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Map GL (General Ledger) accounts on the Payroll platform

This guide explains how you can use the Employment Hero Payroll platform to map your payroll transactions to the correct accounts in your accounting system. Doing so ensures accurate tracking of your payroll expenses and liabilities.

Getting started

Once you have connected a journal service and imported your Chart of Accounts, you can map those accounts to different payroll transaction types.

The Chart of Accounts page consists of two sections:

  • Primary accounts: These accounts are required and are the accounts that will be used if no Location Specific Accounts are mapped.
  • Location Specific Accounts: These accounts are used to override the primary accounts for transactions at a given location.

Mapping accounts to transaction types

Journals are produced based on the GL account that is mapped to the given transaction type.

The transactions are created based on a transaction hierarchy, which is as follows:

  • Top Level: Default Account Mappings
  • Second Level: Pay Category Mappings, Deduction Category Mappings, Expense Category Mappings, Employer Liability Mappings
  • Third Level: Location Specific Default Account Mappings
  • Fourth Level: Location Specific Pay Category Mappings, Deduction Category Mappings, Expense Category Mappings, Employer Liability Mappings

Transactions are matched to the GL account from the lowest level to the highest level.

Default transaction types

Payroll accounts and Wages accounts
  • Payment Account – used to reconcile the net payment amount of the payroll to the transaction from your bank account (often called the 'payroll clearing' account)
  • Wages Expense Account – used to record the gross wages expense for the pay run
  • Default Payroll Liability Account – records common employee payroll deductions providing there is no specific liability account set up
PCB and EPF accounts
  • PCB Liability Account – used to record the gross wages expense for the pay run
  • EPF Employer Expense Account – used to track your EPF expense transactions
  • EPF Employer Liability Account – used to track your EPF liability transactions
  • EPF Employee Liability Account – used to track your EPF liability transactions
EIS and SOCSO accounts
  • EIS Employer Liability Account – used to track the employer's portion of EIS liabilities and to record EIS-related deductions and obligations that the employer is responsible for remitting
  • EIS Employee Liability Account – tracks your employees' EIS liability transactions
  • SOCSO Employer Expense Account – tracks your SOCSO expenses
  • SOCSO Employer Liability Account – tracks your SOCSO liability transactions
  • SOCSO Employee Liability Account – tracks your employees' SOCSO liability transactions
HRDF and PCB Borne accounts
  • HRDF Employer Expense Account – tracks your HRDF expenses
  • HRDF Employer Liability Account – tracks your HRDF liability transactions
  • PCB Borne By Employer Expense Account – tracks your employer PCB expenses
  • PCB Borne By Employer Liability Account – tracks your employer PCB liability transactions
CP38 and Benefits in Kind accounts
  • CP38 Expense Account – tracks your CP38 expenses
  • CP38 Liability Account – tracks your CP38 liability transactions
  • Benefits In Kind Expense Account – tracks your benefits in kind expenses
  • Benefits In Kind Liability Account – tracks your benefits in kind liability transactions
Employee Expenses and Employer Liability accounts
  • Employee Expenses – used to record any employee expenses (which are not deemed part of employe wages) processed within the pay run
  • Employer Liability Expense Account – tracks your employer expense liability transactions
  • Employer Liability Account – tracks your employer liability transactions

Chart of Accounts management

Pay category transaction accounts

Pay category transaction accounts are used to allocate specific wage expenses to different GL accounts. For example, you may want to track bonuses, paid leave or allowances paid to different GL accounts. To do this, you need to map a different GL account for the specific pay category.

If you do not specify a pay category transaction account, the default Wages Expense Account will be used.

To access Pay category transaction accounts:

  1. Access the Business icon.
  2. Click the Payroll Settings submenu.
  3. Under Business Settings, click Chart of Accounts.
  4. Click Pay Categories.

You will then see the following panel:

screenshot of Pay Categories panel
Deduction category transaction accounts

Deduction Category Transaction Accounts are used to allocate specific deductions to different GL accounts.

If you do not specify a deduction account, the Default Payroll Liability Account will be used by default.

Assigning a GL account to the Expense Account is optional. It should only be done if you want the deduction amount to be recorded as a debit in the specified GL account. The exact deduction amount will then also apply to the balance of the Wages GL account.

To access your Deduction category transaction accounts:

  1. Access the Business icon.
  2. Click the Payroll Settings submenu.
  3. Under Business Settings, click Chart of Accounts.
  4. Click Deduction Categories.

You will then see the following panel:

screenshot of Deduction Category table, highlighting Liability Account column

Expense category transaction accounts

Expense category transaction accounts are used to allocate specific expenses to different GL accounts. If you do not specify an expense account, the transactions will be posted to the Employee Expenses Account by default.

To access your Expense Categories:

  1. Access the Business icon.
  2. Click the Payroll Settings submenu.
  3. Under BUSINESS SETTINGS, click Chart of Accounts.
  4. Click Expense Categories.

You will then see the following panel:

screenshot of Expense Categories table.jpg

Splitting by employing entity and location

The chart of accounts can now be split by both employing entity and location for file export and detailed file export journal types. Simply map the accounts as required, and the journal will generate accordingly. This enhancement allows for more granular and relevant financial data, helping businesses track transactions more accurately across different locations and employing entities.

Splitting by employing entity

If you have set up multiple employing entities, your chart of accounts can now reflect the split of earnings accordingly. Your journal export will display the earnings split under the Entity column.

Note: You will need a working integration into File Export or Detailed File Export to be able to publish multi-entity chart of accounts.
coa01.jpg

Your journal export will display the earnings split as specified in the chart of accounts, under the Entity column.

Splitting by location

When mapping your default GL accounts, you will notice an option to "Split by location." This allows you to write a transaction line per location to the journal for the same account. This feature is particularly useful for businesses that use locations, classes, or tracking categories in their accounting software.

Note: If you also want to assign classes to your journal entries, ensure that you have assigned classes to your locations.

Location-Specific Accounts

If you want to split your GL by location and allocate transactions to different GL accounts, you can define location-specific accounts. These accounts function the same way as primary accounts but apply only to the specified location.

Screen_Shot_2017-09-28_at_12.35.28.png

 

Entity-Specific Accounts

If you want to split your GL by entity and allocate transactions to different GL accounts, you can define entity-specific accounts. These accounts function the same way as primary accounts but apply only to the specified entity.

How entity specific accounts work

  • Employing Entity Specific Accounts allow you to override primary and location-specific accounts at the employing entity level.

  • If an employing entity account is mapped, it will take precedence over primary and location-specific accounts.

  • This feature applies only to file export and detailed file export journal types.

  • Your journal export will now display the employing entity split under the Entity column of an exported spreadsheet.

Setting up employing entity specific accounts

  1. Navigate to Payroll Settings > Chart of Accounts.

  2. Scroll down to Entity specific accounts.
  3. Click Add.
  4. Select the employing entity for which you want to map accounts, using the drop down menu.

  5. Assign GL accounts for relevant transaction types.

  6. Save your configuration.

Important Notes on setting up specific employing entity specific accounts

  • If you set up employing entity-specific accounts, location-specific accounts cannot be used.

  • You must have a working File Export or Detailed File Export integration to use this feature.

Exporting the Chart of Accounts

For users with multiple sets of location specific accounts, if they need to change a particular account, it can be difficult to find all the places that an account is used.

The 'Export Configuration' feature adds an excel spreadsheet export so that the user can see which accounts are used across the whole Chart of Accounts.

Screen_Shot_2017-09-28_at_12.40.10.png

Additionally, you can export your Chart of Accounts configuration via Payroll Settings > Data Extracts:

Screen_Shot_2017-09-28_at_12.37.21.png 

NOTE: If you make any changes to the journal service (including changing from "File Export" to "Detailed File Export") this will require you to re-map your Chart of Accounts accordingly.

To provide more flexibility in financial reporting, you can now map GL accounts specifically to employing entities for file export and detailed file export journal types. This ensures that financial data is accurately recorded based on the employing entity, reducing the need for manual adjustments.

If you want to split your GL by employing entity and allocate the transactions to a different GL account, you can define employing entity specific accounts. These accounts will work in exactly the same way as the primary accounts, however they will only apply to the location they are specified for.

How entity specific accounts work

  • Employing Entity Specific Accounts allow you to override primary and location-specific accounts at the employing entity level.

  • If an employing entity account is mapped, it will take precedence over primary and location-specific accounts.

  • This feature applies only to file export and detailed file export journal types.

  • Your journal export will now display the employing entity split under the Entity column of an exported spreadsheet.

Setting up employing entity specific accounts

  1. Navigate to Payroll Settings > Chart of Accounts.

  2. Scroll down to Entity specific accounts.
  3. Click Add.
  4. Select the employing entity for which you want to map accounts, using the drop down menu.

  5. Assign GL accounts for relevant transaction types.

  6. Save your configuration.

Important Notes on setting up specific employing entity specific accounts

  • If you set up employing entity-specific accounts, location-specific accounts cannot be used.

  • You must have a working File Export or Detailed File Export integration to use this feature.

Exporting the Chart of Accounts

For users with multiple sets of location specific accounts, if they need to change a particular account, it can be difficult to find all the places that an account is used.

The 'Export Configuration' feature adds an excel spreadsheet export so that the user can see which accounts are used across the whole Chart of Accounts.

Screen_Shot_2017-09-28_at_12.40.10.png

Additionally, you can export your Chart of Accounts configuration via Payroll Settings > Data Extracts:

Screen_Shot_2017-09-28_at_12.37.21.png 

NOTE: If you make any changes to the journal service (including changing from "File Export" to "Detailed File Export") this will require you to re-map your Chart of Accounts accordingly.

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