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dyoung
March 12, 2019
Solved

I'm trying to change the VacPay-Accrual Paid Out liability account but it doesn't give the option. Is there a way to do this?

  • March 12, 2019
  • 5 replies
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When making a termination payment where the employee has remaining vacation days, I manually calculate the payment and enter the amount into the "pay available" area under Payroll info> Vacation Pay for the employee.

Then I add the "VacPay-Accrual Paid Out" line to their last pay cheque to clear out the amount.

It looks like the last two I did posted to different accounts.  One to the automatically generated payroll liabilities account and one to the payroll liabilities account I created.  I would like them to post to the vacation payable account I created instead.

Best answer by NEVER

Vacation Pay Accrued is recorded to Payroll Expenses expense account if your payroll is set up correctly. If, as you say, vacation was tracked in a spreadsheet outside of QB, then Vacation has not been Accrued in QB resulting in a negative balance.  $0 was accrued, but real $ were paid out.

To correct, you must set up YTD amounts for Vacation Accrued each employee. Use the values from your spreadsheet.

5 replies

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Lise
March 12, 2019
Were you ever able to get a satisfactory answer to this question?  I am having a similar issue to yours and  could use your insight.
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NEVERAnswer
March 12, 2019

Vacation Pay Accrued is recorded to Payroll Expenses expense account if your payroll is set up correctly. If, as you say, vacation was tracked in a spreadsheet outside of QB, then Vacation has not been Accrued in QB resulting in a negative balance.  $0 was accrued, but real $ were paid out.

To correct, you must set up YTD amounts for Vacation Accrued each employee. Use the values from your spreadsheet.

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dyoungAuthor
March 12, 2019
Ok thanks again for your help!
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NEVER
March 12, 2019

The Vacation accounts are pre-set in QB. Creating your own will not function correctly. To increase the amount of Vacation Pay owing to an employee, edit the $ amount in the Employee Profile>Payroll Info>Vacation Pay tab. Enter the total Vacation $ available to the employee. This will adjust the amount available when selecting the VacPay - Accrual Paid Out on the paycheque.

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dyoungAuthor
March 12, 2019
Thanks for the response!  I did edit the amount owing as you say and then paid it out.  The issue I'm having is that the VacPay posts to the payroll liabilities account so now there is a negative balance.  Where does the expense side of the accrual post to when you enter an amount in the employee profile?
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NEVER
March 12, 2019

If there is a negative balance, you have Overpaid the employee's Vacation Pay. 

Screenshot 1 shows an employee's paycheque before VacPay adjustment - S120.40 available.

Screenshot 2 displays an adjustment of $100 being added

Screenshot 3 shows the same employee's paycheque after an adjustment of $100 was made - $240.40 available.

Screenshot 4 shows the $240.40 being paid out and leaving a $0 Available.

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dyoungAuthor
March 12, 2019
Sorry to clarify; I mean the payroll liabilities account is in a negative balance, not the "Vacation Available" amount for the employee.  It's because there's no offsetting expense for the accrued vacation adjustment.  When you adjust that number, what account does it expense?
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NEVER
March 12, 2019

You are likely looking at the Liability balances for a fixed period - like this calendar year. This will report ONLY the VacPay accrued and Paid Out during this period. Since Vacation Pay can be accrued over many years, more may have been paid out In the specified timeframe than was accrued. This is correct.

Change the date range to ALL. If there is still a negative balance, Vacation Pay has been overpaid sometime during the life of the data file.

Use the Vacation Summary Report to get accurate Vacation Pay numbers. Go to Reports>Employees & Payroll>Vacation Summary. Note that it opens with a date range of ALL>

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dyoungAuthor
March 12, 2019
Hi, thanks again for all your help!  A few more things to clarify the issue I'm having:
The vacation function was not being used at all prior to changing the vacation pay available in the employee profile so the report shows zeros other than the VacPay Paid Out amounts.  
I inherited the file and vacation has always been tracked in a spreadsheet and not in Quickbooks.  The vacation pay out is manually calculated and was previously just added to the salary expense.  I want the vacation pay to show up as another line item which is why I'm changing it.
The issue I'm having is with the expense side of these adjustments.  When you adjust the number in the employee profile, what account does QB expense?
Or possibly it doesn't post to any account at all?
I'm thinking now that I may have to accrue the amount manually in a general journal entry.
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Rochelley
March 14, 2019

Hi @dyoung ,

 

When vacation is accrued, through the VacPay-Accrued payroll item (which occurs on every pay cheque if it is set up properly or can be adjusted on the YTD screen to enter the correct amount of Vac accrued since the beginning of time . . . as @NEVER says, you cannot date your reports for vacation - they have to go right back to the beginning because it is a running balance, always moving), your Wage Expense account is debited and Vacation Liability is credited.

 

When you pay amounts using Hourly Vacation, Salary Vacation or VacAccrual-Paid Out, the Vacation Liability account is debited and the Bank account is credited by virtue of the fact that you are paying the employee, which will eventually clear the bank.  I think it is the Bank entry that you might be missing in your thinking . . . you have everything else right :)

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