Linked Expense Accounts to Super & Leave Accrual

Experienced Cover User Kathy_Southside
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Linked Expense Accounts to Super & Leave Accrual

We would like to make our Super & Leave Accrual pay from a number of different Expense accounts.

For example, we have a couple of employees being paid by the original company and therefore the standard Super, Super Payable and wages accounts are used.   However, then we have at least half a dozen different internal programs that have their own income and therefore they would like to track (as would we) their own Super Expense Account, Super Payable account and  leave accrual coming out of their own wages expense account.   Just to further complicate the issue, an employee can be paid by two programs at a time (on the one payslip) for a different amount of hours, thereby sharing the super accrual and the entitlements accrual.

Using Super as an example, I have set up 6-1575 Super - Original, 6-1571 Super #1 and 6-1572 Super #2.   Then the same for Super payable and the same for Wages expenses.   I have set up seperate Super G accounts for each program linking to these accounts. I have also tried to do this for the entitlements.   You might have trouble believing this, but this is not working out too well.   I cannot get the different programs to come up with the correct amounts to ultimately total the correct super amount or leave entitlements for the employee's total number of hours worked per fortnight. 

Is there anyone out there who might be able to help please?

4 REPLIES 4
MYOB Moderator Steven_M
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Re: Linked Expense Accounts to Super & Leave Accrual

Hi @Kathy_Southside 

 

Each time you enter a value on a pay you are utilising a payroll category. The payroll category determines a range of factors such as the amount of that is calculated on the pay and the accounts involved for that amount. 

 

Depending on the type, superannuation categories offer two linked accounts; a linked wage account and a linked liability account. A category like Superannuation Guarantee (i.e. the 9.5% compulsory contribution) would have an expense to the business (linked expense account) and a liability to pass that onto the fund provider (linked liability account).  These types are categories are also special in the fact that it is doesn't solely look at the pay to generate amounts.

 

As superannuation is calculated on a month by month basis it looks at the whole calendar month to generate the amount. If you are changing superannuation categories each pay (or within the month), as each category is independent, it will look at the history for that category and say that it hasn't been paid thus will may increase the calculated amount.

 

In your case, I see three ways to deal with the situation:

  • Have just the one superannuation category with holding accounts and then record journals after recording your pays. As you just have the one superannuation category you are not going to encounter a situation where the employee has accrued superannuation already in the month and using a new category will have it accrue again.

  • Have the one superannuation category, process pay(s) with the desired linked accounts and then update the linked accounts to process the pays required with that linked account. As a transaction is recorded to the linked account at the time, updating the linked accounts and prior to processing will ensure that the correct amounts are processed to the relevant accounts.
  • Set the calculation basis on your superannuation categories to be User-entered amount. You would then manually need to calculate the superannuation amount each pay and enter that value against the necessary superannuation category.

Kind regards,
Steven

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Experienced Cover User Kathy_Southside
63 Posts
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Re: Linked Expense Accounts to Super & Leave Accrual

Hi Steven, thank you so much for your very speedy reply and apologies for taking such a while to respond.   I am not entirely sure I understand your suggestions but in the first instance I am trying to stay away from journal entries and I would like to achieve a more standard situation.   I've already started to put my head around a complete set of categories for each program ie base hourly, AL Accrual, PL Accrual and Super Guarantee with appropriate titles for difference. Each employee's pay slip will not change programs from pay to pay.  An employee only ever utilises the same program (categories) so Super, or any of the other categories, should never think it hasn't accrued yet (causing a doubling up of super, etc.). For each different wage category I put the appropriate number of hours against it and thus have leave and super accring on these hours and being allcoated to the appropriate linked account.   By having these different linked accounts I hoped I would be able to run reports showing all the wages/super expense account with their actual spends for each program. However... in all the entitlement categories I have had to move away from "Percent of Gross Wages" to "Percent of Wages" and this is scausing me a headache because when leave is taken the total number of hours worked is reduced (just maybe I don't need to tick "Automatically Adjust Base Hourly"?) thus super and leave accrual is not seeing the total number of hours and is therefore only accruing leave/super on the number of hours against the actual wage category and not including the leave hours as well. If I do understand what you are saying in suggestion 2, I can't see why I can't get it to be more standard than having to change the linked accounts from payslip to payslip from pay to pay - is this what you are suggesting?   Suggestion 3 could work as I manuallly calculate the super and leave amount each pay now - very tedious.   Thank goodness we are only a small company!! So once again, I would like to have a more standard setup.  Steven, really do appreciate your mind on this.   Thank you.

MYOB Moderator Steven_M
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Re: Linked Expense Accounts to Super & Leave Accrual

Hi @Kathy_Southside 

 

When you set an entitlement category to be Equals xx percentage of xxx payroll category, the entitlement will only be accrued based on hours entered against that payroll category. For example, if the entitlement is set to be Equals xxx percentage of Base Hourly the entitlement will only accrue of Base Hourly categories, not hours entered against another category like Overtime, leave loading...

 

If you need the entitlement to calculate on a series of categories set the entitlement to be Equals xx percentage of Gross wages. The Exempt button will then become applicable, within here you can exempt categories from being calculated as part of that calculation. For example say you want overtime not to be included in that calculation you would go into the Exempt and tick that overtime category in the list.

Kind regards,
Steven

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Experienced Cover User Kathy_Southside
63 Posts
Experienced Cover User
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Re: Linked Expense Accounts to Super & Leave Accrual

Thank you Steven, let me work with this now.   I will let you know what I get out of it.

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