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(Created page with "Liability Accounts Why are the liability accounts separate from the expense accounts? Liability Accounts - These are the payments that are to be paid to the various suppliers, ...")
 
 
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Liability Accounts
 
  
Why are the liability accounts separate from the expense accounts?
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'''Expense Accounts'''
  
Liability Accounts - These are the payments that are to be paid to the various suppliers, including the tax office. DO
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'''Do you understand why the expense accounts are set this way, in relation to grouping?'''
NOT Use these accounts in the BAS/VAT
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Deductions Liability - Amounts that need to be paid for any deductions taken from the employee ie union fees etc
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Leave Liability - Amounts accured for any Leave type that are to be paid to the employee when that leave type
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is taken
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'''<u>Expense Accounts</u>'''&nbsp; These are the costs to the company, irrelevant of payment or not. Use these accounts in the BAS/VAT
Allowances Liability - Amounts that need to be paid for any allowences given to the employee ie travel allowence etc
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Super Payable - Amounts that need to be paid to the employees super fund
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PAYG Tax Payable - Amounts that need to be paid to the Tax office.
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'''Gross Wages''' - This is typically a simple header account, in that you don't post anything to this account, but use it as a summing account of those under it
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'''Deduction Paid (Default)''' - This is the expense account for deductions <br>
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'''Leave Paid''' - This is the expense account for all leave types. Accrued leave is expensed at the time it accrues at the pay rate current at that time. When leave is taken it is expensed to Gross Wages at the actual current rate and the Leave Paid expense account is reduced by the original accrued amount.
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'''Net Wages'''<br>
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'''Allowance Paid (Default)''' - This is the expense account for <br>
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'''Super Paid''' - This is the expense account for superanuation '''PAYG Expense''' - This is the tax expense as part of payroll
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'''Sundries''' - Any expense entered as sundries will show here <br>
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'''Commissions''' - Commission Paid

Latest revision as of 11:20, 11 December 2014

Expense Accounts

Do you understand why the expense accounts are set this way, in relation to grouping?


Expense Accounts  These are the costs to the company, irrelevant of payment or not. Use these accounts in the BAS/VAT


Gross Wages - This is typically a simple header account, in that you don't post anything to this account, but use it as a summing account of those under it

Deduction Paid (Default) - This is the expense account for deductions

Leave Paid - This is the expense account for all leave types. Accrued leave is expensed at the time it accrues at the pay rate current at that time. When leave is taken it is expensed to Gross Wages at the actual current rate and the Leave Paid expense account is reduced by the original accrued amount.

Net Wages

Allowance Paid (Default) - This is the expense account for

Super Paid - This is the expense account for superanuation PAYG Expense - This is the tax expense as part of payroll

Sundries - Any expense entered as sundries will show here

Commissions - Commission Paid