Net pay and payslip do not match

JulieKM

The first payrun of the new financial year included the updated hourly pay-rate of employees as it should, and was reported to the ATO.

The automatic wage payments to employees from the bank however were not updated until a couple of weeks later. So for the first couple of weeks each employees payslip said they received $1300.00 but they only received $1200.00. They had the $100 they were underpaid paid a week or so later. (Figures used are random). How do I reconcile the $1300 payslip with the two payments $1200.00 and $100.00 which occur on two separate dates in the bank?

 

Thanks

 

Doreen_P

Hey @JulieKM,

 

I understand the situation you're having with the two separate bank transactions since there is only one pay run processed. No worries, let me assist you with that. If your file is online, you can do this by using the browser version. Here are the steps you can follow:

 

• If you have a payroll clearing account, go to step 3. 
  If there is no existing payroll clearing account - create a clearing account by going to Accounting > Chart of accounts > Create account. 
  
  
• Create a detail account using the following details:

• In Bank transactions, allocate the separate wage payment Bank Feed transactions to the clearing account.
  This is what the Bank transactions screen should look like:

• By running the General ledger report from Reporting > Reports you can see that there are now credit amounts in the Bank Account of the allocations created by Step 3. And the Payroll Clearing Account has a debit balance of the amount allocated in Step 3.
• Create a general journal from the Accounting menu to transfer the full amount of the pay between the Bank account and Payroll Clearing Account. 
• Run the General ledger report from Reporting > Reports again. The general journal from Step 5 offsets the amount of the spend money transactions by reducing the balance of the payroll clearing account.

When completing the next bank reconciliation, they would need to reconcile the spend money allocations, the initial pay run, and the general journal to balance.

 

Best regards,

Doreen