Payroll Posting
From TrueERP wiki
Overview
From withing the Payroll History Report, there is a GL button on each line. By selecting this button you can see each of the account postings that arise from the individuals pay. Some of these postings bare some scrutiny to understand.
Leave
Where applicable leave is accrued each pay (this may be based on a "per pay", "per hour" or "per week" depending on the selections made in each award). The value of that leave accrued is posted as an expense to the leave expense account (by default Leave Provision) and the other side of the posting is to the Leave Liability account because this is money not yet paid, but liable to be paid at some future date when leave is taken. The actual accounts used are selected under payroll preferences.
When leave is taken, the Liability account is reduced and the expense is moved from Leave Provision to Net Wages and PAYG Tax. This last posting is to allow for easier reporting. The Profit & Loss report will show both accounts so that you can see which expense has been paid, and which is still liable for payment. It is possible for the Leave Provision to appear as a positive in the Profit And Loss if more leave has been taken in the current year than has been accrued or in other words, leave accrued in prior years has been taken in the current year.
