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(Created page with "Expense Accounts Do you undestand why the expense accounts are set this way, in relation to grouping? Expense Accounts - These are the costs to the company, irrelevant of payme...")
 
 
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Expense Accounts
 
  
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Do you undestand why the expense accounts are set this way, in relation to grouping?
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'''Clearing Bank'''
  
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Expense Accounts - These are the costs to the company, irrelevant of payment or not. Use these accounts in
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'''Do you understand why the Payroll Bank is used as a Clearing Bank Account Only?'''
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the BAS/VAT
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Gross Wages - This is typically a simple header account, in that you don't post anything to this account, but
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When a '''Pay Staff''' has been run, the payments are allocated by default to the '''Payroll Bank Account''' within ERP. This account is a '''Clearing Account''' therefore the funds need to be transferred regularly between '''Payroll Bank '''and the '''Actual''' Bank Account where the wages are being debited from.
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use it as a summing account of those under it
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Leave Paid - This is the expense account for all leave types. Accrued leave is expensed at the time it accrues
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'''N.B.''' Under no circumstances should the Payroll Clearing account be replaced in preferences with an actual Bank account as these transactions will not be reconcilable as a bank account.
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at the pay rate current at that time.  When leave is taken it is expensed to Gross Wages at the actual current
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rate and the Leave Paid expense account is reduced by the original accrued amount.
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Please refer below for instructions on creating the Journal Entry for the transfer.  
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Super Paid - This is the expense account for superanuation
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Net Wages - This account records the actual cash paid to the employee
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Select the Accounts tab Select the Journal Entry button Select the Payroll Bank account from the drop-down Account list. Debit from the Payroll Bank the total amount that has been posted to this account and has been paid out of your Bank Account. Credit your Bank Account (the actual account the payroll funds have been debited from). Select ''''SAVE''''
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Deduction Paid (Default) - This is the expense account for deductions
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Sundries - Any expense entered as sundries will show here
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Allowance Paid (Default) - This is the expense account for Allowences
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PAYG Expense - This is the tax expense as part of payroll
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Latest revision as of 11:18, 11 December 2014

Clearing Bank

Do you understand why the Payroll Bank is used as a Clearing Bank Account Only?

When a Pay Staff has been run, the payments are allocated by default to the Payroll Bank Account within ERP. This account is a Clearing Account therefore the funds need to be transferred regularly between Payroll Bank and the Actual Bank Account where the wages are being debited from.

N.B. Under no circumstances should the Payroll Clearing account be replaced in preferences with an actual Bank account as these transactions will not be reconcilable as a bank account.

Please refer below for instructions on creating the Journal Entry for the transfer.

Select the Accounts tab Select the Journal Entry button Select the Payroll Bank account from the drop-down Account list. Debit from the Payroll Bank the total amount that has been posted to this account and has been paid out of your Bank Account. Credit your Bank Account (the actual account the payroll funds have been debited from). Select 'SAVE'

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