52 Set Up AAIs for Payroll

This chapter contains these topics:

Section 52.1, "Setting Up AAIs for Payroll,"
Section 52.2, "Setting Up AAIs for Labor, Billings, and Equipment Distribution,"
Section 52.3, "Setting Up AAIs for Burden and Premium Labor Distribution,"
Section 52.4, "Setting Up Company Burden Rules,"
Section 52.5, "Setting Up Business Unit Burden Rules,"
Section 52.6, "Setting Up AAIs for Cash in Bank Account Distribution,"
Section 52.7, "Setting Up AAIs for Liabilities,"
Section 52.8, "Setting Up AAIs for Labor Billings,"
Section 52.9, "Setting Up AAIs for Accruals and Clearing,"
Section 52.10, "Setting Up Journal Summarization Rules,"
Section 52.11, "Reviewing the Accounting Distribution Rules Report,"
Section 52.12, "Reviewing the Accounting Summarization Rules Report,"
Section 52.13, "Entering Journal Type Defaults."

52.1 Setting Up AAIs for Payroll

You set up automatic accounting instructions (AAIs) for payroll to automatically assign account numbers to the journal entries created in the payroll system. You can establish AAIs separately for each company. Always set up generic instructions in Company 00000. The system searches for a specific company first. If it finds no instructions for the specific company, it searches for Company 00000.

In addition to defining rules in the separate AAI tables, you can also set up rules for how the system summarizes journal entries.

You can have a line in an accounting instruction table that has no search criteria other than the journal type. This is a default line that uses the default journal type.

Setting up automatic accounting instructions consists of the following tasks:

Setting Up AAIs for Labor, Billings, and Equipment Distribution
Setting Up AAIs for Burden and Premium Labor Distribution
Setting Up Company Burden Rules
Setting Up Business Unit Burden Rules
Setting Up AAIs for Cash in Bank Account Distribution
Setting Up AAIs for Liabilities
Setting Up AAIs for Labor Billings
Setting Up AAIs for Accruals and Clearing
Setting Up Journal Summarization Rules
Reviewing the Accounting Distribution Rules Report
Reviewing the Accounting Summarization Rules Report
Entering Journal Type Defaults

You can have a line in an accounting instruction table that has no search criteria other than the journal type. This is a default line.

52.2 Setting Up AAIs for Labor, Billings, and Equipment Distribution

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Debit-Direct Labor/Billings/Equipment

You set up AAIs for direct labor, billings, and equipment distribution to define accounts for transactions related to labor, labor billing (recharge), and the use of equipment. You do this by specifying search criteria for employee or timecard information and the account number information for the system to use in making the labor, billings, and equipment journal entries. All of these transactions are related directly to timecard entries.

You can establish accounting instructions separately for each company. Always set up generic instructions in Company 00000. The system searches for a specific company first. If it finds no instructions for the specific company, it searches for Company 00000.

When you set up direct labor, billings, and equipment distribution instructions, the minimum setup requirements for journal types are:

Item	Description
Equipment distribution (ED)	This is necessary only if you are creating equipment transactions.
Payroll labor distribution (LD)	This is always required.
Labor billing distribution (RD)	This is necessary only if you are using billing (recharge) rates.

The system accesses this AAI table during time entry as well as during pre-payroll when it creates timecards for autopay employees. The system uses the values from the timecard which retrieves the values from the Employee Master table, other sources, or overrides that you supply. You use these search criteria fields to assign account numbers based on the specific timecard information.

52.2.1 Search Criteria for Labor Distribution

The system uses the search criteria fields to determine the account distribution for the labor, billings, and equipment entries for your payroll. The system searches these accounting instructions in the following order, depending on the business unit and associated company used by time entry:

On the first pass compares the time entry record's business unit, union, job type, job step, and pay type to the rule's search criteria and attempts to match it to the appropriate journal type.
On each successive pass drops a value and uses a different combination of data fields for the search criteria.
Finally, if no matches exist in the rules for the specific company, it searches the rules for the default Company 00000.

The following table identifies the search criteria the system uses to match information from the timecard for a specific company:

Business Unit	Union	Job Type	Job Step	Payment Type	Journal Type
100	3000	CARP	APPR	1	LD
100	3000	CARP	APPR		LD
100	3000	CARP		1	LD
100	3000	CARP			LD
100	3000			1	LD
100	3000				LD
100		CARP	APPR	1	LD
100		CARP	APPR		LD
100		CARP		1	LD
100		CARP			LD
100				1	LD
100					LD
	3000	CARP	APPR	1	LD
	3000	CARP	APPR		LD
	3000	CARP		1	LD
	3000	CARP			LD
	3000			1	LD
	3000				LD
		CARP	APPR	1	LD
		CARP	APPR		LD
		CARP		1	LD
		CARP			LD
				1	LD
					LD

Business Unit, Union, Job Type, Job Step, Pay Type, Journal Type
Business Unit, Union, Job Type, Job Step, Journal Type
Business Unit, Union, Job Type, Pay Type, Journal Type
Business Unit, Union, Job Type, Journal Type
Business Unit, Union, Pay Type, Journal Type
Business Unit, Union, Journal Type
Business Unit, Job Type, Job Step, Pay Type, Journal Type
Business Unit, Job Type, Job Step, Journal Type
Business Unit, Job Type, Pay Type, Journal Type
Business Unit, job type, Journal Type
Business Unit, Pay Type, Journal Type
Business Unit, Journal Type
Union, Job Type, Job Step, Pay Type, Journal Type
Union, Job Type, Job Step, Journal Type
Union, Job Type, Pay Type, Journal Type
Union, Job Type, Journal Type
Union, Pay Type, Journal Type
Union, Journal Type
Job Type, Job Step, Pay Step, Journal Type
Job Type, Job Step, Journal Type
Job Type, Pay Type, Journal Type
Job Type, Journal Type
Pay Type, Journal Type
Journal Type

The following table identifies additional search criteria the system can use to match information from the timecard for the default Company 00000:

Union	Job Type	Job Step	Payment Type	Journal Type
3000	CARP	APPR	1	LD
3000	CARP	APPR		LD
3000	CARP		1	LD
3000	CARP			LD
3000			1	LD
3000				LD
	CARP	APPR	1	LD
	CARP	APPR		LD
	CARP		1	LD
	CARP			LD
			1	LD

Union, Job Type, Job Step, Pay Type, Journal Type
Union, Job Type, Job Step, Journal Type
Union, Job Type, Pay Type, Journal Type
Union, Job Type, Journal Type
Union, Pay Type, Journal Type
Union, Journal Type
Job Type, Job Step, Pay Type, Journal Type
Job Type, Job Step, Journal Type
Job Type, Pay Type, Journal Type
Job Type, Journal Type
Pay Type, Journal Type
Journal Type

To set up AAIs for labor, billings, and equipment distribution

On Debit - Direct Labor/Billings/Equipment

Figure 52-1 Debit - Direct Labor/Billings/Equipment screen

Description of ''Figure 52-1 Debit - Direct Labor/Billings/Equipment screen''

Complete the following fields:
- Company
- Journal Type (JT)
- Distribution Account Object (Obj)
Complete the following optional fields:
- Employee or Time Card Basis Business Unit
- Employee or Time Card Basis Union Code
- Employee or Time Card Basis Job Type
- Employee or Time Card Basis Job Step
- Employee or Time Card Basis Pay Type
- Distribution Account Business Unit
- Distribution Account Subsidiary

Field	Explanation
JT	This field represents the type of transaction for which an account is to be derived. Form-specific information For Equipment Billing: Enter the valid value ED to identify the accounting rules you want the system to use when distributing equipment costs to object accounts. The system changes the user defined code table you can access from the Type (Typ) field from the PDBA codes table to the Rate Groups table. When you associate an object account with journal type ED, the system applies accounting rules only to the equipment you specify in the Equipment Worked (EQPW) field on Equipment Time Entry forms in Payroll or Time Accounting.
Employee or Time Card Basis Bus. Unit	Identifies the Business Unit the system searches to determine the accounting distribution. When defining the default rules (Company 00000), leave the Business Unit blank for the system to retrieve the Business Unit number entered on the Employee timecard, or from the Employee's Home Business Unit. You can use the Skip to Business Unit field to specify the Business Unit to be displayed first in the lower part of the screen. Form-specific information For autopay employees, the system uses the labor distribution instructions, the employee's home business unit, or the lowest level of default.

Field

Explanation

This field represents the type of transaction for which an account is to be derived.

Form-specific information

For Equipment Billing:

Enter the valid value ED to identify the accounting rules you want the system to use when distributing equipment costs to object accounts. The system changes the user defined code table you can access from the Type (Typ) field from the PDBA codes table to the Rate Groups table.

When you associate an object account with journal type ED, the system applies accounting rules only to the equipment you specify in the Equipment Worked (EQPW) field on Equipment Time Entry forms in Payroll or Time Accounting.

Employee or Time Card Basis Bus. Unit

Identifies the Business Unit the system searches to determine the accounting distribution. When defining the default rules (Company 00000), leave the Business Unit blank for the system to retrieve the Business Unit number entered on the Employee timecard, or from the Employee's Home Business Unit.

You can use the Skip to Business Unit field to specify the Business Unit to be displayed first in the lower part of the screen.

Form-specific information

For autopay employees, the system uses the labor distribution instructions, the employee's home business unit, or the lowest level of default.

52.2.2 What You Should Know About

Topic	Description
Search criteria	Information coded on the timecard establishes the search argument. Codes in the Union, Type, and Step fields help to narrow the system's search. The system uses the following search criteria to determine which distribution account to debit: In the first pass, the system searches for all fields in the Time Card Basis section of the form. In the second pass, the system searches for business unit, plan, job type, job step, and journal type. In each successive pass, it uses a different combination of data fields for the search criteria.
Distribution account fields	To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override or Timecard Basis Business Unit Object - Table entry required Subsidiary - Override or timecard subsidiary
Business unit search for Company 00000	You cannot specify a business unit search for Company 00000 because each business unit is attached to a unique company. To search by business unit, you must attach the business unit to a company specific table during setup.

See Also:

Section 52.13, "Entering Journal Type Defaults."

52.3 Setting Up AAIs for Burden and Premium Labor Distribution

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Debit-Burden/Premium Labor Distribution

You set up AAIs to define accounts for actual burden, flat burden, and labor distribution premium time transactions. The hierarchy method in this table helps control account derivation.

Burden is defined as the direct expenses that a company incurs for an employee in addition to wages. These expenses include:

Payroll taxes and insurance (PTI) - Company-paid taxes and insurance, such as workers compensation insurance
Fringe benefits - Company-paid benefits, such as health insurance and company contributions to a 401(k) plan

A company can choose to use flat burden, actual burden, or both.

Flat Burden	Actual Burden
An estimate that is a percentage of an employee's gross wages. Distributes the expense at the same amount throughout the entire year. Can be calculated per employee, union, or business unit for each timecard during time entry. Not calculated for lump sum amounts.	Heavier at the beginning of the year until limits are reached. Examples are FICA, FUI, SUI, SDI in the U.S. and EI in Canada. Can be turned on and off by company to complete the calculation.

Flat Burden

Actual Burden

An estimate that is a percentage of an employee's gross wages.

Distributes the expense at the same amount throughout the entire year.

Can be calculated per employee, union, or business unit for each timecard during time entry.

Not calculated for lump sum amounts.

Heavier at the beginning of the year until limits are reached. Examples are FICA, FUI, SUI, SDI in the U.S. and EI in Canada.

Can be turned on and off by company to complete the calculation.

Note:

The Time Accounting system does not calculate actual burden. It uses a pre-determined percentage as an estimate of gross wages to approximate actual burden costs. This percentage is called flat burden.

When you set up actual burden distribution debit instructions you must, at a minimum, include the following default journal type codes:

Code	Description
BF - Burden fringe benefits for actual burden	Use this journal type for the burden fringe benefits you do not want to distribute separately. When the system does not find an entry for a specific fringe benefit, it uses the distribution account associated with journal type BF. The DBA type field works with the Journal Type field. You must enter a value in one of the fields, but not both, for each accounting rule. Follow these guidelines to set up this journal type: To distribute different types of fringe benefits to their own unique accounts, set up the DBA number in the accounting instructions table. To account for a tax separately, set up the tax code as the journal type in the accounting instructions table.
BT - Burden taxes for actual burden	Use this journal type for the burden taxes you do not want to distribute separately. When the system does not find an entry for a specific tax, it uses the distribution account associated with journal type BT.

Code

Description

BF - Burden fringe benefits for actual burden

Use this journal type for the burden fringe benefits you do not want to distribute separately. When the system does not find an entry for a specific fringe benefit, it uses the distribution account associated with journal type BF.

The DBA type field works with the Journal Type field. You must enter a value in one of the fields, but not both, for each accounting rule.

Follow these guidelines to set up this journal type:

To distribute different types of fringe benefits to their own unique accounts, set up the DBA number in the accounting instructions table.
To account for a tax separately, set up the tax code as the journal type in the accounting instructions table.

BT - Burden taxes for actual burden

Use this journal type for the burden taxes you do not want to distribute separately. When the system does not find an entry for a specific tax, it uses the distribution account associated with journal type BT.

When you set up flat burden distribution debit instructions you must, at a minimum, include the following journal type codes:

FB - Flat burden

When you set up premium labor debit instructions you must, at a minimum, include the following journal type codes:

PR - Payroll premium labor distribution

You can have the system split the premium portion of overtime and create separate journal entries for straight time versus premium time.

When you set up recharge burden debit instructions you must, at a minimum, include the following journal type codes:

RB - Recharge (labor billing) burden

52.3.1 Search Criteria for Burden Fringe

The following table illustrates the ways the system can match information from a timecard for a specific company for burden fringe:

Business Unit	Object	Subsidiary	DBA Type	Journal Type
1	1340	02200	1000
1	1340	02200		BF
1	1340		1000
1	1340			BF
	1340		1000
	1340			BF

Business Unit, Object, Subsidiary, DBA Type
Business Unit, Object, Subsidiary, Journal Type
Business Unit, Object, DBA Type
Business Unit, Object, Journal Type
Object, DBA Type
Object, Journal Type

The following table illustrates the ways the system can match information from a timecard for the default company.

Object	Subsidiary	DBA Type	Journal Type
1340	02200	1000
1340	02200		BF
1340		1000
1340			BF
00000		1000
00000			BF

Object, Subsidiary, DBA Type
Object, Subsidiary, Journal Type
Object, DBA Type
Object, Journal Type
DBA Type
Journal Type

To set up AAIs for burden and premium labor distribution

On Debit - Burden/Premium-Labor Distribution

Figure 52-2 Debit-Burden/Premium-Labor Distributions screen

Description of ''Figure 52-2 Debit-Burden/Premium-Labor Distributions screen''

Complete the following fields:
- Company
- Hierarchy Method (HM)
- Object (Obj)
To set up Company 00000, enter 00000 or a valid object in the following field:
- Time Card Basis Object
To set up a specific company, enter a valid object in the following field:
- Time Card Basis Object
For tax types and journal types BT, FB, and PR, complete the following field:
- Time Card Basis Journal Type
For DBAs, complete the following field:
- Time Card Basis Type
For a specific company, complete the following optional field:
- Time Card Basis Business Unit
Complete the following optional fields:
- Time Card Basis Subsidiary
- Distribution Account Business Unit
- Distribution Account Subsidiary

Field	Explanation
Hierarchy Method	This code is used in retrieving the business unit and subsidiary accounts for burden distribution. The four methods available are: 1 – Business unit: Employee Home Business Unit unless a table override exists Subsidiary: No Subsidiary. Subledger/Type: No Subledger or Subledger Type. 2 – Business unit: Employee Home Business Unit unless a table override exists Subsidiary: Labor Distribution Subsidiary unless a table override. Subledger/Type: Labor Distribution Subledger and Type. 3 – Business unit: Labor Business Unit unless a table override exists. Subsidiary: No Subsidiary. Subledger/Type: Labor Distribution Subledger and Type. 4 – Business unit: Labor Business Unit unless a table override exists. Subsidiary: Labor Distribution Subsidiary unless a table override. Subledger/Type: Labor Distribution Subledger and Type.

Field

Explanation

Hierarchy Method

This code is used in retrieving the business unit and subsidiary accounts for burden distribution. The four methods available are:

1 – Business unit: Employee Home Business Unit unless a table override exists

Subsidiary: No Subsidiary.

Subledger/Type: No Subledger or Subledger Type.

2 – Business unit: Employee Home Business Unit unless a table override exists

Subsidiary: Labor Distribution Subsidiary unless a table override.

Subledger/Type: Labor Distribution Subledger and Type.

3 – Business unit: Labor Business Unit unless a table override exists.

Subsidiary: No Subsidiary.

Subledger/Type: Labor Distribution Subledger and Type.

4 – Business unit: Labor Business Unit unless a table override exists.

Subsidiary: Labor Distribution Subsidiary unless a table override.

Subledger/Type: Labor Distribution Subledger and Type.

52.3.2 What You Should Know About

Topic	Description
Search criteria	The system uses the following search criteria to determine which distribution account to debit: On the first pass the system searches for all fields in the Time Card Basis section of the form. On the second pass the system searches for business unit, object, subsidiary, and journal type. On each successive pass the system uses a different combination of data fields.
Distribution account fields	To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override or controlled by hierarchy method Object - Table entry required Subledger - Controlled by the hierarchy
Accounting for mandatory benefits when no gross pay	Set up the following accounting rule to create T3 entries for mandatory benefits, that is, benefits that are calculated even if the employee is not paid. For Company 00000: Labor Object Account - 000000 Hierarchy Method - 2 Distribution Business Unit - Table entry optional Distribution Object - Table entry required Subsidiary Account - Table entry optional

See Also:

Section 52.13, "Entering Journal Type Defaults."

52.4 Setting Up Company Burden Rules

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Debit-Burden/Premium Labor Distribution

You can set up company burden rules to split the premium portion of overtime into a separate journal entry. You can choose to omit the creation of T3s.

You must set up company burden rules for a specific company. You cannot use Company 00000.

To set up company burden rules

On Debit - Burden/Premium-Labor Distribution

Press F8 to access the Company Unit Burden Rules function.

Figure 52-3 Business Unit Burden Rule Window

Description of ''Figure 52-3 Business Unit Burden Rule Window''
On Company Burden Distribution Rules, complete the following fields.
- Do you wish to split the premium portion of overtime on labor entries?
- Do you wish to omit Actual Burden Distribution Journal Entires (Type T3)?

Field	Explanation
1) Do you wish to split the premium portion of overtime on labor entries? . .(Y/N)	A code which specifies whether the premium portion of overtime earnings is to be separated from 'Regular' earnings for accounting purposes. The valid codes are: Y – The premium portion of overtime earnings will be separated from regular earnings during the Journal Entry step of the Payroll Cycle. N – The premium portion of overtime earnings will NOT be separated from regular earnings; Total earnings will be posted into the same account during the Journal Entry step of the Payroll Cycle.
2) Do you wish to omit Actual Burden Distribution Journal Entries (Type T3)?. .(Y/N)	A code that specifies whether the Journal Entry program is to omit creation of Burden Distr. Detail (F0624) records and Distributed Actual Burden Amounts for all companies and business units. The valid values are: Y – Omit the creation of F0624 records and any corresponding Actual Burden journal entries. N – Default to the Business Unit (F069056) level to determine whether any F0624 records are to be created and whether the corresponding Actual Burden journal entries are to be generated.

Field

Explanation

1) Do you wish to split the premium portion of overtime on labor entries? . .(Y/N)

A code which specifies whether the premium portion of overtime earnings is to be separated from 'Regular' earnings for accounting purposes. The valid codes are:

Y – The premium portion of overtime earnings will be separated from regular earnings during the Journal Entry step of the Payroll Cycle.

N – The premium portion of overtime earnings will NOT be separated from regular earnings; Total earnings will be posted into the same account during the Journal Entry step of the Payroll Cycle.

2) Do you wish to omit Actual Burden Distribution Journal Entries (Type T3)?. .(Y/N)

A code that specifies whether the Journal Entry program is to omit creation of Burden Distr. Detail (F0624) records and Distributed Actual Burden Amounts for all companies and business units. The valid values are:

Y – Omit the creation of F0624 records and any corresponding Actual Burden journal entries.

N – Default to the Business Unit (F069056) level to determine whether any F0624 records are to be created and whether the corresponding Actual Burden journal entries are to be generated.

52.5 Setting Up Business Unit Burden Rules

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Debit-Burden/Premium Labor Distribution

You can create and store actual burden detail for every timecard. Typically, you need this information for government jobs or for auditing by an outside agency. When you set up business unit burden rules, you define a burden rule that applies to a single business unit. This AAI is useful for tracking detailed cost-plus burden expenses by job and business unit.

To set up business unit burden rules

On Debit - Burden/Premium-Labor Distribution

Press F8 to access the Business Unit Burden Rules function.

Figure 52-4 Business Unit Burden Rule Window

Description of ''Figure 52-4 Business Unit Burden Rule Window''
On Business Unit Burden Rule Window, complete the following field:
- Burden Rule

Field	Explanation
Burden Distribution Rule	Actual Burden expenses are initially grouped into burden clearing accounts in the T1 section of the payroll journals. The user has the option of relieving these clearing entries and distributing burden expense based on where the direct labor was charged. This distribution of burden expense is done in the T3 section of the payroll journals. The user also has the option of creating a fixed audit trail for how each component of burden was distributed per individual timecard. This detail audit trail is maintained in the F0624 file which is used by the payroll system to produce Job Billing Registers. The rule codes listed below control the process: 0 – Do not create T3 Burden Expense entries for the Business Unit. 1 – Create T3 Burden Expense entries but not the F0624 audit records. 2 – Create T3 Burden Expense entries and associated F0624 audit records. 3 – Same as 1 but reverse out the Flat Burden posted thru the special timecard post. 4 – Same as 2 but reverse out the Flat Burden posted thru the special timecard post.

Field

Explanation

Burden Distribution Rule

Actual Burden expenses are initially grouped into burden clearing accounts in the T1 section of the payroll journals. The user has the option of relieving these clearing entries and distributing burden expense based on where the direct labor was charged. This distribution of burden expense is done in the T3 section of the payroll journals. The user also has the option of creating a fixed audit trail for how each component of burden was distributed per individual timecard. This detail audit trail is maintained in the F0624 file which is used by the payroll system to produce Job Billing Registers. The rule codes listed below control the process:

0 – Do not create T3 Burden Expense entries for the Business Unit.

1 – Create T3 Burden Expense entries but not the F0624 audit records.

2 – Create T3 Burden Expense entries and associated F0624 audit records.

3 – Same as 1 but reverse out the Flat Burden posted thru the special timecard post.

4 – Same as 2 but reverse out the Flat Burden posted thru the special timecard post.

52.5.1 What You Should Know About

Topic	Description
Business units displayed	You must set up a business unit in the payroll business unit constants if you want it to appear in Business Unit Burden Rule Window.
No burden rule set up	If you do not access Business Unit Burden Rule Window, the system creates T3s, but does not write records to the Burden Distribution table (F0624).

52.6 Setting Up AAIs for Cash in Bank Account Distribution

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Credit-Cash/Bank Account

You set up AAIs for cash in bank account distribution to define accounts for payroll disbursements. You can define different accounts for:

Cash disbursements
Computer checks
Automatic deposits
Interim manual checks
Interim computer checks

When you set up cash in bank account distribution instructions, you must, at a minimum, set up the default journal type DP. You can use other codes when other types of payments are drawn on different bank accounts.

Code	Description
DA	Auto deposits
DC	Currency disbursement (cash)
DI	Interim computer checks
DM	Interim manual checks
DP	Printed computer checks from payroll cycle

52.6.1 Search Criteria for Cash in Bank Account Distribution

The employee's home business unit and the journal type determine the account. The journal type represents the type of payment.

The following table illustrates the ways the system can match the type of payment and the home business unit for a specific company:

Business Unit	Journal Type
1	DA
1	DP
	DA
	DP

Business Unit, Journal Type DA
Business Unit, Journal Type DP
Journal Type DA
Journal Type DP

The following table illustrates the ways the system can match the type of payment for default Company 00000:

Business Unit	Journal Type
	DA
	DP

Journal Type DA
Journal Type DP

To set up AAIs for cash in bank account distribution

On Credit - Cash/Bank Account

Figure 52-5 Credit Cash/Bank Account screen

Description of ''Figure 52-5 Credit Cash/Bank Account screen''

Complete the following fields:
- Company
- Employee Basis Journal Type
- Distribution Account Object
Complete the following optional fields:
- Distribution Account Business Unit
- Distribution Account Subsidiary

52.6.2 What You Should Know About

Topic	Description
Search criteria	The system searches on the following Employee Basis fields: Business Unit Journal Type The account is determined by the employee's home business unit and the journal type. The journal type represents the type of payments.
Distribution account fields	To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override or employee home business unit Object - Table entry required Subsidiary - None unless a table entry exists Subledger - None
Incorrect account number	The system derives the account number from these rules during pre-payroll processing. If you discover that the cash account is incorrect, correct your AAIs and rerun your pre-payroll.

Topic

Description

Search criteria

The system searches on the following Employee Basis fields:

Business Unit
Journal Type

The account is determined by the employee's home business unit and the journal type. The journal type represents the type of payments.

Distribution account fields

To determine the distribution account, the system treats each distribution account as follows:

Business Unit - Override or employee home business unit
Object - Table entry required
Subsidiary - None unless a table entry exists
Subledger - None

Incorrect account number

The system derives the account number from these rules during pre-payroll processing. If you discover that the cash account is incorrect, correct your AAIs and rerun your pre-payroll.

See Also:

Section 52.13, "Entering Journal Type Defaults."

52.7 Setting Up AAIs for Liabilities

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Credit-Liabilities

You set up AAIs for liabilities to define accounts for the Payroll Disbursements Journal.

The minimum setup requirements for journal types when you set up liabilities instructions include the default journal type codes. They are:

Code	Description
AL	Accrued liabilities for deductions and benefits
AT	Accrued liabilities for payroll taxes

52.7.1 Search Criteria for Liabilities

The following table illustrates the search criteria for a specific company. For tax liabilities, the system matches the tax type and, optionally, the employee's home business unit. For DBA liabilities, the system matches the DBA code and, optionally, the employee's home business unit.

Business Unit	Type	Journal Type
1		H
1		AT
		H
		AT
1	5000
1		AL
	5000
		AL

For tax types:

Business Unit, Journal Type (Tax Type)
Business Unit, Journal Type AT
Journal Type (Tax Type)
Journal Type AT

For DBAs:

Business Unit, Type (DBA Code)
Business Unit, Journal Type AL
Type (DBA Code)
Journal Type AL

The following table illustrates the search criteria for default Company 00000. The system matches the tax type or the DBA code, or uses the default journal type if no match is found.

Business Unit	Type	Journal Type
		H
		AT
	5000
		AL

For tax types:

Journal Type (Tax Type)
Journal Type AT

For DBAs:

Type (DBA Code)
Journal Type AL

To set up AAIs for liabilities

On Credit - Liabilities

Figure 52-6 Credit - Liabilities screen

Description of ''Figure 52-6 Credit - Liabilities screen''

Complete the following fields:
- Company
- Distribution Account Object
For deductions and benefits, complete the following field:
- Employee Basis Type
For taxes, AL, and AT journal types, complete the following field:
- Employee Basis Journal Type
Complete the following optional fields:
- Employee Business Unit
- Distribution Account Business Unit
- Distribution Account Subsidiary
Press F4 to access the detail area.

Figure 52-7 Credit - Liabilities screen (Detail area)

Description of ''Figure 52-7 Credit - Liabilities screen (Detail area)''
Complete the following optional fields:
- Subledger
- Subledger Type

Field	Explanation
Subledger	A value such as equipment number or work order number that you can attach to the end of an account number to further define an account and more easily track it.
Subledger Type	A code identifying the type of subledger in the previous field. If you enter a subledger, you must also enter a subledger type.

52.7.2 What You Should Know About

Topic	Description
Search criteria	On the first pass, the system searches on the following fields: Home Business Unit Specific tax type DBA Code Each successive pass is based on the business unit or journal type.
Distribution account fields	To designate distribution account information, you can use the following constants in the Subsidiary field if you have valid general ledger account numbers set up: STAT - To move the statutory code to the Subsidiary field for a tax. Use STAT to charge taxes to specific accounts without having to define each account in the table. For example, the system will use CA for California. EMP - To move the employee number to the Subsidiary field for a DBA. PAY - To move the pay or DBA code to the Subsidiary field. UNION - To move the union code to the Subsidiary field for a DBA. You can use the following constants in the Subledger field in the detail area: SBLE - To move the employee number to the Subledger field *SBLP - To move the DBA code to the Subledger field To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override entry or employee home business unit Object - Table entry required Subsidiary - Override entry or one of the constants shown above Subledger - Table entry or one of the constants shown above

Topic

Description

Search criteria

On the first pass, the system searches on the following fields:

Home Business Unit
Specific tax type
DBA Code

Each successive pass is based on the business unit or journal type.

Distribution account fields

To designate distribution account information, you can use the following constants in the Subsidiary field if you have valid general ledger account numbers set up:

*STAT - To move the statutory code to the Subsidiary field for a tax. Use *STAT to charge taxes to specific accounts without having to define each account in the table. For example, the system will use CA for California.
*EMP - To move the employee number to the Subsidiary field for a DBA.
*PAY - To move the pay or DBA code to the Subsidiary field.
*UNION - To move the union code to the Subsidiary field for a DBA.

You can use the following constants in the Subledger field in the detail area:

*SBLE - To move the employee number to the Subledger field
*SBLP - To move the DBA code to the Subledger field

To determine the distribution account, the system treats each distribution account as follows:

Business Unit - Override entry or employee home business unit
Object - Table entry required
Subsidiary - Override entry or one of the constants shown above
Subledger - Table entry or one of the constants shown above

See Also:

Section 52.13, "Entering Journal Type Defaults."

52.8 Setting Up AAIs for Labor Billings

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Credit-Labor Billings

You set up AAIs for labor billings to establish accounts for labor billing offsets. These offsets are natural credit or revenue entries that offset labor billing charges or debits. Entries for labor billings are generally credit entries.

If your company does not use labor billings, you do not need to set up these instructions.

52.8.1 Search Criteria for Labor Billings

The following table represents the credit side only. It identifies the search criteria the system uses to match information from the timecard for a specific company.

Home Business Unit	Job Location	Pay Type	Journal Type
9	501	1	RO
9	501		RO
9		1	RO
9			RO
	501	1	RO
	501		RO
		1	RO
			RO

Home Business Unit, Job Location, Pay Type, Journal Type
Home Business Unit, Job Location, Journal Type
Home Business Unit, Pay Type, Journal Type
Home Business Unit, Journal Type
Job Location, Pay Type, Journal Type
Job Location, Journal Type
Pay Type, Journal Type
Journal Type

The following table represents the search criteria the system uses to match information from the timecard to the default Company 00000:

Job Location	Pay Type	Journal Type
501	1	RO
501		RO
	1	RO
		RO

Job Location, Pay Type, Journal Type
Job Location, Journal Type
Pay Type, Journal Type
Journal Type

To set up AAIs for labor billings

On Credit - Labor Billings

Figure 52-8 Credit-Labor Billings screen

Description of ''Figure 52-8 Credit-Labor Billings screen''

Complete the following fields:
- Company
- Journal Type
- Distribution Account Object
Complete the following optional fields:
- Home Business Unit
- Job Location
- Pay Type
- Distribution Account Business Unit
- Distribution Account Subsidiary

Field	Explanation
Job Location	This business unit represents the location in which the employee worked. It can be used to indicate that an employee worked at this location, but charged the time to another business unit. This field is used for deriving rates from the Union Pay Rate table and is used exclusively by the Certified Payroll Register.

52.8.2 What You Should Know About

Topic	Description
Search criteria	On the first pass, the system searches on the following fields: Home Business Unit Job Location Pay Type Journal Type On each successive pass the system searches on a different combination of data fields. The system can also search on the job location from the employee's timecard. This field, along with the optional Home Business Unit field, allows you to account for billing revenue.
Distribution account fields	To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override or employee home business unit Object - Table entry required Subsidiary - Table entry optional Subledger - None
Default labor billings	For your most common account distribution, you can define a default labor billing rule using the journal type RO with the distribution account information. The system will use the default rule when it does not find a business unit specific rule.

Topic

Description

Search criteria

On the first pass, the system searches on the following fields:

Home Business Unit
Job Location
Pay Type
Journal Type

On each successive pass the system searches on a different combination of data fields.

The system can also search on the job location from the employee's timecard. This field, along with the optional Home Business Unit field, allows you to account for billing revenue.

Distribution account fields

To determine the distribution account, the system treats each distribution account as follows:

Business Unit - Override or employee home business unit
Object - Table entry required
Subsidiary - Table entry optional
Subledger - None

Default labor billings

For your most common account distribution, you can define a default labor billing rule using the journal type RO with the distribution account information. The system will use the default rule when it does not find a business unit specific rule.

See Also:

Section 52.13, "Entering Journal Type Defaults."

52.9 Setting Up AAIs for Accruals and Clearing

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Dr/CR-Accruals / Clearing

For the Payroll system, you set up AAIs for accruals and clearing to establish accounts for the following:

Accrued wages (T1, T2)
Actual burden clearing (T1, T3)
Flat burden clearing (T2)
Recharge flat burden clearing
Intercompany settlement (T1-T6)

For the Time Accounting system, you set up AAIs for accruals and clearing to establish accounts for the following:

Accrued wages (T2)
Flat burden clearing (T2)
Recharge flat burden clearing

When you set up the accrued wages account you must, at a minimum, include the following journal type code:

AW - Accrued wages for the Labor Distribution and Payroll Disbursements Journals

When you set up actual burden clearing accounts you must, at a minimum, include the following journal type codes:

CF - Burden clearing fringe for the Actual Burden Expense and Payroll Disbursements Journals
CT - Burden clearing tax for the Actual Burden Expense and Payroll Disbursements Journals

When you set up the flat burden clearing account you must, at a minimum, include the following journal type code:

FC - Flat burden clearing for the Labor Distribution Journal

When you set up intercompany settlement accounts you must, at a minimum, include the following journal type code:

IC - Intercompany settlements for the Actual Burden Expense, Labor Distribution, and Payroll Disbursements Journals

When you set up the recharge flat burden clearing account you must, at a minimum, include the following journal type code:

RC - Recharge burden relief for the Actual Burden Expense and Payroll Disbursements Journals

52.9.1 Search Criteria for Accruals and Clearing

The following table identifies the search criteria that the system can use to match information from the timecard for a specific company for clearing tax burden:

Business Unit	Type	Journal Type
1		H
		H
1		CT
		CT

Business Unit, Journal Type (Tax Type)
Journal Type (Tax Type)
Business Unit, Journal Type CT
Journal Type CT

The following table identifies the search criteria that the system can use to match information from the timecard for Company 00000 for clearing tax burden:

Business Unit	Type	Journal Type
		H
		CT

Journal Type (Tax Type)
Journal Type CT

The following table identifies the search criteria that the system can use to match information from the timecard for a specific company for clearing fringe burden:

Business Unit	Type	Journal Type
1	1000
	1000
1		CF
		CF

Business Unit, Type (DBA Code)
Type (DBA Code)
Business Unit, Journal Type CF
Journal Type CF

The following table identifies the search criteria that the system can use to match information from the timecard for Company 00000 for clearing fringe burden:

Business Unit	Type	Journal Type
	1000
		CF

Type (DBA Code)
Journal Type CF

The following table identifies the search criteria that the system can use to match information from the timecard for a specific company for accrued wages, flat burden clearing, intercompany settlements, or recharge flat burden clearing:

Business Unit	Type	Journal Type
1		AW, FC, IC, or RC
		AW, FC, IC, or RC

Business Unit, Journal Type
Journal Type

The following table identifies the search criteria that the system can use to match information from the timecard for Company 00000 for accrued wages, flat burden clearing, intercompany settlements, or recharge flat burden clearing:

Business Unit	Type	Journal Type
		AW, FC, IC, or RC

Journal Type

To set up AAIs for accruals and clearing

On Debit/Credit - Accruals/Clearing

Figure 52-9 Debit/Credit - Accruals/Clearing screen

Description of ''Figure 52-9 Debit/Credit - Accruals/Clearing screen''

Complete the following fields:
- Company
- Distribution Account Object
Complete one of the following fields, as appropriate:
- Employee Basis Type
- Employee Basis Journal Type
Complete the following optional fields:
- Employee Basis Business Unit
- Distribution Account Business Unit
- Distribution Account Subsidiary
Press F4 to access the detail area.

Figure 52-10 Debit/Credit - Accruals/Clearing screen (Detail area)

Description of ''Figure 52-10 Debit/Credit - Accruals/Clearing screen (Detail area)''
Complete the following optional fields:
- Subledger
- Type
- Description
- Enhanced Subledger 1-4
- Enhanced Subledger Types

52.9.2 What You Should Know About

Topic	Description
Search criteria	On the first pass, the system searches on the Employee Basis fields. On each successive pass the system searches on a different combination of data fields.
Distribution account fields	To determine the distribution account, the system treats each distribution account as follows: Business Unit - Override entry or employee home business unit Business Unit - LABOR for FC (Flat burden offset) provides the same business unit as labor, not Home Business Unit Object - Table entry required Subsidiary - Override entry or PAY for DBAs and *CO for intercompany settlements Subledger - Table entry

Topic

Description

Search criteria

On the first pass, the system searches on the Employee Basis fields.

On each successive pass the system searches on a different combination of data fields.

Distribution account fields

To determine the distribution account, the system treats each distribution account as follows:

Business Unit - Override entry or employee home business unit
Business Unit - *LABOR for FC (Flat burden offset) provides the same business unit as labor, not Home Business Unit
Object - Table entry required
Subsidiary - Override entry or *PAY for DBAs and *CO for intercompany settlements
Subledger - Table entry

See Also:

Section 52.13, "Entering Journal Type Defaults."

52.10 Setting Up Journal Summarization Rules

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Journal Summarization Rules

You set up journal summarization rules to establish how the system summarizes pro forma journal entries before creating actual journal entries in the general ledger. Summarizing journal entries reduces the number of transactions in the general ledger.

Defining journal summarization allows you to:

Summarize journal entries for specific companies and for the default Company 00000
Create both summarized and detail journals
Define up to six different summarization rules for a specific range of object accounts and for a specific business unit

If the system does not find summarization rules for a specific company, it uses those established for the default company (Company 00000). If it finds no summarization rules for an account, it assumes full summarization.

Each additional variable (company, business unit, or summarization code) that you define requires additional computer resources, which lengthens processing time. Therefore, JD Edwards World recommends that you:

Set up summarization rules at the Company 00000 level when possible
Avoid setting up summarization rules at the business unit level
Specify the same summarization code for each object account range when possible

52.10.1 Summarization Rules on the Pay Period Journal Batch Proof

In the report illustrated below, five employees were processed, each of them having one timecard. An LD, BF, and BT journal type has been created for each employee for each type of expense. This Pay Period Journal Batch Proof reports lists pro forma journals with no summarization for the expense account.

Figure 52-11 Pay Period Journal Batch Proof report

Description of ''Figure 52-11 Pay Period Journal Batch Proof report''

The following Pay Period Journal Batch Proof report lists pro forma journals with full summarization for the same payroll. All the LD and various BF and BT journals are summarized into single entries.

Figure 52-12 Pay Period Journal Batch Proof report with Full Summarization

Description of ''Figure 52-12 Pay Period Journal Batch Proof report with Full Summarization''

To set up journal summarization rules

On Journal Summarization Rules

Figure 52-13 Journal Summarization Rules screen

Description of ''Figure 52-13 Journal Summarization Rules screen''

Complete the following fields:
- Company
- Summarization Code (SC)
Enter the business unit number, object account range, or both in the following fields:
- Business Unit Number
- Object Account Beginning Range
- Object Account Ending Range

Field	Explanation
S C	The rules tell the system how to summarize the pro forma entries before creating the actual journal entries. The system looks for all documents that have the same value and summarizes them into one journal. Valid codes for rules and journal entry descriptions are: 1 – Full summary : The system looks for the same values for the following: business unit, object, subsidiary, subledger, subledger type, fiscal year, general accounting period number, equipment or asset number, document type and journal reference (See data dictionary item PRJE.) First description in the journal entry - Document description Second description in the journal entry - Blank 2 – Same as Rule 1 and include pay type First description in the journal entry - Document description Second description in the journal entry - Pay type 3 – Same as Rule 1 and include pay type, job type, and job step First description in the journal entry - Document description Second description in the journal entry - Pay type 4 – Same as Rule 1 and include pay type, job type, job step, and employee First description in the journal entry - Employee Second description in the journal entry - Pay type 5 – Do not summarize First description in the journal entry - Document description Second description in the journal entry - Time entry comment and pay type 6 – Do not summarize and include employee name First description in the journal entry - Employee Name Second description in the journal entry - Time entry comment and pay type

Field

Explanation

S C

The rules tell the system how to summarize the pro forma entries before creating the actual journal entries. The system looks for all documents that have the same value and summarizes them into one journal.

Valid codes for rules and journal entry descriptions are:

1 – Full summary : The system looks for the same values for the following: business unit, object, subsidiary, subledger, subledger type, fiscal year, general accounting period number, equipment or asset number, document type and journal reference (See data dictionary item PRJE.)

First description in the journal entry - Document description

Second description in the journal entry - Blank

2 – Same as Rule 1 and include pay type

First description in the journal entry - Document description

Second description in the journal entry - Pay type

3 – Same as Rule 1 and include pay type, job type, and job step

First description in the journal entry - Document description

Second description in the journal entry - Pay type

4 – Same as Rule 1 and include pay type, job type, job step, and employee

First description in the journal entry - Employee

Second description in the journal entry - Pay type

5 – Do not summarize

First description in the journal entry - Document description

Second description in the journal entry - Time entry comment and pay type

6 – Do not summarize and include employee name

First description in the journal entry - Employee Name

Second description in the journal entry - Time entry comment and pay type

52.10.2 What You Should Know About

Topic	Description
Equipment Transactions	You must set up the system so that the equipment transactions are not summarized. For those ranges of accounts, choose either: No summarization No summarization with Employee Name

52.11 Reviewing the Accounting Distribution Rules Report

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Accounting Instructions

The Accounting Distribution Rules report provides a detailed listing of the information within the Accounting Distribution Rules table. You can review the report to verify that the information that you entered on any of the AAI tables is correct.

The report prints a separate page for each journal code or set of accounting rules. For example, all of the accounting rules for accruals print, and then the rules for burden expenses print, and so on.

If you are using Enhanced Subledger Accounting, this information displays on the report. See Work with Enhanced Subledger Accounting in theJD Edwards World General Accounting I Guide for more information.

Figure 52-14 Accounting Distribution Rules report

Description of ''Figure 52-14 Accounting Distribution Rules report''

52.12 Reviewing the Accounting Summarization Rules Report

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose Summarization Rules

The Accounting Summarization Rules report provides a detailed listing of the journal summarization rules that you set up. You review the report to verify that the journal summarization rules that you entered are correct.

Figure 52-15 Accounting Summarization Rules report

Description of ''Figure 52-15 Accounting Summarization Rules report''

52.13 Entering Journal Type Defaults

Navigation

From Payroll Master (G07), enter 29

From Payroll Setup (G074), choose Auto Accounting Instructions

From Automatic Accounting Instructions (G0743), choose an option

Each AAI table can have a default line with a default journal type. For example, LD is the default journal type for the labor distribution table. When the timecard or employee criteria do not match any of the other lines, the system uses the default line, if one exists. You can use a default line for a specific company and for Company 00000.

The following tables the default journal types for default lines:

Type	Description
LD, ED, RD	Use in labor, billings, and equipment distribution tables
BF and BT	Use in actual burden tables
PR	Use in premium labor tables
DP	Use in cash in bank account tables
AL and AT	Use in liabilities tables
RO	Use in labor billings tables
AW	Use in accrued wages in accruals and clearings tables
IC	Use in intercompany settlements in accruals and clearings tables

You can also use a default line to indicate that you are missing instructions from a table.

For example, in your chart of accounts you have a separate and unique account for each tax calculated in payroll. In your credit liabilities AAIs you assign these accounts by tax type.

The following table illustrates how might set up a separate account for each tax calculated in payroll.

Tax	Account
Federal Income Tax	100.4211 Journal Type A
Federal Unemployment	100.4214 Journal Type C
FICA	100.4212 Journal Type D for Withheld Journal Type E for Paid
Medicare	100.4213 Journal Type P for Withheld Journal Type Q for Paid
State Income Tax for Colorado	100.4221.CO Journal Type F
State Income Tax for Virginia	100.4221.VA
Provincial Taxes	77.4221 Journal Type CF

Journal Type	Description	Business Unit	Object
A	Federal Income	100	4211
C	Federal Unemployment	100	4214
C	Federal - Employment	100	4214
D	FICA withheld	100	4212
E	FICA paid	100	4212
P	Medicare withheld	100	4213
Q	Medicare paid	100	4213
F	State Income Tax	100	4221 *STAT
CF	Provincial Income Tax	77	4221

A default line with an invalid account informs you that a line is missing from your table. If you use a valid account, the system does not print a warning on the journal proof report.

To enter journal type defaults

On any accounting instructions form

Complete the following fields for the default journal type:
- Journal Type
- Distribution Account Object
Complete the following optional fields:
- Distribution Account Business Unit
- Distribution Account Subsidiary