Overview
Payroll Accrual Automation in Xenett automatically handles month-end payroll accruals by reading your posted payroll journal entries and creating the required accrual and reversal entries. This removes the need for manual calculations and ensures payroll expenses are always recognized in the correct accounting period.
By simply adding the payroll period in the journal entry memo, Xenett takes care of the rest—accurately, consistently, and automatically.
Payroll Accrual Tutorial Video
How to Activate Payroll Accrual Automation
Step 1: Create the Payroll Accrual Task
If the task does not already exist:
Click New → Task
Under Review Point, select Payroll Accrual
Step 2: Complete the Initial Configuration
When you open the task for the first time, configure the following settings:
Auto Entry Start Date : Select the date from which Xenett should begin creating automated payroll accrual and reversal entries
Balance Sheet Account Mapping : Choose the liability account where payroll accruals should be posted. If the account does not exist, create it in your accounting software first, then map it in Xenett
Expense Account Mapping : Select all payroll-related expense accounts used in payroll journal entries. You may include only the accounts you want to accrue (for example, salary expense and payroll taxes). You may exclude accounts such as benefits if you do not want them accrued
How Payroll Accrual Automation Works
Step 1: Post the Payroll Journal Entry
Post your payroll journal entry in your accounting software as usual.
In the memo, clearly mention the payroll period, for example:
For the period 7/28/2025 to 8/3/2025
From 7/28/2025 to 8/3/2025
The memo is critical—this is how Xenett identifies the payroll period.
Payroll entries synced from Gusto, Wagepoint, and Rippling use their own memo formats. Xenett supports these automatically—no manual memo changes are needed.
Step 2: Xenett Automatically Processes the Accrual
Once the payroll entry syncs into Xenett, it automatically:
Reads the memo to identify the start and end dates of the payroll period
Calculates how many payroll days fall into each month
Proportionately allocates the payroll amount across those months
Creates the accrual entry for the earlier month
Generates the reversal entry on the first day of the following month
All of this happens behind the scenes without any manual intervention.
Step 3: Payroll Accrual Schedule and GL Matching
Xenett automatically builds and maintains a Payroll Accrual Schedule, and it also matches the balance as per Schedule with the GL Balance. This ensures your payroll accruals are always complete and reconciled.
How to delete the payroll accrual entry done by Xenett
To remove the payroll accrual entry done by Xenett, Click on Three dots under Action Column. Then, Click on Delete.
