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shereey
Level 2

Annual Leave Liability Report

On the 3rd July 2020 I ran a Leave Liability Report for Annual Leave as at 30 June 2020.    

I've just gone back today (26/8/2020) and run the same report as at 30 June 2020.

The leave balances (in hours) for each employee are different.  I would have assumed as I am running the same report as at the same closing date, these balances wouldn't have changed.

Why is this?

Solved
Best answer August 27, 2020

Best Answers
Steven_Product Champion
QuickBooks Team

Annual Leave Liability Report

Glad to hear! No that make sense to me, as you pointed out the Leave Liability report can be subject to change based on leave accrual for the employees. Moving forward I think this a good clarification that will help your clients or any new clients down the road. 

 

 

-Steven

View solution in original post

3 Comments 3
Steven_Product Champion
QuickBooks Team

Annual Leave Liability Report

Hi shereey, 

 

The changes would come from the employee's potentially taking annual leave after the 30 June 2020. Within the payroll system, when running a report on employee leave balances as of a certain date, it will show you the active balance as of that date, but this is subject to change if the employees have taken leave, before any new leave has accrued for them. Unlike reports in QuickBooks such as a Balance Sheet report, whilst this provides a 'snapshot' of the balances at that time, in QuickBooks Payroll the leave balances remain active and disposable, subject to leave taken no matter the financial year which then reflect as changed on payroll reporting. 
 

I would encourage you to run an audit through either a Pay Categories Report, filtering for annual leave or for a Pay Run Aduit Report as well to track if employee's have taken new annual leave since the 30 June 2020. After running this audit and you still feel the changes are not justified you are welcome to contact us by clicking here.

 

Thanks, 

 

-Steven

shereey
Level 2

Annual Leave Liability Report

Thanks Steven,

I worked it out.  The leave liability report is taking the last accrued balance (leave balances report) and adding extra days accrual to the end of the month.  i.e last pay run f/n is 21/6/2020, so adds 7 days accrual being 7 working days from 21/6 to 30/6.  That's what I've been working with as my accruals for reporting purposes.

However, if you go back and re-run the leave liability report as at 30/6 it doesn't show the accrual of the extra 7 working days, but just the accrued balance as per the leave balances report. i.e. defaults back 

This is why now if I run a leave liability report as at 30 June, it is showing an accrual of 7 days less than I initially accrued.

Hope that makes sense.

Steven_Product Champion
QuickBooks Team

Annual Leave Liability Report

Glad to hear! No that make sense to me, as you pointed out the Leave Liability report can be subject to change based on leave accrual for the employees. Moving forward I think this a good clarification that will help your clients or any new clients down the road. 

 

 

-Steven

View solution in original post