Accrue Annual Leave in the General Ledger

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.

Further information

Automatically Calculated Accounts

General Ledger Account Types

General Ledger at a Glance

General Ledger Footer

General Ledger Reports

Linked GL Accounts

Add a GL Account

Add Opening Balances

Change GL Account Type

Edit the General Ledger Layout

Maintain the General Ledger

Print General Ledger Transaction Reports

Set Up General Ledger