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Post Info TOPIC: Wages in Profit & Loss


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Wages in Profit & Loss
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Why is wages not appearing in the Profit & Loss report on our accounting system?

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Guru

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Perhaps a bit more information would be great. I know we're good, but I'm not sure anyone here has a crystal ball or ESP.

What system are you using? How are you processing your wages?

Kris

Just a wee edit, my second sentence is intended to be light hearted and not to cause offence.


-- Edited by kjmcculloch on Thursday 8th of July 2010 06:18:09 PM

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Kris McCulloch 
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Sorry, children demanding dinner meant shortened question!  We are using Liberty Accounts and salaries are currently manually journalled out of the bank account into the wages nominal account.

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Is it only wages that don't show, or are other things missing too?

Kris

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Kris McCulloch 
Tel: 01563 370123

The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.


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Sorry, just realised Liberty Accounts is one of these new fangled cloud things. Have you asked their support team. They should be able to look at your account and tell you what you're doing wrong.

Kris

-- Edited by kjmcculloch on Thursday 8th of July 2010 06:24:31 PM

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Kris McCulloch 
Tel: 01563 370123

The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.


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It's all current liability accounts.  I've been looking at this too long and I'm going round in circles.  Shouldn't wages be an expense account?  In Liberty the standard chart of accounts sets it up as current liability.

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I thought wages was both, you post to expenses and liabilities and then clear liabilities when yoou pay them from your bank. :/

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Steve


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Yip, Wages should show under expenses in the P&L.

Kris

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Kris McCulloch 
Tel: 01563 370123

The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.


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I'll phone support tomorrow but I'm guessing I'll have to add a new wages expenses account (for some reason this isn't a standard option in Liberty) then debit expenses and credit liabilities then when salaries are paid, credit bank and debit liabilities to clear it?

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Yep thats it exactly.

Journal wages

DR gross wage (expense)
DR employers nic (expense)
DR employers pension contribution (expense)
CR net wage (liability)
CR hmrc (liability)
CR pension (liability)

CR bank
DR liability when paying net wage, pension company or hmrc.

You can of course seperate the liability hmrc a/c into two seperate accounts labelled nic and paye if you like.

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Steve


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Thanks, that's great. Now I know I'm not going mad!

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