Salary Overpayment

[Sheena]

A staff member received an overpayment for his salary which needs to be allocated as a loan.
Do I capture the entry to Salaries and Wages and then pass a journal debiting the loan account and crediting Salaries and Wages
The loan amount has not been allocated to a loan account for him as yet

[Mike C]

Hi Sheena. That sounds ok to me (but then I am not an accountant). I would assume that you would then reverse the process the following month.

Are you using a payroll program?