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Community > AU Payroll >

AU Payroll: Reconcile a payroll payment - Wages don't flow through to reconcile transaction list

Started by Antony Dowdle -   in AU Payroll

When wages are processed through payroll, all of the data should be available for Xero to provide the reconcilliation check, this does not occur

Currently you have to "spend money" to create the transaction but it is clearly not Reconciling the account. if there is an error it is not picked up by the process and as such is not a true reconciling "checking" function.
Reconciling is a check in the system against the payments, and should not be a primary data entry location.
If the pays are incorrectly high or low, this process will not pick up the error.
This is a fundamental error with Xero.

It also doesn't let you split the expense easily as it should. you have to go in to the transaction and find out the split from direct and indirect wages :(
Hi Anthony
this is already supported in Xero.
You need to post the net pay from payroll to "wages clearing account" and then when you make the payment on the bank code that to wages clearing account and reconciliation happens.
This is done on payroll settings

You can also control which expense account is used without needing to go to the transactions. Set up more payroll items - earnings, as you set the expense account on the item
 

Tony Finch  

Thanks Tony,
can you give a little more detail on how this works. (step by step would be awesome) or a video clip of you stepping through it.
happy to get in touch with you privately if it suits you
Tony
 

Antony Dowdle  

Hi Anthony
probably easiest if you call me 0417954748
tony
 

Tony Finch  

Thanks for the convo here, Anthony and Tony - great to see awesome collaboration within the Community. Looks like you've got this sorted so I'll close off the request and return the votes - feel free to add these to any other areas you're wanting to see change in 😀
 

Cassidy Hall (Community Manager)