15 Processing Journal Entries

This chapter contains the following topics:

15.1 Understanding Journal Entries

You process journal entries to update the general ledger with labor, payroll burden, and equipment expenses. The way in which you process journal entries depends on whether you use the JD Edwards EnterpriseOne Payroll system.

If you use the JD Edwards EnterpriseOne Payroll system, you process journal entries as part of each payroll cycle. In some cases, you might process journal entries at other times during a pay period. For example, labor-intensive organizations might need to monitor and analyze labor expenses daily. These organizations can process journal entries for timecards daily.

If you are not using the JD Edwards EnterpriseOne Payroll system but are using the time and labor features of the JD Edwards EnterpriseOne Human Capital Management Foundation system to enter timecards and track labor and equipment expenses, you can process journal entries for timecards.

You process two types of journal entries for payroll and for time and labor:

Journal Entry Type Description
Pro forma journal entries Preliminary, review-level journal entries that the system stores in the Payroll Journal (Compressed) File table (F063951).
Actual journal entries Journal entries that the system posts to the F0911 table and, optionally, the F0902 table.

When you process journal entries for payroll, you create pro forma journal entries during each payroll cycle. After you review the pro forma journal entries, you can create the actual journal entries that you post to the general ledger. You can set up the company options so that the system automatically posts actual journal entries during the final update step of the payroll cycle. If the company options are set up so that the system does not post the actual journal entries automatically, you must post the journal entries manually. You also must post the actual journal entries manually when an error prevents the system from posting them automatically.

When you process journal entries for timecards, you run a batch program to create the pro forma journal entries. After you review the pro forma journal entries and correct any errors, you run another batch program to create the actual journal entries and post them to the general ledger.

You can create journal entries for these document types:

Process Document Types
Document types for payroll T1: Payroll disbursement

T2: Payroll labor distribution

T3: Actual burden

T4: Labor billing distribution

T5: Equipment distribution

T6: Payroll accruals and deferrals

T7: Payroll vouchers

The system creates document-type T7 journal entries only when the payroll system is integrated with the JD Edwards EnterpriseOne Accounts Payable system.

Document types for time and labor T2: Payroll labor distribution

T4: Labor billing distribution

T5: Equipment distribution


You process pro forma journal entries for timecards only when you are not processing the journal entries that are associated with a payroll cycle. You can use the Journal Batch Proof report to review the pro forma journal entries before you post them to the general ledger. You can also use this report to review the pro forma journal entries that the system created during a payroll cycle. If errors occur in the journal batch, you can correct the errors, delete the batch, and reprocess the pro forma journal entries.

When the pro forma journal entries are error-free and approved for posting, you post them to the general ledger. You can post either type of pro forma journal entries:

  • Timecard journal entries.

  • Payroll journal entries that were not posted during the payroll cycle, either because of errors or the way in which the company options are set up.

When you post journal entries, the system creates, posts, and removes the timecard batch details from the F063951 table, and updates the F0911 table and the F0902 table with the timecard transactions.

15.2 Processing and Reviewing Journal Entries

This section includes an overview of journal entries for timecards, and discusses how to set processing options for:

  • Generate Timecard Entries (R052901).

  • The Payroll Journal Proof/Edit Report (R05229).

  • Create Payroll JE's - Batch Delete (R05227).

15.2.1 Understanding Journal Entries for Timecards

You process pro forma journal entries for timecards only if you are not creating the journal entries associated with a payroll cycle.

When you process pro forma journal entries for timecards, the system converts the F06116 table into the Payroll Journal (Compressed) File table (F063951) and the Burden Distribution File table (F07241). When you process these journal entries, you can:

  • Specify the general ledger date for the journal entries.

  • Select timecards based on a range of dates.

In addition to generating pro forma journal entries, this program generates the Journal Batch Proof report. You review this report to verify the accuracy of the transactions that the system generated from the journal data. This report includes individual entries and totals for document type, period, and company, as well as a grand total for the batch report. You can rerun this report without rerunning the pro forma journal entries.

See "Working with the Payroll Cycle," in the JD Edwards EnterpriseOne Applications Payroll Implementation Guide.

"Working with Pro Forma Journal Entries" in the JD Edwards EnterpriseOne Applications Payroll Implementation Guide

15.2.1.1 Reviewing the Payroll Journal Proof/Edit Report

After you process pro forma journal entries, you review the Payroll Journal Proof/Edit Report (R05229). Use this report to review the accuracy of the journal entries before you post the information to the general ledger. The system generates this report when you:

  • Process pro forma journal entries for timecards

  • Process the journal entry step of a payroll cycle.

The Journal Batch Proof report (R05229) lists the journal entry information by document types. Grouping journal entries by document type enables you to separate various types of accounts. The system uses these document types to group payroll journal entries:

  • T1: Payroll Disbursement Entries

  • T2: Payroll Labor Distribution

  • T3: Actual Burden Journal Entries

  • T4: Labor Billing Distribution

    T4 journal entries are the only entries that have transactions involving multiple currencies and conversions. All other document types have entries made in the currency of the employee's home company, and no currency conversion is necessary.

  • T5: Equipment Distribution

  • T6: Payroll Accruals and Deferrals

    Important:

    If errors appear on the Payroll Journal Proof/Edit report, you must correct the errors and rerun the pro forma journal entries.

This list contains examples of what might cause errors to appear on the Payroll Journal Proof/Edit report:

  • Inaccurate AAIs

  • An account number that was not yet added to the chart of accounts.

  • Incorrect setup of nontaxable benefits or accruals that were processed in the journal entries step.

  • Incorrectly entered timecard information.

    In this case, if you are processing journal entries for a payroll cycle, you also must rerun pre-payroll.

The system does not recognize the corrections until you rerun the pro forma journal entries. If you do not rerun the pro forma journal entries after you correct the errors, the system creates the actual journal entries with errors.

When you are processing journal entries as part of a payroll cycle and you have not yet printed the payments, you can complete this procedure to correct inaccurate timecard information:

  • Rerun the journal entries step and delete the previous journal entries to remove the lockout code on the timecards.

  • Correct the inaccurate timecards.

  • Run a changes-only pre-payroll.

  • Rerun the journal entries step.

You can reprint the Payroll Journal Proof/Edit report when you want to print the report without re-creating the pro forma journal entries. The system prints the same proof report that was created during the last iteration of the process. The related payroll ID appears on the report when you reprint it. You can print this report as many times as necessary before you run the final update. After you run the final update, the system clears the Summarized Journal Entry Workfile (F063951), and the report does not produce any information.

Note:

If you are processing multicurrency timecards, the system automatically creates intercompany settlement entries to account for currency differences, even if you have not enabled intercompany settlements. These journal entries are printed on the report so that you can review all of the information associated with multicurrency processing before you post the journal entries to the general ledger.

15.2.1.2 Reviewing Batches of Journal Entries

After you generate pro forma journal entries, you can review them to verify whether they are correct. You do this by selecting Timecard Post/History Update menu (G05BT11), Timecard Journal Batch Review.You can review batches of journal entries based on the user ID, the batch number, a posting status, or a specific date range. You can review batches of pro forma journal entries to verify that they are error-free before you post them. You can review the pro forma journal entries that were generated from the payroll cycle, as well as those that were generated from timecards.

You also can review actual journal entries that the system creates when you post timecard journal entries to the general ledger, as well as the actual journal entries that were created during the final update step of the payroll cycle. Depending on how the company options are set up, the system might automatically post these actual payroll journal entries.

The system uses batch types to group the various kinds of journal entries. You can review these batch types:

Batch Type Description
51 Timecard pro forma journal entries. You can review summary information only. Use the Journal Batch Proof report to locate any errors.
41 Payroll pro forma journal entries. You can review summary information only. Use the Journal Batch Proof report to locate any errors.
P Actual timecard journal entries that have been posted to the general ledger.
7 Actual payroll journal entries that have been posted to the general ledger.

If you discover errors when you review batches of pro forma journal entries, you must delete the entire batch, correct the errors, and then generate the pro forma journal entries again.

If you discover errors when you review batches of actual journal entries, you can use the General Journal Review program to do any of these actions to individual journal entries:

  • Revise unposted journal entries.

  • Delete unposted journal entries.

  • Void posted journal entries.

    You can revise and delete actual journal entries only. You cannot revise or delete pro forma journal entries.

15.2.2 Setting Processing Options for Generate Timecard Entries (R052901)

Select Timecard Post/History Update menu (G05BT11), Generate Timecard Journals.

15.2.2.1 Date

This processing option specifies the date that the system uses to post journal entries.

1. General Ledger Date

Specify whether the program uses the general ledger date or the system date when it posts journal entries.

To use the system date, leave this processing option blank. Timecards that have multiple work dates are posted on the date that you define in this processing option. To account for daily timecards, you must run this program every day with the processing option set to the system date.

15.2.2.2 Process

These processing options specify values for processes related to benefits, intercompany settlements, components, and premiums.

1. Benefits

Specify how the system processes benefits and accruals when it posts journal entries for timecards. Values are:

0: Do not calculate any benefits or accruals.

1: Calculate only non-monthly benefits and accruals.

2: Calculate monthly and non-monthly benefits and accruals.

Enter this value only when you are processing the last timecards for calendar month. The system uses the month that corresponds to the general ledger date.

Non-monthly benefits and accruals are those for which you entered M in the fifth Pay Period of the Month processing option on the Basic DBA Information form (W059116E). An M in this processing option indicates that the system calculates the benefit or accrual during daily timecard post.

Monthly benefits and accruals are calendar-month DBAs, including those that are non-monthly, that have these characteristics:

  • They are set up to calculate for the employee for an entire calendar month.

  • They have a value of 2 or blank in the Limit Method field on the Advanced DBA Information form (W059117A).

2. Intercompany Settlements

Specify whether you want to process intercompany settlements when you post timecard journal entries. Values are:

1: Process intercompany settlements.

When processing intercompany settlements, the system uses the general accounting constants and the company number on the timecard.

0: Do not process intercompany settlements.

This processing option applies only when the journal type IC is set up in the Debit/Credit-Accruals Clearing table (P069041).

3. Components

Specify how to post timecard journal entries for equipment time when the equipment is used to build an item that comprises multiple components. Values are:

1: Distribute equipment time billed from the parent item to its components.

0: Bill equipment time to parent item only.

In the Asset Master table (F1201), you define the parent/child relationship between parent items and their components. You enter billing rates for the components in the Equipment Rates table (F1301).

4. Premiums

Specify how you want to update the F0911 table for premium labor entries. Premium labor entries are entries for pay types that have a pay type multiplier greater than 1. Values are:

1: Update.

Select this option when you want journal type PR to include labor hours in the Units field.

0: Do not update.

Select this option when you want only journal type LD to include labor hours in the Units field.

This processing option applies only when the Debit Burden/Premium Labor Distribution table setup (P069042) includes these characteristics:

  • The journal type PR has been added to the table.

  • The company burden rules are set up to separate the premium portion of a pay type from the regular portion.

5. Summarization Rules

Specify how journal entries are created and printed. Each account number has a summarization rule defined for it in the Journal Summarization Rules program (P06914). This processing option enables you to override the summarization code to a type 6 so that you can see the journal entries in the highest level of detail possible. Values are:

1: This option overrides any summarization rules, making the summarization code a type 6. Select this option when you want the journal entries to be created and printed in full detail.

0: This option is the default value, so the system uses the predefined summarization rule.

6. Hours Only Timecards

Specify which effect on general ledger codes (set up in a PDBA) create T2 and T4 entries for timecards that include hours worked, but do not include a recharge amount. Values are:

0: Effect on general ledger codes must be H.

1: Effect on general ledger codes can be H or N.

T2 entries are created for all record type 1 or 2 timecards with hours worked. T4 entries are created for all record type 2 or 3 timecards with hours worked.

7. Equipment Asset Number on T5 Debit Entry

Specify whether to include the equipment worked asset number (EQCG) on the debit entry (ED) of the equipment distribution journal entries (T5). This processing option is valid only when an asset ID exists in the Equipment Worked field and when no value exists in the Equipment Worked On field on the employee's time card. Values are:

Blank: Do not use asset number.

1: Use asset number.

15.2.2.3 Timecard Selection

This processing option specifies the date that the system uses to post journal entries.

1. Time Entry MBF Version

Override the default version for standard time entry. The default version for Time Entry Master Business Function (P050002A) is ZJDE0001. You might need additional versions to meet new requirements. For example, you might need to create a new version of the Time Entry MBF for employee assignments. To change the default, enter a different version number. Only persons responsible for system-wide setup should change this option.

2. Timecard From Date

Select timecard records that include a date worked that is greater than or equal to the specified Timecard From date. If you leave this field blank, the system uses only Timecard Reprocessing Flag (TCRFLG = ' 1'), General Ledger Batch (GICU equal to Zero), and Time Entry Lockout Flag (TELKFLG equal to blank) from the Timecard File (F06116) to select Timecards to process effective-dated logic. If you enter a value for the From date processing option, you must also enter a value for the Thru date processing option.

Timecard Thru Date

Use this processing option to select timecard records that include a date worked that is before or equal to the specified Timecard Thru date. If you leave this field blank, the system uses only Timecard Reprocessing Flag (TCRFLG = ' 1'), General Ledger Batch (GICU equal to Zero), and Time Entry Lockout Flag (TELKFLG equal to blank) from the Timecard File (F06116) to select timecards to process effective dated logic.

15.2.3 Setting Processing Options for Payroll Journal Proof/Edit Report (R05229)

Select Timecard Post/History Update menu (G05BT11), Journal Batch Proof.

15.2.3.1 Defaults

1. Enter the Batch Number to print.

Specify a batch number.

2. Send ALL errors to the report.

Specify where the system sends errors. Values are:

Blank: Send all errors to the Employee Work Center.

1: Send all errors to the report.

15.2.4 Setting Processing Options for Create Payroll JE's - Batch Delete (R05227)

Select Timecard Post/History Update menu (G05BT11), Batch Delete.

Processing options enable you to specify the default processing for programs and reports.

15.2.4.1 Select

Use this option to specify the daily timecard journal batch that you want to delete. Be aware that you cannot recover batches after they have been deleted.

1. Batch Number

Specify the batch number that the system assigned to the Daily Timecard Journal Batch that you want to delete.

Caution:

Use caution when exercising this processing option because you cannot recover batches after they have been deleted.

15.3 Posting Journal Entries

This section includes an overview of the post process and lists a prerequisite for the General Ledger Post program.

15.3.1 Understanding the Post Process

For time and labor reporting, you must run a program to post the batch of timecard journal entries to the general ledger and to update timecard history. The batch that you post for timecards contains pro forma journal entries. During the posting process, the system creates the actual journal entries in the F0911 table and automatically posts them to the F0902 table. The system also creates timecard history records in the F0618 table.

If you use the JD Edwards EnterpriseOne Time and Labor system to process timecards without the JD Edwards EnterpriseOne Payroll system, you must manually run the post program to update timecard history and the general ledger. In the Company Options program (P05001C), the general ledger integration value must be set to T (time accounting).

Note:

When the value is set to A (automatic) or M (manual), the post program posts the current records in the F06116 table to the F0618 table for recharge-only timecards (record type 3).

If you process timecards through the payroll cycle, you can set up the company options for either of these to occur:

Process Description
The system automatically posts actual journal entries during final update. You use the manual post program only if an error occurred during final update that prevented the system from posting the journal entries.
The system does not automatically post actual journal entries. After you run the final update, you run the manual post program to post the actual journal entries to the general ledger. The batch might need to be approved before you run the post program.

If the General Ledger Post Report program (R09801) encounters errors, the system creates the actual journal entries in the F0911 table but does not post them. After you have corrected the actual journal entries, you must resubmit the batch for posting. Because the batch contains actual journal entries, you must post the journal entries directly from the general ledger.

When you run the manual post program, the system updates timecard history and general ledger tables and also generates the General Ledger Post report. If errors occur during the posting process, the system also generates the Post Detail Error report. Review these reports to verify whether the journal entries were posted successfully.

The General Ledger Post report lists all journal entries. The column titles and information are similar to the Payroll Journal Proof/Edit report. However, the General Ledger Post report includes the journal entry number, general ledger date, and account descriptions instead of the document reference numbers.

15.3.2 Prerequisite

Review the batch of journal entries to verify whether it is approved for posting. You might need to approve the batch before the system will post it.

See "Managing Fixed Asset Journal Entries" in the JD Edwards EnterpriseOne Applications Fixed Assets Implementation Guide.

"Processing Journal Entries" in the JD Edwards EnterpriseOne Applications General Accounting Implementation Guide

15.3.3 Setting Processing Options for General Ledger Post (R09801)

Processing options enable you to specify the default processing for programs and reports. Use these processing options to specify the program version that the system uses and the dates that contain data selection.

15.3.3.1 Print

These processing options are used to specify print information.

1. Account Format

Specify the account format that you want to print on the General Ledger Post report. Values are:

  • Blank: Default account format

  • 1: Structured account

  • 2: Short account ID

  • 3:Unstructured account

2. Print Error Messages

Specify the account format that you want to print on the General Ledger Post report. Values are:

  • Blank: Do not print.

  • 1: Print

15.3.3.2 Versions

These processing options specify version information.

1. Detail Currency Restatement Version

Specify the version of the Detailed Currency Restatement program (R11411) that you want to run to create entries. If you leave this processing option blank, the program does not run and does not create detailed currency restatement entries.

2. Fixed Asset Post Version

Specify the version of the Fixed Asset Post program (R12800) that you want the system to run to create fixed asset entries. If you leave this processing option blank, the Fixed Asset Post program (R12800) does not run and does not create fixed asset entries.

3. 52 Period Post Version

Specify the version of the 52 Period Accounting Post program (R098011) to use to update the F0902 table and the Account Balances - 52 Period Accounting table (F0902B). If you leave this processing option blank, the 52 Period Accounting Post program does not run and does not update the tables.

15.3.3.2.1 Edits

These processing options specify edit information.

1. Update Transaction

Specify whether to update Account ID, Company, Fiscal Year, Period Number, Century, and Fiscal Quarter on unposted records in the F0911 table. You might need to update these processing options if you have records in the Account Ledger table that were created by a custom program and may not contain the correct values in these processing options.

The system uses the value in the G/L Account Number field of the unposted record in the F0911 table to update the Account ID and Company fields.

The system calculates the correct values for the Fiscal Year, Period Number, and Century fields using the value in the G/L Date field of the unposted record in the F0911 table.

The system will update the Fiscal Quarter field on the unposted record in the F0911 table to blank.

15.3.3.2.2 Process

These processing options specify process information.

1. Explode parent item time

Specify whether the system explodes the time entries for a parent asset down to the children of the parent asset. If you enter a 1 for this processing option, the General Ledger Post Report program (R09801) creates time entries for the parent asset's children. The system uses the unit of time from the parent asset entries and the rates from the child asset to calculate the appropriate entries. This processing option applies only to batch type T entries. Values are:

  • Blank: Do not explode the time entries for a parent asset down to the children of the parent asset.

  • 1: Explode the time entries for a parent asset down to the children of the parent asset.

15.3.3.3 Taxes

These processing options specify tax information.

1. Update Tax File

Specify whether and how to update the Taxes table (F0018) when you post transactions with tax information to the general ledger. Values are:

  • Blank: The system does not update the Taxes table.

  • 1: The system updates the Taxes table for these tax explanation codes only: V, VT, V+, U, and UT.

  • 2: The system updates the Taxes table for all tax amounts.

    The system does not update the Taxes table for transactions with tax explanation code E (exempt).

  • 3:The system updates the Taxes table for all tax explanation codes including E (exempt).

2. Update VAT Discounts

Specify whether to adjust the tax amount fields, and which fields to adjust, when discounts are taken. The system adjusts the tax amount fields only for transactions with tax explanation code V.

Note:

These options in the tax rules must be turned on to use this processing option:
  • Tax on Gross Including Discount

  • Discount on Gross Including Tax

Values are:

  • Blank: The system does not adjust tax amounts for discounts taken.

  • 1: The system updates only the tax amount field (STAM).

  • 2: The system updates the tax (STAM), taxable (ATXA), and extended price (AEXP) amount fields.

The system uses these algorithms to calculate the adjustment amounts to the tax, taxable, and gross (extended price) amount fields for discounts taken:

  • Adjustment to the gross amount (extended price) = discount taken.

  • Adjustment to the taxable amount = (taxable amount / gross amount) x discount taken.

  • Adjustment to the tax amount = (tax amount / gross amount) x discount taken.

For example:

Tax Rate = 25 per cent.

Discount Taken = 12.50 USD.

Gross Amount (Extended Price) = 1,250.00 USD.

Taxable Amount = 1,000.00 USD.

Tax Amount = 250.00 USD.

Based on the example, using the adjustment algorithms, the system calculates these adjustment amounts:

  • Adjustment to the Gross Amount = 12.50.

  • Adjustment to the Taxable Amount = 10.00.

  • Adjustment to the Tax Amount = 2.50.

To calculate the adjustments, the system subtracts the adjusted amount from the original amount:

  • Adjusted Gross Amount: 1,250.00 - 12.50 = 1,237.50.

  • Adjusted Taxable Amount: 1,000.00 - 10.00 = 990.00.

  • Adjusted Tax Amount: 250.00 - 2.50 = 247.50.

3. Update VAT Receipts and W/O (update VAT receipts and write-off)

Specify whether to adjust the tax fields, and which fields to adjust, when the receipt has a write-off. The system adjusts the tax amount fields only for transactions with tax explanation code V. Values are:

  • Blank: The system does not adjust tax amounts for write-offs.

  • 1: The system updates only the tax amount field (STAM).

  • 2: The system updates the tax (STAM), taxable (ATXA), and extended price (AEXP) amount fields.

The system uses these algorithms to calculate the adjustment amounts to the tax, taxable, and gross (extended price) amount fields for write-off amounts.

  • Adjustment to the gross amount (extended price) = write-off amount.

  • Adjustment to the taxable amount = (taxable amount / gross amount) x write-off amount.

  • Adjustment to the tax amount = (tax amount / gross amount) x write-off amount.

For example:

Tax Rate = 25 per cent.

Write-off Amount = 12.50 USD.

Gross Amount (Extended Price) = 1,250.00 USD.

Taxable Amount = 1,000.00 USD.

Tax Amount = 250.00 USD.

Based on the example, using the adjustment algorithms, the system calculates these adjustment amounts:

  • Adjustment to the Gross Amount = 12.50.

  • Adjustment to the Taxable Amount = 10.00.

  • Adjustment to the Tax Amount = 2.50.

To calculate the adjustments, the system subtracts the adjusted amount from the original amount:

  • Adjusted Gross Amount: 1,250.00 - 12.50 = 1,237.50.

  • Adjusted Taxable Amount: 1,000.00 - 10.00 = 990.00.

  • Adjusted Tax Amount: 250.00 - 2.50 = 247.50.

15.3.3.3.1 Cash Basis

These processing options specify cash basis information.

1. Units Ledger Type

Specify the units ledger type for the system to use for cash basis entries. You must enter a valid ledger type from the Ledger Type Master Setup program (P0025). If you leave this processing option blank, the system uses a default ledger type of ZU.

2. Create Cash Basis

Specify a version of the Create Cash Basis Entries program. If you leave this processing option blank, the program does not run and does not create Cash Basis entries.