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mom2014

Contributor

02/09/12 2:43pm PST
Viewed by asker 02/10/12 6:42am PST

Adjustment affecting bk balance.

US QuickBooks Premier : 2009: Accountant

This is hard: Accountant asked me to make a j/e debiting 'payroll liabilities" which is a catch all account, and does NOT affect p/r liabilities, for fiscal y/e 11/30/10, saying it was off back in January 2010. I made the j/e dated 11/30/10. Ok, then my Dec 2010 and Jan 2011 rec bk balances and reports were ok, but the rest of the yr 2011 was off the amount of the adjustment. Today I mentioned I was having a hard time, and the accountant said they weren't sure if the entry should have been made or not!! So I deleted the j/e and now starting Dec 2010, my bk bal is off the amount of the j/e. Could use any help to this you have because we have a deadline. Thank you so much.

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6 Replies

theekp

Contributor

02/09/12 3:41pm PST

it sounds like the credit for this journal entry somehow went to a bank account, which it doesnt sound like it ever should have. if you were simply adjusting the liability account balance and not the PR liabilities (used to calculate the payments) i would assume the credit of the JE should have been to probably Payroll Tax Expense or Payroll Expenses (where ever your tax expenses are posting too normally)

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mom2014

Contributor

02/09/12 3:49pm PST

I am wondering why when I deleted the j/e that it went back to being stil off but now it's Dec and not February? Before it let Dec and Jan alone, and threw the diff into February. That made it short the j/e amount and now it's over. Here is the orig'l j/e she gave me : Debit: P/r liabilities and Credit: Bank for 4968.87. All I did was delete the j/e after she said today she was not sure about it.

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mom2014

Contributor

02/09/12 3:50pm PST

Thanks for the help I appreciate it. I have started re - recociling each month back to Dec 2010. Fiscal yr is 12/01-11/30.

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qbteachmt

Allstar, Accountant Community AllStar

02/09/12 3:53pm PST

For your reference, you never make journal entries to affect payroll liabilities.

You use Adjust Payroll Liabilities.

Every time someone uses a journal entry for payroll liabilities, the payroll liability function is not affected which means your ability to pay and manage and report accruately become more and more offtrack. Then, they attempt to make another journal entry to make another adjustment, and you can see how this spirals out of control.

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theekp

Contributor

02/09/12 4:15pm PST

You can make adjustments to the individual liability account, and in this case, the accountant told her specifically to make a journal entry to NOT affect the payroll liabilty function. Do whatever your accountant said. The trick is knowing if you want to affect your next liability check after the adjustment is made.

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mom2014

Contributor

02/10/12 6:42am PST