Please check if you are using Expense Groups. This can be found in Setup> Settings>Payroll>Linked Accounts>Expense Groups

Your employee(s) may be setup under different expense groups

 

Without looking at all the settings, I would have to guess that possibly:

- The payroll income item types is something other than 'Reimbursement',

- And / Or the company file is selected to use Payroll 'Expense Groups', (Setup | Settings | Payroll | Linked Accounts | Expense Groups)

so the expense is over-ridden to the account set up for that item, in that Payroll Expense Group type.

You can see which accounts the payroll you are entering is going to be posted to, by previewing the payroll Journal Entry (Ctrl-J)

I hope that helps, please post back.

Randy

The expense groups option is not turned on. The mileage reimbursement is set as "reimbursement". The telephone allowance is set as "income". Does it make a difference with the type of income?

Appreciate the assistance,

I think I found the problem. In certain payroll ledgers, I have set the wages to use a different payroll account and NOT the payroll linked accounts. This would probably override any changes I made in the setup, payroll, linked accounts section. I'm going to kick everyone off, go into single user mode and test my theory. Wish me luck,

Thanks,

That is the answer. Unfortunately, since I need to use that option, I'll have to move the amounts for mileage and telephone allowance into the correct accounts with a journal entry after each payroll. BUT maybe the expense groups could help. I've not looked into this option at all.

In Sage 50 Canadian, 'Reimbursements' do not show up on the T4 or on an ROE, but an 'Income' type normally does.

And 'Reimbursements' would be recorded against the expense account you had set.

I wasn't proposing Payroll 'Expense Groups' as a solution, I was suggesting they could be the cause of the problem. They are the only way that I know of, to specify which employees' expense was posted to which expense accounts. Departments can be specified, specific accounts can't be.

Some of the linking in Sage 50 (i.e. tax codes) is stored with the transaction, so changing the settings, then testing by adjusting an existing transaction won't work. You have to create new transactions.

In order to test without disruption, you could open the sample company, or test with a restore of a recent backup.

Just want to report that payroll expense groups works perfectly and everything allocates to the correct accounts. This is a huge bonus since I have four categories of employees.

Thanks for your help. I really appreciate it. Discussions really help to get the mind thinking in different ways. I've learned something new today and solved a problem as well.