How do I record my existing current leave accrual balances as liabilities for the first time?
To record your liability for the first time: • From the Entitlement Balance [Summary] report printed or displayed, obtain the dollar amounts you want to record as your liability. • Go to the Accounts command centre and select Record Journal Entry. • For positive balances, select the expense account for the leave expense and enter the dollar value of the accrual as a debit. The tax code would normally be N-T. Select the liability account for the leave liability and enter the dollar value the accrual as a credit. The tax code would normally be N-T. • For negative balances, select the leave liability account for debit amounts and the expense account for the credit amount. • Click Record. Since these balances may be attributable to prior year(s) accruals, some users may choose to apportion part of the value to retained earnings. If you are uncertain about which accounts to use, please refer to your Accountant.
