Cash wages allocation

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Experienced Cover User Runamuck
59 Posts
Experienced Cover User
Australia
Runamuck
Experienced Cover User

59Posts

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Cash wages allocation

Hi all its been a while !

 

I had to pay staff in cash from business account via the ATM (we work remotely so I cant walk into a bank) due to on line bank being down for a bit and now i am wondering how to easily allocate this in essentials.

 

Thanks in advance !

 

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Partner AlanT
888 Posts
Partner
Australia
AlanT
Partner

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Re: Cash wages allocation

@Runamuck

 

Hi Matthew,

 

In this situation I would create a second bank account in Essentials called something like 'Payroll Clearing Account'.

 

In the Payroll Settings window, select this new bank account as your Banking Account.

 

This way, when you run a payroll, the wages will be debited to the salaries & wages account and the Payroll Clearing Account will be credited.

 

Then when you withdraw the cashfrom the ATM to pay the employees, the withdrawal should be entered in Essentials as a transfer from your main bank account to the Payroll Clearing account.

 

Don't forget to reconcile this clearing account regularly to ensure that you have withdrawn the correct amounts from the ATM.  If you do withdraw extra funds that you use for other expenses, you should record these additional expenses as Spend Money entries from the Payroll Clearing account.

 

Hope this helps,

 

Alan

Experienced Cover User Runamuck
59 Posts
Experienced Cover User
Australia
Runamuck
Experienced Cover User

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Re: Cash wages allocation

Hi Alan, as usual you are a guiding light and i always look forward in anticiapation that you will answer our questions.

I have done what you had suggested however i can't get the balance to reduce. Is this becasue the pay slip originally was done when the business account was active and if so, do i have to delete those pay runs and do it again?

Or am I missing something?

Thanks !

Kind Regards

Matt

Partner AlanT
888 Posts
Partner
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AlanT
Partner

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Re: Cash wages allocation

Hi Matt,

 

How many pays have you already processed?  Deleting and reprocessing is very boring when you have already processed a large number of pays. 

 

Clearily reprocessing would result in the most accurate records, however if you have already recorded many pays, you could create a transfer record in Essentials for each pay that transfers the gross pay from the main account to the payroll account.  This will offset the original payroll entry and allow you to allocate the ATM withdrawal as another transfer the other way.

 

This will mean that you will need to manually reconcile these entries the next time you do a bank reconciliation.

 

Hope that also helps.

 

Alan

Experienced Cover User Runamuck
59 Posts
Experienced Cover User
Australia
Runamuck
Experienced Cover User

59Posts

3Kudos

1Solutions

Re: Cash wages allocation

Good morning Alan,

 

It was only two pays runs while the system was down. 

 

If deleting and reprocessing them produces accurat records then I would opt for this way as it wont take me long to do as there isnt a lot.

 

Kind Regards

Matt

 

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