Reducing Accounts Payable and using Payroll module at the same time

Apr 12, 2005 1 Replies

Hi, I'm running Simply Accounting 7.0C and need some advice on how to make a journal entry. My balance sheet shows a short-term liability of $8000 in Management Fees Payable, so I'd like to pay that money to the employee, reducing the Payable down to 0. However, the employee will have to pay income tax on that money, which (I think) means the payment should be processed through the Payroll module. By using the Payroll module the employee's payroll records will be kept current, enabling me to easily process his T4 slip next year. What sort of entry would I need to make in order to reduce an Accounts Payable value, while at the same time use the Payroll module?


Thanks for your help!


it depends on how the account "Management fees payable" was created. Probably reversing the entries creating the liability and entering $8000 in payroll for the employee would be correct.

Join the Discussion

Have something to add? Share your thoughts — no account required.

Didn't find your answer?

Ask the community — no account required