How to Reconcile Auto-Enrolment Payments in SortMyBooks (Cloudpay integration)

If you use the CloudPay integration with SortMyBooks, you may have noticed that CloudPay creates two separate control nominals for Auto-Enrolment (one for Employer and one for Employee), but the bank processes a single combined payment to NAERSA.

Follow these steps to reconcile the single bank payment against the two control accounts for now.

1. Create the NAERSA Supplier

1. Navigate to Purchases > Suppliers.

2. Click Add to create a new supplier.

3. Name: Enter NAERSA (National Automatic Enrolment Retirement Savings Authority).

4. Payee: Select Other from the dropdown menu.

5. Default Nominal:

• Type "Other" to search.

• Select the nominal ending in Payroll: Cloudpay: cp Other ER Control (Employer Control, Current Liability 22000).

6. Click OK to save.

2. Reconcile the Bank Payment

1. Go to Accounts, Statement, choose an Account, and upload a Bank Statement.

2. Locate the payment labelled "National Auto SEPA DD".

3. Click Set Alias.

4. Search for and select the NAERSA supplier you just created.

5. Click the Plus (+) icon next to the transaction.

6. Under "Create New Transaction," select Payment on Account for NAERSA.

7. Verify that the Nominal field displays 'Payroll:CloudPay:cp_Other_ER_Control'.

8. Set the Type to Bank Transfer.

9. Click OK.

3. Review Your Balance Sheet

• Go to Reports > Balance Sheet.

• Look under Current Liabilities > CloudPay.

• You will see figures in both the EE_Control and ER_Control lines. They should effectively offset each other.

• Note: A future CloudPay update will fix this structure. Once that happens, a journal entry will be required to tidy up these accounts. (A guide for this will be provided later.)

4. Monthly Workflow (The "Cleanup" Journal)

Do this once a month to ensure your accounts are accurate.

At the end of the month, your Employer Control account will be "overpaid" (holding all the debits), and your Employee Control account will show an unpaid liability.

1. Get Your Monthly Total:
   • Open your CloudPay reports for the month.
   • Find the Total Employee Auto-Enrolment contribution for that entire month (sum of all weeks).
2. Post One Journal:
   • Go to Accounts > Journals > Add Journal.
   • Date: Last day of the month.
   • Description: "Reallocate Jan Auto-Enrolment EE Portion" (update month as needed).
   • Line 1: Debit (Dr) Employee Control (...cp_Other_EE_Control) by the total monthly amount.
   • Line 2: Credit (Cr) Employer Control (...cp_Other_ER_Control) by the total monthly amount.
   • Click Save.

By adding this quick journal, you ensure that:

• The Employee Control liability is cleared.

• The Employer Control balance is reduced to the correct amount.

• Your Balance Sheet reports are 100% accurate.

Disclaimer: This guide represents an interpretation of the accounting requirements. Please verify this process with your accountant to ensure compliance with your specific business needs.

More in the video: SortMyBooks Cloudpay Autoenrolment Journals