Payroll opening balances
When your staff worked for you before Verasol, enter each employee's end-of-service provision and unused annual leave at the opening date, so your first payroll books only what is earned after it.
An employee who joined before you started with Verasol has already earned part of their gratuity and has unused annual leave. If you do not tell Verasol, the first payroll provides for all of it at once, as one month's expense. Payroll opening balances bring those amounts in at the opening date instead, so payroll then provides only what is earned after it.
Enter the opening balances#
- Open Payroll & HR › Pay › Opening balances.
- Check the 1 Opening date. It is your company's opening date: the day before your books start in Verasol.
- For each employee, enter the 2 End-of-service provision and the 3 Unused leave (days) from your current software or your last payroll. Under each field Verasol shows the figure it works out from the joining date and the salary, as a starting point: the figures of your previous system are the ones that count.
- The Leave provision is the value of the unused days. Leave it empty and Verasol values them at the basic salary ÷ 30 per day.
- Choose the 4 Booking (below) and click Set (Replace once a balance is set).
Each row then shows the opening date and whether the balance is booked or registered. A row that can no longer change says why under the employee's name. Employees insured under a pension scheme (UAE and GCC nationals) have no gratuity, so their end-of-service provision stays at zero.
Book or register#
| Booking | Use it when | What happens |
|---|---|---|
| Book (Opening Balance Equity) | The provisions are not in your opening trial balance yet. | Verasol posts the opening entry below, on the opening date. |
| Already in the accounts (register) | Your opening balances already put the provisions in the provision accounts. | Nothing is posted. Verasol records which part of the accounts belongs to the employee, and refuses when the accounts do not hold enough. |
What Verasol books#
For an employee with an end-of-service provision of AED 77,012.05 and 21 unused leave days worth AED 9,240.00, Book (Opening Balance Equity) posted on the opening date (31 December 2024):
| Account | Debit | Credit |
|---|---|---|
| 3900 Opening Balance Equity | 86,252.05 | |
| 2300 End of Service Benefits Provision | 77,012.05 | |
| 2240 Leave Salary Payable | 9,240.00 |
After the opening balances#
- The first payroll provides only what each employee earns after the opening date, and the annual leave balance starts from the opening days. See Run payroll and WPS.
- Months that ended on or before the opening date are not processed in Verasol: they were paid in your previous system.
- Loans still outstanding at the opening date are entered on the Loans tab, as opening loans. See Employee loans and expense claims.
Verasol refuses an opening date in the future, before the employee joined, or other than your company's opening date: what was earned after the opening date is an expense that payroll provides for, never opening equity.