Payroll Clearing Account

YDD

Hi there, I have set up a Payroll Clearing Account.  I processed a pay yesterday and the correct payroll amount is showing in the clearing account.  I have gone to Bank Feed and the pay transactions are showing there.  Previously the wages would match and just be waiting for me to approve.  This time I need to allocate manually.  My question is - Do I allocate the transaction to the clearing account or to the Wages expense account??

Thanks Sue

Steven_M

Hi @YDD 

 

I assume the bank account that the bank transaction has come in on is not the clearing account but an actual bank account? If so, you would be looking at doing a New>>Spend Money transaction with the allocation account being that clearing account. By doing this you are depositing money into the clearing account to cancel out the withdrawal of those payroll transactions thus making the clearing account zero.