Procedures for users that are not using the payroll module for posting to the General Ledger.

Steps for RFMS users that are not using the payroll module and have to have the payroll entries in their General Ledger and also the net payroll to be shown in the checking account module

Follow the steps below:

CHECKING ACCOUNT

1.) Create an account code in the General Ledger called PAYROLL CLEARING. This can be either an asset account or a capital account. It will be used strictly as a clearing account.

2.) Post a bank charge for the amount of the net payroll and post it to the PAYROLL CLEARING account code.

3.) In the journal you now have a CREDIT to your checking account and a DEBIT to your PAYROLL CLEARING account.

JOURNAL ENTRIES

4.) DEBIT your salaries expense account code with the GROSS amount of the payroll. CREDIT your tax liability accounts with the taxes withheld from your employees paychecks and any other withholdings would be a CREDIT to their respective accounts, i.e. Employee Advances, Insurance, etc. A

Symptoms:Procedures for RFMS users that are not using the payroll module for posting to the General Ledger