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Community > AU Payroll >

AU Payroll - Annual Leave in Chart of Accounts/Budget Manager

Started by Adele Thorsby -   in AU Payroll

Hi all,

I'm just wondering how everyone else budgets for Annual Leave and Sick Leave and the loss of labour (therefore reduced income) in the Budget Manager? I can't tell if I've confused myself and doubled up, or if I am on the right track.

We are trade business, so our labour and therefore wages are treated as a direct cost.

If I have my full timer off on annual leave, I'll still be paying his normal wage (plus leave loading), but we won't have the labour and therefore will be down some income. Not all of our staff are full-time, and I don't know when my full-timer plans to take his leave yet, so have tried to average the impact out over the year.

What I've done is add his wages into the wages budget as though I'm paying him full wages for the whole year, and then in a generic sales account I've included a negative figure to try and account for the loss of labour. This negative amount is the amount of hours he would have off per year if he uses all sick leave, annual leave and with public holidays, multiplied by our hourly charge out rate, averaged over the 12 months. E.g 320 hours off per year, say our rate was $50 an hour = $16,000 lost income per year, or $1333.33 per month.

Is there a simpler way to do this? Or a correct way, if this doesn't seem right?

Thanks in advance!