Use this tab to specify how a general ledger code is established.
General Ledger Integration
If this implementation is required to integrate with a general ledger, as designated by the system behavioural controls, and this code in particular is required in that integration, as defined by the identifier described on a previous page of this series of the payroll code definition, then this page describes how a general ledger code is established.
There are four available mechanisms of establishing a general ledger code for any occurrence of the combination of an employee and a payroll code. Each type of payroll code will use a different feature for obtaining the required code and a typical implementation will potentially use a combination of these methods to accommodate varying activity types.
The four available methods are
This is the simplest mechanism available as the General Ledger code is stated below. All combinations in the Working File for an employee and a payroll code are coded to the stated account, which means that a central charge account is used, rather than a more localised (departmental/cost centre) code. This is typically used for issues such as Tax Credits where a single organisational account incurs the charge.
When a transaction is presented to the working file for the selected payroll code it is required that the general ledger code is also provided. This is usually used for overtime type payments where the activity for which the employee is being paid is not the standard cost area to which the employee is associated. This being the case it is the responsibility of the transaction itself to describe the true cost area.
This method expects the required general ledger code is present within the definition of the system through a series of default scenarios in the described sequence.
Firstly, the “Recurring” entries of the employee record are examined, including “Select From” types, for the combination of the employee and payroll code from the particular transaction. If one or more general ledger codes of analysis are obtained (split analysis can be provided as long as the full percentage is 100.00%), then this analysis is used for the combination of employee and payroll code.
If the previous attempt at locating the analysis code fails, the combination of the employee and the substitute payroll code is used to locate an alternative entry in the “Recurring” entries of the employee. This substitute code is defined on the system behavioural control parameters, but if this parameter is not defined then this stage of the procedures is omitted.
If the previous attempt at locating the analysis code fails, the cost centre definition, to which the employee has been attached, is examined for the combination of the cost centre and payroll code from the particular transaction. If one or more general ledger codes of analysis are obtained then this analysis is used for the combination of employee and payroll code.
If the previous attempt at locating the analysis code fails, the cost centre definition is examined for the combination of the employee and the substitute payroll code defined on the system controls. If one or more general ledger codes of analysis are obtained then this analysis is used for the combination of employee and payroll code.
If the previous four stages all fail the analysis code described below, i.e. specifically stated against the payroll code definition, is used.
If no general ledger code is provided against the payroll code definition as attempted in stage five, the suspense code is used as described in the system module controls. A specific analysis report is available to analyse all “Suspense Account” entries, which usually reflects a deficiency in the maintenance of the system as all of the stages above, have failed to allocate an adequate general ledger code.
This mechanism is similar to the “Fixed” method described above with the added facility that in each of the first four stages described, the system expects only part of the full code to be provided. Another part of the code is supplied in the general ledger analysis code described below, and this is used to complement the section already located in one of these stages (1-4). Hopefully this combination of parts may supply a valid code but this will not be verified until the elements are combined. If no elements are successfully located, then the Suspense Account described in stage 6 above is used.
The nature of what is required from this data item is dependent upon the type of integration defined above.
A full valid code is expected and this can be provided by either entering the code directly into data field provided or by using the “Search & Selection” facility accessed by Function opposite the data field. Verification of the code supplied is provided by the display of the account description in the associated summary field.
NO code element(s) are required.
A full general ledger code may be provided as the optional 5th stage of the processes of the action type described above.
A partial code may be entered and the validation procedures are relaxed to enable this to be verified. The unknown elements are stated by the characters “-” and “.” and these will be required, although not validated, at this stage. These are required to confirm the positioning of the provided elements in relation to the rest of a full code.
For information about the details you enter on the Pensions tab, click here.