AU Payroll - Leave liability reporting
We cannot see/create leave liability in our reports and/or our balance sheet.
I wonder how a true business value is going to be shown on balance sheet without this liability.
To be frank and honest, it is not an idea, but quite basic necessity.
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Finance Team commented
I am concerned about how these accrued leaves are reflected in the company's financial statements as a liability. When we calculate payroll in Xero, it does not automatically record this liability, even though these are expenses related to holiday that have not yet been pay. From a financial perspective, omitting this amount from the balance sheet seems incorrect. Can you explain why Xero does not update the liability records for leave accrual each time payroll is processed, given its significance in accurately representing the company's financial obligations? how should work:
1. The annual leave should be calculate as superannuation Xero process > the Leave expense account should an expenses "Annul leave accrual" and Annual leave liability account CXP should be Annual leave payable. in Payroll Settings. the calculation should be continue base on units, normal Entitlements 150, however when you include annual leave taken during the period when you make the payment the calculation should create a debit to the Annual leave payable account and credit to the 804 account: Wages Payable - Payroll
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simon moreau commented
The small business owner I started working with had no idea of the extent of the leave liability the business had. It showed "false" annual profit for years as leave liability wasn't adjusted when earned.
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Zac Walsh commented
How this isn't a feature in a piece of accounting software is absolutely insane.
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Lynne Kovaceski commented
I would like to see a function that enables Xero to automatically create a leave provision/leave liability
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Brooke Gowen commented
I would like to have a column added to the 'Employee Summary' or 'Timesheet Details' Report to assist with Long Service Leave calculations. A column showing days worked (rather than hours) as that's how LSL is calculated.
Or better yet a Report that is specifically for Long Service Leave. Something that can be set up in the company settings so the settings don't need to be done every return. For example a is day counted if worked for 4 or more hours. Gross earnings, including Sick Leave and Annual Leave (except not annual leave loading) and basic allowances.
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Caroline Cole commented
I'm staggered that the report is available for NZ but not Aus. This is a fundamental report for managing leave costs. C'mon Xero. So many reports needed and you're stuffing around trying to make the product "pretty".
I think you've forgotten your foundation customers. -
Ester Tiongson commented
Long service leave - coded as Long service leave expense instead of Ordinary Earnings