I fell into the Flare trap.
But since the MYOB people are so geared towards Flare, hopefully I can get an answer.
I have gone through the process of setting up my employee's novated lease, so running the payroll makes all the right entries.
After running the first payroll, I have a liability amount in "Novated Lease Collected" and Flare have just deducted the first payment from our bank account.
What are the entries to record this payment?
Hi MelHand,
This payment is usually the tidy-up step for the amount collected through payroll. Allocate the payment to the Novated Lease Collected liability account that the payroll deductions are linked to. Use the bank-feed transaction if it’s available. Otherwise, create a Spend Money transaction from the bank account and allocate the full payment to the liability account. Avoid coding it to an expense account, as the payroll deduction has already created the liability. For the GST component or any differences between the payroll amount and Flare’s payment advice, it’s best to check with Flare or your accountant before recording it. More guidance is available in Novated car leasing.
Cheers,
Doreen
