Changing account code in bank transactions

[RUNCO]

I have recently changed both my employee's wages from expense to a new cogs account no. I cannot change the setting in payroll (its padlocked) so I have un allocated the transaction (payroll) in the bank feed and reallocated it to my new account no in cogs. I have also created a journal for these entries. Can anyone confirm if this is the correct process? My bank reconcilation is still showing these items to reconcile. Another issue I am having is my new employee that started in October, his wages are being allocated to emloyee no 1s wages. I could see no options in the payroll settings or his payroll setup to allocate his wages to an account. This is now overstating employee no 1 wages. Any help would be appreciated.

[Tracey_H · Accepted solution]

Hi @RUNCO 

As explained on your post here you can't change the system Wages and Salaries expense account so you will need to record a journal entry to move the wage amounts from the expense account to the COS account.

Manually allocating to the COS account in Bank transactions will double the wage expenses. This is because the wage amounts are automatically allocated to the expense account when you record the pays. Then when you allocate the bank transaction a Spend Money transaction is created allocating the amount to the COS account. As such the wage amounts will be reported against both the expense and the COS accounts. 

In Bank transactions the bank feed should be matched to the pay transaction. Then record the journal to move the amount from the expense account to the COS account.

All employee's wages are allocated to the same wage expense account as this is the total wage expenses for the business. To check the individual employee YTD amounts you would need to run the Payroll reports.

Regarding your question about another veriosn of Essentials, yes there is an upgraded version that you will be migrated to. However, I'm not able to provide a timeframe for that migration, you will receive in product messages and an email when our migration team are getting ready to migrate your file. In the newer Essentials platform you can select a COS account as the linked wages account.

Please let me know if you need further help.

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

[RUNCO]

Sorry for my late reply, this makes sense, I have remedied the error now and now everything reconciles. Doing wages journals each week is no picnic however esp as employees have split wages into different bank accounts. I'd be keen to get onboard with the new update! Thanks for your help!