Posting payroll results to accounting is one of the subsequent activities performed after a successful payroll run. It usually takes place once each payroll period, as well as after each off-cycle payroll run. Once you have exited the payroll run, you need to post the payroll results to the appropriate GL accounts (including cost centres). GL psoting does the following-
- Groups together posting-relevant information from the payroll results.
- Creates summarized documents.
- Performs the relevant postings to appropriate GL accounts and cost centers
How posting is evaluated ?
Each employee’s payroll result contains different wage types that are relevant to accounting:
- Wage types such as standard salary, bonuses, and overtime represent expenses for the company, which are posted to a corresponding expense account.
- Wage types such as bank transfer, employment tax, employee’s contribution to social insurance, etc. are the employer’s payables to the employee, the tax office, etc. and are posted as credits to a corresponding payables or financial account.
- In addition, there are wage types such as the employer’s health insurance contribution, which represents an expense for the enterprise and, at the same time, a payable to the social insurance agency. For this reason, such wage types are posted to two accounts - once debited as an expense, and once credited as a payable.
- Other types of wage types also exist, for example accruals, provisions, etc. These types of wage types are usually posted to two accounts, once debited as an expense and once credited as a provision.
Posting to General Ledger is a 2 STEP process :-
STEP 1) Create a Posting Run
Transaction: PC00_M99_CIPE
Overview:
- This step creates a posting run based on the payroll results, with a “distinctive number”, a “run type PP”, and the accompanying posting documents.
- The posting run ensures that payroll results for an employee are only posted once
- Processed payroll results for an employee are flagged
- If the posting run is successful, it gets the status “Documents Created”.
- If the posting run is unsuccessful, it gets the status “Incorrect Documents”. Relevant error messages will appear in the Output Log.
A posting run can be executed in 3 Modes:
- A test run without documents (T)
- A simulation run with simulation documents (S)
- A productive run (P)
