The General Ledger (GL) can include Leave Liability for users wishing to automate the process of updating their GL with the leave accruals each month.
Whenever an update of leave entitlements occurs, the _iptblEmployeeLeaveAccrual table is updated with the value of the employee’s leave accrual when the next End of Pay is processed. Where relevant, an update occurs for annual leave, sick leave, long service leave and user defined leave.
There may be instances where a user does not wish for leave changes to be included. For example, Bob Jones has been transferred to ABC Company. Bob's leave balances as at 31/08/2021 will be transferred. Payroll does not want this balance included in GL leave liability, as this has already been added to the accounting software. In these instances, the Payroll user ticks the Initial Balance checkbox and the changes won't be included. If the checkbox is not ticked, the adjusted balance will flow through to the GL when the next End of Pay is processed.
The checkbox is also available in Payroll, Transactions, General, Update Leave Entitlements window.
Create Ledger Accounts for Leave Liability
If you the ledger accounts for leave liability don't already exist, you will need add them before setting up the batch.
Go to General Ledger Integration, Maintenance, Accounts.
Click Add.
Enter the Account and Description.
Select an Account Type. If you don't want to include the Account in your export file, select Not Posted.
Click OK.
Create a Leave Liability Batch
It is advised to set up a separate GL batch for the leave liability.
Go to General Ledger Integration, Maintenance, Batches, Batches.
Click Add.
Enter a Code and Description.
Select the File Layout.
In Filename, enter the Path and File Name you would like to save the General Ledger Batch to. You can alternatively use the Browse button.
Enter an account in Default Post Contra To; however, this is not essential if balance Accounts will be used in the setup.
Click on the Details tab.
Click Add.
In the Type field, select Leave Liability.
Select Leave Type.
In Post As, select either Credit or Debit.
The Rate field defaults to Normal Rate. Select Award Rate, Other Rate, or a User Defined Leave Rate if desired.
In Post Contra To, select the relevant balance Account.
If the Leave Type is Long Service Leave, tick Apply Contingency if you don't want to include the liability until the contingency period has passed. This is defined in the Pro Rata Entitlement section of the Long Service Leave class.
In the Post By area, tick any or all options for posting by Cost Account, Component, and Employee.
At the bottom, click Add.
Select Cost Account, or use a wildcard. See below for more details on wildcards.
Enter or select Ledger Account.
Repeat steps 17 and 18 to add all cost accounts.
Click OK to save.
Repeat steps 8 to 20 for each leave type.
Once setup is complete, click OK again in the Editing Batch Details window to save the new Batch.
Wildcards
Two wildcards can be used for Cost Accounts. Percentage (%) is used for multiple characters, and underscore (_) is used for single characters.
If you see . . . | MicrOpay Evo will . . . |
% | Pick up all Cost Accounts. |
30% | Pick up all Cost Accounts that start with 30. |
4_-80 | Pick up all Cost Accounts that have 4 as the first character, anything for the second character, and end with -80. |