Thursday, October 30, 2014

Dynamics AX 2012 Payroll - Accounting Information

Very important information related to accounts setup for payroll elements

POST pay statement will:

Summarized Information

Title Debit Credit
Earnings Earning Code Account
Expense
Payroll Parameters - Salary Payable Clearing Account
Salary Payable
Benefit Deductions Payroll Parameters - Salary Payable Clearing Account
Salary Payable
(Lowers the payable)
Benefit Plan Account
Expense
Benefit Contributions Benefit Plan Account
Benefit Expense
Posting Definition
Allowance Payable or Salary Payable
Employee Taxes Payroll Parameters - Salary Payable Clearing Account
Salary Payable
Tax code account.
Tax Expense. Read details for Expense credit rule
Employer Taxes Tax code account. Tax Expense
Expense for the company
Posting Definition
Tax Payable - need to pay to the authority.


Earnings:
The earning cost is debited to the main account specified on the earning code.
Earning costs are credited to the Salary clearing account defined in the Payroll parameters form.

Benefit deductions:
The deduction amount debits the Salary clearing account defined in the Payroll parameters form.
(Lowers our payable account - Salary payable. The company is not paying that in the salary now)
The deduction amount credits the deduction main account specified on the benefit plan.
(It can be the expense account. For instance lets say Employer says you contribute to Lunch USD 200 and We will contribute USD 500. Both 200 and 700 goes to the Lunch Provider Vendor and is expense in nature.).

Benefit contributions:
The contribution amount debits the contribution main account specified on the benefit plan.
(It could be the benefit expense account)
The contribution amount credits the main account as defined in the posting definitions in the general ledger setup, based on the main account that is used for the debit.
(Employee Allowance Payable or Salary Payable)

Employee taxes:
The tax amount debits the Salary clearing account defined in the Payroll parameters form - 
Salary Clearing Account debited to actually subtract the actual Salary Payable credited when actual salary is generated.

The tax amount credits the main account specified on the tax code - 
Tax Expense account specified on Tax Code. This is actually not debited, as expenses are debited because it is not an expense actually for the company. It has already been recorded in the Salary Expense. 


Employer taxes:
The tax amount debits the main account specified on the tax code. - 
Tax Expense for that company

        The tax amount credits the main account as defined in the               posting definitions in the general ledger setup, based on the             main account that is used for the debit
        Tax Authority Payable Account FBR etc. (Liability account)

1 comment:

  1. Thanks man, i had problems with the benefit contributions credits. thanks a lot.
    Francisco Montano
    Santa Cruz
    Bolivia

    ReplyDelete