14 Set Up A/P Integration
This chapter contains these topics:
14.1 Setting Up A/P Integration
You set up your Payroll system for A/P integration so that you can use payroll information to create vouchers for payroll taxes and other payroll liability amounts. You can set up payees for any tax type or DBA. The Payroll system creates vouchers for these payees for employee withholdings and company-paid benefits and taxes.
Integrating the Payroll and Accounts Payable systems saves time and helps reduce keying errors.
14.1.1 Before You Begin
-
If your system security allows Payroll users to enter suppliers (payees), set up the payees for the Payroll vouchers. See Setting Up a Tax Area and Payee Cross-Reference.
-
If your system security prevents Payroll users from entering suppliers, ask someone who has access to the Accounts Payable system to set up the payees for Payroll. See Entering Suppliers in the JD Edwards World Accounts Payable Guide.
-
For each company with employees whose payments will create vouchers, set up AAIs in the Accounts Payable system for the offset accounts. See Setting Up AAIs for A/P in the JD Edwards World Accounts Payable Guide.
14.1.2 What You Should Know About
| Topic | Description |
|---|---|
| Payees | A payee is a person or organization that receives payments from your organization for taxes or payroll liabilities. The Accounts Payable system refers to a payee as a supplier. |
| Voucher due dates | When you set up payees for payroll vouchers, you must specify the payment terms. The system uses this information to calculate the due date for vouchers. See Entering Suppliers in the JD Edwards World Accounts Payable Guide. |
14.2 Setting Up Payroll Company Constants
From Canadian Payroll Master (G77), enter 29
From Payroll Setup (G774), choose Payroll General Constants
From Payroll General Constants (G7741), choose Payroll Company Constants
To use your Payroll system to create vouchers for payroll taxes and other payroll liability amounts, you must activate A/P integration in the company constants for company 00000. You can activate A/P integration for taxes, DBAs, or both.
See Also:
-
Section 34.2.2, "Setting Up the Default Company" for information about setting up Company 00000
To set up payroll company constants
On Payroll Company Constants
-
Locate company 00000.
-
Complete the following field:
-
A/P Integration
-
| Field | Explanation |
|---|---|
| A/P Integration | This field specifies the level of integration between the Payroll and the Accounts Payable systems. The system creates pro forma vouchers during the payroll journal entries step of the payroll cycle. The system creates actual vouchers during the final update step.
N – No integration 0 – Create vouchers for both DBAs and taxes that have been setup with A/P integration 1 – Create vouchers only for DBAs that have been setup with A/P integration 2 – Create vouchers only for taxes that have been setup with A/P integration |
14.3 Setting Up Voucher Information for Tax Transactions
You must set up vouchering to use your Payroll system to create vouchers for tax transactions. After you activate A/P integration for taxes, the system creates vouchers for those tax types.
To set up voucher information for tax transactions, complete the following tasks:
-
Set up vouchering for tax transactions
-
Enter tax payees by company (optional)
You can specify a payee at the tax type level or the company level, as follows:
-
When all or most of the companies in your organization remit payment for a tax to the same taxing authority, it is more efficient to enter the payee at the tax type level.
-
If one or more of the companies in your organization remits a tax to a different taxing authority, you can enter a payee at the company level to override this payee for individual companies.
-
When all or most of the companies in your organization remit payment for a tax to different taxing authorities, you must enter payees at the company level.
For example, in a multi-company organization in which all but two of the companies remit federal taxes to the same institution, you can enter that institution as the default payee. For the two companies that remit their federal taxes to other institutions, you can enter individual payees for those companies to override the default.
14.3.1 What You Should Know About
14.3.2 Setting Up Vouchering for Tax Transactions
From Canadian Payroll Master (G77), enter 29
From Payroll Setup (G774), choose Taxes and Insurance
From Taxes and Insurance (G7744), choose Tax Area Information
To use your Payroll system to create vouchers for tax transactions, you must activate vouchering for tax types. The system creates vouchers only for the tax types with active vouchering. You must also specify a payee for all taxes.
Typically, you enter a payee at the tax type level when all or most of the companies in your organization remit a tax to the same taxing authority. You can override this payee at the company level, if necessary.
To activate vouchering for tax transactions
On Tax Area Information
-
Complete the following fields to locate a tax type:
-
Tax Area
-
Tax Type
-
-
Complete the following field:
-
A/P Voucher
-
-
Complete the following optional field:
-
Payee
-
| Field | Explanation |
|---|---|
| Tax Area | A code that identifies a geographical location and the tax authorities for the employee's work site. Authorities include both employee and employer statutory requirements. In Vertex payroll tax terminology, this code is synonymous with GeoCode. Refer to Vertex System's Master GeoCode List for valid codes for your locations. |
| Tax Type | A user defined code (07/TT) that identifies the type of payroll tax being processed.
Refer to the associated user defined code records for the current descriptions of these codes. The values and meanings associated with this user defined code are pre-set by JD Edwards World. You should not alter the values and meanings. Form-specific information For Canadian provincial tax types: Set up tax type CF for every tax area even if there is no provincial tax because wage history is maintained by province. |
| A/P Voucher (Y/N) | The Yes or No Entry field is a common single character entry field for simple yes or no responses on prompt forms.
Form-specific information Indicates whether the system creates a voucher for this payroll tax in the Accounts Payable system. |
14.3.3 Entering Tax Payees by Company
From Canadian Payroll Master (G77), enter 29
From Payroll Setup (G774), choose Taxes and Insurance
From Taxes and Insurance (G7744), choose Tax Area/Payee Cross Reference
After you activate vouchering for tax types, you can enter tax payees at the company level. Entering payees at the company level is optional. You do so only in one of the following circumstances:
-
You did not enter a payee at the tax type level.
-
You entered a payee for the tax type that differs from the payee for the company.
The payees you enter at the company level override the payee you enter at the tax type level. You can enter multiple companies and assign one payee per company for each tax type and tax area.
To enter tax payees by company
On Tax Area/Payee Cross Reference
Figure 14-1 Tax Area/Payee Cross Reference screen
Description of "Figure 14-1 Tax Area/Payee Cross Reference screen"
-
Complete the following fields to locate a tax type:
-
Tax Area
-
Tax Type
-
-
Complete the following fields:
-
Company Number
-
Payee Number
-
14.4 Setting Up Voucher Information for DBAs
To use your Payroll system to create vouchers for DBAs, you must set up voucher information and assign payees for the DBAs. The system creates vouchers only for the DBAs with active vouchering.
To set up voucher information for DBAs, complete the following tasks:
-
Set up vouchering for DBAs
-
Enter voucher information for group plans
-
Enter voucher information for individual employees
You must activate vouchering when you set up a DBA. Then, when you assign the DBA to a group plan or an individual employee, you must specify whether the system will create a voucher for the DBA for that group plan or employee.
Because you enter voucher information at the group plan or employee level, you can assign the same DBA to multiple group plans and create vouchers even when the payees for those plans vary. You can also choose to create vouchers for some plans and not for others.
You can specify payees for vouchers at the DBA, group, or employee level.
Entering the payee at the DBA level is more efficient when all or most of the companies in your organization remit payment for a DBA to the same institution. If necessary, you can override this payee for individual groups, such as unions, or employees by entering a payee at the group or employee level.
When you remit payments for a DBA for all or most of the groups or employees in your organization to different institutions, you must enter payees at the group or employee level.
14.4.2 Setting Up Vouchering for DBAs
From Canadian Payroll Master (G77), enter 29
From Payroll Setup (G774), choose Pay/Deductions/Benefits
From Pay/Deductions/Benefits (G7742), choose DBA Setup
To use your Payroll system to create vouchers for DBAs, you must set up vouchering for the DBAs. The system creates vouchers only for the DBAs with active vouchering. You must set up vouchering at the DBA level before you can enter voucher information for group plans or individual employees.
When you set up vouchering for a DBA, you can specify a payee in the DBA setup. Typically, you enter a payee at the DBA level when all or most of the groups, such as unions, or employees in your organization remit payment for the DBA to the same institution. You can override this payee at the group or employee level, if necessary.
If you enter all payees at the group plan or employee level, you do not need to enter a payee in the DBA setup.
On DBA Setup
-
Complete the following field to locate a DBA for which you need to create vouchers:
-
DBA Code
-
-
Complete the following field:
-
A/P Voucher
-
-
Complete the following optional field:
-
Payee Address Number
-
14.4.3 Entering Voucher Information for Group Plans
From Canadian Payroll Master (G77), enter 29
From Payroll Setup (G774), choose Pay/Deductions/Benefits
From Pay/Deductions/Benefits (G7742), choose Group Plan DBA Setup
After you set up vouchering for a DBA, you can enter voucher information when you include the DBA in a group plan. You can include a DBA, such as a union dues deduction, in multiple group plans.
Because you might need to create vouchers for some group plans and not others, you can choose to deactivate vouchering for the DBA at the group level.
For a DBA that is assigned to multiple group plans, the payee might vary between groups. Therefore, you can enter payees for the DBA at the group plan level. The payee you enter for a group plan overrides the payee entered at the DBA level.
You enter a payee for a group plan only in one of the following circumstances:
-
You did not enter a payee at the DBA level
-
You entered a payee in the setup for the DBA that differs from the payee for this group plan
To enter voucher information for group plans
On Group Plan DBA Setup
-
Complete the following field to locate the group plan for which you need to create vouchers:
-
Group Plan
-
-
Complete the following field:
-
Generate Voucher (GV)
-
-
Complete the following optional field:
-
Payee
-
| Field | Explanation |
|---|---|
| G V | A code used to determine whether the system should generate a voucher for the DBA, tax, or wage attachment during the final update phase of the payroll processing cycle. Valid codes are:
N – No, do not generate a voucher Y – Yes, generate a voucher |
14.4.4 Entering Voucher Information for Individual Employees
From Canadian Payroll Master (G77), choose Employee Information
From Employee Information (G7711), choose DBA Instructions
After you activate vouchering for a DBA, you can specify the employees for whom you want to create vouchers. You enter voucher information when you assign the DBA to an employee. Because you enter voucher information at the employee level, you can assign the same DBA to multiple employees and create vouchers even when the payees for those employees vary. You also can choose to create vouchers for some employees and not for others.
When you enter voucher information for an employee, you can also enter a payee for the voucher. The payee you enter for an employee overrides the payee entered at the group plan and DBA levels.
You enter a payee for an employee only in one of the following circumstances:
-
You did not enter a payee at the DBA level
-
You entered a payee at the DBA level that differs from the payee for this employee
-
You entered a payee for an employee at the group plan level that differs from the payee for this employee
To enter voucher information for individual employees
On Employee DBA Instructions
-
Complete the following field to locate the employee for which you need to create vouchers:
-
Employee Number
-
-
Complete the following field:
-
Generate Voucher
-
-
Complete the following optional field:
-
Payee
-
14.5 Setting Up Payee Voucher Rules
From Canadian Payroll Master (G77), enter 29
From Payroll Setup (G774), choose Pay/Deductions/Benefits
From Pay/Deductions/Benefits (G7742), choose Payee Voucher Rules
You use payee voucher rules to specify how the Payroll system summarizes detailed transactions into vouchers during the journal entries step of the payroll cycle.
Payee voucher rules for DBAs include:
| Voucher Rule | Description |
|---|---|
| Voucher Rule 00 | One voucher per payee. This is the default rule.
Use this rule to summarize all DBA transactions, regardless of DBA, employee number, or group plan. When the system summarizes transactions, different general ledger account numbers result in separate pay items on the same voucher. The account might be for different companies. |
| Voucher Rule 01 | One voucher per employee. |
| Voucher Rule 02 | One voucher per payee for each DBA. |
| Voucher Rule 03 | Separate vouchers for multiple payments to the same payee for the same DBA for the same employee where payments represent separate wage attachments (case number, case date, obligee, and so forth). |
| Voucher Rule 04 | One voucher per payee for each group plan.
Use this rule for a payee that you entered at the group plan level. |
Payee voucher rules for taxes include:
| Voucher Rule | Description |
|---|---|
| Voucher Rule 00 | One voucher per payee. This is the default rule. Use this rule to summarize all tax transactions, regardless of tax type or employee number. When the system summarizes transactions, it creates separate pay items fro different general ledger account numbers on the same voucher. |
| Voucher Rule 01 | One voucher per payee by employee. |
| Voucher Rule 02 | One voucher per payee by tax type. |
To summarize all of your vouchers according to rule 00, do not set up any payee voucher rules. The system creates:
-
One DBA voucher per payee
-
One tax voucher for each of the payee's corporate tax IDs
To use a rule other than rule 00 for a payee, you must specify both a DBA rule and a tax rule for the payee. When you specify only one rule for a payee (either a DBA or a tax rule), the system enters the default value of zero for the other rule.
On Payee Voucher Rules
-
Complete the following fields:
-
Number
-
DBAs Voucher Rules (VR)
-
Taxes Voucher Rules (VR)
-
-
Review the information in the following fields:
-
Payment Terms (Pym Trm)
-
G/L Offset
-
| Field | Explanation |
|---|---|
| Payee Voucher Rule | Payee Voucher Rules determine the level of summarization for a payee. This specific rule tells the system how to summarize voucher information for a DBA. For example, the rule indicates whether the system should create one voucher for a payee, or a separate voucher for each DBA owed to a payee (one voucher, per payee, per employee, per DBA).
The Payee Voucher Rules are predefined and should not be changed. |
| Pymt Trm | A code that specifies the terms of payment, including the percentage of discount available if the invoice is paid within a certain amount of time. A blank code usually indicates the most frequently used payment term. You define the specifications for each type of payment term on the Payment Terms Revisions form. For example:
Blank Net 15 1 – 1/10 net 30 2 – 2/10 net 30 N – Net 30 P – Fixed day of 25th Z – Net 90 This code prints on customer invoices. Form-specific information The payment terms information is stored in the Accounts Payable system. You cannot change it in the Payroll system. |
| G/L Offset | The table of Automatic Accounting Instruction accounts that allows you to predefine classes of automatic offset accounts for Accounts Payable, Accounts Receivable, and other systems.
G/L offsets might be assigned as follows:
If you leave this field blank during data entry, the system uses the default value from the Customer Master Information table (F0301) or the Supplier Master Information table (F0401). The post program uses the G/L Offset class to create automatic offset entries. Note: Do not use code 9999. It is reserved for the post program and indicates that offsets should not be created. Form-specific information This field indicates the account that the system offsets when you post vouchers to the general ledger. This information is stored in the Accounts Payable AAIs. You cannot change it in the Payroll system. |