Pay and cash purchases
I'm trying to run a payroll, but the employee doesn't get the money, it goes straight to Cash purchases.
Can someone tell me how to do this please? Having trouble working it out myself.
Thanks in advance.
Hi KGrove
With the employee that you deducted a portion of their pay from you would use the deduction category and enter the desired amount that was actually paid to the employee. For example, you deducted $50 you would enter "-50.00" against that deduction category to reduce the net pay by that amount. Note: You may want to discuss with an accountant as to the accounts involved in that process.
With respect to paying off the cash purchases account, you would only enter "-700.00" against that deduction category. This is going to put $700 in the holding account to which you can process through to the required account by the way of a journal entry or another transaction. In addition to that, the Net Pay would be $300 to which you can pay to the employee.