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I am writing this blog to share my experiences and techniques i used to trouble shoot the issues with posting to accounting..Again i just sharing my view point and am happy to be corrected ..Being a consultant i would strongly suggest that users simulate the postings while they finalize the payroll reconciliations..It may happen you realise that the gross to net calculation would cause the error in posting to Accounting and you would have to reprocess your payroll..That is anyways due to a bad configuration but none the less “Better safe than sorry”

Taking a cue from principles of accounting which always stressed on debit must be equal to credits, i conclude the below logic

Gross Wages + Employer Contributions = Net Pay + Employee Contributions + Employer Contributions

We will take the same payslip to exhibit the importance of each of the steps mentioned. First we will see the correct posting for the payslip

Payments Amount Deductions Amount
Basic Salary 1000 Taxes 50
Social Sec. EE 100
Net Pay 850
Social Sec. ER 150

POSTING OF ABOVE PAYSLIP

Expenses Amount Balance Sheet Amount
Basic Salary (Dr) 1000 Net Pay (Cr) -850
Social Sec. ER (Dr) 150 Social Sec. EE (Cr) -100
Taxes (Cr) -50
Social Sec. ER (Cr) -150
Total 1150 Total 1150

Imbalance Error # 1 – There is an posting imbalance. 

Check # 1 – Check on Gross to net calculation of the employee,Meaning add payments and minus employee deductions to double check the net Pay calculation.

Lets take the same example and see how the posting imbalance could occur because of the Incorrect calculation of Net Pay.

Payments Amount Deductions Amount
Basic Salary 1000 Taxes 50
Social Sec. EE 100
Net Pay 950
Social Sec. ER 150

POSTING OF ABOVE PAYSLIP

Expenses Amount Balance Sheet Amount
Basic Salary (Dr) 1000 Net Pay (Cr) -950
Social Sec. ER (Dr) 150 Social Sec. EE (Cr) -100
Taxes (Cr) -50
Social Sec. ER (Cr) -150
Total 1150 Total -1250

See above that the debits are not equal to credits which cause the imbalance in posting documents. Here you need to review why your net pay went wrong fix it and then check of posting to accounting.

This is one of the example where payroll has to be processed after necessary changes are done to correct the net pay before the posting is attempted again.

Check # 2 – Post confirming that the Gross to Net calculation of employee is correct ensure all the wage Types forming part of gross to net are posted.

Payments Amount Deductions Amount
Basic Salary 1000 Taxes 50
Social Sec. EE 100
Net Pay 850
Social Sec. ER 150

POSTING OF ABOVE PAYSLIP

Expenses Amount Balance Sheet Amount
Basic Salary (Dr) 1000 Net Pay (Cr) -850
Social Sec. ER (Dr) 150 Social Sec. EE (Cr) -100
Social Sec. ER (Cr) -150
Total 1150 Total -1100

Again we have a imbalance error but in this case due to the posting not done for “Tax” wage type.

Unlike previous case, since the tax wagetype is already in results and it was not mapped for posting we dont have to process the payroll

Once the wagetype is mapped you can attempt the posting which would resolve the issue.

Check # 3 – Check on Employer contributions and ensure they are posting on both side( Why both sides? because employer contributions are both expense and liability for employer)

Payments Amount Deductions Amount
Basic Salary 1000 Taxes 50
Social Sec. EE 100
Net Pay 850
Social Sec. ER 150

POSTING OF ABOVE PAYSLIP

Expenses Amount Balance Sheet Amount
Basic Salary (Dr) 1000 Net Pay (Cr) -850
Social Sec. ER (Dr) 150 Social Sec. EE (Cr) -100
Taxes (Cr) -50
Total 1150 Total 1000

Again in above example the ER contribution is mapped for posting unfortunately only for one side and correspnding posting is missing.

Similar to previous case once the wagetype is mapped for posting the issue with imbalance would be resolved.

Conclusion

The payslips we see in real time scenarios and the posting is not simple as the examples chosen here but this blog, i hope,  would at least be a starting point for your trouble shooting… My First blog so please let me know your feedback

Best Regards

Ajay

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