Defining the General Ledger Structure

When maintaining company details, the General Ledger tab controls the General Ledger functions in payroll.  Here you can define whether or not to generate General Ledger transactions based on your costing structure.

If you will be using the general ledger function, ensure the box to Enable General Ledger Payrun Transactions is ticked.

To Define your General Ledger Structure:

You can post General Ledger codes by two methods:

• Post a fixed code, e.g. all net pay, regardless of its origin, is posted to a fixed code.
• Post a code which will reflect the costing structure, e.g. the code for ordinary time must reflect the department/cost centre from which it originated.

1. Click Define structure to create a General Ledger structure for this company.
2. Enter the Total number of characters you wish to have in the code, including any fixed characters, separators etc.
3. Using the From Position and To boxes, set up the structure of your code. Each segment can be up to 8 characters long, with an overall total of 35.

For Example:

	a.	All annual leave from department A must be posted to an account code 123-1000, where 123 represents Department A and 1000 represents your salaries and wages expense account. Annual leave from department B must be posted to 456-1000, where 456 represents the department, and 1000 represents annual leave.
	b.	In the GL structure, set positions 1 to 3 as department (DDD), position 4 as a fixed character '-' and positions 5 to 8 as the annual leave pay item (PPPP). This is represented in the example as DDD-PPPP.
	c.	When setting up departments, Department A is assigned the GL code 123 and department B is assigned the prefix 456. The annual leave pay item is assigned the code 1000.
	d.	Amounts processed in the payrun are transferred to the General Ledger based on the structure you have defined. Any annual leave taken by an employee in Department A will be posted to 123-1000, and in Department B to 456-1000.

4. Click Apply as you go to see the structure reflected in the Example at the bottom of the screen.
5. Any unwanted segments should be entered as 0 (zero).

6. Click OK to save your changes.

Deleting General Ledger Transactions

Payroll transactions and leave provision transactions can be exported to your accounting software, after which time they are no longer required in payroll. The housekeeping function (Navigator | Tools | Housekeeping) can be used to delete redundant transactions as part of database management.