Why there can be discrepancies between payroll reports and profit and loss Statements

[narellesales]

Can someone help me with my assignment?

Give one example of why there can be discrepancies between payroll reports and profit and loss Statements.

[Tracey_H · Accepted solution]

Hi @narellesales 

Thanks for your post. I'm happy to explain how those reports filter their data which should help with understanding why there would be a difference.

• Payroll reports filter by the payroll categories used when processing payroll
• Profit & Loss reports filter by accounts, so this will include all transactions posted to wage accounts not just pay transactions

For example, a Spend money transaction can be allocated to a wage expense account but won't be allocated to a payroll category.

Good luck with your assignment.

If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

[megan22]

An example is - at year end particularly, you would accrue for wages up to the end of the period which have not been paid yet - therefore, you will have wages in the P&L but they are not on the Payroll report.  It is a reconciling item or timing difference.