Account Codes
 

Account Codes are an optional feature that allow you to analyse your payments and deductions and transfer journals to a General Ledger (Accounting program), providing an electronic interface to your financial system.

Note: To use account codes, costing must be enabled. (In Outback Ventures (Demo), costing is currently enabled).

For an example of a journal see the sample GL Postings Report.

Setting Up Account Codes

Follow these steps to set up Account Codes.

  1. Review your Account Codes page, and enter the relevant account codes. (The full account code, as you wish to transfer to your financials package).
  2. For each account code that deductions will be posted to, Add a new Cost Centre using the account code as the cost centre code.
  3. For each deduction in your organisation, select the appropriate Account Code from the Cost Centre box.
  4. For each person, enter the account code against every relevant deduction in their Standard Timesheet.
  5. Check Set Up of all your GL Accounting Transactions.
  6. When you are processing a payroll, review the financial reports.

General Ledger Clearing Accounts

In your Account Codes page there are a number of Clearing Accounts that are used by the accounting features.

Payroll Clearing Note: 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 nett 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 This is a 'catch-all' account code for any bank deductions that do not have a specific account code specified.
Tax Account This is a 'catch-all' account code for any tax deductions that do not have a specific account code specified.
Cheque Account This is a 'catch-all' account code for any cheque deductions that do not have a specific account code specified.
Cash Account 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 Enter the account code to charge superannuation subsidies to. Tip: If you leave this account code blank, superannuation subsidies will be charged to each persons default cost centre. This is useful if your organisation charges superannuation against each cost centre rather than to a single specific account.
CR: Employer's Superannuation Contribution Tax (ESCT) Enter the account code to credit the Employer's Superannuation Contribution Tax (ESCT) to. (See Superannuation Subsidy help for more information).

Note: This is part of the "contra" entry to ESC Gross. The remainder (i.e. the ESC Nett amount) is credited to the Cost centre defined on the ESC Deduction.

Overpayments Clearing 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. (See Overpayments and Recovery for more information).

Cash Roundings Clearing Note: You can leave this account blank if you do not make any Cash payments.

If you make any Cash payments, the person pay will be rounded to avoid you having to handle small denominations. The amounts advanced for these cash roundings will be posted to this account.

Leave Provision 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.

Tax Split Note: Usually leave this account code blank. The Gross Pay will be credited to each cost centre.

Gross Payments debited to each Cost Centre can split between Nett and Tax amounts. Enter the Account Code to debit the tax split portion to here. (A template can be used to split the Tax to different cost centres). The Nett pay portion will still be debited to the accounts specified against each payment. The credit entries will be posted to the account codes for your Tax Deductions.

Tip: Generally, if you leave one of these accounts blank, any postings to that account will go to the Payroll Clearing Account instead. (However, read the description above for each account, as some have special rules).