HOW TO SET UP ACCOUNTS IN SAGE 100 FOR PPP LOAN
Kudos for the good job done to those who have received their PPP loan! And for those who haven’t received it yet, they will hopefully get it in the next few days. The next important step is to make provisions in your Sage 100 accounting and get a resolution about “How to setup PPP loan account once your company has been granted that loan. Once you have that money into your account, you should know how to put that in Sage 100 and how to navigate through correct items to set all up. Also you can get in touch with Sage 100 Support Phone Number for any question related to on Toll Free 📞 1-800-574-6305
Setup Paycheck Protection Program in Sage 100
Here are some elaborative and easy steps to set up accounts in Sage 100 for your PPP loan.
- Open a “Sample Company” and go to the General Ledger topic in Sage 100 which is the topmost option on the left panel. From these Sample Companies, we will create different accounts one by one to make adjustments towards what has come in and what’s going out.
- Under the Sample Company >> Move to General Ledger Accounts – Here we need to create two companies – the “Cash Account” and the “Loan Account”. Both these accounts will reflect the loan amount that your company has been granted as a PPP fund.
Create a Cash Account
- In the sample company, choose Cash Account from the drop-down
Note: You will see the tabs “Short Name” & “Account Name” once you choose this. Under this, it will show item entries such as PPP Cash (select and keep this account name and remember its number scheme next to it. This name will be used by both the new companies, i.e. the Cash Account and the Loan Account). In the Current Liabilities section, this option will be named as PPP Loan and besides it, on the left, it has its number scheme which again is to be entered on the top while creating the relevant account.
If you are using Sage 50 accounting software then you need to follow instruction for Sage 50 PPP Loan Setup for getting advantages of USA Federal PayCheck Protection Program .
- Again go to General Ledger Accounts >> Sample Company creation tab
- Remember the numbering scheme and put it here
- Remember the numbering scheme on the left you checked earlier in Cash Account as PPP Cash and enter the relevant number on the empty box right at the top
- Put Account Name as PPP Cash in Account Type – select Cash Account & Debit next to it >> Save
Step 2: Now Create the Liability Account
- Open another sample company
- Remember the numbering schemein the Current Liability tab against the PPP Loan and enter its number code on the empty box right at the top
- Follow the same name scheme and keep the Account Nameas PPP Loan
- In Account Type– select Current Liability & Credit next to it
Now, once these two accounts have been created , shall transfer the amount received as PPP Loan to the Cash Account. We are not going to change anything on our Payroll side or how we make payments for utilities or rent. We are going to keep that all the same. This account is going to be used for a time period of just 8 weeks and instead of changing these items we can just do general transactions to reimburse the cost.
Once these 2 items have been created, we will revisit the Current Liabilities – PPP Loan and check that the Beginning & End balances at the moment are Zero and the same thing reflects in the PPP Cash item tab as well.
General Entry Of PPP Loan In Sage 100 Software
Step 3: General Entry – First Start with the Account That Has Money in There to Spend
- Go under General Ledger >> General Transactions sample company
- In the first field, Transaction# make up a number and put it here
- Put the Date & Description (e.g. PPP Opening Transaction)
- Leave the remaining fields blank
- Below is the chart, it will auto-populate the description field
- Next to it, in the Accounts section, we need to put the name as PPP Cash and its relevant number code from step 1
- In Debit Amount put the money granted as the loan amount
Create another entry by clicking on the Description field below
- But this time in the Account section we will choose the loan account from Current Liabilities and put PPP Loan and its relevant number code.
- In the corresponding Credit Amount field credit the same amount to equal debit and the credit
- Save the record
How To Do Payroll Sage 100 For PPP Loan
You can double-check from the Bank Reconciliation tab by putting the relevant number codes and checking their relevant amounts to see if it’s been posted correctly. The same can be checked by going to the new Cash Account and Loan Account and each account will show the ending balances as the loan amount.
Step 4: Let’s Look at Doing Payroll Now
When you process your payroll, you can find its corresponding payroll sum in the Payroll Reports. You will continue to pay from this sum from the Payroll Processing Account but after that amount has been posted, you will reimburse the Payroll Clearing Account from the Cash Account. This is an easily traceable way to track how much is been paid towards the payroll from that loan amount. Whatever is paid from the payroll account will be reimbursed from the Cash Account and the same amount will be reduced from the liability account.
When it’s time for applying for loan forgiveness, or its time to prove how the loan was used it will make it a lot easier. As of now, payroll, rent, utility bills payment, applicable interest can be put towards the loan and used from the loan amount. All you need to do is to add a description towards each payroll component in the general transaction and make relevant entries there.
Help For Sage 100 Contractor Payroll Protection Program Report
Keep in touch on new updates on PPP loans, how to track reports related to PPP loans in the next few posts. For further questions on how to treat PPP loan in Sage 100, you can call our 24/7 toll-free sage support Toll Free Number number on 📞 1-800-574-6305 .