Defining the Posting Rules

The main purpose of establishing posting tables is to define the rules on how the payroll transactions are posted to General Ledger account numbers. This is done by defining the selection criteria that identifies payroll transactions and the components of the General Ledger account numbers.

The selection criteria can be any combination of the following:

  • Level Codes of 1 to 5
  • Account Numbers
  • Department Numbers
  • Employment Types

 

There are two methods for defining General Ledger account numbers:

  1. The entire General Ledger account number can be entered if all transactions that meet the selection criteria are to be posted to only one specific General Ledger account.
  2. Information from a Payroll Transaction can be used to build up a General Ledger account number, provided that the Chart of Accounts structure includes elements that can be found in Preceda Level Codes, Department and/or Account number fields.

Sample

The Level 1 Company code and the Level 2 State codes setup in Preceda can also be used in the General Ledger chart of accounts to identify costing locations. Use the Level 1 and Level 2 codes taken from individual payroll transaction to form part of the posting General Ledger Account Numbers.

Any portion of the selection criteria can be included in the General Ledger Account Numbers.

Payroll Transactions that meet the selection criteria are posted to the specified General Ledger account numbers.

The best method for explaining how the selection criteria and the General Ledger account numbers are defined is to use examples. The examples that follow use Primary Posting Table records:

This window shows an example of a Primary Posting Table record for posting transactions to the Wages and Salaries Clearing account. A separate account is defined in the Chart of Accounts for each Company Level 1 within the organisation. The Company Number forms part of the General Ledger Account Number. 

In this example, any payroll transaction that is not covered by other Primary Posting Table records is allocated to the Wages and Salaries Clearing account.

The first ten fields are the selection criteria to which payroll transactions are matched. By leaving them blank, matches to specific criteria is not required as the payroll transactions may be of any type from any costing centre.

The Journal Number field contains 001. Any payroll transaction that is to be posted to the Wages and Salaries Clearing Account is allocated a Journal Number of 001.

The General Ledger account numbers use a combination of Substitution Expressions and specific account components. Let's look at the Debit G/L Account Number, made up of the following components 000*1600*D*A.

Value Description
000

The general Ledger Account Number begins with three zeros followed by:
*1 The Level 1 Company code taken from the payment transaction. The Level 1 Code is derived from the relevant employee's file.
600 A specifically defined component of that forms part of the General Ledger account number for all the relevant posting transactions
*D The Department number taken from the payroll transaction may be derived either from the employee's File or from an override in Time Entry.
*A The Preceda Account Number taken from the payroll transaction may be derived either from the employee's File or from an override in Time Entry

It is assumed that a different Wages and Salaries Clearing account exists in the Chart of Accounts for each costing centre defined by the combination of Company Level 1 code, Department and Account. Therefore, posting transactions are allocated to General Ledger account numbers according to the Level 1 code, Department code and Preceda Account Number on each Payroll transaction.

For an employee who belongs to Company Number 1, Department 105 and has an Account Number of 234, the resulting General Ledger Account would be 0001600105234.

 

This is an example of a Primary Posting Table record for posting transactions to the Annual Leave Provision Account. It is relevant only for payroll transactions associated with annual leave. Therefore, the selection criteria includes the Hours type that identifies annual leave hours. 

Only those payroll transactions that meet the selection criteria are posted to the relevant General Ledger account. This type of record is often called an exception record.

The Journal Number field contains 002. Any payroll transaction that is to be posted to the Annual Leave Provision Account is allocated a Journal Number of 002.

The Hrs, A/D or Leave field contains an H signifying that the posting rules apply only to an Hours Type payroll transaction.

The 12 entered into the Code field is a unique Hours Type code used to identify Annual Leave taken. This signifies that the posting rules apply only to payroll transactions with an Hours Type of 12.

The Level 1 field contains COMPTECH, signifying that the posting rules apply only to payroll transactions with a Company number of Comptech.

The P in the Employment Type field signifies that the posting rules apply only to payroll transactions for permanent employees.

The components of the Debit G/L Account Number are:

Value Description
000

The general Ledger Account Number begins with three zeros followed by:
01 A specifically defined component of 01 forms part of the General Ledger account number
605 A specifically defined component of 605 forms part of the General Ledger account number
*D The Department number taken from the payroll transaction may be derived either from the employee's File or from an override in Time Entry.
*A The Preceda Account Number taken from the payroll transaction may be derived either from the employee's File or from an override in Time Entry

For an employee who belongs to Company Number 01, Department 235 and has an Account number of 789, the resulting General Ledger Account number would be 00001605235789.