Procedure Sheet For Payroll Cycle

  1. Run Period End, which opens up a new period.

    a) The Working File is cleared down.
    b) Entries in the Fixed Payments that are valid for the new period, are transferred to the Working File.
    c) A Global Payroll Calculation is run.
    d) The payroll template is unlocked.

  2. The P35 Report can now be printed to obtain year to date figures.
  3. All changes to employee’s Fixed Payments should be made.
  4. All changes to employee’s current Period Payments should be made.
  5. All Pension Changes should be made.
  6. Audit Reports can be produced to check the changes made.
  7. A Global Payroll Calculation should be run.
  8. The Payment Summary Report should be run to show how much is to be paid out this period.
  9. Any required Exception Reports should be run. E.g.

    a) Net Pay Exceptions.
    b) Negative Tax Report.
    c) Employees Not Paid This Period.
  10. Run the BACS submission report to show how much is to be paid.
  11. Run any required General Ledger reports.
  12. If there have been any problems since point 7. then after making the correction, a new Global Calculation should be run, and the reports rerun where necessary.
  13. Run the Payslips.
  14. The Payroll is now locked. This means that no changes may be made that will affect the payments generated for the Payroll Template for this period. If it is necessary to make such a change, then Payroll can be manually unlocked. After the changes have been made, any reports that were produced, need to be recreated to reflect the new values, (Note: and annotated with the changes as a minimum).
  15. Transmit the BACS Payments.
  16. Run the reports required by your organisation. E.g.

    a) Payroll Journal
    b) Period End Summary
    c) Pension Reports
    – These reports can be run prior to the payslips, but would need to be rerun if any changes were made.
  17. Run Period End. This closes the current period. (Note: Do not run this and item 1)

    a) Year to Date balances are updated for the year end returns.
    b) This periods figures are audited for later reporting.
    c) Any employee’s whose leave date was in the period being closed, will be marked as left and thus omitted from further processing.
    d) The General Ledger is updated.