Should you post a monthly accrual journal for superannuation on a monthly basis if you pay your fund

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Liza Oates
Liza Oates Member Posts: 65 ✭✭
edited July 2020 in Accounts Hosted
In my company I post monthly accruals for Annual Leave and Long Service Leave.  The accountant has advised monthly superannuation accruals should be posted as well.
Does anyone do this? 
Do I need to set up new general ledger codes?

Thank you. 

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  • Kris_Williams
    Kris_Williams Member Posts: 3,293 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited May 2020
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    In systems where it does not automatically get entered I would enter a bill or a journal quarterly, depends on your own requirements
  • Liza Oates
    Liza Oates Member Posts: 65 ✭✭
    edited April 2020
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    Thank you Kevin - I have the payments set up automatically on the payment card.
  • Liza Oates
    Liza Oates Member Posts: 65 ✭✭
    edited April 2020
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    Thank you Kris - When the super is payable I just write a cheque to Australian Super but do not enter an invoice.  I am trying to understand why we would need to do an additional journal as the Super is accruing on the balance sheet and this agrees to what is payable. 

  • Liza Oates
    Liza Oates Member Posts: 65 ✭✭
    edited July 2020
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    Can anyone explain why I would need to do an additional long term liability journal when this is cleared quarterly?


  • John Graetz
    John Graetz Member Posts: 1,651 ✭✭✭
    edited April 2020
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    Liza.  When you run payroll. the SGC is automatically charged to an expense account with the offsetting amount sitting in the Payroll Liabilities account (or whatever other Liability account you might use).  Are you not doing this?  When you pay your SGC the amount comes out of your Payroll Liability account.  Tell your Accountant that your superannuation is expensed each pay run which means that there is absolutely no call to accrue anything else.  As suggested by Kevin above, this is a basic payroll function and it is apparent that your Accountant has no idea as to how Reckon works.  Point him to the Superannuation Expense account and he will quickly get the picture.
    John L G
  • Kris_Williams
    Kris_Williams Member Posts: 3,293 Reckon Accounts Hosted Expert Reckon Accounts Hosted Expert
    edited April 2020
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    If your payroll system is part of your accounting system that is correct, but for some people there is a separate accounting system to their payroll and the liabilities are not transferred
  • Liza Oates
    Liza Oates Member Posts: 65 ✭✭
    edited April 2020
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    Thank you for your response.  I will go back to the Accountant and seek further guidance as to why this is necessary.

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