payroll not same as salary in P & L

Jenny Byrne

I have been paying a staff member his wage less the amount of invoices he has bought in our company name for himself. What I have been doing is creating a deposit from staff member from account 6560 salary and wages . That lowers his wage paid but the wages in P & L do not match payroll totals.

I reconcile the bank accounts by ticking the credit amount of goods sold and his normal wage so it cancels out

Bruce

Are you reporting his purchases with a GST related code , typically NCG?

This throw things out

Acctd4

Hi @Jenny Byrne

You need to have a (net) Deduction-type Payroll Item on his Paycheques for this. Link it to a Clearing Bank Account, then Receive Payment for his Invoices depositing back to this Clearing account.

Jenny Byrne

I have totally mucked up. I do need to set up the deduction in the payroll list and then I will have to change all his paychecks. Is that possible?

GST needs to be looked at as well.

Acctd4

Yes, you can edit (Unlock) each Paycheque to correct this.

The GST should be on the Invoices themselves so isn’t relevant to the actual (payment) deductions ☺️