Leave Accrual - Correct decimal places to stop over accrual
Xero uses 4 decimal places when calculating leave accruals. As it doesn't use the standard 5 decimal places, like most payroll software, the amount of leave entitlement that you record from this in the liability account in the balance sheet and P&L expense is more than it should be.
But the bigger problem this is causing is the fact that it is actually giving the employee more accrued leave than they are entitled to.
Even though this is a small amount against each payroll, this will build up very quickly over time and as more & more employees are added, which is not good, especially for small businesses (which is what Xero was initially built for, to support small to medium sized businesses).
Please can you correct this to comply with the government standards.
Kelly Townsend
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