USA Reclass accrual reversal or leave it?

[mmcfadden]

So, my co-worker and I are in disagreement on this and I'd like some feedback.... M3 Accounting Core (can't delete/edit JEs)...below GL accts are fake to TRY to keep it simple.....we'll see how this goes....

(1) SEPTEMBER: $1000.00 payroll accrual booked to GL Acct 11111111 - Bus Driver.
CR: Accrued Payroll
DR: 1111111 - Bus Driver

(2) OCTOBER: ($1000.00) accrual reversed
CR: 1111111 - Bus Driver
DR: Accrued Payroll

(3) OCTOBER: Payroll entry booked $1000.00 to 1111111 - Bus Driver.
CR: Payroll Clearing
DR: 1111111- Bus Driver

So, GL Account 1111111 - Bus Driver on October 1st = $0.00

The employee is not a Bus Driver, he is a Dishwasher. Wages need to be reclassed.

(4) OCTOBER: Payroll wages are reclassed $1000.00 from 11111111 - Bus Driver to 2222222 - Dishwasher
CR: 1111111 - Bus Driver
DR: 2222222 - Dishwasher
(3) There is now a credit balance of ($1000.00) for October in 11111111 - Bus Driver.

Do you reclass the ($1000.00) reversed accrual from 1111111 to 2222222 with the reclassed wages or do you leave the ($1000.00 credit balance in 1111111?

 

[kirby]

So, GL Account 1111111 - Bus Driver on October 1st = $0.00

No - at this point GL shows sum of the three entries which is DR $1,000