Pay Items

To access the Pay Items file do one of the following from the Navigator:

• Go to Company | Maintain Company. In the Company Maintenance window, the Pay Items file is listed on the left.

• Go to Payroll | Payroll Framework. Double click the Pay Items node to open the file.
  

1. In the pay items file, select the Pay Items node on the left to display a list of the Pay Item types.
2. On the left select the type of pay item you want to create, then click on the Add New button on the right.
   
3. Complete the settings for the new pay item. See below for specific settings depending on the type of pay item you are creating.

1. In the pay items file, the right hand pane displays a list of all existing pay items. Select the required one to edit it in a pop-up window.
   
2. To narrow down the list of pay items displayed, select a Pay Item category on the left to see only the pay items related to that category.
3. Double click the required one to edit it in a pop-up window.
   
4. Edit the required details. See Pay Item Types for specific settings depending on the type of pay item you are editing.

1. From the Navigator, go to Company | Maintain Company Details | All Pay Items.

2. Click on the toolbar and select the Copy Pay Item function.

3. Click Yes to confirm that you want to create a copy of the pay item selected.
4. A message is displayed indicating that a temporary code of CPY has been given to the new item – click OK.
5. Amend the details required (e.g. pay code, description, etc.)

Note that you are only able to create Fixed Rate Pay items within the Taxation, Payment, Deduction, Leave Accrual, Leave Non Accrual and Non Cash Pay items categories.

Any pay item which has not been used within the system can be deleted, for example if you create a pay item in error. The system will not allow a pay item to be deleted if it has been used in areas such as earnings history, year-to-date, general ledger codes, leave requests and so on. It also checks to see if the item has been attached to a To Do task. Reserved pay items can never be deleted. To delete an unused pay item:

1. In the pay items file, the right hand pane displays a list of all existing pay items. Select the required one, then click Delete at the top of the screen.
   
2. If the pay item cannot be deleted, an error message will be displayed.
3. If the pay item is available for deletion, click OK to confirm you wish to delete.

You can post General Ledger codes by two methods:

• Post a Fixed Code. For example, if all Net Pay is posted to account code 1234, regardless of the department/cost centre in which it was paid, then this is considered to be fixed code. This will usually be the case for balance sheet accounts.
• Reflect the costing structure. In this case the code for ordinary time must reflect the department/cost centre from which it originated. For example ordinary time from Department A is posted to A-1234, while ordinary time from Department B is posted to B-1234. This will usually be the case for expense accounts.

See Using the General Ledger | Setting up a General Ledger Definitions Structure for information on this process.

Specifying General Ledger Codes

1. To access the General Ledger tab, open the pay item, then select the General Ledger tab.
2. Select whether the pay item is a Debit, Credit or Both (Expense/Liability).
   Payments are usually a Debit (for example ordinary time), while a distribution of that payment is a Credit (for example tax and net pay), and oncosts would be Both (e.g. Super). Use the Table Defining Debit/Credit Pay Items next, as a guide.
   

3. If you specified Debit, complete the GL Debit Code. If you specified Credit, complete the GL Credit Code. If you chose Both at Step 2, you must ensure you complete both Debit and Credit Codes.
4. Choose the appropriate option:
• For a Fixed Code: Do not tick Use G/L Structure
  Note that the example displays the exact code you have keyed in on this screen. This is the GL code to which the Pay Item will be posted.
• To Reflect the Costing Structure: Tick Use G/L Structure
  Note that the example displays the code you have entered in the yellow squares. The other segments of the GL code are place-holders for the prefixes for State, Cost Centre and Department as well as any fixed characters.
5. Your G/L Structure may have Primary and Alternate structures to choose from. Therefore, if you have ticked the Use G/L Structure here, you need to specify whether you are applying the Primary or Alternate structure to the pay item. If there is no Alternate structure, it will default to Primary.
6. Click OK.

Table Defining Debit/Credit Pay Items

 

Payment type	Debit code	Credit code
Reimbursement pay items	Expense	-
Taxation pay items		Clearing (PAYG)
Termination pay items	Expense (Wages)	-
Reserved pay items
- Withholding Tax	-	Clearing (PAYG)
- ETP tax	-	Clearing (PAYG)
- FBT	-	Clearing
- GST	-	GST (Paid)
- Net pay	-	Clearing (Wages) or Bank
- State Payroll Tax	Expense	Provision
- Std Pay Rate	-	-
- Work Cover	Expense	Provision
Payment pay items	Expense	-
Deduction pay items	-	Clearing
Leave accrual pay items
- Annual Leave	Expense	-
- Long Service Leave	Expense	-
- Sick Leave	Expense	-
Leave non-accrual pay items
- Annual Leave Loading - non taxed	Expense	-
- Annual Leave Loading - taxed	Expense	-
- Flexitime	Expense	-
- RDO Accrual	Expense (Wages)	-
- RDO Paid	Expense (Wages)	-
Non-cash pay items	Expense	Clearing
Super Employee Pay Items	-	Clearing (Super Clearing)
Super Employer Pay Items	Expense	Clearing (Super Clearing)