Hi,
I have one additional follow up question about this. If we are seeking to show the actual vacation time liability (dollar amount) on our balance sheet, could we set / connect this to the/a liability account on the chart of accounts?
We already have a chart of account item for this that we would previously manually enter through a general journal entry.
Presumably how this would work would be that we may need to manually enter a general journal entry for new vacation time earned (i.e. $ rate x hours), but then every time payroll is run with the use of any personal time it would be automatically reduced via what I noted above.
Two Questions:
- Is my first assumption correct regarding changing the connected / associated chart of account (fully knowing that if we don’t start with wherever the employee is say TODAY with their vacation time accrual dollar balance that any vacation time used it could be a negative liability on the balance sheet).
- Is there a way to automate the actual earning of vacation time into the same liability account?
Thank you.
