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Payroll: Provisions for Annual and Long Service Leave

We need to know how much to provide for on the balance sheet for annual leave and long service leave each month and track these for our financial statements. All the information is available via Xero payroll (leave balances and pay rates for each employee as well as leave accrued and leave taken) but in order to account for this correctly we are expected to export reports and do the calculations ourselves. And we need to maintain external files to reconcile this to each month.
If Xero is offering a payroll and leave tracking function it should ensure the accounting entries for that function are captured correctly. This includes leave expenses and leave provisions / accruals.
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Robyn Hayward shared this idea  ·   ·  Report…  ·  Admin →
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  • Oliver Cassidy commented  ·   ·  Report

    Would somebody mind giving a run down on what the journal entries look like that you've been using to link AL and LSL leave provisions and expenses to the Balance Sheet?
    Since moving to Xero a couple of years ago I think all earnings have been paid from the same wages account, which I can change, but want to make sure everything is accounted for correctly so there may be a few steps to this

  • Steven Blaine commented  ·   ·  Report

    Guys this would be a game changer if you could implement it! I've been manually managing my clients annual leave & time in Lieu Liabilities for almost 10 years using Xero.

    I've been happy to do this historically however my business has grown substantially and I'd like to automate processes like this!

    I'm considering moving across to Tanda payroll as they have the ability to automate leave accruals when proceessing payroll..... (journals are created in Xero via their integration).
    Surely Xero could manage to get this functionality sorted!

  • Achini Pathiranage commented  ·   ·  Report

    I would like to allocate the annual leave taken , to the annual leave provision account, instead of the salaries and wages account. Currently, the annual leave earnings rate is set to wages and salaries expense acocunt, and I am unable to change it to a BS account, under payroll settings. It's great if this small can be implimented. Thank you.

  • Souter Rural Industries NZ Ltd commented  ·   ·  Report

    It would be great to prompt business users to review leave balances when an employee is approaching 20 days for budgeting purposes

  • Mandy Espiritu commented  ·   ·  Report

    Just to be able to link paid leave to a separate GL expense account would be useful. Why does all payroll go through 1 wages account.

  • Mitchell Yeo commented  ·   ·  Report

    This is a great idea, came here to submit the same thing. I am amazed it isn't already in existence.

  • lisa brunt commented  ·   ·  Report

    Yes I have the same idea, there should be at least a reminder date on the anniversary of employment so we can start accruing LSL

  • karina harvie commented  ·   ·  Report

    Long service leave accrual. Can there be a way for Xero to automatically add long service leave entitlement on the employees anniversary of employment.

  • Charlie Coyle commented  ·   ·  Report

    It would be great if our AL & LSL leave provisions were automatically linked to our balance sheets

  • Charlie Coyle commented  ·   ·  Report

    It would be great if our AL & LSL leave provisions were automatically linked to our balance sheets