Re-using GL Journals

One way to process regular wages and salaries is to re-use a Monthly and/or Weekly GL Journal with the following details:

• Gross Wages or Salaries
• National Insurance Contributions
• Tax Deductions
• Regular Deductions such as Pension Contributions (both Employer and Employee), or Union Subscriptions 

First, set up all the required AR Accounts in the General Ledger, modifying the standard accounts where applicable. 

Employee Category Accounts

In the standard GL Coding, GL Accounts have already been set up in the Expense (X) portion of the Ledger for:

• Direct Staff (2500, 2510, 2520)
• Sales and Marketing Staff (3000, 3110, 3120)
• Directors (3300, 3310, 3320)
• Admin Staff (3400, 3410, 3420) 

If needed, modify these Employee Category Headings and add additional Accounts to reflect your organisational and reporting needs.

Expense Accounts

The standard Expense Accounts for each of these Employee Categories, are:

• Gross Salaries (e.g., 2500)
• Employers National Insurance (e.g., 2510)
• Employer's Pension Contributions (e.g., 2520) 

If needed,expand on these to reflect other Employee Wages or Salary related costs such as Car, Travel, or Clothing Allowance. 

Standard Control Accounts

Standard Control Accounts are pre-set in the Liability (L) portion of the GL Coding System. These accounts maintain the Balances on the Expense Accounts: 

• Net Payroll Control Account (7600)
• Other Payroll Control Accounts (7650)
• PAYE/NI Control Account (7700). 

If needed, expand on these with additional Control Accounts for Pension Contributions (of which there may be multiple Companies involved) and separate PAYE from National Insurance if there are different agencies involved.

See:

GL Journals (7.2) - AIQ Academy

Managing General Ledger Accounts‍ 

Creating General Ledger Journals‍ 

Using GL Import Journals‍ 

You can create multiple Journals, for items such as Monthly Salaries, Monthly Wages, Weekly Wages, or Directors, and recall them for review and further amendment.

Step One: Create a GL Journal

In the following example we are going to set up an initial General Ledger Journal using the Admin Staff General Ledger Codes:

1. Go to GL > Journal Manager and select GL Journal.
2. Create specific entries for the employee using as many lines as needed relating to the accounts you set up earlier.
3. Click Process.

Step Two: Reuse the GJ Journals

1. Against the relevant journal, go to the Actions dropdown and select Copy.
2. Amend the Journal, updating the Date field. You can make amendments such as editing Amounts, adding new Employees, deleting Employees, or changing Name. If you do not need these details on each Employee, instead of entering each individual Employee:
   • Use Employee Payroll totals.
   • Departmentalise them using departments such as Office & Admin Wages, Sales & Marketing Wages, or Factory Wages.
3. Click Process. When the actual Payments are made to Employees, Inland Revenue, Pension Companies, Health Insurance Providers, and others, the respective Control Accounts will be debited and the Bank Account that provided the funds will be credited.