General Ledger Integration

When defining a Payroll Code you will need to ensure that the General Ledger update is enabled for the payment/deduction. It is anticipated that if the integration to a General Ledger is required then all of the Payroll Codes should be enabled.

The Payroll Codes fall into 2 categories with regards to General Ledger Analysis, Analysis Accounts and Control Accounts. The pre-defined SYSTEM payroll codes primarily exist to enable you to define the General Ledger coding requirements for the Control Account elements. The remaining, and majority, of codes are defined by yourselves and constitute the Analysis Accounts, even though many may also be deductions and either/or central accounts where all analysis is common regardless of by who or where the cost was incurred.

The following describes the approaches available for Analysis and Control accounts.

General Ledger Integration – Analysis Accounts

Once the General Ledger has been set on the control tab of a Payroll Code, the GEN tab is also enabled where the method of integration can be described. The Analysis Type describes the method adopted for the selected Payroll Code and a typical implementation will potentially use a combination of these methods to accommodate varying activity types. These can be:

This Code

This is the simplest mechanism available as the General Ledger code is stated in the data item which follows. All combinations in the Working File for an employee and a payroll code are analysed to the stated account, which means that a central charge account is used, rather than a localised departmental/cost centre code. This is typically used for issues such as Union Deductions and Tax Credits where a single account incurs the charge.

Entered

When any transactions are entered or imported for the Payroll Code, the system will demand that the General Ledger code is also provided. This is usually applicable to items such as reimbursable Expenses or Time Sheet entries where the activity was performed outside the normal analysis scope of the employee, typically for another department.

Fixed

This method expects the required General Ledger code to be present within the definition of the system through a series of default scenarios in the following sequence:

  1. Firstly the “Recurring” entries of the employee record are examined, including “Select From” types, for the combination of the employee and payroll code from the particular transaction. If one or more General Ledger codes of analysis are obtained (split analysis can be provided as long as the full percentage is 100.00%), then this analysis is used for the combination of employee and payroll code.
  1. If the previous attempt at locating the analysis code fails, the combination of the employee and the substitute payroll code is used to locate an alternative entry in the “Recurring” entries of the employee. This substitute code is defined on the system behavioral control parameters, but if this parameter is not defined then this stage of the procedures is omitted.
  1. If the previous attempt at locating the analysis code fails, the cost centre definition, to which the employee has been attached, is examined for the combination of the cost centre and payroll code from the particular transaction. If one or more General Ledger codes of analysis are obtained then this analysis is used for the combination of employee and payroll code.
  1. If the previous attempt at locating the analysis code fails, the cost centre definition is examined for the combination of the cost centre (payroll category) of the employee and the substitute payroll code defined on the system controls. If one or more General Ledger codes of analysis are obtained then this analysis is used for the combination of employee and payroll code.
  1. If the previous stages all fail the analysis code described below, i.e. specifically stated against the payroll code definition, is used. If this scenario is reached it is the same as the “This Code” method described above as the analysis code is taken directly from the payroll code definition.
  1. If no General Ledger code is provided against the payroll code definition as attempted in stage 5, the Suspense Code is used as described in the system module controls. A specific analysis report is available to analyse all “Suspense Account” entries, which usually reflects a deficiency in the maintenance of the system as all of the stages above, have failed to allocate an adequate General Ledger code.

Build

This mechanism is similar to the “Fixed” method described above with the added facility that in each of the first 4 stages described, the system expects only part of the full code to be provided. Another part of the code is supplied in the General Ledger analysis code against the Payroll Code (described below), and this is used to complement the section(s) already located in one of these stages (1-4). Hopefully this combination of parts will supply a valid code but this will not be verified until the elements are combined. If no elements are successfully located or an invalid combination of elements is encountered then the Suspense Account described in stage 6 above is used.

Depending on the method of analysis described above, all or part of a General Ledger code may also be required.

This Code

A full valid code is expected and this can be provided by either entering the code directly into data field provided or by using the “Search & Selection” facility accessed through Function opposite the data field. Verification of the code supplied is provided by the display of the account description in the associated summary field.

Entered

No code element(s) are required.

Fixed

A full general ledger code may be provided as the optional 5th stage of the processes of the action type described above.

Build

A partial code may be entered and the validation procedures are relaxed to enable this to be verified. The unknown elements are stated by the characters “-“ and “.” and these will be required, although not validated, at this stage. These are required to confirm the positioning of the provided elements in relation to the rest of a full code.

General Ledger Integration – Control Accounts

The following table should be consulted to review the control accounts required and even be used as a definition of requirements before the details are presented.

Usually only one control account is anticipated for each element.

 

Element

General Ledger Code

Entered Against

Employers Pension

Pension Scheme Definition.

OR

ERPP Payroll Code

(Double Entry)

Employers NI

ERNIP Payroll Code

(Double Entry)

Employees Pension

Pension Scheme Definition.

OR

EEPP Payroll Code

(Double Entry)

Employees NI

EENIP Payroll Code

TAX (PAYE)

TAXP Payroll Code

Student Loan Repayments

SLR Payroll Code

Loan Repayments

LD Payroll Code

Savings

SD Payroll Code

Attachment of Earnings

AOD Payroll Code

Net Pay

NP Payroll Code

Maternity Pay

SMP Payroll Code

Maternity Pay Rebate

SMPR Payroll Code

(Double Entry)

Paternity Pay

SPP Payroll Code

Paternity Pay Rebate

SPPR Payroll Code

(Double Entry)

Adoption Pay

SAP Payroll Code

Adoption Pay Rebate

SAPR Payroll Code

(Double Entry)

Statutory Sick Pay

SSPP Payroll Code