Payroll - Department Code Maintenance

 

Function

The Department Maintenance task defines and maintains department specifications and information. The task also defines the department code and its description, and specifies the general ledger account numbers where cash and accruals are posted during the payroll update process. Additional tabs are displayed for the entry of Pay Code Distribution, Tax Code Distribution, and Contribution Distribution. The Display additional options... button provides access for creating a Code Listing report.

 

=> To access this task...

Select Department Codes from the Inquiry and Maintenance menu.


Department Codes Inquiry and Maintenance


About the Fields

The Department Codes maintenance screen is divided into two sections. The upper section (header) fields are used to enter the department code and the description of that code. The lower section is used to enter and display items from the option tabs


NOTE: All general ledger account numbers must have been entered through General Ledger Account Maintenance

(Refer to  the General Ledger manual), as described in the Flow of Processing section of this manual.


To Enable Edits to the form select .


In the Department Code field...

  • Enter a 2-character department code

  • Click to select from a list of all valid department codes.

  • Click the record navigating buttons; to view the first record, to view the previous record, to view the next record, and to view the last record.

In the Description field...

  • Enter a description of up to 20 characters to describe this department.

Description Example

A typical description might be “Sales” or “Shipping Department.” A division or location of a department might be described

as “Sales ‑ West Coast Division” or “Sales ‑ Phoenix Office.”


In the Cash GL Account field...

This is the account to which payroll checks are posted for this department. (Normally the Credit Distribution for the Check Amount)

  • Enter the GL account number used to post cash transactions for this department.

  • GL accounts flagged as 'Inactive' are not accessible. If an inactive account needs to be entered in a form, change it to "active" status, make the desired entry, and then set it back to "inactive" again.

  • Click to select from a list of valid GL codes.

In the Accrual GL Account field...

  • Enter the GL liability account number to which accrued payroll or accrued salary are posted for this department.

  • GL accounts flagged as 'Inactive' are not accessible. If an inactive account needs to be entered in a form, change it to "active" status, make the desired entry, and then set it back to "inactive" again.

  • Click to select from a list of valid GL codes.

In the Budgeted Daily Hours field...

  • Enter the average daily hours budgeted for this department.

In the Budgeted Average Hourly Rate field...

  • Enter the average hourly rate per employee budgeted for this department.

This cost is used when calculating budget information for the Payroll Distribution Report. The average hourly rate is the total of the hourly rates of all employees budgeted for the department, divided by the number of employees budgeted for the department.


NOTE: If the Payroll Distribution Report is to accurately reflect the variance between budgeted and actual totals, each individual pay period (i.e., weekly, monthly) must be processed separately.


Each pay, tax, and contribution code must be defined with its associated General Ledger account numbers in every department in which an employee will work using those codes.


Pay Code Distribution tab


Function

The Pay Code Distribution tab allows for the inquiry and maintenance of the Pay (Earnings) codes the may apply to this department. This option defines and maintains department pay code information that determines the distribution of payroll expenses to the general ledger for the selected department. Up to 14 general ledger expense accounts may be defined for each department code. When entering a new department, the fields in this option are blank.  When an existing department record is accessed, the existing information is displayed.


Department Code maintenance - Pay Code Distribution tab


About the Fields


In the Pay Code fields...

  • Enter a valid pay code.

  • Click to select from a list of valid codes.

In the GL Expense fields...

This account number specifies the account to which the payroll expense is distributed for this pay code in this department.

  • Enter a valid GL account number.

  • GL accounts flagged as 'Inactive' are not accessible. If an inactive account needs to be entered in a form, change it to "active" status, make the desired entry, and then set it back to "inactive" again.

  • Click to select from a list of valid GL codes.


Tax Code Distribution tab


Function

The Tax Code Distribution tab allows for the inquiry and maintenance of the Tax codes the may apply to this department. This option is used to set up and maintain department tax code information that determines how payroll taxes are distributed to the general ledger. A separate general ledger accrual account may be defined for each established tax code, up to a total of 10.


Department Code maintenance - Tax Code Distribution tab


About the Fields

 

In the Tax Code fields...

  • Enter a valid tax code.

  • Click to select from a list of valid codes.

In the GL Accrual fields...

This account number specifies the account to which this tax liability is distributed for this department.

  • Enter a valid GL account number.

  • GL accounts flagged as 'Inactive' are not accessible. If an inactive account needs to be entered in a form, change it to "active" status, make the desired entry, and then set it back to "inactive" again.

  • Click to select from a list of valid GL codes.

 

Contribution Distribution tab


Function

The Contribution Distribution tab allows for the inquiry and maintenance of the Contribution codes the may apply to this department. This option is used to set up and maintain department contribution code information that determines how employer taxes are distributed to the general ledger. A separate general ledger expense and accrual account may be defined for each established contribution code, up to a total of 14 contribution codes for each department.


Department Code maintenance - Contribution Distribution tab

 

About the Fields

 

In the Contribution Code fields...

  • Enter a valid contribution code.

  • Click to select from a list of valid codes.

In the GL Expense fields...

This account number determines how this contribution is expensed to the general ledger for this department.

  • Enter a valid GL account number.

  • GL accounts flagged as 'Inactive' are not accessible. If an inactive account needs to be entered in a form, change it to "active" status, make the desired entry, and then set it back to "inactive" again.

  • Click to select from a list of valid GL codes.

In the GL Accrual fields...

This account number specifies the account in which accruals for this contribution are accumulated for this department.

  • Enter a valid GL account number.

  • GL accounts flagged as 'Inactive' are not accessible. If an inactive account needs to be entered in a form, change it to "active" status, make the desired entry, and then set it back to "inactive" again.

  • Click to select from a list of valid GL codes


When finished entering Department Code Information...

  • Click to save the record.

  • Click to clear the form and begin again.

  • Click to delete the record selected.

 

NOTE: Existing departments can be deleted . Once the Payroll module is operational, do not delete a department that is still in use until the year is complete and the Year End Update has been done.


If the Window is closed without saving the record, the module issues this confirmation prompt:


  • Click [Yes] to save the changes.

  • Click [No] to return to the Payroll Maintenance Menu without saving the record.

  • Click [Cancel] to return to the  Department Code being edited.

Selecting the [Display additional options...] button presents the option to create a listing of all Department Codes


Selecting this option creates the report:

 

Sample Department Codes Listing

 

See Output Options



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