The following outlines the setup to accrue annual leave:
Add the following general ledger accounts:
2-XXXX Holiday Pay Accrual
9-XXXX Provision for Holiday Pay Expense.
The 9-XXXX Other Expense type account is used so it is below the line in the P&L.
To record the opening balances:
Add a general journal > date as required > GST Type = Purchase
Credit the 2-XXXX Liability account
Debit the 9-XXXX Expense account using Tax Code X on both lines.
Create Similar and add a general journal at the end of each month to reflect what is accrued each month.
When paying annual leave, expense the pay to the 6-XXXX Wages and Salaries GL account in the payroll journal as usual
Add another general journal to reflect the movement eg. debit 2-XXXX and credit 9-XXXX to reflect the leave paid, again using tax code X.
How to
Edit the General Ledger Layout
Print General Ledger Transaction Reports