Accrual Adjustments

Use the Accrual Adjustments function to make adjustments to leave accruals calculated using the Calculate Checks or Manual Checks function. The Accrual Adjustments function can also be used to add accrual amounts to leave time for bonuses or other such reasons.

If you have prepared multiple checks for a single employee, the system calculates the leave accrual amounts for each check, but the accrued amount displayed in the Accrual Adjustments function (and the amount you can adjust) is the total accrued for the entire pay period.

After you make the adjustments, print the Leave Report to verify the accrual amounts.

  1. Select the employee for which you want to adjust accrual amounts from the Employee ID field.
  2. Make adjustments, if applicable, to the Current Pay Period Accrual field.
    Note: This field updates when you run the Calculate Checks or Manual Checks function.
  3. Click the Save button, on the toolbar, to save any changes made to the accrual amount.
    Note: Use the Leave Adjustments function to make any necessary changes to the Hours Accrued Year-To-Date, Hours Taken Year-To-Date, Hours Taken This Period, and (Pre-Post) Remaining Hours fields.

Since payroll processing is always reported on a calendar year basis, you may need to make a journal entry in General Ledger to reflect the accrual for gross pay that is earned in the year but not paid. Normally, this accrual is calculated for labor costs only, excluding payroll taxes. To make this entry, calculate the number of days in the previous year that have not been accounted for and figure your labor costs for these days.

In General Ledger, make a debit entry to your Department Expense account and a credit entry for the same amount to the Accrued Payroll account, or the account that you have set up for this purpose. In the new year, you will reverse these entries since they will be accounted for in the normal accounting cycle. In other words, you will now debit the Accrued Payroll account and credit the Department Expense account for the same amount.

This situation usually exists only for companies who pay weekly or biweekly instead of monthly or semimonthly, since the payroll periods may not end exactly at the end of the year. If you have additional questions on this procedure, consult your accountant.

To have the accrual entries automatically entered into the first period of your next year use the source code of 'R1' when entering your manual transactions into the last period of your prior year. When you write these transactions to the journal, an entry will automatically be made in the first period of your new year with a source code of 'R2'.