Accounting in Payroll

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Four line types that make up a wage or salary in Payroll for Greentree: pay, deduction, tax and employer costs. Each line uses some of the methods outlined below to derive the accounts used to update the General Ledger. You can view how the account was derived in the pay entry by right clicking the GL Account in the required form (pay, deductions, tax or employer costs) and selecting Show Defaults. You must click the GL Account in the tab section of the window.

Standard Pay Defaults

The General Ledger account that is applied to lines comes from a number of areas within Payroll and Greentree.

For all lines there is a hierarchy that will determine which segments and/or accounts is used. Employees will have a Pay Group, Branch and Profit Centre assigned to them in employee maintenance. In addition, employees can have their own account mask assigned on the Defaults. When a pay is entered or processed the account segments will be filled as:

• Classification
• Transaction Type
• Employee
• Profit Centre
• Branch
• Pay Group

This means that Greentree will first look at the classification and fill any segments nominated then move onto Transaction Type, Employee, Profit Centre, Branch and finally Pay Group until a valid account is created. If all the segments are filled at any one of the levels Greentree will stop and update the line with the account. If Greentree cannot find a valid account, the line will be updated with the suspense account. The account may be overridden at pay entry.

Individual Pay Defaults

You can have employees whose wage or salary is regularly costed to multiple cost centres or employees who work on long term jobs. In employee maintenance (on the Payroll/Pay sheet) you have the option of splitting an employee's standard hours across different account masks, accounts and jobs. If using hidden segments in the General Ledger the hidden segment must be accounted for, either masked or the full account number entered.

If choosing to use this option there are some additional features you can use:

• If masking the account at this level, it adds an additional layer to the above hierarchy. Pay Defaults Classification Transaction Type Employee Profit Centre Branch Pay Group
• Jobs can be entered at this level, along with activity and work centre and defaults to the pay lines.

It is important to remember that when processing or entering a pay, these account values defaults however if adding additional lines when entering a pay, the account will derived from using Classification Transaction Type à Employee Profit Centre Branch à Pay Group.

This option can also be used for deductions, taxation and employer costs however deductions, taxation and employer costs require a clearing account. This can be an entire general ledger account of part of a general ledger account code along with wildcard characters (*). The clearing account will be derived using the hierarchy:

• Transaction Type Expense Mask
• Employee Account Mask
• Employee's Profit Centre
• Employee
• Employee's Pay Group Account Mask

Where the account cannot be filled it posts to the suspense account.

Transaction Trees

Transaction trees may be used in the payroll module if the summarised by batch is turned off in module control. They must be enabled in the Greentree financial module and each of the payroll expense accounts must have a valid transaction tree assigned to it.

If the transaction tree is invalid a pay may still be entered or processed however when the pay record is saved you will be prompted to enter a valid transaction tree for the account. If the record is not saved, the expense will be placed into the Transaction tree 'Unallocated' bin.

Transaction trees are entered in three places in the payroll module:

• Employee Maintenance Defaults form

  If a transaction tree code(s) is entered in the Defaults tab, when a pay is entered or processed the transaction tree code(s) updates to the pay lines only for the employee.

• Employee Maintenance Payroll form

  Within the Payroll form the Pay, Deduction, Tax and Employer Cost sub forms may all have transaction tree code(s) entered. When a pay is entered or processed the transaction tree code(s) will be updated for each of the nominated line types in the pay entry.

• Pay Entry

  Once a pay is entered or processed it is possible to enter transaction tree code(s) for each of the line types. If using one of the above methods is it possible to change or remove transaction tree code(s).

Sub Codes

Sub codes may be used in the payroll module. They must be enabled in the Greentree financial module and may be entered for each of the payroll line types once the pay is entered or processed.

Accounts Payable Integration

The GL Account postings are using the GL Clearing Account associated with the original pay line.

For HR Journals, it uses the Clearing Account specified against the Transaction Type. Where this is wildcarded, the clearing account will be derived using the hierarchy: Transaction Type Expense Mask, Employee Account Mask Employee;s Profit Centre Employee’s Branch Employee;s Pay Group Account Mask.

Normally GL Journals do not get created for HR Journals, but as GL updates for any HR Journal included on an AP Invoice created from Payroll, this could cause the GL not to reconcile to PR.

The process uses the Greentree hierarchies for determining:

1. Tax Code
2. Creditors Control Account
3. Tax Account

Payroll Journals

Payroll Journals are created as part of the Create Payments process. The are removed from Greentree if the payments are cancelled.

Where the accounts come from is listed below. On a pay line on the pay form, right click the GL Account field on the Pay tab will allow you to Show Defaults, and this opens a listing of the posting accounts and the hierarchy used to obtain the account.

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