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sandersonlj's avatar
sandersonlj
User
4 years ago
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Matching over/under wages payment to payroll ..

Is there a way to match a payment in banking transactions to a payroll entry that does not equate to the payroll data? That is the payment may be under or over the payroll amount.  I can get to the point of matching the payment but am not able to allocate the remaining balance. It is not an option to go back and redo the wages. thanks

Banking
Payroll
  • Steven_M's avatar
    Steven_M
    4 years ago

    Hi sandersonlj 

     

    If deleting the transactions is not an option you would be looking at recording a series of banking transactions to remove the payroll amounts from that account to a holding account and then process transactions back to the bank account in the way it was paid.

     

    I've outlined the process I would use below:

    1. Create a holding account - Business Name Menu>>Accounts Lists>>Add account -- Give the account a number, name and set the account type to be Bank.
    2. Record a Banking>>Receive Money transaction from the Main bank account to the holding account for the amount that was paid via that payroll transaction. This cancels out the withdrawal of that payroll funds from that account.
    3. Record a Spend Money transaction from the Main Bank account with the allocation account being the holding account for the amount actually paid. This will generate a withdrawal in the bank account which can be matched to that payroll transaction.
    4. When the residual amount is paid, it would be another Spend Money transaction the same as Step 3 but for the amount that was actually paid.

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  • IanChait's avatar
    IanChait
    Ultimate Partner
    4 years ago

    Hi sandersonlj 

     

    You cannot change the payroll entry to match the bank if they are different. You will need to use a Payroll Clearing Account.

     

    Creat a Clearing Account, as a Type Bank Account. Under Set Up>>Preferences >>Linked Accounts>>Payroll Accounts, link the Bank Account for Cash Payments to the Payroll Clearing Account.

    Open the Payroll transaction, and change the Payment Method to Cash, and the record the transaction. This will post the payment to the clearing account. Now in bank feeds, code the actual payment to the Payroll Clearing Account as well.

     

    You will need to make an adjustment to the Payroll Clearing Account to clear out the balance.

    • sandersonlj's avatar
      sandersonlj
      User
      4 years ago

      Thanks for the information, but I am still needing help as I can't find where the Set up is for preferences etc....I am pretty new to using MYOB, I can set up the extra bank/payroll account but thats as far as I can get. I am using MYOB essentials. Would really appreciate further input. 

      • Steven_M's avatar
        Steven_M
        Former Staff
        4 years ago

        Hi sandersonlj 

         

        Ideally, you would be paying the same amount that is paid to the employee in MYOB Essentials. However, there are processes that can be used if the employee has been over or underpaid.

         

        For underpayments, typically, you want to:

        1. Delete the payroll transaction that has been processed
        2. Navigate to the employee's record
        3. Within the Employee detials>>Banking section, you would select the Split pay between two accounts.
        4. Enter the desired split i.e. the underpaid amount and the remaining
        5. Save the Employee record
        6. Re-process the pays

        The above process will generate two banking transactions in the bank account to which you can match to the underpayment and the correcting bank transaction (when processed).


        Overpayments a little more tricker, the process I would use is:

        1. Create a holding bank account. Business Name Menu>>Accounts Lists>>Add accounts - give the account a number, name and set the account type to be bank.
        2. Once that account has been created, set that account to be the Bank Account for Paying Wages - Business Name Menu>>Payroll Settings
        3. Delete the pay if already processed
        4. Reprocess the pays. This will put those pays into that new bank account
        5. Process a Banking>>Spend money transaction from the main bank account to that holding account for the amount actually paid.
        6. When the money is returned you would do a Banking>>Recieve money transaction to that main bank account with the allocation account being the holding/newly created account.

        If the amounts are to be deducted from a future payment you use the same process as above for those pays minus Step 6.