Wrong Account Allocations

Question

Hi&nbsp;I had created a deduction on an employee for the payment of a car loan. The car loan recorded under the category 'Business Loan 1'. The deduction was linked to the other payroll liabilities account. When the bank transactions show the car payment, I need to allocate that to other payroll liabilities to reduce the liability that has been created by the deduction (this has been recorded 16 times so far). The problem is that it does not reduce the loan amount as the transactions are not being allocated to the 'Business Loan 1' account.&nbsp;&nbsp;I have corrected the issue by linking the deduction to the 'Business Loan 1' account. However for past payments, the only way I can see being able to correct this is by reversing 16 pay runs and re-running them with the correct linked account. This is a problem because of One Touch Payroll and I'd rather not do that.&nbsp;&nbsp;Is there a way that I can record all the payments that have been made against the business loan? I have tried a journal entry from 'Other payroll liabilities' to the business loan account but this increases the 'Other Payroll Liability' liability incorrectly.&nbsp;&nbsp;Thanks in advance!

doreen_p · Answer

Hi omcpay,
&nbsp;
Warmest welcome to the MYOB Community Forum!
&nbsp;
You are definitely correct with the reversing and reprocessing of the past pay runs. I have attached here a link where it has the detailed steps on how to change or reverse a recorded pay and how to reprocess it. If there's anything you need assistance with, don't hesitate to drop us a post again.
&nbsp;
Best regards,
Doreen

omcpay · Answer

Thanks for responding so quickly Doreen!

I tried reversing one pay and re-processing. The issue I am facing now is that when the deduction is allocated to the business loan, processing the pay increases the amount of the loan by the deduction. Then when I allocate the bank transaction to the business loan it reduced by the same amount, effectively returning it to the same value. That won't reduce the loan liability over time but rather increase and decrease each pay/bank transaction cycle.

Should I be configuring the deduction linked payable account differently?

cloud_mind · Answer

Hi omcpay&nbsp;This would be a problematic scenario to fix in an open forum. I suggest you engage with a MYOB Partner to review and fix it in a file. You will want it correct, mainly because EOPY is coming soon.&nbsp;I am MYOB Partner. My details are in my profile. If you want help, please reach out.&nbsp;

doreen_p · Answer

Hi omcpay,
&nbsp;
It's a good thing that you were able to enforce the reversing and reprocessing as a workaround provided, but it's sad to know that the deduction is adding to the business loan amount. With that, I would suggest what our ultimate partner has provided to resolve your concern. You can also use our virtual assistant, MOCA through myob.com/support. It's designed to dive deeper into issues like this, so don't hesitate and give it a go! No worries; if MOCA can't provide the help you need, you will then be escalated to our live chat for further assistance and pick up from where MOCA left off. You can post again if you encounter issues in the future.
&nbsp;
Best regards,
Doreen

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Wrong Account Allocations

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