And as soon as we select Scott Anderson, it will turn all of this area gray. That means we already have a sales order with this customer. So let's select this sales order. This is the quantity. Just make sure that we are delivering the full amount or something else, 2,802,000. So as you can see, we haven't delivered the full items. We have just shipped 2,800 of shirts and 2000 of pens. This makes the total 22120 triple zero. Just select both of these figures to see the total down at the bottom, and here as well. You can see this amount, this amount. The total is right here at the bottom. Now let's change the date. Actually, the date should be changed first before doing anything. But let's just change now. No problem. 26th of January. And due date will be automatically set. You can put any reference number. Just make sure that after changing the date, everything is intact. Yes, it is. Now let's adjust the terms. As you can see here on the top, the terms is net 30 days. That means these are simple terms that the customer is due to pay in 30 days. But if you want to change this, click here. If you have a discount policy, that can be mentioned only in the amount. So we have to manually calculate it unfortunately. What is the discount policy? 2120 triple zero. And what is the 2% of that equals to this cell, multiply by 2% so that's 42,400. We will mention manually that the customer can receive the discount of 42,400 if they pay within ten days. So invoice date is 26th of January. If they pay before sixth of February, they will get the discount. So we can put the terms as two P ten net 30. That means the customer will receive 2% discount if they pay within ten days out of the 30 days policy. So if we settle early within ten days, they will get 2% discount. Okay. And that's how the new terms are set. And let's save it. If you want to go back to check the journal entry effect, we can just go back to the previous transaction. This is the one. Click on the journal to see the journal entry effect, and this is the complete journal entry of this transaction. So that's how you can enter the sealed invoice along with the incorporation of not only converting the order to invoice, but also incorporating the discount policy. So just try it by yourself, and I will see you in the next. 72. How To Receive Payments From The Customers With Early Settlement Discount: This video, we are going to see how we can receive the payment from the customers and how we can avail the discount on early settlement as well. As you can see here on 27th of January, check received from Scott Anderson. Now, Scott Anderson is our customer from which we are receiving the money against the items that we have delivered to them. If we check the earlier transaction, on 26th of January, we have sold the garments to Scott Enerson against the order. And we have also offered them 2% discount if they settle early. Since they are so eager to receive that discount, they immediately paid within the next day and avail that 2% discount. So how we can incorporate all of this, let's see. First of all, let's go to this customers and sales section. And since we are receiving the money, let's click on receive money and receive money from customers. The customer name is Scott Anderson. And as you can see, discount is already mentioned. So if we click on both of these, it will show us the total receipt amount. We are receiving only against this pending invoice and not the opening balance. Maybe they have planned to settle the opening balances later on, but right now, they just want to avail this discount on this particular invoice. So if you click on pay, that should show up the amount due after the discount. Total invoice was 212020. Out of that, discount availed is 42,400. The total amount due now is 2076 double zero. Let's check here. Yes, it's showing the correct figure. You can mention this in the description as well. The whole narration. Just copy it from here and paste right here, all the other references I'll mention, again, we forgot to change the date. Let me just change it right here. But after that, just make sure that nothing is deselected like payment. As we click tab, you can see here the payment is not selected now. So we have to select that again and paste the nlation again. That's not a problem. Receipt amount is shown here. Make sure everything is correct. The most important thing, since we have already done bad debt transaction in the past, still it is set to that. So we are receiving the money here and we are depositing it in Bank of America. You'll just directly select Bank of America here and now click on the journal entry because we just want to confirm everything is fine before entering it in the system. So our debit amount is Bank of America. So we are receiving 20 double 76 double zero in Bank of America, this amount. After the discount. And the discount that we have offered to the customer will be treated as sales discount. That means it will be reduced from the income. And the invoice amount is 1,100 goes in the 1,100 ledger, and this is this amount. So all good. Click Okay and safe. So that's how we receive the payment from the customer, along with the incorporation of discount that the customer availed. Just try this by yourself, and I will see you in the next one. 73. How To Pay Vendors And Pending Bills: Video, we are going to see how we can pay to the vendors and clear our pending bills. As you can see here, on 28 of Denver, it says payment M to Wallace and Sons by check, and the check number is this of Citibank. So we are basically clearing to the pending bills. Let's go to the vendors and purchase this section in CIT and click on pay Bills because the next stage is pay Bills. Click on that, click on pay Bills. Reference number, you can mention any reference number. I will mention the tech number right here, which is this one, paste it right here. Make sure you change the date before you enter any further things. 28th of January is the date and we are paying two wallet and suns. Choose wallets and suns. We have the pending balance. Of 277 500, out of which we are paying 175,000. That means this is a partial payment. So select the Citibank here. We are paying by Citibank. But if we choose this, the amount paid will be showed in full. But that's not a problem. We can manually mention the amount right here that we are paying. Odd 75,000 is the amount that we are clearing. So let's mention 175000 and all set, we can paste the memo and description both from this project of ours, paste it in the memo, paste it in the description. All set, there's no discount. Before entering, let's check the journal entry, and that is this. Liability is cleared. So 2000 is liability. How do I know? Because all the liability accounts start from 2000, even though they are grade out, we cannot check this, but we know that. So accounts payable is 2000, that's debit. And against that, Citibank is credit perfect. Entry. Let's save it. And that's how we clear the balances. The next transaction is also similar and it's of 29th of January. This is payment made to APEX Enterprise by check of Citibank. Let me just highlight that as well. In fact, let me just highlight this one and unhighlight that one so that we don't confuse any amounts. All right, perfect. Let's go to the payblls and click on Paybll. This is paid to APEX Enterprise. Let's select the vendor. Here it is. Just mention the check number. Okay, we have the check number right here. Let's paste it right here. Payment is made on 29th of January, and it is paid by Citibank. So Citibank is already selected, and against 270000 balance, we are paying 150000. So click on amount paid field, and here we just write 150000, make sure the zeros are correct. After that, all we have to do is just copy this memo and paste it in the description, and even in the memo if you like to rest all okay. If you want to check the journal entry effect, click on journal. Debit is payable, since the payable is reducing. And against that, Citibank is credit, perfect entry, and save it. That's how we pay for the vendors in Sage. Just try this by yourself, and I will see you in the next one. 74. How To Purchase Fixed Assets By Giving Cash: Video, we are going to see how we can purchase any kind of fixed asset by giving cash. As you can see here on 30th of January, it says computer purchase of office equipment by giving cash. So we have paid 18,000. Let's see how we can record this. But before that, if we are purchasing from a regular vendor, we will use the write checks option, but if not, we can either use the checks option or the general entry as well. So let's try the write checks option. If we use the write checks, we need to go to the banking section or even in the vendors and purchase, we have this option as well. So we can go and use it from anywhere New check. If it is against a random vendor which we will not be using in future, we can create an imaginary vendor of cash expenses and we can put it all there. After that, you just select the ledger of fixed asset and then pay it from the cash account. Let me just complete the transaction and then show you the results. So 18,000, the check number, since we are bringing back cash, there is no check number applicable, we just change the date, which is 30th of January. So 30th of January, paid by cash, we can change it to cash here, and we are purchasing the fixed asset. So just scroll up and make sure we have the office equipment account. But if we check here, we don't have the ledger. What you can do is just create a new one. But before creating this, just check where we will create this. Let's create it in 16 50. So 16 50 is the ledger name or code, and office equipment is the name. Just page it right here and it comes under fixed asset. Let me just select that. Click Save, and that's how we create a new one. Let's choose this one, office equipment under 16 50, although it shows expense account. But basically, it's about what will be debited, what should be debited. So you will mention it here. Memo here and description here. Before entering, we need to check the Journal entry fct, click on journal. And as you can see, debit is office equipment and credit is cash on hand. Since we haven't mentioned any amounts, that's why it's not showing in debit and grad. Let me just mention the amount. Like 18,000 in the dollars right here. Now check the journal entry effect. And the journal entry effect is perfect. If you want to do this from the journal entry, however, let me just cancel this. Don't save. Now let's see how we can do this in journal entry. Just go to the banking section because here you will find this journal entry option. Click on new journal entry. The date of transaction is 30th of January. Reference number, we can put any reference number here, and we're purchasing the fixed. So let's select that. Since we have already created that, it's right here. But otherwise, you will follow the same process. If we don't have it, you can click on New, and then we can create it. Copy and paste this narration right here. The debit amount is 18,000. Press tab, go on the second line, and here we choose cash. Again, on the credit side, we write 18,000. So if you feel that this is more convenient, you can save this. I usually prefer journal entry for all the non trading transaction. So I'll use this. Click on Save, and that's how you purchase the fixed asset by using the journal entry in Sage. Just try this by yourself, and I will see you in the next one. 75. How To Clear Liablities: Video, we are going to see and learn how we can clear the liabilities or loan liabilities in SAH, as you can see here, on 30th of January, it says, loan of standard chartered bank, which is a loan account partly repaid by cash. 250,000 is the amount that we are clearing, but to understand this, we need to check sheet one, where we have all the ledgers. So if we scroll up on the opening balances, we have opened a standard chartered bank account, but that is not a bank account, really. That is only to obtain the loan. So this is a liability account. Against this 500,000, now we are planning to clear 250000. Let's see how we can deal with this in Sage. So in Sage, just go to the banking area if you want to enter it through journal entry. I recommend you to enter the journal entry because that's most convenient way of doing this. All the non trading transaction should be entered from journal entry. Click here, click New Journal Entry. Transaction date is 30th of January. Reference number, we can put any reference number here. If we have a check number or any kind of cash payment number voucher, that's even better. But if not, you can enter any number. Liability is already recorded as I have shown you in sheet one, that is recorded as an opening liability. So we will choose that liability account. Since the liability is reducing, we will debit that. Just make sure you selected the right account, and we can just copy and paste this narration right here. Paste it. In the debit, we will past 250000 or write 250,000 manually. Tab, go on the second line, and we are paying it by cash. So cash 250000, and that's how we do it. Click on Save. So that's how we can enter the liability payments in CH. Just try this by yourself, and I will see you in the next one. 76. How To Deal With Purchase Returns: We are going to see how we can deal with the purchase returns. Let's say that we have purchased something from the vendor. In this case, it's Start Extils. We purchased the cloth, but we found some of the cloth, not in the right quality or maybe there is some defect. And now we want to return that. Let's see how we can deal with this in CH. So what we will do is just go to the vendors and purchase this section and from here, just click on the credit and returns option. And here, click on new vendor credit memo. Here, the format is exactly the same as we entered the purchase invoice saled invoice, and all the other templates are pretty much the same. Purchase return is against start Extls. Let's select start Extls from here, and the date of transaction is 30th of January. Let's make it 30th. Due date is automatically set, but make sure it is not earlier than the transaction date. It's set to March, that's fine. Credit number, if you have any credit number, you can mention here. Now, we want to apply this against an invoice. So if we select the vendor and this area turns gray, that means we have the invoices as well in the background. So we have these invoices against which we can apply the grade. So let's select two double 03. This is beginning balance. Let's select the other one, which is this item. So earlier, we purchased 25,000 in quantity, and now we are returning 500 out of that. Let's visit that transaction, as well of start Excels, purchase order was placed off cloth B to start Excels of 40,000 meters. Against that, we received 25,000. So the actual bill or the inventory is 25,000 that we have. And now we want to return it 500 is the return amount. Leger is already selected, rate is selected as well. This makes a total to 75,000 all set. But before even entering or saving this, we can click Journal entry to check the journal entry effect. Once we return the item back, the inventory should reduce because we have returned it back to the vendor. And against that, since we have to pay less to the vendor now, accounts payable or the liability account should also reduce. So that's debit. So that's how we deal with the purchase returns in CH. Just try this by yourself, and I will see you in the next one. 77. How To Record Sales Returns: Video, we are going to see how we can record the sales return in Sage. As you can see here on 30th of January, it says the sales return of shirts from Mr. James Carter. That means earlier, we have sold some items to this customer, and now they are planning to return it back to us. This is the finished goods that we supplied, and they are planning to return just because they might be damaged or there might be some other reason maybe they don't find the quality as good or packing as good. So they are returning some of the items. Now we have the choice either we can create a new sales return or we can adjust it against the earlier invoice. This means if we adjust against the existing invoice, that means now the customer has to pay us less amount. Let's say we sold 1,000 shirts to this customer and they are returning 200 of them. So now they have to pay for 800, that's the most practical scenario where the companies use this. They use energies like that. Let's see how we can deal with this in Sage. In the customers and sale section, we have a special area of credits and returns, as you can see here. Right here, we have it. Click here, click New credit memo and let's choose the customer. Customer name is James Carter. Let's select the customer. This is it. It shows this customer is over their credit limit. Click Okay. And even though if you want to adjust this credit limit, we need to close out of here and then adjust that. So let's leave it right here. We can adjust the credit limit later on. The date of transaction is 30th of January. Due date is automatically set, but make sure it's not earlier than the transaction date. So here, in this case, it's March, so that's good. Credit number, if we have any credit number applicable, we can use that if this area, the main invoice section turns gray, that means you can check any pending invoice already ended. We have the choice either we can create a new return or we can apply to the invoice. As you can see here, it's mentioned apply to invoice. We can apply the returns to existing invoice. Let's choose this invoice. And in the past, we have already sold 500 items out of which the customer is returning 200 back to us. Let's mention 200 is returned. You can mention this in the description. Narration or you can keep it as it is, doesn't matter. The rate is 400 and the total is 80,000 exactly matches this one. And if you want to just check the journal entry before saving this, click on the journal from the top, and here we see all the entries exactly the opposite of when we enter it in the sales. So when we enter sales, sales income is increased, so it's credit. Now this 4,000 is for sales income. As you can see here, now it's debit because they are returning back to us, so sale is reduced. Also, now the customer has to pay us less amount. So what we'll do is we will reduce the receivables. When the receivables are increased, it's debit, but now the balance is reduced, so it's credit. Click Okay. And that's how we deal with the returns. Let's save it. So just try this by yourself, and I will see you in the next one. 78. How To Deal With Service Invoice: Video, we are going to see how we can deal with the packing charges or any kind of service invoice in Sage. As you can see here on 31st of January, it says, packing charges paid by giving cash. Now, what kind of packing is it? It's basically the special packing service that we take from an external vendor who packs these shirts and pants. Don't have the packing unit, so we buy the service from the external vendor. But since this vendor is not regular, we just take different vendors at different points, there's no fixed vendor, so we pay them by cash. Now, how will we enter the invoice or just directly enter the service and pay for it? Let's see. We will go to vendors and purchases, and if you directly want to pay for it, you can click on Right checks and click on check. Here, we can just enter any vendor for all the cash expenses or cash purchases. We created V 700 for all those cash purchases, we created this. You can enter any reference number if you want to. Transaction date is 31st of January. So let's put the date here 31st of January, and this one is paid by cash. Let's select cash here. In the memo. I'll just copy this whole description and paste it here. In the description, I'll paste this same description. And the service that we are purchasing from an external vendor is packing charges. Since the packing charges is directly applied on shirts and pants which we are planning to sell, so all of these kind of expenses or cost incurred on the packing of the materials that you are planning to sell should be a cost of sales and not the indirect expenses. It's direct expense, or you can say a cost of sales. What we will do in the expense section is we will choose any kind of cost of sales here. Raw materials cost either cost of sales for services. We will use this one, cost of sales for services. If you don't have this account, you can create it in five category and choose it or select the account type as cost of sales right here. But since we already have one, I'll just choose that. So this is my ledger, cost of sales for services available in 5350. I'll select that. The amount in dollars is this one, copy this page right here. And if you want to check the journal entry effect, that's very important, click on journal entry. It says, cost of sales for services is debit, and cash on hand is credit. If you notice, although we have selected the vendor, but it doesn't go in the payables and then we have to clear separately. So this is the perfect area for all of these kind of transaction. You enter the write checks, you take the service and pay it at the spot. Save this, and this is how you can deal with all the purchase of cash services in ZT. Just try this by yourself, and I will see you in the next one. 79. How To Record Director Withdrawing Cash: Video, we are going to see how we can record if the director of the company is withdrawing some amount in cash for personal use. As you can see here on 31st of January, it says cash withdrawn by director for personal use, and the amount is 45,000. Since it is a non trading activity which involves the cash, we'll just go to the banking section and click on Journal Entry. And let's record a simple general entry here. Date is 31st of January. Reference number, we can put any reference number here, and drawings should be in the capital area. So owner's draw 3930, that's the account that we want to use. Drawings to cash will be their entry because capital is now reduced and the cash is also reduced. Description, let's paste that. In debit, we put 45,000 press Tab go on the second line, and here we click on cash, select cash here. In credit, we write the same amount, 45,000. So basically the entry is drawings, debit or capital is reduced, and cash is credit, since the case is also reduced because director has withdrawn it from the company. Just save it and that's how you do it. Just try this by yourself, and I will see you in the next one. 80. How To Record Loss Of Inventory: Video, we are going to see how we can enter the loss of inventory in sage. As you can see here, on 31st of ten, it says, 500 button shirts damaged. That is an inventory loss. Now, there are two types of losses. One is production loss and one is non production loss. You can also call it normal loss and abnormal loss. The normal loss is very simple to understand. Let's say that you are trying to manufacture shirts using cloth. The cloth that you used is like 100 meters, let's say. And when you produce the finished items are of total length is 98 meters. So 2 meters goes in the wastage and in the process of making it. So that's normal loss. That can simply become the part of cost of sales or even the inventory. But if it is abnormal loss, that means due to mishandling, due to wastage, due to some other reason, the inventory is damaged. So that should be charged as an indirect expense and as an abnormal loss. So here, it says that button shirts are damaged. So that's an indirect loss. What we do is just go to the inventory and services section from the left hand corner and here, just click on the inventory adjustments right here. Weekly care, the item is shirts. Let's select shirts. Reference number, we can put any reference number here. Make sure the date is correct. 31st of January is the date, and by default, it is selected to cost of seals, but like I said, if it is a normal production loss, it could be charged in cost of seals. But here, it should be charged as the wastage or any kind of loss of inventory, basically. So if you find that, it's best, otherwise, we can create that ledger. We don't find it, but we have ledgers in this sequence. We have 6750, 6,800. So we can create it in 68 20, let's say. Click on New 68 20 and we can write here. Loss of inventory is the name, and it should be charged as an expense. Click Save, close out of here, and 68 20 is the ledger. Let's click that. Unit cost is selected here. Quantity on hand is also mentioned, and we need to adjust that. So -500 we will write here, you will see the reduced quantity in the new quantity section. Press tab. From 2,100, 500 is reduced, 1,600 is the new quantity. What is this reason to adjust? Let's right here, damaged inventory. Now, don't worry if your quantity doesn't match, maybe because of some transactions or some quantities accidentally mis entered. You might be getting different figures, but we can check that later on. Right now, the only concern is how you can enter this loss of inventory. Complete project, figures might be different for you. So I'll attach the final reports as well. Don't worry about that. We will be learning all the process itself. Some mistakes might happen, so don't worry about that. Just just the quantity like this and click on Save and that's how you do it. Just try this by yourself, and I will see you in the next one. 81. How To Deal With Payment Of Expenses: Video, we are going to see how we can deal with the payment of expenses directly. As you can see here on 31st of January, it says, income tax paid by issuance of check of Bank of America. So do we have any income tax liability from the opening balance? Let's see sheet one. Here, we don't have any income tax liability we have a sales tax liability, but not the income tax liability. So that means since we're at the end of the month and not the next month, so we don't need to create an accrual for that. We can just directly pass an expense entry. From the general entry or from write checks option. So if you want to record, let's say, the check number and other details, and you want to enter it from Recheck, that's also a nice option. Go to the banking area, write checks, click on New check and from here, if you want to enter the payments against the vendor, we can enter V 800, and that is for, let's say, text payments you can choose any account doesn't matter, but let's choose some other taxes payable, something like that. Click on Safe and this is just for the time being. This is just to fulfill the requirement of entering the vendor name. It will not affect it. It will simply create the entry of expense, and against that, cash will be credit. So check number, if there is a check number applicable, yes, here it is. Copy this and paste it here. The transaction date is 31st of January. So let's put 31st of January here and it's paid against the Bank of America. Let's select Bank of America here. It's paid by check. And this is income tax paid. So let's select that income tax expense. We can just directly use this 160200. Your account coding might be changed depending on the version that you are using. So income tax expense, I'll just select that. It's 6,200 here. Just copy and paste the memo here as well. We can just copy these details because the memo has some limit. So you can paste the complete description, you can just write that. Make sure everything is correct. And the way you can finally make sure that everything is perfectly entered, just click on journal to make sure it's making the right entry. As you can see here, we don't have the debit and credit balance that because we didn't enter the amount yet. So the amount is 20,000. Let's write here 20,000, and now let's check. So income tax expense is debit, while Bank of America is credit. Perfect treatment. Just save it, and that's how you can deal with all the cash expenses payment. I say it, try this by yourself, and I will see you in the next one. 82. Enter Expenses Against Accruals: Video, we are going to see how we can enter the expenses against the accruals. Now what is accrual? Let's say that any kind of expense is due in any particular month. But usually, what happens is we pay it in the next month. Let's say that we have received the electricity bill in February. We are paying in February as well, but that bill is related to January. So basically, we need to record it in January, even though we receive that in February and we are paying in February. But if we record it in February on the date we are paying, it will be charged as an expense and in the profit and loss automatically of February. So that's wrong. If it is related to January bill, it should be recorded in January at the bag date. But when we put the bag date of 31st of January and debit electricity bill, what will be the credit? Because we haven't paid cash yet. So the credit will be accrued expenses or accruals as a liability. That is a liability. You want to learn more about it, I have attached this document, which explains all the details about accrued expenses and how they are treated, along with the examples, you can check out in the resources section and just fully read this if you don't know about this concept. So anyway, let's continue with our transaction. Just go to the banking and click on Journal Entry and click on New Journal Entry. From here, we just select the transaction date, which is 31st of January, and we can put any reference here. Now what we can do is since all of these expenses are accrued expenses, that means they need to be adjusted in the back date to the period to which it relates, like electricity bill, rent, salaries and wages, and telephone bills, and they are all on the same date. So what we can do is we can just debit all of this and against that, we finally post it as a credit as a single credit to accrued expenses. First one we have electricity bill. Let's scroll down and find the utilities section. Here's the utility. Select that. Right here, electricity bills indirect. Make sure you reduce all the extra spaces so that the transaction details could show properly. I think it's not properly copied. Now let's paste it. 15,000 is the debit amount. Go on the second line. We have rent here. Let's select the rent, ledger, rent or lease expense under 6,300, as you can see here. You can just copy this simple narration and paste it right here. It's 125,000 pres tab. On the third line, we have salaries and wages. Just copy this salaries and wages. Let's select the right category. Okay, here we have the wages expense in 6,000 category, as you can see, wages is also fine, but if you want to adjust the name later on, we can change this to salaries and wages. Right now, let's use this one. 75,000 is the debit amount, telephone bills. It's also a utility. So let's write here 6,400 or maybe if we find the telephone expense separately, yes, we have it 6450. This one right here. 6450. Let's select this. 5,000 is the amount. So all set. The debits are set, 220000 is the total. You can easily check the total here in Excel sheet. Just select all of these cells, and you see the totals right at the bottom. Press tab, go on the last line. On the last line, it automatically copies the description which is above, but we will change that and we will change the above one as well. As you can see, this is not salaries and wages. This is telephone bills. So press tab, and on the last, we will write here utility bills to accrued expenses. Just mention that, and credit should be a liability account which is accrued expenses. Here, as you can see, 2315, we created this in the starting of the assignment. So if you want to learn more about it or if you want to recheck that, you can check the earlier videos. So accrued expenses is a liability account already created. Under here, we see the total down at the bottom, so we will just see it from here 220000, and now out of balance is zero. We can simply enter that. Save, and that's how we deal with all the accrued expenses or the indirect expenses that is recorded or accrued on the back date in the period to which it relates. So just try this by yourself, and I will see you in the next one. 83. How To Check Final Closing Reports: We are going to see how we can check the closing reports or final embodant reports once you complete your project. As we can see here, we started off from sheet one, where we checked the trial balance, we entered all the balances as if the company is transferring its accounts from manual accounting to computerized accounting, or maybe they were using some other accounting software, but now they think that Sage is more suitable for their requirements. They transferred all the balances. So we have learned how we can create all the chart of accounts, how we can edit the chart of accounts, and how we can put all the opening balances. After that, we have learned the customer, how we can enter those and their balances. We have learned to create suppliers and their balances, and we have also created all the inventory items along with the balances. And since this was a manufacturing company project, we entered the bills of materials, which is the recipe management system that's a bridge between the raw materials and finished goods. Basically, we buy the raw materials from the market and then produce it to create finished goods. And finished goods is shirts and pens. After that, we consider that after doing all of these opening balances and creating all the items, basically, we are live on the system. This is the part that is related to system implementation. But now the system is implemented, that means you can fully work the day to day activities on stage. So we have all of these activities that we have learned starting from journal entries to recording all the purchase orders, receiving the purchase orders, creating the bills, payments, discounts, each and everything we have done here. We have also learned how we can pass different adjustment entries like bad debts, loss of inventory and all, and we have completed this assignment. Now, the most important thing is checking the closing reports that's very simple to extract in Sage. What you can do is just go to any section and click on reports. Basically, you find this reports option in all of the tabs. And why it doesn't matter, just go to the reports and we still have the option to switch the categories. So wherever we want to go, you just go to that section. If you want to extract the trial balance report, we just go to journal Ledger and click on Journal ledger Trial Balance, double click here, and all of the details are mentioned as of 31st of January 2025. But if you want to adjust this, what we can do is just go to the options, and here we can make all the customizations. Let's say if you want to check for today only or specific date or a specific period, we can specify all the periods here. So click Okay. Since this is of 31st of January and our transactions is also till 31st of January, that's fine. I will attach this trial balance with the resources section of this video, but even if it doesn't match, doesn't mean that you don't know about different stuff. You can take your time to find out what error did you make. So sometimes it's only the difference in the quantity or rate, although you should be careful in entering all of these accounting transactions. But let's say, instead of 40,000, you enter 4,000, so balances might not match. So we have to manually check for that. But basically, if this trial balance doesn't match with mine, don't worry, you can check the transactions one by one to find out the mistake. And if you want to export this in let's say Excel format, just click on the Excel from the top and I'll create a new worksheet. We have the option here to add to existing worksheet as well. But I prepare new one. Click Okay. And this is how it looks. I'll just save it for you. Just go to file, save as. I'll just choose the location. And I just named it as Trial Balance. You can find it in the resources section of this video. Close out of here, close out of here, and let's export the next one, which is under the financial statements, we export the most important ones, and that is income statement and balance sheet. Both can be found here. Just click on income statement, current period, we just set. If you want to show the zero amounts, you can keep it checked, but it will show something like this that even any particular expenses doesn't have any balance till it shows zero balance. So that's very confusing. Instead, what you can do is just uncheck this one and then extract it. So now it shows much better position. It's as of 31st of January. I'll export this for you. That's the report. I'll just save it, which you can find with the resources section of this video. Now let's close out of here, close this trial Balance report as well. And the final one that we want to extract is in the financial statement, we want to extract the balance sheet report. Double click here, set the period, click Okay, and this is the balance sheet report. I'll attach this one for you as well. I've exported this and now it looks like this. So click on the file, click Save As, and that's also saved now. Close out of here, close out of here. So that's how we extract all the important reports now. Another important thing if we click on the reports, and let's say we check the trial balance. Here we see the closing balance of each ledger, and we don't see the details. So if you want to check the details about any ledger, you just double click on that particular figure or that particular ledger. And it will take you to the further report where you can see how that balance made up, all the debits and credits. But what if we want to extract the complete details of all the ledgers in a single report? Is close out of here, and what you can do is just go to the journal ledger and click on Journal Ledger right here. You can set the period by clicking on the options at the top, and from here, we just specify the period. Like, Okay. It is set to first of nary two 31st of January. That's perfect. We can export this, but you can see this dotted line in the red here. That's because if you want to print, there is a limit of the page capacity. Either we have to reduce the column size by just holding it. This eros, two sided erosie is an indication. Either you can hold it to increase the size of this particular column or you can also order it to reduce the size of it. Whatever size you see fit is the one that's best for you. If you want to print vertically, we obviously have a limited page capacity, but if you want to change the style to a horizontal style or landscape style, just because you have more detailed information, you can just go to the print area and in the properties, you can go to the options area and from here, click on the page setup and you can change the orientation to either portrait or landscape. So let's say landscape, now it will show something like this. I'll keep it to the other one because we don't have much information, but that's how you can switch it. So I'll export this report for you as well. So in case if you want to tell some of the balance how they are made up, you can check my reports as well. So that's also exported. I'll save it for you as well. So that's how we can extract all the closing reports in Sage. And with this said, we have finally completed our manufacturing company project as well. In which we have completely learned how we can handle the manufacturing scenarios in sage. So just try this by yourself, and I hope you found this training very helpful.