Payroll advance online - how to reconcile an expense

Hello M for TF,

Thanks for the detailed post. Can I verify with reference to the scenario above, did you run the employee through the payroll with the wage as £100 and then create and then create the £10 expense, or for the £110 and then create an additional £10 expense? 

Thanks

Thanks for the reply and question.

I ran the payroll and in the payroll was an expense on a timesheet.

The wage £100 and £10 expense was was paid to the employee. 

The receipt for £10 was entered separately as an expense in order to account for the VAT.

So I am guessing the answer is the second one?

Thanks for clarifying, M for TF. 

We can account the expense to the Payroll Clearing account to zero out the unallocated £10 instead of Repair and Maintenance. Let's reopen the transaction and then change the account under Category to Payroll Clearing account. Confirm the changes and review the register to see if the amount clears out. Then, reconcile your account again. 

I also recommend reaching out to your accountant so they can advise on how to account your payroll expenses. 

I'll be around if there's anything else that you need help with. I got you!

Yes you would assume that would do it.  What that does is allow the zero-ing out BUT it does not allow for the VAT element.  Therefore I am given the option of allowing Payroll Clearing to zero out and NOT accounting for the VAT, or I account for the VAT and have Payroll Clearing showing a £10 imbalance.

If anyone has a solution it would be most helpful. 

As I anticipated, there isn't a way.  It really is basic but the programme cannot handle it.