Updating provision for leave in new financial year

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Experienced Cover User
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Updating provision for leave in new financial year

Hi All,

I am looking for a help please.

Could anyone tell me what should I do to update provision for annual leave in new financial year.

My scenario is, I have been updating annual leave accrual monthly (difference between current month minus previous month) but trouble is liablility account has been brought forward automatically to new financial year and now when I processed the journal my liability account and expense account are not equal. Isn't that liability account should be equal to expense account.  

Many thanks for your help in advance.

Sabin

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Ultimate Partner
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Ultimate Partner
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Re: Updating provision for leave in new financial year

Hi @Sabin, those two accounts will only be equal in the first year you start to accrue this provision. At the end of that year, the expense account total is transferred to retained earnings. The accrual account in the balance sheet continues to next year, and represents the total accrual per your payroll program report. The expense account represents the change in the accrual for each month or year. 


Regards, Mike (mike@datawise.co.nz)
DataWise Limited (www.datawise.co.nz), developers of:
DataWise Report Writer - Custom Reporting from MYOB programs
(Including AccountRight Classic/Live, and exo Payroll)

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Experienced Cover User
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Experienced Cover User
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Re: Updating provision for leave in new financial year

Hi Mike,

Many thanks for your help. That will solve my problem. Thanks

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