I use Manager for freelance work. I record physical expenses and overheads (fuel, bills, phone, paper and pens etc) in the Payments section and claims/“virtual” payments (mileage, home as office deductions etc) under Expense Claims
How/where do I clear this Employee Clearing Account (Expenses) so that it is deducted from my total profit?
I assume I use a Journal entry, but not sure what the other side of the entry would be.
If I create a new entry in the CoA, can I just journal the balance across and the itemised trail would stay intact in case the tax man wants to look at it?
Thank you for the link.
Unfortunately nothing I do is working.
(For arguments sake) I have £1,000 in the Employee Clearing Account. I need that £1,000 to come off of my Profit. I have 1 named employee entry.
If I do a payment, then the liability goes to zero but the profit stays the same.
All I need to do is journal money from the main account to the clearing account. So the main account goes down and the, what should be, negative value of the clearing account is reset to zero.
I use Sage for my company accounts and thought Manager would be good for freelance work. But obviously they work differently
Please show us the Payslip earnings item in Settings. As soon as you issue a Payslip it will put the earnings item in the Expense Account and the same amount in the employee clearing account as it should. This means that you still have to clear that account through a payment but that will no longer affect the Profit and Loss account. This is the same for Invoices.
I think I have it. I was treating the employee clearing account as an additional expenses balance but it is already included in the P&L. So I have made a payment and as you suggested the P&L has remained the same and the account is now clear