Duplicate Employer Liability
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Gayle
- Posts: 8
- Joined: Sat Mar 06, 2004 12:36 pm
- Location: Mount Moriah Missionary Baptist Church
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Duplicate Employer Liability
Our payroll is posted into fund accounting of course, but the problem is that we have employer tax liability as an expense that is posted from payroll and another employer tax liability that is expense that we pay from AP. Were we suppose to set up the payroll employer lialility as a liability and not credited to expense? What did we do wrong? It comes out as a duplicted expense in the income/expense report. How would I solve this problem even from months that are closed? I'm in Power Church 9 but was in 8.5 Thank you.
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Matt
- Authorized Teaching Consultant
- Posts: 733
- Joined: Fri Dec 05, 2003 4:04 pm
- Location: Jacksonville, AL
You did the right thing in setting up the employer tax liability payroll item as an expense in the Payroll Module. The problem is that when you went to pay this liability in the Accounts Payable module it sounds like you debited the expense account and credited cash. What you needed to do was debit the liability account and credit cash.
If this is the case, then you will have a balance in your liability accounts that will never get paid, since you have paid it already. You won't be able to make a correction for this to months that are closed. However, you can correct this in an open month by making the following journal entry in Fund Accounting for the duplicated amount:
DR Liability Account $.XX
CR Expense Acccount $.XX
This entry will correct the duplicated expense that you are seeing on the Income and Expense report and also correct the liability accounts at the same time.
If this is the case, then you will have a balance in your liability accounts that will never get paid, since you have paid it already. You won't be able to make a correction for this to months that are closed. However, you can correct this in an open month by making the following journal entry in Fund Accounting for the duplicated amount:
DR Liability Account $.XX
CR Expense Acccount $.XX
This entry will correct the duplicated expense that you are seeing on the Income and Expense report and also correct the liability accounts at the same time.