Using the General Ledger Interface

This chapter provides an overview of processing payroll data to the core general ledger interface (GLI) and discusses how to:

• Link journal types to GL groupings.

• Calculate accrued salary.

• Calculate leave liability.

• Report leave liability.

• Run the GLI process.

• Remap Chart Fields after initial calculations.

Processing Payroll Data to GLI

The following diagram represents the processing of payroll data for the GLI and highlights the added local functionality. Note that the Leave Entitlement option updates data in the GP_GL_DATA table for inclusion in the output to the GLI.

New Zealand GLI processing

Linking Journal Types to GL Groupings

To link journal types to GL groupings, use the Journal Type NZL (GPNZ_GL_GROUP) component.

You report payroll data to the general ledger by journal type by linking a journal type to a general ledger grouping.

A grouping comprises entry types of earnings, deductions, or segment accumulators. There are five delivered journal types: Accrual, Salary, Employee Entitlements, Statistical, and Terminated Ee's (employee's) Entitlement.

Accrual and Entitlement are processed the same way as are Salary and Statistical. So you can choose to use only three of the supplied journal types.

Note. The Leave Entitlements Application Engine selects data for inclusion into the GPNZ_LEAVE_LIAB record (from GP_GL_DATA) by the flags for journal types Employee Entitlement and Terminated EE's Entitlement. Therefore, any organization needing to resolve leave entitlement calculations within the Leave Entitlement phase of the GL Interface process needs to select a journal type for each GL grouping code associated with GL Liability earnings codes.

The following table shows an example setup. Columns 1 and 2 are from the core Element Groupings page GP_GL_GROUP Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Element Groupings, Integration, Element Groupings, Element Groupings, column 3 is from the Journal Type NZL page GPNZ_JOURNAL_TYPE Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Integration, Journal Type NZL.

Page Used to Link Journal Types to GL Groupings

Calculating Accrued Salary

If the end date of the last pay period in a month is before the end of the accounting period, you can send a percentage of total salary as the accrued costing for the "gap" between the two dates.

The value sent to GL is reversed by the financials system the following month and replaced by actual costings.

See Also

Using Earnings for GLI Reporting

Calculating Leave Liability

The amount of leave an employee is owed needs to be costed as a liability in the general ledger. For leave liability reporting, we have set up earnings that store the monetary value of each employee's leave entitlement. The earnings are not paid as earnings because they do not contribute to NZL GROSS. This is made clearer by having them in a section of their own after the other earnings sections.

Because the GLI flat file only requires the difference between the liability for the last pay period and the current pay period, this is what the Application Engine (AE) leave liability process calculates and passes to GP_GL_DATA.

If an employee has terminated, the stored value of his processed liability has to be reversed out from the GL, since it is no longer a liability.

Reversing Leave Liability on Termination

Termination liability earnings LIAB TER HRS and LIAB TER DYS each have a calculation rule of Amount, where the amount is the corresponding liability earnings:

Each earning has a generation control, TER GC TERM attached and the generation control's condition is HR Status or Terminated. If an employee is terminated, their leave balance liability earning value becomes the termination liability earning for reversal.

See Also

Using Earnings for GLI Reporting

Reporting Leave Liability

The data that the report process extracts for leave liability reporting can be transferred to the general ledger through the GLI.

The reports and the interface depend upon data that is created the same way as any other data that's used for reports, the GLI—by the use of Global Payroll rules

Note. In this section, unless otherwise stated, "reported" means printed on a report and available for transfer to GLI.

Liability (and absence history) are calculated and reported to assist in the administration of employee absences and leave. They are used for costing purposes and to identify trends in absence.

Note. Absence history and its associated report are not part of the GLI functionality.

See Global Payroll for New Zealand Reports: A to Z.

Liability is reported for annual leave accrued in hours, annual leave accrued in days, and long service leave accrued in weeks and months. The values are calculated as earnings: LIAB ANN HRS and LIAB ANN DYS. These earnings do not contribute to accumulator NZL GROSS.

When you run the liability report, the parameters include the element category. Earnings LIAB ANN DYS and LIAB ANN HRS are category ANN. The category value is assigned as a variable entered as a supporting element override for each earning.

The rest of this section describes how the system calculates:

• Annual leave liability for hourly accrual.

• Annual leave liability for the Holiday Act daily accrual.

• The annual leave hours for reversal on termination.

• The annual leave days for reversal on termination.

• The salary accrual where pay end dates are not the same as financial period end dates.

Note. The term "pro rata" refers to accrued leave that the payee may or may not be entitled to take. Pro rata becomes entitlement on an anniversary, usually or the payee's hire date. Entitlement refers to leave that the payee is entitled to take and that may have once been pro rata leave. We make this distinction in this documentation because both entitlement and pro rata (as we have just defined them) are called "entitlement" in the system.

Calculating Annual Leave Liability for Hourly Accrual

The calculation rule for LIAB ANN HRS is Unit x Rate where:

Unit = Accumulator ANN LVE HRS_BAL

Rate = Formula LVE ORD FM RATE

The rate formula delivered returns the system element HOURLY RT.

The earning has generation control GLI GC LIAB which comprises formulas CMN FM MTH END and TER FM TERM CHECK. It first checks that it is the last segment of the last pay for the month and that the employee is active, and then checks if the employee is terminating in this pay run.

Calculating Annual Leave for Holiday Act Accrual in Days

The calculation rule for LIAB ANN HRS is Unit x Rate where:

Unit = Formula LVL FM ANN LVE DYS

Rate = Formula LVL FM ORD DAY RT

The unit formula sums all the Holiday Act entitlement. The rate formula calculates the daily rate that is equivalent to the Ordinary Hourly Rate. This earning also has the generation control GLI GC LIAB.

Calculating Annual Leave Liability for Reversal on Termination

The calculation rule for LIAB TER HRS is Amount where:

Amount = LIAB ANN HRS

This earning has the generation control CMN GC TERM STAT.

The calculation rule for LIAB TER DAYS is Amount where:

Amount = LIAB ANN HRS

Both these earnings have the generation control CMN GC TERM STAT so that they can be reversed out if the payee is terminated in the pay period.

Calculating Salary Accrual Earnings

The calculation rule for SAL ACCRUAL is Amount x Percentage where:

Amount = Accumulator NZL GROSS

Percentage = Variable GLI VR ACCRUAL PCT

The percentage variable holds the percentage you want to accrue. You add the variable as a calendar supporting element override on the last calendar for the month so the variable's override levels should be set to pay calendar. The value of the variable varies according to the gap between the end of the pay period and the end of the financial period.

This earnings has the generation control GLI GC ACCRUAL

Reversing Leave Liability When the Cost Centre Changes

The leave entitlements Application Engine program checks to see if there is a change of ChartField for each employee—where Chart Fields represent cost centres such as department and pay group. When the program detects a change, it reverses the liability from the centre storing the processed liability and sends the full amount of the new (unprocessed) liability (not the difference) to the new cost centre.

Running the GLI Processes

The Calculate phase of GLI processing populates the GP_GL_DATA table. The Leave Entitlement process uses the Application Engine program GPNZ_LV_LIAB to compare previous entitlement liability to current entitlement liability and load the difference into GP_GL_DATA. After you have updated the GP_GL_DATA table, you can complete the standard core GLI process by running Finalize.

You can also run an Application Engine process (GPNZL_GL_MAP) that updates ChartFields in GP_GL_DATA. The program selects and updates the necessary GP_GL_DATA records with specified ChartField overrides. When you run the GL interface finalize process, the data is summarized using your chosen (remapped) ChartFields for correct account mapping.

Note. You need to have already finalized your payroll to get up-to-date entitlement balances—upon which the liability calculation is based—for annual leave.

Pages Used to Manage the GLI Processes

Running the General Ledger Process

Access the Send Costs to GL NZL page (Global Payroll & Absence Mgmt, Time and Labor / GL Costs, Send Costs to GL NZL, Send Costs to GL NZL).

Note. The differences between this page and the page you access through Compensate Employees, Manage Payroll Process, Process (GP_GL_PREPARE) is the additional processing phase option of Leave Liability and Chart Field Remap.

Processing Phases and Options

Running the Chart Fields Remapping Process

The Chart Field remapping process achieves the following:

• Uses specified ChartField overrides and updates the GP_GL_DATA records.

• Enables the GL interface finalize process to correctly summarize transactions using your chosen combination of ChartFields, grouping codes, and account values.

You run the new Application Engine program as part of the standard General Ledger Interface process in the following sequence:

1. Ensure GL Calculate phase is complete.

2. Execute new Application Engine process to perform department remapping.

   You run the remap before the leave entitlement process. If you alter the remap you must always rerun the calculate process. You can't rerun the remap process until you have run the calculation process.

3. Ensure GL Leave Entitlement phase is complete.

4. Execute GL Finalise process.

Note. This process runs as a separate process and is not integrated into existing Application Engines. In this way, it does not impact the existing General Ledger Interface.

Remapping Chart Fields After Initial Calculation

To set up ChartField remapping, use the GL Chartfield Remapping NZL (GPNZ_GL_MAP) component.

Global Payroll for New Zealand enables you to define ChartField remapping data used during the General Ledger (GL) interface process and post payroll costs to differing levels of ChartFields based on GL grouping codes or accounts. You can use the GL Chartfield Remapping NZL page to set up GL ChartField parameters that enable you to remap default ChartFields after you run the initial calculate process. For example, you may have a requirement that a higher level of ChartFields is attached to each of your account codes. Instead of using multiple departments for each account code, you may require one global ChartField level, which covers all departments.

Page Used to Remap Chart Fields After Initial Calculation

Remapping Chart Fields

Access the GL Chartfield Remapping NZL page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Integration, GL Chartfield Remapping NZL, GL Chartfield Remapping NZL).

Chartfields

ChartFields represent attributes of a payee, such as department, company, or employee ID. When you send a payee's earnings, deductions, or accumulator amounts to PeopleSoft Enterprise General Ledger, you can also transmit the values associated with your specific combination of ChartFields for the payee.

Chartfield Transformations

The default ChartField values display in the fields on the Chartfields tab. To remap the default settings, select the new values on the Transformed Values tab.

Chartfields / Transformed Values