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VaVia1
Level 2

Negative Journal Entry

We use BBSI to process our payroll and they calculate Workers Compensation on a monthly basis according to our weekly payroll. Once processed, I capture the different buckets in a journal entry which then correlates to the bank withdrawal, making it simple to match transactions.

This month for whatever reason, the WC was a negative amount, which when saved moves the amount to the credit column and the entry from the bank to the debit column - both positive amounts.

This causes my journal entry to be "off".

 

How do I handle this negative entry for WC?

Solved
Best answer February 09, 2023

Best Answers
Rainflurry
Level 12

Negative Journal Entry

@VaVia1 

 

Your screenshot shows a $68.40 credit to work comp expense.  A credit to an expense account is a negative entry.

View solution in original post

6 Comments 6
Rainflurry
Level 12

Negative Journal Entry

@VaVia1 

 

It's not unusual to have a reduction (credit) in WC expense due to adjustments from your annual payroll audit or other WC policy adjustments.  Is it possible that's what happened?

Angelyn_T
QuickBooks Team

Negative Journal Entry

Hi, @VaVia1. Thank you for adding your first post here in the Community. I'm here to help you track your payroll entry in our system.

 

In QuickBooks Online (QBO), you can only save positive amounts for journal entries. And, yes, once you input a negative number under the Credit column, it automatically moves under Debit and vice versa. Since you're using the BBSI app to calculate your Worker's Compensation, you may contact them for support on how to handle the negative amount.

 

Alternatively, you may seek help from an accountant for further assistance. They'll be able to give you more insights with entering the negative WC amount on your journal.

 

 I'm adding this material for more information about this feature: Create journal entries in QuickBooks Online.

 

On the other hand, if you want to process payroll with QuickBooks, open this article as your reference: Create and run your payroll.

 

I hope we’ll stay in touch and get to work together again in the future. If you have other questions, feel free to leave a comment below if you have follow-up questions. Keep safe!

VaVia1
Level 2

Negative Journal Entry

I get that it happens - just how do you account for the negative entry in the journal for that payroll event?

Rainflurry
Level 12

Negative Journal Entry

@VaVia1 

 

Your screenshot shows a $68.40 credit to work comp expense.  A credit to an expense account is a negative entry.

VaVia1
Level 2

Negative Journal Entry

Now I guess I need to work out how to get it to match the bank withdrawal of $12,987.60....mmmm

FritzF
Moderator

Negative Journal Entry

Hi again, Rainflurry.

 

I appreciate you for always sharing your knowledge about QuickBooks. This will definitely help other users as well in the future. Please keep on posting here in the Community.

 

Keep safe and have a great rest of the day.

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