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  1. AU Payroll - Leave liability reporting

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    19 comments  ·  For small businesses » Payroll  ·  Admin →
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    Not in pipeline  ·  AdminKelly Munro (Community Manager, Xero) responded

    Firstly, thank you for all the support and detailed input on this idea. We know an automated Leave Liability Report could be a valuable tool for accurately reflecting a business’s financial position in AU Payroll.

    While it’s not something we’re planning to build in the immediate future, we’ve seen some useful suggestions from the community, such as using manual journal entries or tracking in spreadsheets, though we recognise these aren’t perfect solutions.

    We appreciate the time and thought you’ve put into sharing your feedback. While we’re moving this idea to Not in pipeline for now, we’ll continue to monitor its traction and share any updates if plans change.

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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