CENTRAL SUSQUEHANNA INTERMEDIATE UNIT Application: Fund Accounting. Payroll to Fund Accounting Workflow Step-by-step Instructions

Transcription

1 CENTRAL SUSQUEHANNA INTERMEDIATE UNIT Application: Fund Accounting Payroll to Fund Accounting Workflow Step-by-step Instructions 2013 Central Susquehanna Intermediate Unit, USA

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3 Table of Contents Introduction... 1 Posting Payroll to Fund Accounting... 2 Normal Payroll Transfer Procedures... 2 Review for Exceptions... 2 Payroll Did Not Transfer to Fund Accounting... 2 Adjustment Checks... 3 Transferring Money to the Payroll Bank Account... 3 Do You Need Journal Worksheets?... 3 Voluntary Deduction Report... 4 Flex Report: Prior to Check Processing... 4 Manual Checks... 4 Computer Checks/Direct Payments... 5 Check Processing... 5 Flex Report: After Check Processing Central Susquehanna Intermediate Unit, USA

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5 INTRODUCTION This document reviews the steps needed to make sure Payroll and Fund Accounting entries are complete for each pay period, quarter, and year. The steps your district needs to take depends on how your payroll is processed. Revised: 05/09/ Central Susquehanna Intermediate Unit, USA Page 1

6 POSTING PAYROLL TO FUND ACCOUNTING Normal Payroll Transfer Procedures When standard reports are set up in the CSIU Payroll application, the DISTRIBUTION TRANSFER for the employer's share of expenses and the DEDUCTION DISTRIBUTION for the employee's share of taxes, voluntary deductions, and net pay need to be transferred to Fund Accounting. Two ways are available to transfer the information from Payroll to Fund Accounting. You can set the transfer up as a STANDARD REPORT in Payroll. Then, during payroll processing when the STANDARD REPORTS are generated, the transfer of Payroll information occurs automatically. Alternately, to transfer payroll information to fund accounting, you can perform the transfers manually. You will need to verify that the transfer was completed. To verify the amounts are correct, add the grand totals of all columns on the DISTRIBUTION SUMMARY report to the total on the DEDUCTION DISTRIBUTION SUMMARY. The sum should equal the total on Fund Accounting's PROCESSES > AUTOMATIC POSTING > PAYROLL/TRANSACTIONS screen (the third tab). Review for Exceptions To verify that all transfer and posting have been completed, you need to answer several questions: Have all the checks issued between payroll dates been transferred to Fund Accounting? Have all the voided checks been transferred to Fund Accounting? To verify transfers have been completed, generate the Payroll application's REPORTS > MISCELLANEOUS > CHECKS NOT TRANSFERRED TO FUND ACCT report. Remember to transfer the employer's share as well as the employee's share of taxes and deductions. In Fund Accounting perform the PROCESSES > AUTOMATIC POSTING >PAYROLL to verify that PAYROLL is waiting to be posted. Use the drop down arrow to find the payroll(s) that need to be posted. After you select a payroll date, the third tab (TRANSACTIONS) is available to verify amounts ready to be posted. PAYROLL DID NOT TRANSFER TO FUND ACCOUNTING If Payroll did not transfer to Fund Accounting, regardless of whether you selected the Automatic Posting process or manually pushed information from Payroll to Fund Accounting, you need to find out why. IF THE TRANSFER WAS STOPPED BY THE SYSTEM, A MESSAGE DISPLAYS TO ALERT YOU. Invalid or locked account codes will stop the transfer process. The easiest way to find out if you have an invalid account code is to generate the REPORTS > STANDARD REPORTS > ACCT DISTRIB/TRANSFER: INVALID ACCOUNT CODES REPORT. Enter the Payroll date and select Invalid Accounts. This report lists all invalid/locked account codes. You will need to address these account codes in the Fund Accounting application. If there are no invalid account codes, your next step is to verify the totals on the DISTRIBUTION SUMMARY compared to the total on the DEDUCTION DISTRIBUTION SUMMARY. The gross on the DISTRIBUTION SUMMARY should be a debit amount and the total on the DEDUCTION DISTRIBUTION SUMMARY should be a credit amount. They should net to zero. If they don t, Payroll will not transfer to Fund Accounting. You will need to review the reports to see if you can find the errors. We recommend starting with the DEDUCTION report. Revised: 05/09/ Central Susquehanna Intermediate Unit, USA Page 2

7 ADJUSTMENT CHECKS Adjustment checks may need to be recorded in Payroll CHECK HISTORY. Adjustment checks do not transfer to Fund Accounting. You'll need to enter adjustment check information manually in Fund Accounting. ADJUSTMENT CHECKS can be entered as a manual 'P' (payroll) batch or a JOURNAL WORKSHEET. We recommend the manual 'P' batch. For each entry you must select a purpose code from the drop down box. When entering the manual 'P' transactions record both the employer and employee expenses and deductions. Then, when DOUBLE ENTRY is processed, the control accounts and general ledger accounts will be updated appropriately. If you choose to use the JOURNAL WORKSHEET you must enter the employer expenses and employee deductions. Since JOURNAL WORKSHEETS are not processed through DOUBLE ENTRY, you need to add the general ledger account information to the JOURNAL WORKSHEET. TRANSFERRING MONEY TO THE PAYROLL BANK ACCOUNT If you process the General and Payroll Fund from the same bank account, transfers are not needed. If the General Fund and Payroll Fund use separate bank accounts, and both accounts are with the same bank, you may be able to make this transfer online with the bank. Another way to move the money from one account to another could be to contact the bank and notify them of the needed transfer from one account to the other. Fund Accounting will need a record of this transfer. Adding a MANUAL Non-Negotiable CHECK through the MANUAL CHECK WORKSHEET allows you to record the transfer. Manual Checks display on the CHECK PROCESSING reports. If the General Fund and the Payroll Fund both use fund 10, a MANUAL CHECK using the General Fund as the checking account and the Payroll Cash account as the distribution account will record the transfer. After the MANUAL CHECK is posted, the Payroll Cash account will be debited; when Double Entry is processed the General Fund will be credited. If you use two different funds, fund 10 for the General Fund and fund XX for the Payroll Fund, use the same process as above, except, this time the distribution account will be You will need another step to record the Revenue into the Payroll Fund XX This process will zero out the account on the General Fund side and then post the revenue on the Payroll side, which zeroes out the XX-0402 fund. DO YOU NEED JOURNAL WORKSHEETS? If your payroll is processed using different funds, JOURNAL WORKSHEETS may need to be posted. For instance, you may process payroll from the General Fund and the Food Service Fund. JOURNAL WORKSHEETS can be posted per pay or per month. These journals are not necessary if the Food Service Fund will be issuing payment to the Payroll Fund to cover the Food Service expenses. After a journal has been set up, you can copy it as needed. The journal can be copied with or without copying the amounts. ALL ATHLETIC WAGES SHOULD BE TRANSFERRED FROM FUND 29 TO FUND 10 UNLESS THE ATHLETIC FUNDS ARE SELF-SUPPORTING. Revised: 05/09/ Central Susquehanna Intermediate Unit, USA Page 3

8 VOLUNTARY DEDUCTION REPORT In Payroll, print the REPORTS > STANDARD PAYROLL > VOLUNTARY DEDUCTIONS report. Based on the payroll date, this report lists employees and deduction amounts from their paychecks and includes totals per deduction code. To ensure that all voluntary deductions are paid in a timely manner, good organization is critical. Since this can be a very large report, a logical filing system is a great help. Having a file folder per deduction has proven to be quite useful. TIP: You may want to print two copies of the VOLUNTARY DEDUCTIONS REPORT. Keep a copy for your files/auditors and send a copy with the payment. FLEX REPORT: PRIOR TO CHECK PROCESSING Flex Reports can be set up based on the dimensions of the account code you use to identify the payroll deduction account codes. Flex Reports will show information that has been transferred from Payroll and posted in Fund Accounting. Remember, all information needs to be transferred and posted so the flex reports include current information. A Payroll FLEX REPORT can be a very helpful tool. While other Payroll reports can assist you with the current payroll, FLEX REPORTS provide you with an advantage of compiling information from one payroll to the next. FLEX REPORTS will include what has taken place since the last payroll and add/subtract those changes to the current payroll totals. FLEX REPORTS can be processed per pay period, month, quarter, and year. Generating the report prior to cutting the checks pertaining to payroll and then again after payroll processing is useful in two ways. First it will display totals for the checks that need to be cut, and then after the checks are processed will verify that the deductions have been paid properly and that accounts that should hold a zero balance are zeroed. MANUAL CHECKS Manual checks should be entered to record all non-negotiable payments. Payments such as the PSERS, State Tax, Federal Tax, and transfers between funds can be recorded as non-negotiable checks. When using the MANUAL CHECK WORKSHEET, starting the check number with a letter will automatically indicate the payment is non-negotiable. These entries will appear on the Check Register, Check Summary, Bills to be Approved, and Disbursement reports. TIP: One suggestion on how to keep track of the non-negotiable check numbers is to start like-checks with the same two letters and add the payroll date into the check number. For instance to record the payment of federal taxes for the 03/07/13 payroll, you might number the check FT (FT for federal tax). Revised: 05/09/ Central Susquehanna Intermediate Unit, USA Page 4

9 COMPUTER CHECKS/DIRECT PAYMENTS For payments that require a physical check, 'C' transactions (computer checks) can be entered. These 'C' transactions are also known as direct payments. Using the Payroll FLEX REPORT to verify the payment amount, you will enter the 'C' transactions and amounts. CHECK PROCESSING After 'C' transactions have been entered, PRE-CHECK and CHECK PROCESSING need to be performed. Using PRE-CHECK PROCESSING gives you an opportunity to preview the check amounts and to verify the accuracy of your entries. After PRE-CHECK PROCESSING, CHECK PROCESSING can be performed. While performing CHECK PROCESSING you can generate the CHECK REGISTER, CHECK SUMMARY, and (if needed) the BILLS TO BE APPROVED list. The manual checks you processed display on the reports you generate. The CHECK REGISTER and SUMMARY provide subtotals for Manual Checks and Regular Checks. If you are processing a payment to refund a deduction to an employee, you might even have a Direct Deposit payment. After you have reviewed and approved the check processing, you can print the checks and if needed your direct deposit report and file. FLEX REPORT: AFTER CHECK PROCESSING After checks are processed is a good opportunity to generate the Payroll FLEX REPORT which will help you to verify the accuracy of the payments you have processed. In most cases, at this point all accounts should be zero except for those you pay on a quarterly basis. If it is the end of a quarter or fiscal year - a zero total is typically expected. Revised: 05/09/ Central Susquehanna Intermediate Unit, USA Page 5