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
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