Set up and view automatic time off journals
Set up payroll in Xero so it creates automatic time off journals in the general ledger. If you do not want to set up automatic time off journals, do not select an expense or liability account when you add or edit a time off type.
How they work
Xero applies the total amounts outstanding when you process the first pay run after selecting the expense and liability accounts. The Time Off Balances report automatically displays current amounts and accruals. If you change the employee's rate of pay or time off opening balance, Xero updates the amount in the general ledger when you process the next pay run. If needed, you can identify transactions in the Journal report.
The Account Transactions report identifies time off accrual transactions. If there are posted pay runs with a more recent date than pay runs that have yet to post, the time off accrual transactions will be created with the most recent pay period end date.
Set up automatic time off journals
- Ensure that accruals will report to the correct liability and expense accounts. Add or edit a pay item to add or edit an account.
- Process a pay run.
- View accruals and amounts in the desired report.
- You can view accruals and amounts in the following reports after you run a pay run: