What is the usual GL impact when using the Post Time feature in NS? Dr. Labor expense (P/L) Cr. Labor clearing (B/S) Then, the actual payroll JE would be: Dr. Labor clearing (B/S) Cr. Payable/Cash Is the above correct? Instead of using the Labor Clearing (B/S), I think others may be using a P/L account, so the variance automatically gets washed out to P/L? Although it affects the project profitability report because the Post Time entry debit and credit are both P/L accounts and just cancel each other out. And the actual payroll JE isn't tagged to the project though. Of course, custom reports may be created to handle this. Now what if we don't expense the time right away. We put it in a WIP asset account and we manually recognize the expense later on to match the revenue. So I guess I'll just replace the debit in my Post Time Entry with the WIP account. I'm just wondering what the best practice is: 1. No WIP consideration and 2. With WIP consideration

you set up a liability for unpaid payroll. it is not a P&L income just yet, that’s why it is BS

Sorry, could you please elaborate on that?