When you approve a payroll in Wave, Wave will automatically create a corresponding journal transaction in the Transactions page. The journal transaction contains several lines with each of the affected expense and liability accounts, and the credits/debits for each.
If you approve a payroll, then a journal transaction will be created. If you delete that same payroll, a matching journal transaction will be created with the credits and debits reversed, to cancel out the original transaction. The journal transaction will also be tagged as “deleted” for ease of reference.
Great! So what do I have to do?
Nothing! The journal entries will post automatically – you won’t have to do a thing to account for your payroll expenses. Wave will take care of it all. You can see the journal entries by clicking on Accounting > Transactions.
Now for a little bit of the nitty gritty. If you manually add a benefit or deduction to an approved payroll, it will appear in the created journal transaction as an uncategorized expense. When the journal transaction is created, head on over to the transactions page, and categorize the line item to the most appropriate expense category.
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