Hi,
I have a more specific question that I am looking to finally resolve that I haven’t yet regarding this.
In terms of vacation time earned, which occurs every paycheck, it does not appear that the actual accrued liability is appearing.
Meaning, for example, if someone earns 4 hours of vacation time in a paycheck period (80 hours) with a salary of say $132,000 ($64.46 per hour), then they would have earned (accrued) $253.85 worth of vacation time.
We have an expense account under our chart of accounts titled “Payroll Expense – personal time” which generates a “$0” entry with each paycheck ran for each employee. I presume this is somehow supposed to generate the expense of vacation time earned (as a debit). I do not however see any “$0” entry under our accrued liability account.
In testing our vacation time used, each paycheck where vacation time is used, it is correctly subtracted from the accrued liability pool of vacation time – which is good.
Could you provide some thoughts on our setup here with solving this issue of not having the vacation time earned hit our financial statements?
