Holiday Leave Accurals

Hi
Please can someone help me. I have been asked by our company to start doing a monthly holiday accrual to help their accounts when they shut down for certain months of the year and the staff take large amounts of their holiday entitlement. At the moment I currently do the following payroll journals
Dr 7006 - Gross Wages
Dr 7007 - NI
Dr 7010 - Holiday Paid
Cr 2210 - PAYE/NI
Cr 2220 - Net wages
Cr 7051 - Employee Pensions Cont
They wish for the accrual to be done on a monthly basis so I have worked out that the company liability each month would be £2500.
I have set up a new nominal code for the holiday pay liability 2215.
So for this month i have a holiday pay accrual of £2500.00, i have paid £1638.64 in holiday pay which means that i should be left with a liabaility of 861.36 for holiday earned but not paid and i can not think where to post this debit balance.
Cr 2215 - Holiday Pay liability £861.36
Dr????
If i post it to 7010 this will make the amount of holiday paid incorrect, do i need to set up another expense code? or am i doing this wrong in the 1st place ???
Thank you
Please can someone help me. I have been asked by our company to start doing a monthly holiday accrual to help their accounts when they shut down for certain months of the year and the staff take large amounts of their holiday entitlement. At the moment I currently do the following payroll journals
Dr 7006 - Gross Wages
Dr 7007 - NI
Dr 7010 - Holiday Paid
Cr 2210 - PAYE/NI
Cr 2220 - Net wages
Cr 7051 - Employee Pensions Cont
They wish for the accrual to be done on a monthly basis so I have worked out that the company liability each month would be £2500.
I have set up a new nominal code for the holiday pay liability 2215.
So for this month i have a holiday pay accrual of £2500.00, i have paid £1638.64 in holiday pay which means that i should be left with a liabaility of 861.36 for holiday earned but not paid and i can not think where to post this debit balance.
Cr 2215 - Holiday Pay liability £861.36
Dr????
If i post it to 7010 this will make the amount of holiday paid incorrect, do i need to set up another expense code? or am i doing this wrong in the 1st place ???
Thank you

0
Answers
You could call account 7011 'Holiday pay charge'
Either way (i.e. 7010 or 7011) the management accounts need to reflect the holiday pay as an expense so the managers/directors (who look at the accounts) can factor in the cost of holiday pay when they determine whether a particular month has been successful or not.