Payroll Liabilities Reconciliation Out of Balance

The Pay Liabilities function in Payroll has a related Pay Liabilities Reconciliation report.

The Payroll Liabilities report looks at the balance of certain accounts and compares them against the transactions you have entered through the Pay Liabilities window. You may find that it reports an out-of-balance figure.

If the report shows an out of balance amount, go to the Accounts tab in Index to Reports, go to the Exception section. There you will find a report called the Payroll Liabilities Reconciliation report. Run this report for the same time frame.

The Payroll Liabilities Reconciliation exception report is designed to provide reconciliation help where all the payments made in relation to Payroll Liabilities have been recorded exclusively by means of the Pay Liabilities function. It compares the balance of certain accounts against the sum of the transactions entered through Payroll liabilities. This report will list the transactions that were recorded that may have caused the exception to the reconciliation, therefore causing an out of balance to occur.

If this reconciliation is out of balance it could be because you may have recorded some of your Payroll Liabilities payments, for example, by means of a Spend Money transaction, the report will not include that amount in the sum of payments you have made. However, because you would have allocated them to the relevant payroll liability accounts (quite correctly) the payment is reflected in the decreased balance of that account.