Recording Leave Liability on the Balance Sheet

TaniaW

What is the best way to record Leave Liability in the Balance Sheet?

SusanR

Payroll in Accounts Business does not automatically post the liability to the Balance Sheet.  However, the Leave Liability Report will provide you with the figures to journal the amount.  The Leave Liability Report can be accessed from the drop down menu Reports > Employees & Payroll > Leave Liability Report.  This report is populated using the integrated payroll features in Accounts Business.

The journal entry could be Debit Provision for Leave Expense, Credit Leave Liability (Check with your Accountant for your own file and accounts).

You could choose to run the Leave Liability Report every period, be it weekly, monthly, quarterly or annually, and journal the figures - and then reverse the previous period and enter the current balances for the next period.

Alternatively you could amend the accrual amounts every pay cycle.

I hope this helps.

Sue