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Forum Post: RE: Quick Journal offset account

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Welcome to the forums!

This is an entry that uses a pass through account (usually a liability accrual account) for payroll.

Let's say, on an over-simplified method, your wages are 10,000 and taxes are 2,500. You would create a GL transaction that looks like the following:

DR Wages 10,000

DR Taxes 2,500

CR Payroll pass-through 12,500

When the payroll amounts are taken out of your bank, you create a bank transaction entry to decrease the cash account, and allow GP to post the cash portion of payroll to the banking sub-ledger (this allows you to see it in the bank rec module).

The cash entry would look like this:

DR Payroll pass-through  12,500

CR Cash  12,500


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