Payroll>>Maintenance>>General Ledger>>GL Employer Default Values
GL Employer Default Values
This option allows you to enter the employer default values. The most common overriding default entered is for section/department/division segments for deductions. Most organizations have some segment(s) in the account code that represent some level in the organization structure (e.g. Segment 4 in our example represents department code, which is organization level 3). While you may want to track salaries, wages and other payments by departments, rarely is deductions by department tracked, and instead most or all deductions are sent to some default department code e.g. 00. However, our account structure setup as it exists so far WILL track the deductions by department. We would therefore enter a default record for all deduction codes, setting the default for segment 4 as 00.
Enter a GL Employer Default Value
Enter the Level of the organization structure for which you wish the GL Account Segment Default to be built. In our example, this should be 1 (Company).
Select from the following drop-down lists that which is applicable. See Note below:-
- Pay Group
- COMPANY
- DIV
- DEPARTMENT
- SUB-DEP
- Job
- Location
- All Employees
- Code Type
- Code Field
- GL Account Segment #
- Account Segment Code
For our example, we have chosen ALL for every field except the Code Type field, which we have set to Deductions. Note also that we have chosen 1 for the Level of this default record. The system, when building the account code for deductions, will set Segment 4 as 00 (rather than the code attached to the employee’s department), for all employees in all pay groups, all companies, all divisions etc.
Similarly, the credit transactions for the employer’s contributions to deductions (e.g. National Insurance, Pension) are usually charged to a default department code, while the debit transactions ARE tracked by department as those represent an expense. The default for the credit side can be set on the GL Account Employer Defaults screen.
Further, assume that there are a few deductions that you would like to charge to a specified department code: for example all group health (GH) deductions should be charged to department code 99. You will then need to enter another default record, using 2 for the Level and setting the default for segment 4 as 99 for deduction code GH.
The combination of the two default records (Level 1- all deduction codes go to department 00, Level 2 – deduction GH goes to department 99) will be interpreted by the system as follows: For all deduction codes EXCEPT GH, use department code 00. For GH, use department code 99.
Thus the levels of defaults allow you to set up overrides to already existing overrides. Level 2 takes precedence over Level 1; Level 3 takes precedence over Level 2, and so on.
If there were other deduction codes like GH that you would like to send to department 99, you would simply insert a Level 2 default record similar to the above for each such deduction code.
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