Provision for Annual Leave and Long Service leave

Hi Jen65,

If you just need to set the leave balance to zero, you can do this by running a void pay and just putting in the leave amount you want to adjust. For your situation, just pop in a negative amount for the current leave hours, this’ll bring the balance down to zero. If you need exact steps on this process, you can read through the "Adjusting Leave Entitlements" article. If you need to do a journal entry instead, it would be best to ask assistant directly from an accountant to make sure it's recorded the correct way. 

Regards,
Genreve

Hi Jen65​ Genreve_S​ 

It sounds like whoever was doing the books prior to you was doing them on a correct accruals basis, but it should not be set that the actual leave when taken is reducing the provision due to wage increases and people maybe leaving prior to taking or becoming entitled to pro-rata long service etc, as well as the nightmare it will cause when you try and finalise the STP and if doing this correctly you do ALL reconciliations of the wages reported.

The best way to run it on  the accruals basis, so the business owners provide and are aware of what they may be up for if they close down the business, is to run a leave entitlement report of LSL & AL on a regular basis (monthly, annually or quarterly) and then pass a general journal to the provision liability account to increase or decrease the amount, with the other side of that to go to an expense account called PROVISION for LSL & AL.

Thank for your reply but this has nothing to do with adjusting leave entitlements, I ended up getting the journal entries from our Accountant.

Thanks but I was just after journal entries its all sorted now with the Accountant.