Changes to Directors salary tagging

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1

I have just found out there has been a recent change to the way NET salaries are tagged from the bank, therefore creating a journal for each payment tagged, it took me a while to get my head around creating the manual journals each month and now I am unsure if I need to amend the way I create my monthly journals? I had created a journal at the end of October and have only just noticed the additional 4 entries moving the net wages paid to the P&L - my question is, has this now duplicated any entries I have made in my manual journal?

Did you inform of this change prior to it being implemented?

regards

Rob

2

Hi @Rob,

This change isn’t so much a change of the way things work, but rather a change to make things clearer.

When the option in your advanced settings is set to Off, it will move a salary payment from your balance sheet to the P&L when tagged. In this case we used to create 2 entries ‘behind the scenes’ to move it from the balance sheet to a P&L code. All we’ve done is brought this to the front in the form of a journal so you can see the actual entries that are being created rather than keeping it in just the nominal ledger.

In essence, nothing about the way this works has changed. Whether it has duplicated anything or not however would depend on how you entered your own journals. Ideally you should have the Post Net Wages to Balance Sheet Only switched on, it won’t create the journal for you automatically.

There’s more on this here.

I hope that helps!

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Thanks, this shouldn’t change anything then, I have the “Post Net Wages to Balance Sheet Only” turned off and part of my journal moves the net staff salaries paid (7003) to gross wages (7000) - hopefully this is fine?

Many thanks

Rob

4

To be honest, if you’re creating journals anyway then I’d say it’s clearer to set “post net wages to balance sheet only” to be ON, and then your journal would be net wages (2220 - balance sheet) to gross wages (7000 - P&L).

That way there’s just one journal (yours) plus the bank payment that simply posts direct to 2220, rather than two journals (yours plus the auto one) shuffling the money around from bank → 2220 → 7003 → 7000

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Thanks Ian, I will change this and see how I go.

Rob

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