The purpose of this document is to provide the payroll processor with information on how to clear the negative employee vendor amounts that are created when a payment is made to an employee in Canadian Payroll.

Canadian Payroll leverages the Accounts Payable Vendor Payment Journal for payments made to the employees. When a payment is made to an employee in Canadian Payroll, a negative amount is created in the Vendor.

Employee Vendor Balance

It is recommended that before the Payroll Run is Closed, the function of “Balance Employee Vendor Accounts” should be completed.

Balance Employee Vendor Accounts Icon

Step 1:

On the Payroll Worksheet, click on the “Balance Employee Vendor Accounts” icon, which is found when navigating from Actions to Process Payroll, to Balance Employee Vendor Accounts.

CPAY Open Payment to AP GL

The above screen appears. Make any modifications that are required and then click on “OK”.  A message like the following will appear.

Payment Journal Lines Created

The reason in this example that there are 3 Payment Journal Lines created, is that the Balance was not cleared after each payroll. As you can see there are three payments made to the employee.

Payment Journal

Step 2:

The next step is to Post the Journal that has been created.

Journal Lines posted message

Now when you navigate to the Employee Vendor, you will note that the balance is zero.

Zero Employee Vendor Balance