I have an inactive employee that was terminated several years ago. A small amount of vacation pay continues to show up as payable, but isn't. I' unable to remove the employee until it's "paid out" which it won't be. How do I remove this employee from my database? Thanks.
Hi there: You will have to remove the vacation owing before you can delete the employee. Go into the Paycheque window, choose the employee, put the amount of the vacation owed into the vacation paid box. Since you will not be writing a cheque, you need to have another account option to choose instead of Bank. I have a Cash Clearing account set up in my Chart of Accounts right under the Bank in the numbering. When you set it up, in the Class Tab, choose Bank. You will now be able to choose that account from the drop down box instead of Bank. Where the cheque number is displayed, type in write-off vac.pay, or something like that. Before posting the entry, go up to Report and check that the journal entry says a debit to Vacation Payable and a credit to Cash Clearing.
Then go into your General Journal and prepare a journal entry that will be a debit to Cash Clearing and a credit to the Wages Expense account. In the description type in something that tells you what you are doing, for instance, To write-off old vacation amount owed to .............
This will clear the old vacation owed amount. However, since there has been an entry through that employees account, you still may not be able to delete it from your list right away. I`m not sure about that. Rita Deering
© 2016 The Sage Group plc, its licensors or its affiliated companies. Sage, Sage logos, and Sage product and service names mentioned herein are the trademarks of The Sage Group plc, its licensors, or its affiliated companies. All other trademarks are the property of their respective owners. For more information, visit www.sage.com.
Community Terms of Service | Community Guidelines | General Data Protection Regulation (GDPR) | Community Help