Set up your Chart of Accounts - File Export

Introduction

A Chart of Accounts (COA) and Journal Integrations are vital parts of accounting and payroll systems. The COA is a structured list of financial accounts used by a company, categorising transactions like assets, liabilities, income, and expenses. It is customised to suit each client's needs, including payroll expenses, tax liabilities, and more.

File-based integration allows you to download a pay run's journal data in a tab-separated .TXT format for manually importing. File export-based journals include:

• Attache Export
• Detailed File Export
• File Export
• Financials Office 365 Export
• Jonas Premier Export
• MSG Global Solutions Export
• Reckon Accounts Export
• Pronto XI Export
• Wiise Export

Key Dependencies

Instructions

1. Log into your Employment Hero Payroll platform.
2. Navigate to Business > Payroll Settings > Business Management > Integrations.
3. Select Accounting from the drop-down to show available integrations
4. Click Add on the option you wish to choose.

5. Go to Business > Payroll Settings > Business Settings > Chart of Accounts.
6. Select Manage Accounts.
7. Complete the following fields:

• • Account Code
  • Account Name
  • Account Type

8. Once these have been created navigate back to the Chart of accounts to map accordingly.

Default Accounts

• Payment Account: Also known as the "payroll clearing" account, this is used to reconcile the net payment amount of the payroll to the transaction from your bank account.
• Wages Expense Account: This account is utilised to record the gross wages expense for the pay run.
• Default Payroll Liability Account: If no specific liability account is set up, all deductions will be journaled to this account.
• PAYG Expense Account: Use this account only for non-standard accounting methodologies. It splits the PAYG expense from the wages expense if specified
• PAYG Liability Account: Also known as the PAYG clearing account, this tracks PAYG liability transactions.
• Superannuation Expense Account: Used to track SG super expense transactions.
• Superannuation Liability Account: Also known as the super clearing account, this tracks super liability transactions.
• Employee Expenses Account: Records employee expenses processed within the pay run, which are separate from employee wages.
• Employer Liability Expense Account: Records employer liabilities against an employee within the pay run.
• Employer Liability Account: Keeps track of general employer liability transactions.
• Leave Provisions: Optional setting to track the cost of any leave liabilities within the business. Further information on configuring leave provisions can be found here.

Pay Categories

Pay category transaction accounts allocate distinct wage expenses to various General Ledger (GL) accounts. For instance, you can use them to track bonuses, paid leave, or allowances by assigning different General Ledger accounts to specific pay categories.

If no pay category transaction account is specified, the default Wages Expense Account will be utilised.

Deduction Categories

Deduction category transaction accounts are utilised to allocate particular deductions to different GL accounts. If no deduction account is specified, the Default Payroll Liability Account will be automatically used.

Assigning a GL account to the Expense Account is optional and should only be done if you want the deduction amount to be posted as a debit entry against the designated GL. This, in turn, reduces the wages GL account by the same amount.

If you configure a deduction (not just salary sacrifice) to be directly paid to a bank account, it will not be treated as a liability since it has already been paid. Therefore, it will be recorded in the payroll clearing account. To create a debit entry instead of a credit entry in the journal, you can use an Expense account from the chart of accounts.

Expense Categories

Expense category transaction accounts are employed to allocate specific expenses to various GL accounts. In case you do not specify an expense account, the transactions will be automatically posted to the Employee Expenses Account.

Employer Liability Categories

Employer liability category transaction accounts are utilised to allocate specific employer liabilities to different GL accounts. If you do not specify a liability account, the transactions will be automatically posted to the Employer Liability Account by default. Similarly, if you do not specify an expense account, the transactions will be posted to the Employer Liability Expense Account by default.

Leave Provisions

Accounts that transactions will be posted to for leave liabilities are the specific GL accounts used to track the cost of leave entitlements within a business. These accounts are instrumental in recording and managing various types of leave liabilities, such as annual leave, sick leave, parental leave, and other forms of paid time off for employees. By allocating transactions to these accounts, businesses can accurately track their financial obligations related to leave entitlements and make sure proper accounting for such liabilities.

Location Specific Accounts

To segregate your GL based on location and allocate transactions to different GL accounts, you have the option to establish location-specific accounts. These accounts function identically to primary accounts but are exclusively applicable to the specified location. In this way, businesses can effectively manage and track financial data specific to each location, while maintaining consistency with the primary accounts' functionality.

1. Click Add to create a location-specific requirement.
2. Select location.
3. Update all required fields with the specific GL account information for that location.