Tracking Leave as a Liability
I know this has been chatted about before but I can't find my answer. I am tracking leave accruals as a liability in AR. I have set it up so the regular payroll account has been overridden by ...
Forum Discussion
Hi LPower
After setting up the liability account and use it as the linked expense account for leave categories, you will need to run the entitlement balance report regularly to report on the updated current entitlement balance value, then record journal entries to update the liability account's balance accordingly.
If you've done all the steps correctly according to the Help page Tracking leave accruals as liabilities, there's no new pay runs recorded after the last journal entry to update the liability account's balance, I'd suggest looking into the account transactions for the liabilities account, as if it was used in any other transactions or had an opening balance then its current balance would be different.
I am doing the regular entitlement update monthly but since there has been leave taken, the steps in the article don't seem to match up.
I entered the first entitlement as a liability journal entry
Leave was taken and the liability account was used and therefore the balance of the account went down.
At the end of the next month, I ran the entitlement report and found the difference in values for the leave categories between the new report and the previous report.
I entered a new journal entry with the differences in values, crediting the liability report if the entitlements went up and debiting the liability account if the values went down.
As I understand it, my liability account balance should now match with my entitlement report.
The problem is my expense account balances with my entitlement report but my liability account does not.
I understand it has to do with leave being taken but the article doesn't make it clear what to do.
Should I just entering the difference in entitlement values from the account balance instead of the previous report?
