Appendix G - Payroll Postings

Posting to the General Ledger

Overview

When a weekly or biweekly payroll is to be processed for the last pay period of a month and the Payroll Ending Date does not fall on the last day of the month, enter the number of accrual days to be generated for the remainder of the month. The number of days entered should equal the number of days between the end of this pay period and the last day of the month.

For example, When the Payroll Ending Date is 03/28/99, the number of Accrual Days entered should be 3, since there are three days between the 28th and the 31st (the last day of the month). All payroll expenses will be prorated for three accrual days and posted to the general ledger for the current month with an automatic reversing entry posted to the general ledger at the end of the next month. The expenses will be posted in the following manner:

Debit	Credit	Account
PAY		Pay Code Expense Account
	PAY	Department Accrual Account
NPER		Pay Code Expense Account
	NPER	Department Accrual Account
PAY = By Payroll Period End Date NPER = By Next Period Ending Date, as calculated from the Payroll Period End Date

Accrue Taxes at Payroll Period End

During the update, cash amounts are transferred from bank to accrued salaries on the check date. On the pay period ending date,accrued salaries are transferred to salaries and wages expense according to the specifications entered in the Department Code maintenance task.

When the Accrue Taxes At Payroll Period End field in the Payroll Application Parameters task is set to ‘Y’, GL transactions will be processed in the following manner during the Check Register Update:

Debit	Credit	Account
	CHK	Payroll Cash Account
CHK		Department Accrual Account
PAY		Pay Code Expense Account
	PAY	Department Accrual Account
	PAY	Deduction Code Account
PAY		Department Accrual Account
	PAY	Tax Code Accrual Account
PAY		Department Accrual Account
PAY		Contribution Expense Account
	PAY	Contribution Accrual Account
CHK = By Check Date PAY = By Payroll Period End Date

When the Accrue Taxes At Payroll Period End field in the Payroll System Parameters task is set to ‘N’, GL transactions will be processed in the following manner during the Check Register Update:

Debit	Credit	Account
	CHK	Payroll Cash Account
CHK		Department Accrual Account
PAY		Pay Code Expense Account
	PAY	Department Accrual Account
	CHK	Deduction Code Account
CHK		Department Accrual Account
	CHK	Tax Code Accrual Account
CHK		Department Accrual Account
CHK		Contribution Expense Account
	CHK	Contribution Accrual Account
CHK = By Check Date PAY = By Payroll Period End Date