Many businesses using an accrual based accounting system prefer to keep up to date figures on leave liabilities without having to manually calculate and journal these figures into their Balance Sheet. To automate this process, you can configure the Chart of Accounts settings to map leave liability and expense General Ledger accounts. Once mapped, your payroll journals will then include the associated cost of any leave liabilities on a per pay run basis.
To configure the leave provisions, go to Payroll Settings, then Chart of Accounts. Click on 'Leave Provisions' from the Primary Accounts section to expand the details. You can then complete the following sections to set up your leave liability provisions:
For a short video on setting up leave liability provisions, click here.
For a detailed article on setting up leave liability provisions, click here.