I agree with Debbie. You can't magically pull money from nowhere. Each payroll, the employee accrues vacation pay, which needs to be tallied in a liability account (vacation accrued). When an employee take a vacation day, they are paid out of that liability account for that day's worth of wages. Which account gets credited when you pay someone for a vacation day? You say that Quickbooks keeps track of vacation accruals in the background, why can't it keep track of it in the forefront, in a liability account as it should be?