Net Salary Payment to director appears twice at the journal entry

Accounting
1

Hello,

I’ve just created a bank payment for net salary without a payroll journal and tagged it as a Director salary, £702. When I open the journal entry for this monthly payment it appears on Net wages and Movement to PL, both on debit and credit. So the total amount on the debit and the credit is double than what I recorded on the bank payment, £1404. Could someone confirm that this is right please?

Thanks

2

Yes, it should appear as

  • debit the P&L code (gross wages or director salaries)
  • credit net wages
  • debit net wages
  • credit bank account

The net wages credit and debit cancel out and the overall effect is to move £702 from the bank account to the P&L code (remember “credit” against a bank account code corresponds to “money out”, and debit means money in).