Hi KrystalClayton1,
Thanks for your post, and welcome to the Community Forum! When finalizing a pay run in MYOB Essentials, the journal entry does not automatically go to your bank. Instead, it typically gets recorded in a wages payable account. This account represents the amount owed to employees until the actual payment is made.
Regarding your assumption about the bank reconciliation being affected, that's correct. The wages payable account would show as an outstanding liability in your accounting records until the payments are made, affecting your bank reconciliation accordingly. You can also visit this help page for more information: Managing linked accounts/payroll linked account. Regarding your last question, I recommend reaching out to your accountant for an accurate solution regarding this issue. However, to give you an idea, applying payments to the owners against a wages payable account, especially when they're paid sporadically, is a sensible approach. This method allows you to separate these payments from regular employee wages, making it easier to track and accurately reflect in your financial statements.
Feel free to post again, we're happy to help!
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Regards,
Earl
