Skip to main content
T
thaotran2610
October 18, 2019
Question

Accrued Vacation Liability Account

  • October 18, 2019
  • 3 replies
  • 0 views

I'm currently using Quickbooks Deskstop with manual payroll calculations. We just did a test run for our first payroll and the Accrued Vacation amount (unused vacation owing to our employees) doesn't show at all on our balance sheet. We tried to map the liability account to Vacation payroll item through Payroll Item List but it only allows us to map it with an Expense account, which is for once the vacation is paid out to employees. 

Is there any way to fix it?

Thank you!

 

 

3 replies

L
LauraAB
October 18, 2019

Hello thaotran2610,

 

I know it's important to make sure your books are balancing and that you have all the information you need for your business. Great job with the steps you've taken so far and I appreciate what you've described here with how your payroll items are mapping.

 

In situations such as these, it's often easier to have someone take a look at this with you. Luckily, QuickBooks Desktop's phone support team has the option to screen share. Doing this, they'll be able to see what you're seeing and let you know where any missteps may be.

 

Vacation Pay type payroll items should allow you to pick a liability account. For instance, I have mine for vacation accrual set up to go to a liability account called Accrued Vacation Payable, which is a sub-account to my Payroll Liabilities account. Try to see if you're able to scroll through the list to get more options other than expenses when setting up the payroll item.

 

Otherwise, give us a call. The number to dial is 1-877-772-9158. Learn more about support hours and policies here: Intuit QuickBooks Desktop Software support policies

 

Have a great weekend!

R
Rochelley
November 1, 2019

Hello @thaotran2610 

 

This would happen if you are not using the built-in Vacation items that are native to QB.  If you are using the correct payroll items, you will have the option to enter an account for the Vacation expense, i.e. Salary or Wage Expense and an account for Vacation liability, i.e. Vacation Payable.

 

You cannot set up your own Vacation payroll items because Quickbooks will not behave as expected when you do.  If you do your own, you will only have the option to enter an expense account, which as you said, will only hit your P & L and not your Balance Sheet.

 

Just curious, how do you have access to any Payroll items at all if you are doing a "manual" payroll?  Are you subscribed to the payroll service?

    D
    droybal
    February 26, 2020

    Yes,  there should be a liability account option as well. Please let me know if you figure out how to do this.

     

    R
    Rochelley
    February 27, 2020

    Hello @droybal ,

     

    There is a way to do this in QB Desktop, if you are subscribed to the QB payroll service.  The built-in Vacation accounts already track to an expense account of your choice and a liability account of your choice.  If you are not subscribed, then you would have to do it all manually by entering your calculated amounts to each account you want to hit.  Wage Expense, Vacation Expense, Vacation Liability, CPP & EI Expense & Liability, and Fed/Prov Tax Liability.  

     

    I'm not totally clear on what you're asking, so I've misunderstood your question, please let me know.

    D
    droybal
    February 27, 2020

    Thank you for your prompt response.  Yes,  you do understand my concerns.  When I set up PTO it only has an expense account.  It doesn't have the option to set up a liability account also to show the accrual on the Balance sheet.  I called support but the only suggestion was to make a journal entry each month.

    I'm not sure if Quickbooks changed the vacation set up.  I do have the annual payroll subscription but vacation no longer has the option of assigning an expense account and liability account to it.  If I recall correctly older versions of Qbooks did have that option.  I'm currently using Enterprise 2019.  

    Terms & ConditionsAccessibility statement