Accrued Vacation Journal Entries

So in the payroll system you are expensing vacation as it is used without accrual, but for the year-end you want to change to an earned(accrued) method.

Assuming you have correclt figured out all the accruals and entitlements, then all you need to do is adjust the 'unused vacation payable' liability account to the correct year-end balance.  The other side of that post will be to the 'vacation pay' expense.

You will have to do this by Journal Entry. 

It matters Where you are located.

For QB for Canada, this has to run through Payroll, because they are required to see the accrued time as a Cost, too. You cannot use a JE for this.

For QB for US, you won't have this requirement, except, I believe the tax table was updated to include this for some States that require it.

Look here for a Topic that shows the two different Images for this difference:

https://community.intuit.com/questions/1789755-how-do-you-track-vacation-time-in-qb-pro-canada

Example:

I an in Montana, and my governmental clients must show Accrued Value and Time, but they are not Linked. The Value to accrue as liabilty is All of vacation and 1/4 sick, for example. We rebalance at each fiscal year end using JE. The Counters for sick and vacation are populated through the Payroll Setup functions. Canada has both of these in that one Payroll function.