Using Payslips and Wages and Salaries

I am new to both accounting and this software. I have left most things at default, just trying to keep things as simple as possible for now.

I have set up an employee, successfully created a payslip and now I’m trying to reconcile the accounts.

From the shots you can see there is a difference of £60, which is the same amount as the payslip item but it doesn’t appear in the transactions pane. Am I trying to do something that I shouldn’t be or am I missing a step somewhere along the line.

I have looked around the forum and I can see other references to the same sort of problem but I can’t see an explanation that I understand or I can follow to resolve my query.

Many thanks.

Without seeing your accounts, I cannot be certain, but I don’t think your problem has anything to do with the payslip functionality. Rather, I suspect you’ve created a payslip and perhaps not actually paid it from the bank. Or you have not got cleared dates set correctly in the transaction to match the bank statement. Have a look at those things.

Great thanks, I can tell you the date is correct and I think you are right that it hasn’t been paid from the bank as I haven’t done it at any point. Is this a separate function that I have to do manually? If it is manual, I can see wages and Salaries in the chart of accounts but it is not an option when I use the drop down box during the spend money. There is a payroll liabilities and an employee clearing account, should I use one of those?

I’m the wrong person to ask about details of the payroll functions, because I don’t use them. But yes, you definitely have to enter the payment from the bank account. Otherwise, the only thing you’ve done is create a liability to pay.

Thanks Tut, I’ll see if anybody else replies and keep playing with it to see what happens.

Hi Again, I think I have it! Your post prompted me to look again at what I had and once I’d manually created the expense using the 'employee clearing account the liabilities were reduced accordingly on the summary page. From my novice eyes it all seems to be hunky dory. Thanks for your help.

Yes, creating the payslip puts the expense into the P&L and the liability into Employee Clearing and if tax has been deducted into Payroll Liabilities.

Then to make payment Spend Money with Account = Employee Clearing

Brilliant, Thanks for the confirmation.