Table of Contents
- GENERAL LEDGER ACCOUNTS
- Pre Payroll – Labor G/L Logic
- Post Payroll – Payroll G/L Logic
- Accrual Logic
- Inter-Company G/L Logic
- Inter-Company & Fringe
- Example Definitions
- Example Entry – with the Inter-Company and Fringe features turned OFF
- Example Entry - the Inter-Company feature turned OFF and the Fringe feature turned ON
- Example Entry – the Inter-Company and the Fringe features turned ON
- Example Entry - General fund pays the federal tax and health expense
- G/L Account Codes on Pay Components
- G/L Account Codes on Payroll Bank Accounts
- G/L and Premiums
- G/L Suffix Logic
- Maintain Lexicons (IMLN)
- Define Pay Components (IPPC)
- Define G/L Accounts (IDGA)– Default Entry
- IDGA – GL ACCOUNT – SUFFIX ENTRY
- SUFFIX LOGIC IN UPLG/UPGL PROCESS
GENERAL LEDGER ACCOUNTS#
G/L Accounts codes are short names or abbreviations that point to a more detailed account or account mask.
Users less familiar with accounting systems and general ledger accounts usually find G/L account codes simpler to work with than account numbers.
A G/L account code 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.
An error message will be issued in the UPGL report if any of the account usages are not set up. It is therefore recommended to set up at least one account for each account usage.
If the account is not needed the Description field can be identified as ‘Not Used’, the Distribution Mask field may be left blank (null), and the account does not need to be attached to a pay component.
When a G/L account code points to a distribution mask rather than a distribution code, this indicates that one or more portions of the distribution code cannot be completed until some context sensitive information is supplied at data entry time.
The system wide edit mask of the distribution code is set up in the G/L Company form (IDGC). This provides basic editing whenever a distribution code is entered.
G/L Codes are referred to in the Payroll Bank Set Up (IPBA) form and the Pay Component (IPPC) form. These forms are discussed further in the next topic in this manual.
Pre Payroll – Labor G/L Logic#
Pre Payroll distribution or Labor G/L, is used if it is necessary to account for labor costs prior to the processing of the payroll cycle, perhaps on a daily or weekly basis, and is usually needed to support a separate costing system or High Line’s Financial Cost Control application.On the IDGA form, you must check the ‘Pre-Payroll’ toggle for all Wages G/L accounts that need to be posted by Labor G/L.
If labor costs of $1000 were to be journalized for 2004-05 Fiscal period for wages then the Labor journal entries would be as follows:
- 2004-05 Labor G/L Report
| Account | Debit | Credit |
| Reg.$ | 800.00 | |
| OT $ | 200.00 | |
| Labor Clearing | 1000.00 | |
| 1000.00 | 1000.00 |
Then after the Pay Cycle, the wages will be posted to clear the previous Labor journal entries. The Payroll journal entries are as follows:
- 2004-05 Payroll G/L Report
| Account | Debit | Credit |
| Labor Clearing | 1000.00 | |
| Fed Tax | 75.00 | |
| United Way | 5.00 | |
| ER Health | 100.00 | 100.00 |
| Check | 920.00 | |
| 1100.00 | 1100.00 |
Post Payroll – Payroll G/L Logic#
Post Payroll distribution, or Payroll G/L, is the costing of employee earnings, employee deductions, employer contributions, and employee net pays that have been calculated, and approved, for a pay run or several pay runs.On the IDGA form, you must check the ‘Post Payroll’ toggle for all G/L accounts that need to be posted by Payroll G/L.
In addition, on the IDGA form, each G/L account specifies a ‘Posting Date Method’ that determines the fiscal period of the payline transactions and internally generated amounts in UPCALC.
If all G/L accounts use either the ‘Period End Date’ or ‘Pay Issue Date’ method, then a single pay will journalize all entries to one fiscal period only, depending on the pay period end date or pay issue date.
A standard G/L Report where the posting method is by 'Period End' or 'Pay Issue' would be as follows:
- 2004-04
| Account | Debit | Credit |
| Reg. $ | 800.00 | |
| OT $ | 50.00 | |
| Fed Tax | 75.00 | |
| United Way | 5.00 | |
| ER Health | 100.00 | 100.00 |
| Check | 770.00 | |
| 950.00 | 950.00 |
If the posting method is by ‘Derived Fiscal’ and the pay period spans across two fiscal periods, then the G/L would be posted by the pay line transaction date and the internally generated amounts will be posted by the Pay Issue date.
- 2004-04
| Account | Debit | Credit |
| Reg. $ | 800.00 | |
| OT $ | 50.00 | |
| Payroll O/S | 850.00 | |
| 850.00 | 850.00 |
- 2004-05
| Account | Debit | Credit |
| Payroll Clear | 850.00 | |
| Fed Tax | 75.00 | |
| United Way | 5.00 | |
| ER Health | 100.00 | 100.00 |
| Check | 770.00 | |
| 950.00 | 950.00 |
You should use the ‘Derived Fiscal’ posting date method for most G/L accounts except for certain employee deductions that are manually entered either on the IPSN or IPPH form and may be entered with Period End date but should be posted by Pay Issue date.
Accrual Logic#
Accruals happen automatically as part of the Payroll G/L Journalize Pays process, provided you have set up the accrual rules and you are running an accruable pay period.You must indicate which General Ledger Account codes you wish to accrue in the IDGA form by turning on the ‘Accrual Required’ toggle. The accrual rule is set up in the ‘Accrual Method’ field at the Group level on the IDGR form.
During the last full pay period of a month the Journalize Pays (UPGL) function calculates the percentage of the payroll to be accrued by looking forward to the next pay period (which spans the month end). Based on the number of days (calendar or worked, as indicated on the Group form) that are in that pay period that falls into the current fiscal period, divided by the total number of days (calendar or worked) in the pay period. This will determine a percentage to accrue against the current payroll.
- For example:
- The pay period of 2004-12 (fiscal 2005-04) needs to make an accrual for the 13 calendar days of March that falls into pay period 2004-14 (March 19- April 01) (fiscal 2005-05).
- The system performs the following calculations:
- Mar 19-31 = 13 days = 92.86% of a 14-day pay period
- If the Payroll wage expense for pay period 2004-12 is $1000.00, then the accrual is calculated as $1,000.00 * 92.86% = $928.60.
The Payroll Journal Entries Report (RPGL) will indicate the following:
- 2005-04 Accrual G/L Report
| Account | Debit | Credit |
| Accrual Clearing | 928.60 | |
| Wages | 928.60 | |
| 928.60 | 928.60 |
- 2005-05 Accrual G/L Report
| Account | Debit | Credit |
| Accrual Clearing | 928.60 | |
| Wages | 928.60 | |
| 928.60 | 928.60 |
- 2005-05 Payroll G/L Report
| Account | Debit | Credit |
| Wages | 1000.00 | |
| Deductions | 450.00 | |
| Contributions | 375.00 | 375.00 |
| Net | 550.00 | |
| 1375.00 | 1375.00 |
Inter-Company G/L Logic#
There are several account usages (lexicon X_ACCOUNT_USAGE) that need to be set up in order to facilitate inter-company accounting:- 0121 - I/C DR
- 0122 - I/C CR
- 0124 - I/C Suffix Mask
- 0125 - I/C DR Suffix
- 0126 - I/C CR Suffix
On IDGA screen, the following G/L Account entries are examples of set up:
| G/L Account | Account Usage | Distr Mask |
| DUE FROM | SUFFIX 0124 - I/C Suffix Mask | ??-XXXX-????-?????? |
| DUE FROM | 0121 - I/C DR | 01-0880-0000-131000 |
| DUE FROM | 0100 0125 - I/C DR Suffix | 01-0880-0000-131100 |
| DUE FROM | 0885 0125 - I/C DR Suffix | 01-0880-0000-131885 |
| DUE TO | 0122 - I/C CR | ??-????-0000-207088 |
| DUE TO 0100 | 0126 - I/C CR Suffix | ??-????-0000-207088 |
| DUE TO 0885 | 0126 - I/C CR Suffix | ??-????-0000-207088 |
Account Usage '0124 - I/C Suffix Mask' entry indicates that from:
Distr Mask ??-XXXX-????-??????
- Positions 4 - 7 ( XXXX ) contain the ‘Fund’ portion, which will be used as a suffix to read Account Usage '0125', '0126' entries.
Account Usage '0121 - I/C DR' must be set up (used as the default).
- If suffix entries are not set up for Account usage 0125, this entry will be used.
- The G/L Account Code 'DUE FROM' is then concatenated with the ‘Fund' portion of the distribution to read IDGA again with Account Usage '0125' and G/L Account code = 'DUE FROM 0100'.
Account Usage '0122 - I/C CR' must be set up (used as the default).
- Same process as Account Usage '0121'.
Inter-Company & Fringe#
In Fund accounting, each agency (Police, Airport, etc. – 99 different funds) have a “share” in the General Fund bank account. All checks are paid by a single fund from the General Fund bank account. (There is only one bank account.)For all monies paid out of the general fund on behalf of the various agencies, a transfer of “cash” is required in the general ledger. In this example, the liabilities are recorded and paid out of the general fund.
Example Definitions#
1. G/L Distribution Segment- Fund - Department - Object - Project
- ??? - ???? - ????? - ?????
- (The project is optional.)
2. Funds
- 341 – Agency 1 – operational area
- 400 – Agency 2 – operational area
- 001 – General Fund – general operating fund
3. Employer portion of health insurance is included in the fringe element.
- Note that the Health Expense GL account does not have the I/C toggle turned ON since net expense charged to the agency is from the Fringe Expense Account. If the health expense (GL Account Code) has the inter-company toggle turned ON it will result in incorrect entries.
4. Inter-Company feature is controlled by the individual IDGA entries.
5. Fringe Benefit feature controlled by the group (IDGR) and element definitions. This example uses hours worked to pro-rate the employer paid fringe benefits.
Example Entry – with the Inter-Company and Fringe features turned OFF#
Wages are paid for an employee who usually works at Agency 1. In this pay, the employee worked on a special project for Agency 2 for 10 of the 80 hours. UPGL creates the following entries:| GL Acct | PC Desc | GL Code | Dr Amt | Cr Amt | Fund | I/C | Fringe |
|---|---|---|---|---|---|---|---|
| 341-0615-4000 | Reg $ | Wage-Ex | $800.00 | Agency 1 | Off | Off | |
| 400-0775-4000 | Reg $ | Wage-Ex | $200.00 | Agency 2 | Off | Off | |
| 001-4171-2122 | Fed Tax | Fdtax-Liab | $250.00 | General | Off | Off | |
| 001-0615-3400 | EE Health | Hth-Liab | $100.00 | General | Off | Off | |
| 341-0615-1100 | ER Health | Hth-Exp | $120.00 | Agency 1 | Off | Off | |
| 001-0615-3400 | ER Health | Hth-Liab | $120.00 | General | Off | Off | |
| 001-1000-0220 | Net Pay | Bank-Liab | $650.00 | General | Off | Off | |
| Journal Total | $1,120.00 | $1,120.00 |
Example Entry - the Inter-Company feature turned OFF and the Fringe feature turned ON#
- Total Fringe Costs $120.00 (ER Health)
- Agency 1 - 60 hours / total 80 hours X $120.00 = $90.00
- Agency 2 – 20 hours / total 80 hours X $120.00 = $30.00
| GL Acct | PC Desc | GL Code | Dr Amt | Cr Amt | Fund | I/C | Fringe |
|---|---|---|---|---|---|---|---|
| 341-0615-4000 | Reg $ | Wage-Ex | $800.00 | Agency 1 | Off | Off | |
| 400-0775-4000 | Reg $ | Wage-Ex | $200.00 | Agency 2 | Off | Off | |
| 001-4171-2122 | Fed Tax | Fdtax-Liab | $250.00 | General | Off | Off | |
| 001-0615-3400 | EE Health | Hth-Liab | $100.00 | General | Off | Off | |
| 341-0615-1100 | ER Health | Hth-Exp | $120.00 | Agency 1 | Off | On | |
| 001-0615-3400 | ER Health | Hth-Liab | $120.00 | General | Off | Off | |
| 001-1000-0220 | Net Pay | Bank-Liab | $650.00 | General | Off | Off |
ADDITIONAL FRINGE ENTRIES
| 341-0615-1100 | ER Health | Frng-Liab | $120.00 | Agency 1 | Off | On | |
| 341-0615-1100 | ER Health | Frng-Exp | $90.00 | Agency 1 | Off | On | |
| 400-0615-1100 | ER Health | Frng-Exp | $30.00 | Agency 2 | Off | On | |
| Journal Totals | $1,240.00 | $1,240.00 |
Since the employee also worked in Agency 2, the additional entries relieve the health costs charged to Agency 1 based on the hours worked.
- Agency 1 Health Expense
- $120.00 Original Entry
- $90.00 Health expense create by the fringe feature (Fringe Expense)
- $120.00 Health expense clear by the fringe feature. (Fringe Liability)
- $90.00 Net Health Costs
- Agency 2 Health Expense
- $30.00 Health expense create by the fringe feature (Fringe Expense)
Example Entry – the Inter-Company and the Fringe features turned ON#
Now that the expenses are allocated, the inter-company logic will create the entry in order to charge the various agencies cash account (due to/from). The inter-company (I/C) toggle is turned ON for specific expense GL account codes. Note that the Health Expense GL account does not have the I/C toggle turned ON since net expense charged to the agency is from the Fringe Expense Account. If the health expense (GL Account Code) has the inter-company toggle turned ON it will result in incorrect entries.| GL Acct | Desc | GL Code | Dr Amt | Cr Amt | Fund | I/C | Fringe |
|---|---|---|---|---|---|---|---|
| 341-0615-4000 | Reg $ | Wage-Ex | $800.00 | Agency 1 | On | Off | |
| 400-0775-4000 | Reg $ | Wage-Ex | $200.00 | Agency 2 | On | Off | |
| 001-4171-2122 | Fed Tax | Fdtax-Liab | $250.00 | General | Off | Off | |
| 001-0615-3400 | EE Health | Hth-Liab | $100.00 | General | Off | Off | |
| 341-0615-1100 | ER Health | Hth-Exp | $120.00 | Agency 1 | Off | On | |
| 001-0615-3400 | ER Health | Hth-Liab | $120.00 | General | Off | Off | |
| 001-1000-0220 | Net Pay | Bank-Liab | $650.00 | General | Off | Off |
| 341-0615-1100 | ER Health | Frng-Liab | $120.00 | Agency 1 | Off | On | |
| 341-0615-1100 | ER Health | Frng-Exp | $90.00 | Agency 1 | On | On | |
| 400-0615-1100 | ER Health | Frng-Exp | $30.00 | Agency 2 | On | On |
| 001-1000-0220 | Due from Agencies | Cash | $1,120.00 | General | Off | Off | |
| 341-1000-0300 | Due to Gen Fnd | Cash | $890.00 | Agency 1 | Off | Off | |
| 400-1000-0300 | Due to Gen Fnd | Cash | $230.00 | Agency 2 | Off | Off | |
| Journal Totals | $2,360.00 | $2,360.00 |
- Summary
- Net expenses charged to Agency 1.
- Regular Wages $800.00
- Health Expense $90.00
- Due from Agency 1
- General Fund $890.00
- Net expenses charged to Agency 2.
- Regular Wages $200.00
- Health Expense $30.00
- Due from Agency 2
- General Fund $230.00
- Total due
- General Fund $1,120.00
- Note - The Due to/From or Cash entries may vary based on set up.
Example Entry - General fund pays the federal tax and health expense#
The entry created in the Accounts Payable system would be:| GL Acct | Desc | Dr Amt | Cr Amt | Fund |
|---|---|---|---|---|
| 001-4171-2122 | Fed Tax Payable | $250.00 | General | |
| 001-0615-3400 | ER Health – Pay | $120.00 | General | |
| 001-0615-3400 | EE Health Dedn | $100.00 | General | |
| 001-1000-0220 | Bank | $470.00 | General |
Therefore, at the end of all the entries, the General Fund Cash will be 0.00.
| $1,120.00 | Debit | Total inter-company fund transfer |
| $650.00 | Credit | Net payroll amount |
| $470.00 | Credit | Liabilities paid on behalf of the agencies. |
| $0.00 | Total entry to the General Fund Cash/Bank account |
G/L Account Codes on Pay Components#
General Ledger accounts must be connected to pay information in order to create any journal entries. This is done through the Debit and Credit Account codes in the Acct/Arrears tab on the Pay Component (IPPC) form.A simplistic version of G/L logic in regards to when an amount is a debit and/or a credit is explained as follows:
| Earnings | Debit (Expense Accounts) | |
| Deductions | Credit (Liability Accounts) | |
| ER Benefits | Debit (Expense Accounts) | Credit (Liability Accounts) |
| Check/Dep (Net) | Credit (Liability Accounts) |
This would produce the following G/L Report.
| DR (Debit/Expense) | CR (Credit/Liability) | |
|---|---|---|
| Reg. $ | 800.00 | |
| OT $ | 50.00 | |
| Fed Tax | 75.00 | |
| United Way | 5.00 | |
| ER Health | 100.00 | 100.00 |
| Check | 770.00 | |
| 950.00 | 950.00 |
No G/L Account codes need to be set up on any pay components with the following usages:
| 01 | Gross | (individual earnings are sent to the G/L) |
| 02 | Total Deductions | (individual deductions are sent to the G/L) |
| 03 | Net Pay | Net Pay Amount is sent to G/L via the check, deposit or cash amount. |
| 15 | Total Check Amount | (G/L code is attached to Bank Account form |
| 16 | Total Deposit Amount | (G/L code is attached to Bank Account form |
| 17 | Total Cash Amount | (G/L code is attached to Bank Account form |
G/L Account Codes on Payroll Bank Accounts#
The totals of checks, deposits, and cash for an employee should add up to their net. These amounts are sent to the G/L based on the G/L Account codes indicated on the Bank Accounts form, not on the Pay Components form.G/L and Premiums#
When a premium is being paid, the premium amount must be stored in a pay component.Some premiums are generated from another time or earning pay component, while others are directly entered using the Premium pay component. When journalizing a pay line that associates a premium, the pay line may have an overridden Distribution mask, depending on the types of premiums. You may or may not want to apply the overridden Distribution mask to the premium pay components.
On IPPC, for a pay component that generates premiums, you must list all premium types applicable for this pay component and specify the distribution rule that will be used for this premium type.
Ensure that the Time PC to which the premium is being applied has an associated Earnings PC in the IPPC form.
G/L Suffix Logic#
Wiki allows you to define GL accounts by suffix. Suffix Types are defined at the pay component level. The suffix information is defined at the GL Account level.Maintain Lexicons (IMLN) #
The X_GL_SUFFIX_TYPE lexicon is a fixed lexicon provided by High Line. Each lexicon value has specific programming logic in order for the suffix logic to work.Define Pay Components (IPPC)#
For each pay component that will be required to do journal entries, the user must set up the IPPC screen 'Acct/Arrears' tab. On this tab, the user can define the suffix type according to the lexicon X_GL_SUFFIX_TYPE for 'DR Suffix' and/or 'CR Suffix'.For example, if PC 3050 State Tx Work is required to journalize to 'C-STATETAX’ and varies by group, then the 'CR Suffix' can be set up by 'Group'.
Define G/L Accounts (IDGA)– Default Entry#
Each GL Account must be defined on the IDGA screen and must exist on the screen with an entry that has NO ‘Account Suffix’ as default.For example, ‘C-STATETAX’ entry has description ‘Taxes (default)’ to indicate this is a default entry, the distribution mask is ‘01-????-41000-??????’, with no account suffix information.
IDGA – GL ACCOUNT – SUFFIX ENTRY#
After the default GL Account entry is defined, you can define as many Suffix entries as required with ‘Account Suffix’.You can set up suffix entries for ‘State Tax Liability’ for the next group and so on. You may put the description of the group on the Description field. This description will be printed on RPGL report, the account suffix information will not be printed on RPGL report.
‘Other Suffix’ is not supported yet, but will be in the future.
SUFFIX LOGIC IN UPLG/UPGL PROCESS#
When the UPLG/UPGL program is processing each pay component of a pay, it retrieves the ‘GL Account’ and ‘GL Suffix Type’ from the IPPC screen for the DR and CR.If the IPPC screen GL Suffix Type is defined, then UPLG/UPGL will build the necessary suffix information in order to retrieve the correct entry from IDGA.
UPLG/UPGL builds the account suffix information as follows:
| GL SUFFIX TYPE | IDGA ACCOUNT SUFFIX INFORMATION |
|---|---|
| 01 – Entity | - From pay Header Payroll, retrieves Entity den_id - All other suffix information is not used |
| 02 – Unit | - From Pay Header Payroll, retrieves Entity den_id - Then retrieves Pay Header Unit dun_id - All other suffix information is not used |
| 03 – Group | - From Pay Header Payroll, retrieves Entity den_id - Then retrieves Pay Header Unit dun_id and Group dgr_id - All other suffix information is not used |
| 10 – Canada Province | - From Pay Header Work State/Prov, retrieves dsp_id - All other suffix information must not exist |
| 20 – US Work State | - From Pay Header Work State/Prov, retrieves dsp_id - All other suffix information must not exist |
| 21 – US Work County | - From Pay Header Work State/Prov, retrieves dsp_id - Then use Pay Header Work Jurisdiction, retrieves the County dcn_id of this tax jurisdiction SELECT dtx.dcn_id INTO v_dga_dcn_id FROM p2k_cm_tax_jurisdictions dtx WHERE dtx.id = p2k_ppgl.k_pph.dtX_id_wo -All other suffix information is not used |
| 22 – US Work GEO | - From Pay Header Work State/Prov, retrieves dsp_id - Then use Pay Header Work Jurisdiction, retrieves dtx_id - All other suffix information is not used |
| 23 – US Res State | - From Pay Header Home State/Prov, retrieves dsp_id - All other suffix information is not used |
| 24 – US Res County | From Pay Header Home State/Prov, retrieves dsp_id = Then use Pay Header Home Jurisdiction, retireves the County dcn_id of this tax jurisdiction SELECT dtx.dcn_id INTO v_dga_dcn_id FROM p2k_cm_tax_jurisdictions dtx WHERE dtx.id = p2k_ppgl.k_pph.dtx_id_home - All other suffix information is not used |
| 25 – US RES GEO | - From Pay Header Home State/Prov, retrieves dsp_id - Then use Pay Header Home Jurisdiction, retrieves dtx_id - All other suffix information is not used |
| 26 – US School District | - From Pay Header Home State/Prov, retrieves dsp_id - Then use Pay Header School District, retireves dsd_id - All other suffix information is not used |
| 30 – Assignment Type | - If processing for a Pay Line, then use the Pay Line Assignment to retrieve the Assignment Type, otherwise use the primary Assignment to retrieve the Assignment Type - All other suffix information is not used |
After the appropriate suffix information is derived, then UPLG/UPGL uses the GL Account Code from IPPC along with the suffix information and retrieves an entry from IDGA that matches the suffix information.
If IDGA does not have an entry that matches the suffix information, then the default GL Account entry is used.
