Incorrect Super Paid - How to adjust Pay Liabilities

[DAKBook]

Hi Brains!

Whilst reviewing clients file, I have noticed that they have short-paid super Jul-Sept (e.g. $2700) period when compared to the Super payable in "Pay Liabilites' ($3,000)

As I cannot nominate an amount in the Pay Liabilites, how do I enter the short-paid amount so that the bank reconciles, and ensure that the difference ($300) is visible when the next payment is due? 

Am I looking at a contra account entry???

Thanks Guys

[Steven_M · Accepted solution]

Hi @DAKBook 

The Pay Liabilities window is intended to process the full amount of the liability in the one payment thus you are not able to change the amount that is paid to reduce it in the case of a short payment. However, the below process is the recommended way to deal with that situation - and yes it does use a contra account setup. If you are needing to use the process that you read all the process fully and understand it before attempting it (if not it can have a flow-on effect for your next payment).

Setup: Create the contra account:

1. Go to Accounts>>Accounts Lists>>New
2. Give the account a number, name and set the account type to be Bank.

Processing: The transaction for the short payment

1. Go to Payroll>Pay Liabilities
2. Set the Pay from Account to be that newly created contra account
3. Make payment for the full amount as per normal i.e. enter dates, select liability type and tick the appropriate transactions
4. Once the full Pay Liabilities transaction has been recorded, go to Banking>>Spend Money
5. Set the Pay from Account to be the main bank account, the amount you ACTUALLY paid. The allocation account (account selected in the grid) you would set to be that contra account.

Processing: The increased payment

A similar process to the transaction listed above, you just need to ensure that the spend Money transaction has the amount that you ACTUALLY paid.

What the above process will do is place the difference amount into a contra account. You basically short pay the contra account back in the first payment and then with the second payment you are paying back that additional funds.