Unpaid Salary - Accrued Salaries and Wages

Hi all

First of all thanks for the great software.

I am the owner of the startup company and not every month getting salary for management services I provide. So, we add journal items for unpaid salaries in Accrued Salaries and Wages (CR) and Salaries and Wages (DB) and showing in Liabilities section. Is there any time limit that these jounral items still in there? For example, some items still not paid to me and still looking in liabilities section more than 1 year? How should we configure such unpaid liabilities? What is your advice on this?


The unpaid salary can stay in the liabilities for as long as there is an intention to eventually pay them, otherwise those that are beyond any intention to pay should be reversed.

When you state “not every month getting salary for management services” does this mean that you get paid in some months - is that correct.

If that is correct, then every month you should do the Journal and then any payments should be put to the liabilities account, so in effect the oldest outstanding salary gets paid first.

Thanks for the answer.

For example, in 2015, we have 11 unpaid salary (January-November) for example with each of them 100$. We only paid January 2015 salary at December 2015 (Paid from Spend Money in Bank account with Accrued Salaries and Wages account selected). At the end of 2016, we also paid 2 of them (February and March 2015) from the same way .

Currently 9 of them is unpaid and 3 is paid at the end of 2016. Currently liabilites section shows $800 at Accrued Salaries and Wages ($1100 - $300). If I click Journal Entries section, I still see manually creaed 11 journal items. Do I need to remove the paid journal items from there after pay the salary?

Eventually we will pay all of these unpaid salaries in 2017? So, do I still need to reverse these unpaid items? If so, how to reverse them?

Thanks for your great help!

Once you create a Journal entry it stays created, any payments simply reduce the account’s outstanding balance. Based on your data above the liabilities account is reflecting the correct balance.

If the intention is no pay out the 800 during 2017, then you can ignore the comments regarding reversals.