Multiple transactions appearing in bank register when processing employees pay run ( cash pays )

Legacy KB ID: 2053

Question

Why do my payroll transactions appear in my register as multiple pays when it should appear as one? I Pay my employees by cash and draw one cheque for the total amount of the pay run. It's also causing my cheque numbers to increment incorrectly

Answer

We recommend (in brief) you create a 'Payroll Transactions' Account and use this to pay employees, write a cheque from your existing bank account to the 'Payroll Transactions'. This will result in having one transaction appearing in the bank register instead of multiple transactions.

Steps in detail

1. Create a new bank account in your chart of accounts, you can call this whatever you like. We recommend calling it 'Payroll Transactions'. See help index 'accounts, adding a new bank account to your chart of accounts' if you require more information.

2. When processing the pay run make sure you assign the 'Payroll Transaction' account that you setup in step 1 to pay the employees. This appears in the top left corner in the Select Employees to Pay window.

3. Write a cheque from your real bank account to the 'Payroll Transaction' account. This will reflect one transaction in the bank register as it would appear in the bank statement used for reconciliation.

Note! For those existing payroll transactions appearing in the bank register; these can be deleted  and reprocessed as per instructions above.

How did we do?

Inactive Bank and Credit Card accounts available in Pay Bills dropdown menus

Error - Bank Account BSB and Number must not be empty when uploading a SAFF file to OzEdi

Related Articles

Processing a Pay Run
Bi-Monthly Employees have pay dates for pay run change.
Handling PAYG when there is an additional pay in a year
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