Non-Profit
Staff Redundancy / Severance Payment
Recording a one-time payment to an employee whose position was eliminated due to grant funding ending.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Severance & Redundancy Expense | Expense (+) | 8,000.00 | - |
| Provision for EOSB (Partial Use) | Liability (-) | 5,000.00 | - |
| Cash / Bank | Asset (-) | - | 13,000.00 |
💡 Accountant's Note
When a grant ends, positions are often eliminated. The EOSB provision covers part of the payment; any amount above the provision is an additional expense in the period of termination.
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