GL Accounts

GL Accounts


Using Cost Centres or Chart of Account Codes allows you to track and report payroll costs. The optional Costing feature also allows the transfer of journals to accounting programs.
The function of the GL Accounts is to direct entries to a common code i.e. all Tax entries used in the open pay will be coded to your Tax Account.
You can also create 'wildcard entries' to direct cost centres to the employee's home cost centre, but 

Set up GL Accounts

Log on to iPayroll go to Setup > Costing/GL
After you have Enabled Costing and added Cost Centres > select GL Accounts 



Update the Accounts with the appropriate Cost Centre codes

Save

GL Accounts Explained

Clearing Accounts

Payroll Clearing - Debit and Credit GL
Leave this account blank if you do not operate a Payroll Clearing Account in your General Ledger.
Enter the account code for your Payroll Clearing Account. The GL Postings will then contain an extra debit and credit transaction to this account. The credit will be for the total charged to each cost centre, and the debit will be the total of all deductions (including tax and net pay, etc). These will almost certainly be for the same amount, leaving a balance of zero in your Payroll Clearing account. (Any residual balance will need to be investigated and cleared).
Bank Account - Credit GL - This is a 'catch-all' account code for any bank deductions that do not have a specific account code specified.
Tax Account - Credit GL - This is a 'catch-all' account code for any tax deductions that do not have a specific account code specified.
Cheque Account - Credit GL - This is a 'catch-all' account code for any cheque deductions that do not have a specific account code specified.
Cash Account - Credit GL - This is a 'catch-all' account code for any cash deductions that do not have a specific account code specified.

Employer's Superannuation Contribution (ESC)
DR: ESC Gross - Debit GL - Enter the account code to charge superannuation subsidies to. Tip: If you leave this account code blank, superannuation subsidies will be charged to each person's default cost centre. This is useful if your organisation charges superannuation against each cost centre rather than to a single specific account.
CR: ESC Net - Credit GL - Note: This is part of the "contra" entry to ESC Gross. The remainder i.e. the ESC Net amount is credited to the Cost centre defined on the ESC Deduction.
CR: ESC Tax - Credit GL - Enter the account code to credit the Employers Superannuation Contribution Tax (ESCT) to.
Overpayments Clearing - Credit GL - Enter the account code to post any Overpayments Raised to. Overpayments are raised when you reverse out transactions, (using a negative quantity on the timesheet), resulting in a net debt rather than a net pay to a person.
For more information here  Overpayments and Recovery 
Split Leave Payments based on timesheet cost centre split  - Enable
Leave Provision - Credit GL  - Note: You must tick the "Post Leave Provisions" checkbox to enable this feature.
Leave Provisions can be posted on your GL Postings report if desired. Enter the Account Code to debit the leave provision to here. The credit entries will be posted to the account codes for your AL-ENT - Annual Leave Entitlement transactions.

iPayroll Processing Fees - 
DR: iPayroll Processing Fees - Debit GL - Enter the account code to credit the Net amount of the iPayroll Processing Fee.
DR: GST on Processing Fees - Debit GL - Enter the account code to credit the GST amount of the iPayroll Processing Fee.
CR: iPayroll Processing Fees - Credit GL - Enter the account code to credit the GST inclusive amount of the iPayroll Processing Fee.

GL Wildcard 
Use ????? to have the system prefill the cost centre from the Employee's home cost centre but retain a  standard suffix.
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