Spurious Foreign Banks Account Journal!

[Mike]

Hi,

When allocating a bank transaction involving Payroll, Quickfile has created a Foreign Bank Account Loss/Gain journal. This has caused an error in the accounts.

The resulting journal is

Credit : 1200 Bank Current Account 1726.04
Debit : Net Wages 1726.04
Credit Movement to PL 1726.04
Debit Movement to PL 1726.04

Note, on the last three transactions, the nominal code is not shown in the journal.

I have not the faintest idea how this could have occurred. We do not use foreign bank accounts and the Payroll entries are very straightforward.

I am in the process of preparing the Year End Financial Statements. Help would be greatly appreciated.

[ian_roberts]

I’m not sure I follow - that’s the normal journal you’d get if you tagged a salary payment from your default “current account” (1200) and you haven’t set the option to post net wages to balance sheet only. The journal you’ve shown has nothing to do with any foreign currency bank accounts.

[Mike]

I know, thats what confused me.

The incoming transaction on the bank account was tagged by me as Net Wages Payable - This is a balance sheet account.

An earlier payroll journal - taking the valued from PAYE Tools set up the balance sheet amounts due in respect of:

Net Pay
PAYE
NI
Pension

and the P&L amounts charged in respect of

Wages and Salaries
Employers Ni
Employers Pension Contribution.

[Mike]

However - you have pointe me in the correct direction. I was not aware of the Post Direct Wages to balance sheet option. I have now set this, delete the ‘rogue’ journal and re-entered the transaction and now all is well.

Very many thanks