Equalisation Process

 

 

Where the amount is not exact after dividing, figures are rounded up. Adjustments are made in the final week of the month.

 

Without Equalisation Percentage

An employee is paid $4000.00 per month.

The month that the employee is paid is setup in the G/L Equalisation Percentage window as having 4 weeks.

When the Close G/L Posting PTD File process is run:

• The amount of $4000.00 is divided by the number of weeks and posted to the GLEQUAL file as four separate amounts of $1000.00 with a week number assigned to each amount.

 

With Equalisation Percentage

An employee is paid $4000.00 per month.

The month that the employee is paid is setup in the G/L Equalisation Percentage window as having 4 weeks and the Equalisation Percentage for the month is 10%.

When the Close G/L Posting PTD File process is run:

• The pay amount of $4000.00 is divided by the number of weeks and posted to the GLEQUAL file as four separate amounts of $1000.00 with a week number assigned to each amount.
• The Equalisation Percentage amount of $400.00 is divided by the number of weeks and posted to the GLEQUAL file as four separate amounts of $100.00 with a week number assigned to each amount.

 

With Equalisation Percentage & Oncost

An employee is paid $4000.00 per month.

The month that the employee is paid is setup in the G/L Equalisation Percentages window as having 4 weeks and the Equalisation Percentage for the month is 10%.

The Oncost for the amount of 5%.

When the Close G/L Posting PTE File is process is run:

• The gross pay amount of $4000.00 is divided by the number of weeks and posted to the GLEQUAL file as four separate amounts of $1000.00 with a week number assigned to each amount.
• The Equalisation Percentage of $400.00 is divided by the number of weeks and posted to the GLEQUAL file as four separate amounts of $100.00 with a week number assigned to each amount.
• The oncost amount on the Gross Pay of $200.00 is divided by the number of weeks and posted to the GLEQUAL file as four separate amounts of $50.00 with a week number assigned to each amount.
• The oncost amount on the Equalisation Percentage of $20.00 is divided by the number of weeks and posted to the GLEQUAL file as four separate amounts of $50.00 with a week number assigned to each amount.

 

General Ledger Oncosts are applied to the calculated equalisation percentage amount ONLY if the oncost itself is a percentage.

Oncosts based on an hour/rate calculation are ignored when calculating oncosts on the equalisation amount.

 

When this equalisation process is activated, the windows used to setup the General Ledger Account numbers allow the entry of Equalisation Account numbers.

From the G/L Primary Post Payroll window, two fields G/L Equalisation Debit Acct No. and G/L Equalisation Credit Acct No. are provided to allow the entry of account number to be used in the posting process.

• The result of the equalisation percentage calculation is posted to these accounts, e.g. Hours Code 01 has a posting value of $200.00 and the equalisation percentage is 10%. The amount of $20.00 is posted to the nominated equalisation account.
• These fields are available on the following windows:
  • G/L Primary Post Payroll
  • G/L Primary Post Tax
  • Payroll Tax % Record
  • Annual Leave Oncost
  • LSL Oncost
  • Workers Compensation Oncost
  • General Oncost (1 to 6)

Tax Reduction records are always posted to GL9000.

If using the General Ledger Interface to JDE Release 7 and have the Program Control window STATS activated to generate statistical records, the statistical records will always be posted to GL9000.

 

Processing

When the Close G/L Posting PTD File process is run:

• The file GLEQUAL will contain the details of any record that the equalisation process has been setup.
• The GL9000 file will contain any record that the equalisation process has not been setup. This includes all Tax Reduction records and any statistical records generated for the JDE Release 7 General Ledger Interface.
• A report GLEQURPT is produced and lists the equalisation Year/Month/Week that have been added to the file GLEQUAL and the equalisation % applied.

Records in the GL9000 file can be posted to the General Ledger using the Create G/L Interface File process if needed.

The records held in the Closed Period File GL9000 and the GLEQUAL file are available in Extractor. Extractor is used to retrieve the information that can then be posted to the General Ledger as needed.

If Extractor is used, the GL9000 and GLEQUAL files should be manually cleared when processing is completed for the period.

 

Clearing the Files

There is no automatic process for clearing the GL9000 and GLEQUAL files. If the fields are not cleared at the end of the processing period, the accumulated figures will include data from previous periods. Therefore, when the extraction of records from the files for the processing period is complete, the files will have to be manually cleared before starting a new processing period.

The Clearing of Files is done by using the Clear G/L Posting PTD and Export File process.

• Files must not be cleared until all processing for the period has been completed and all the details have been extracted as required.