Sage 50 PPP

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Sage 50 PPP Loan Setup

Sage 50 Paycheck Protection Program

With the new batch of low-interest, forgivable loans amounting to $310 billion in form of Paycheck Protection Program fintech giants like Sage are gearing up to provision correct adjustments of the loan in their system so users can correctly record, spend and later apply for forgiveness. Sage’s new acquisitions of AutoEntry and CakeHR is a step towards automating the process and help in recording recurring invoices, accommodate bank rules and enable their systems with CIS compliance capability for a smoother flow. The following instruction will help you but you can dial Toll Free 📞 1-800-574-6305 to connect experts Sage 50 Support Phone Number to make setup for PPP Loan account while using Sage 50 Pro, Premium , Quantum accounting .

Paycheck Protection Program Sage 50 Pro,Premium , Quantum

The introduction of the new feature – “Correct Transactions” will allow users to track and correct errors in tax with ease and report outputs correctly.

The new “multi-currency capabilities” and “inventory management tools” in the Sage Accounting Plus will facilitate international business trading and management of stocks.

The introduction of new features in Sage is a step to make it easier to see what a business owes, the in & out of funds through bank and proper adjustments to provide a foolproof system.
Here’s what you need to do and all the tasks to perform in Sage once the funds are received.

How To Setup PPP Funds Account Sage 50

Setting Up Of Accounts And Record Income And Expenses Related To PPP Funds:
A business is advised to open a separate account for receiving the PPP fund and as well as maintain a separate cash account in Sage 50. This will help track expenditure pertaining to COVID-19 and later it will help in the audit of PPP fund as fund-flow will be clear and a clear audit trail can be established.
Create A New Cash And Liability Account:All PPP related expenses will be paid from the new PPP cash account and the PPP liability account for the loan also needs to be set up as this loan will be a liability of the business until it is forgiven by the SBA as per set norms of utilizing this loan towards the right cause. If you don’t know which Liability account you have to create , lets connect Peachtree Support team to get help dial now 📞 1-800-574-6305 .
Setting up a new cash account:

  • Go to the Banking Navigation >> Click the Charts of Account >> Click New Account
  • Set the new Cash Account (that represents the new funds account you’ve opened at the bank) >> Select Account Type as “Cash”
  • Similarly, set up a liability account and select type as “Long Term Liability” >> Save
  • Return to the main window

Setting up a new PPP vendor: The new vendor will be the lending institution that has released the loan to the bank. This will be used while transferring funds and when the loan is forgiven.

  • Click Vendors Icon >> New Window >> enter ID as PPP Lender and put the name of the lending intuition.
  • In the Expense Account field select the Loan Liability Account created in the previous step >> Save and return to the main window.

Recording Receipt of the Loan Amount in Sage 50:When the money is received and recorded into the New Bank Account, you also need to record this transaction in sage

  • Choose the Banking Navigation>> Click Receive Money window >> Receive Money from Customer >> Put Vendor ID in the customer ID field, this will allow you to receive money from the vendor and apply it to the account.
  • In the Cash Account Field>> Select the Cash Account opened in the previous step
  • Enter the loan amount in the Apply to Vendor tab >> enter the full loan amount
  • In the G/L Field >> Select the Liability Account you’ve set up to track the loan balance
  • In the Accounting Behind the Screen Window – you will notice the receipt has increased the cash balance and the liability.

Accounting for Other Loan Costs: A Business is allowed to defer payment of interest and principal until 6 months, however, the interest should be accrued from the start at the stated rate of 1% until a part of the loan or all loan is not forgiven.
For the first month, the accrual sum would be – .01 X total loan amount / 12 months / 30 days X number of days remaining from the time loan is received (interest for the 1st month) . Make a general entry for this interest.

In Banking Navigation Center >> General Journal Entries >> New General Journal Entry
Interest is posted as a debit to an interest expense account and credit to interest payable liability account.
Recording Loan Expenses: The regular Business Checking accounts should be used to pay expenses like you normally would do. All you need to do is to transfer the sum equivalent to the payment of expense from the PPP cash account to the regular business checking account as a form of reimbursement towards these allowable expenses. You also need to move the funds in real life to set the records straight.

Select Banking Navigation >> Pay Bills >> Write Check>> Select vendor account from vendor Id list>> enter the reference >> enter the amount
In Cash Account select PPP funds>> In the Expense Account Field enter the bank account you will transfer funds to >> save
These transfers can be made by using the Write Checks transaction to record the transfer and label it as a PPP Expense, for example, “PPP Transfer for insurance premium”.
Note: Transfer towards utilities and payroll or Payroll and Rent should not be done in a single transfer. Such transfers should be done separately – one transfer for a single expense. However, other transfers such as payroll wages & payroll taxes make perfect sense to combine these two.
Once you make a payment from the regular checking account, you can reimburse it from the PPP loan proceeds.
All the spending can be tracked by viewing their related accounts. You can check the Account Reconciliation report to see all the cash activities.
Once all or a part of the loan is forgiven, the relevant amount of the loan balance can be reclassified as “Other Income” so that it gets removed from the liabilities and is now recognized as income.
What happens if the loan is not forgiven?

  • You may be required to provide additional documentation to the lender to reevaluate your case.
  • Otherwise, the outstanding balance will continue to accrue interest for the remaining 2-year period.
  • Also, there is no penalty levied on paying early, so you can pay your outstanding balance anytime without paying any extra fee on it.

Help For Paycheck Protection Program Loan Setup Sage 50

For doubts on how to setup and run Paycheck Protection Program in Sage 50 and to inquire more about the PPP loan you can call the Sage support number on 📞 1-800-574-6305 .

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  1. Sharon Vittor says:

    trying to see the best way to set-up/enter our first PPP loan in Sage 50 , its an older version… 2014 ,It does look like the newer software has the the ability to track the ppp loan for auditing purposes. Our accountant has always updated our software. Is it an easy thing to update? I don’t want to step outside of what our accountant handles. How much does the upgrade cost, etc

  2. Karen Grant says:

    We just got our sencond PPP loan and need to set it up in sage our previous loan that was forgiven we put under accrued salaries this was done by a person who is no longer here. I need to make sure both are inputted properly. We did transfer the money to another checking account and held onto it there. Can you suggest the best way to do this? using sage50 quantum 2021

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