How to perform multiple Wage Payments on the Balance Sheet
In this example we’re going to look at a Payroll Scenario in which we wish to record Gross Wages on our Profit & Loss as occurring on one date, but will need to make our actual Net Wages, PAYE and National Insurance payments on separate dates. To do this we’re going to use FUTRLI’s Advanced Options to enter our initial Forecast as a No Cash item and then handle our payments separately on the Balance Sheet.
Recording Gross Wages as a No Cash Item
First we need to create a new Forecast Item against our Wages and Salaries line. In this example we have one Staff Member, Sally who earns £27,000 per annum. We’re going to rename our Forecast item to give ourselves visibility over what we are forecasting and then select the Formula Forecast method. Here we’re going to enter our Gross Wages as 27,000 divided by 12:
We’re going to enter this as a Monthly Recurring Payment with no VAT and no Credit Terms. This is important, as we will be handling the actual payment terms on the Balance Sheet:
Click Advanced Options in the bottom right of the window and then in the first dropdown menu select No Cash. In the second dropdown menu we’re going to Credit our Wages Payable account on the Balance Sheet and then save by selecting Save Changes:
Entering Payment Terms on the Balance Sheet
We’re now going to enter Sally’s Net Wages payments. Sally receives £1,787 on the 27th of each month. To record this, we’re going to create a new Forecast Item against our Wages Payable and then use the Single/Repeating Entry Method to enter this as a monthly recurring outgoing: