GL Updates for Liabilities
All payroll liabilities are debited to the accounts set up by liability type in the PR Departments.
If the timecard entries are not posted to a job, are not mechanics’ timecards, and/or the Use JC or EM Department or Payroll options are not chosen, the accounts in the PR Departments will be the only ones used. Each liability code is set up in PR Deductions/Liabilities with a liability type, and the liability types are assigned GL codes in the PR Departments.
Additional GL entries for liabilities will be made if the JC or EM Department for Payroll options are used. If you are using the “exact” method for charging Job Cost, or the “actual” method for charging EM (on mechanics), the setup may make it seem the PR Department was not used. The entries made are as follows:
Debit | Credit |
|---|---|
Liability Type (PR Department) | GL Account (PR Deductions/Liabilities) |
Cost Type (JC or EM Department) with overrides by Liability Type or Cost Code | JC/EM Applied Burden (PR Department) |
If you are using the “exact” method for costing and you use the same GL account for the Liability Type and the Applied Burden accounts in the PR Departments (1 & 4 above), these will offset each other with equal amounts and will not in fact make an entry to the General Ledger.
If you are using a percentage rate for costing and the same accounts are used, the difference between actual and the rate will be charged to the account. If using separate accounts, all four entries will be made.
