Matching bank statement lines to cheques

Question

Hey,

In one of my pay runs, I created a check to pay an employee $1,210.00, but I actually paid him in two payments of $605.00 each, and now I can't match two bank statement lines with the same check in my bank reconciliation. How to fix this?

MatheusToledo · Answer

DEBITCREDITBank Acc 605  605Payroll Clearing1210    Payroll clearing 1210Bank Acc1210

These would be the journal entries then?

Shella_A · Answer

Hi @MatheusToledo,

Since reversing and reprocessing the pay run isn't a suitable option for you, there's another workaround to help match the pay run with the bank feed transactions:

* Create a Payroll Clearing Account. Go to Accounting > Chart of Accounts > Create account. If you already have one, you can skip this step.
* Set Up the Account. Create a detail account with the necessary settings as per the screenshot below.

* Allocate Transactions. In Bank Transactions, allocate the separate wage payments to the clearing account.
* Check General Ledger Report. Run a General Ledger Report (Reporting > Reports) to confirm that the payroll clearing account has a debit balance matching the allocations.
* Create General Journal Entry. In Accounting > General Journal, transfer the full pay amount between the bank account and the payroll clearing account.
* Verify the Balances. Run the General Ledger Report again to confirm that the journal offsets the payroll clearing account balance.

Just a reminder, when completing the next bank reconciliation, make sure to reconcile the spend money allocations, the initial pay run and the general journal to balance.

Regards,

Shella