I have noticed that the tagging of directors salary has changed.
before it would be posted directly to account 7001 from the bank. It is now tagging to 2220 (net wages in balance sheet) first and then an automatic journal posts it from 2220 to 7001.
This also means that I am unable to delete this tagging in the bank account as it becomes a ‘locked’ transaction.
I note that I have switched OFF the button to tag net wages directly to balance sheet.
And previously the tagging did go through 2220 account, but not in a journal form.
This is correct, we’ve recently updated the system to create a journal when a salary payment is tagged from the bank and the settings are configured to post the NET wages to the P&L.
The reason for the change was due to the fact that there’s two sets of credits and debits in this transaction.
CR: Bank
DR: Net Wages (2220)
CR: Net Wages (2220)
DR: NET Staff Salaries Paid (7003)
This keeps them in a logical group and allows the journal to be extended as required.
Previously we were finding cases where users had re-dated the bank payment but not the associated P&L movement or vice versa. If you need to re-date these transactions this can be done by drilling down on the journal and changing the date there.
As the sole director / employee I pay myself a small quarterly salary. This goes directly into the Directors Loan Account. So to “pay” myself in July I made an entry in the Loan Account Statement and tagged it to net wages. It appears in “Directors Salaries (7001)” as “Net Wages Paid (Director)”. In “Net Wages (2220)” there’s two entries, a “Salary payment” and a “Net Wages Paid (Movement to P&L)”. This time round I tried to do the same but I ended up with a single entry in Net Wages (2220). And I could not seem to resolve it. So today I deleted that entry in the Loan Account and started over. I created a “money out” entry in the loan account statement and then tagged it as “Employee Salary (PAYE)” and ticked the director box. Now what I have in 2220 is two entries, but instead of “Salary payment” and a “Net Wages Paid” I have two Journal entries, on for Net Wages and the other for “Movement to PL”. Is this all correct?
Should I delete and recreate the earlier salary payment so that it is accounted for in the same way?