GENERAL LEDGER
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GENERAL LEDGER SET UP#

If a General Ledger Interface is going to be used between Wiki and your general ledger system, then there are several forms and concepts that must be completed and reviewed.

General Ledger Company (IDGC)#

The General Ledger Company (G/L Company) is the entity legally responsible for the accounting of the organization and which reports the organization in its general ledger and accounting journals. The G/L Company is defined in the Define G/L Company (IDGC) form.

The general ledger company is used to define each organization’s general ledger account structure and accounting journals (one per chart of accounts). The general ledger company will be associated to a fiscal calendar, which is used in creating postings to the financial systems. A fiscal calendar must be established through the Business Calendar (IDCL) form.

The General Ledger Account Distribution Format is defined at the G/L Company level, which determines how the distribution code is formatted and segmented. The format determines how the distribution code will be viewed/keyed by users throughout the system and how it can be validated. The Distribution Heading determines the report headings for each segment of the distribution code.

Once the G/L Company has been defined in the IDGC form, it must then be associated to the Entity defined in the IDEN form.

General Ledger Segments (IDGS)#

The distribution code may be formatted into segments representing specific areas of the general ledger company. For example, segments can represent a division, cost center or account. A segment is defined as alphanumeric characters separated by a ‘-’ or a ‘.’ (e.g. ‘DVCNT-ACCT’).

It is possible for Wiki to ‘validate’ each segment of the distribution code defined in the G/L company. The G/L Segments (IDGS) form is used to enter all the segments you wish to validate. Once these segments have been defined, the Application will validate the distribution code via the Distribution Editor button for any forms that invoke this Distribution Editor, for example IDDP and IDJB.

General Ledger Accounts (IDGA)#

General Ledger Accounts are defined in the Maintain G/L Accounts (IDGA) form. A G/L account code, a short name or abbreviation, represents either a distribution code or a distribution mask. That distribution code may be a general ledger account, but distribution codes are not limited to containing general ledger accounts only. They may also contain additional segments for costing or other accounting purposes.

The G/L accounts must then be attached to the pay components that are to be journalized in the Maintain Pay Component (IPPC) form.

A report of the G/L accounts may be printed by running the List G/L Accounts (RDGA) function.

Distribution Codes#

The distribution code may then be associated to a department via the IDDP form.

The distribution code may also be associated to a job via the IDJB form.

The distribution code may also be associated to a position via the IDPS form.

The distribution code must then be established at the assignment level for each employee. This is done through the Distribution tab on the Assignments (IEAS) form.

Distribution codes may default from the department (IDDP), job (IDJB) and position (IDPS) to the employee’s assignment (IEAS). For more information on how the distribution defaulting sequence see the DISTRIBUTION DEFAULTING LOGIC page.

Allocation#

Allocation is the means to determine benefit costs (employer contributions/portions). This can be done through one of two methods: burden or fringe.

Burden and fringe are normally mutually exclusive. This is due to the fact that there are different accounting philosophies behind burden and fringe. Both methods may be used within the same organization, but they do not usually occur on the same person.

Burden assumes you are using an estimate or "averaging" method of cost accounting, by burdening your labor costs for a percentage in respect of fringes. One of the main reasons for using burden is for timeliness sake as Labor G/L can be run on a daily basis as time is entered prior to paying the employee.

Fringe on the other hand is a more accurate (but less timely) method of apportioning or allocating expenses after the employee is being paid.

As far as the two methods working together, from an accounting point of view, if you have already "burdened" the labor expense with a budgeted percentage, you would have to "relieve" the original burden before you could allocate actual fringe expenses. Practically speaking, this seldom happens; instead any 'profit' or 'shortfall' from burdening gets accounted for separately.

Both allocation types are set up at the Group level on the IDGR form. Burden allocation may have an overriding % placed at the Department level if desired.

If an interface file is to be created then the G/L file format must be defined in the Interface Formats (IDIF) form.

PROCESSING GENERAL LEDGER ENTRIES#

Once set up is complete then the general ledger data may be obtained from a closed payrun by stepping through the following procedures:

Journalize Pay Transactions #

The Journalize Pay Transactions (UPGLPTR) function is used to generate journal entries at pay transaction entry time for auditing purposes. Journal entries are generated for pay transactions whose journal source is 'Trial Pay Tran G/L'.

Journalize Pay Lines #

The Journalize Pay Lines (UPGLPPL) function provides full disclosure of G/L Distribution for Pay Lines and Pay Line Details prior to UPAUDT in the Journal Entries tables.

After UPGLPPL is run, you can then run UPAUDT to print full G/L Distribution for each Pay Line Detail.

After UPGLPPL is run, you can run RPGL with the mex id from UPGLPPL report.

Journalize Labor (Pre-Payroll) #

Labor costs may be sent to the G/L system on a regular (daily, weekly, bi weekly etc.) or ‘on demand’ basis prior to the pay being calculated. Labor G/L processing (UPLG) takes place after the payroll batch has been entered into the Wiki system.

The payroll batch can be generated by UPTR (from pay transactions), UPTG (system generated) or manually entered on the IPPH form. Labor G/L can process payroll batches that have been audited by the UPAUDT process or to optionally include un-audited pay lines to obtain labor costs on a timely basis.

On the IDGA form, the G/L account must have the ‘Pre Payroll’ toggle on in order to be processed by Labor G/L. Labor G/L does not balance Gross to Net and Deductions. The earnings that are to be journalized will be balanced against the G/L Account that has been set up with the Labor Clearing account usage in the G/L Accounts (IDGA) form.

The process for running Labor G/L is as follows:

UNDO Transaction/Labor GL #

After Labor GL is run in update mode, you may discover errors due to incorrect GL set up (e.g. incorrect employee's assignment distribution code etc.) To make corrections, you can run UPLGUNDO to remove the Labor GL journalized entries in order to put back the pay headers and pay lines in their original state. You many then make manual corrections to GL set up and re-run UPLG.

This UPLGUNDO can also remove 'Trial Pay Tran G/L' journal entries for pay transactions and 'Trial Pay Line G/L' journal entries for pay lines so that you may set up the GL again and then re-run the UPGLPTR and UPGLPPL.

Journalize Pays (Post-Payroll) #

Payroll actual costs may be sent to the G/L system after the pay cycle is closed. Payroll G/L process (UPGL) can be run on a per payrun basis or on demand basis, and should usually be run at the end of a month in order to send all journal entries of a fiscal period to the G/L system.

The UPGL process may be run in ‘Trial’ mode to verify that the payroll is posting correctly and that there are no entries posted to the suspense account. This can be seen by running RPGL for the execution id generated.

Only pay lines that are NOT marked as ‘Journalized’ (some may have been processed by Labor G/L-UPLG) will be journalized. Those items that have previously been journalized will be collectively indicated in a payroll clearing account.

The process for running Payroll G/L is as follows:

Report Payroll Journal Entries #

The Payroll Journal Entries Report (RPGL) should be run after the Labor and Payroll G/L Update, to verify the journal entries. The Execution ID of the General Ledger Update (UPLG/UPGL) is an important key to producing the report of the process.

Report Journal Entries By Employee #

The Journal Entries Report by Employee (RPGE) is an optional report that may be run after the Labor and Payroll G/L Update, to verify the journal entries by employee. The Execution Id of the General Ledger Update is an important key to producing the report of the process.

Before running RPGE, the user defined field 'PRINT ON RPGE' in IMUF for the P2K_CM_GL_ACCOUNTS table must be defined. The user defined field must be tied to the Lexicon - X_YES_NO. IDGA must then be set up with this user field to indicate that the G/L accounts are to be reported on RPGE (Print on RPGE Y-Yes).

Report Journal Entries By Segment #

The Journal Entries Report by Segment (RPGS) is an optional report that may be run after the Labor and Payroll G/L Update, to verify the journal entries.

The Execution Id of the General Ledger Update is an important key to producing the report of the process.

G/L Interface File #

If an interface file to a general ledger system needs to be created, then the (UPGLF)function must be run.

Running UPGLF in non-trial mode will commit the journal entries. For Labor G/L, this will mark individual pay lines as ‘Journalized’, for Payroll G/L this will mark the pay header as ‘Journalized’.

Accounts Payable Interface #

The UPVEND function is run to create an Accounts Payable (AP) interface file. This can only be launched after all pay runs for the given payroll period are closed (UPCLOZ). This function provides a detailed list of all AP invoices to be exported to an interface file named in this function.

For more information on the required set up for an Accounts Payable Interface see the ACCOUNTS PAYABLE - UPVEND page.

LIST OF G/L PAGES#

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