Should I use Suspense or Mispostings?

One question we get asked a lot is “Should I use Suspense or Mispostings?” or “What is the difference between suspense and mispostings?” or “How do I know whether to use 9998 or 9999?”.

They are all very good questions!

The simple answer is:

  • Suspense should be used for scenarios like ‘hmmm, not sure where to put this, so I’ll stick it here until I find out what it’s for or where to post it’… think blank cheque stub (back when they were a thing!), payment on card but no receipt… you get the gist!
  • Mispostings should be used to contra ledgers where a transaction debits and then another transaction credits the mispostings nominal code so there is no overall balance on this code (you are using it as a tool to help you deal with a misposting or correction between ledgers e.g. clearing down a customer balance to the supplier balance for the same company – we won’t go into the ins and outs of VAT here!).

From a management accounts perspective, when pulling together a set of financial reports you should:

  • Moved anything on suspense (normally nominal code 9998) to where it should go. If you can’t you should consider moving it to the Balance Sheet as another debtor or creditor (more on that another time!). 
  • Ensure that your mispostings (normally nominal code 9999) balance is nil at the month-end.

Out of interest, take a look at the balance on your suspense and mispostings nominal codes – do they look right to you? Do you have a balance on mispostings? Drop me an email and let me know (prize for the person with the largest balance!) I look forward to hearing from you!

Come and join us in our Facebook Sage Community Support Groups, for more great tips and advice!

01/06/2021

Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.

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