Hi. I’m struggling a little with the BS 220 Net Wages amounts and mostly what looks like double counting on the P&L with having both 7000 Gross Wages and 7003 NET Staff Salaries Paid along with all the PAYE costs. Our payroll costs are therefore showing as significantly larger than they are.
I’m not an accountant and can’t afford one right now so need to figure out what on earth is going on…?
You probably just need to go into your QuickFile account settings and enable the option to “post net wages to balance sheet only”.
The default setting has that option disabled, which works if you have a very simple payroll without any deductions (e.g. a director taking a minimal salary below the NI threshold and the rest of their pay as dividends). In this mode when you tag a bank transaction as a salary payment QuickFile adds an additional journal to move the same amount from the normal net wages balance sheet code over to 7003 on the P&L.
If you’re using a proper payroll system to post journals then you need to set the “balance sheet only” option, as your brightpay journal has already taken care of recording the P&L cost and the balance sheet liability.
To fix things retrospectively you should just be able to edit the existing QuickFile-created journals to remove the lines that credit net wages and debit 7003.
Thanks Ian. I do already have the “post net wages to balance sheet only” enabled, did that when i started doing Brightpay journals, hence not expecting to have this issue. Unless it’s a glitch and has been posting twice.
There are no additional quickfile-created journals to edit, only the brightpay ones
Hmm, having “post new wages to balance sheet only” set to “off” is the only thing I can think of that would cause anything to be put on 7003, unless there’s something happening in the journals that BrightPay creates. I suspect this will need someone from @QFSupport to take a look at your account from their back end.