11 Setting Up Automatic Accounting Instructions for JD Edwards EnterpriseOne Human Capital Management

This chapter contains the following topics:

11.1 Understanding AAIs for Human Capital Management

You set up automatic accounting instructions (AAIs) to assign account numbers to journal entries. These account numbers enable the system to distribute labor and equipment billings, payroll disbursement, and actual burden journal entries to specified accounts in the general ledger.

During the payroll cycle, the system creates a journal entry of every calculation for every employee. These calculations include salary and wage expenses, burden, cash disbursements, and liabilities. You can create journal entries for labor and equipment billings and accruals for payrolls that cross accounting periods. After the journal entries are created and assigned account numbers, the system summarizes the entries and passes them to the general ledger.

You can set up rules to summarize journal entries. For example, because full detail exists in payroll, you might not need to track full detail in the general ledger. You can set up rules to summarize account ranges and business units.

You can set up AAIs for each company and for the default company (Company 00000). You should set up AAIs for Company 00000 first so that the system can use these AAIs if it cannot find AAIs for a specific company. However, you cannot set up a business unit for Company 00000 because each business unit can be attached to a different company.

The rules are flexible and changeable within the payroll cycle. For example, labor distribution account numbers can be assigned by company, business unit, group (union), job type, job step, and pay type. You can also define instructions for labor distribution at the employee level for certain employees that need separate instructions.

Every AAI table includes the Journal Type field, which contains one or more codes to identify the type of journal entry. Each table has a hard-coded set of journal types. Rules for some journal types must be set up. Other rules are optional.

Depending on how you set the processing options, you can use either of two formats to set up and edit AAIs: use the multiple edit format to set up and edit a group of AAIs, or set up and edit a single AAI by using the single edit format.

11.1.1 When to Create Journal Entries

The system can create journal entries during any of these processes:

  • A regular payroll cycle.

  • The processing of interim checks in a regular payroll cycle.

  • The generation of journal entries for timecards using the JD Edwards EnterpriseOne Time Entry system.

  • You can also generate journal entries for timecards when you need to post in-between payroll cycles.

If you use the JD Edwards EnterpriseOne Payroll system, the system initially creates pro forma journal entries during the journal entry step of the payroll cycle. The pro forma journal entries are created in the Payroll Journal (Compressed) File table (F063951), at which point they become part of the JD Edwards EnterpriseOne Payroll system.

During the final update, the system posts actual journal entries to the F0911 table. At this point, the journal entries are part of the JD Edwards EnterpriseOne General Accounting system.

If you use the JD Edwards EnterpriseOne Time Entry system, the system creates journal entries when you generate journal entries for timecards using the Generate Timecard Entries program (R052901). You can then review, revise, and approve journal batches for posting to the general ledger.

Note:

The system also copies the cost object values from the F06116 timecard records to the payroll journal entry records in the F063951 table. This ensures that the cost object values are included on entries posted to the F0911 table. This change affects the journal entries generated from the timecard records, including T2, T3, T4, T5, and T6 entries. T1 entries are not based on timecard amounts and therefore, the system will not assign them cost object values.

11.1.2 The General Ledger Account Structure

The system uses the standard business-unit object-subsidiary and subledger account structure. The general ledger account structure is composed of two parts:

  • Where - business unit

  • What - account number

Business unit is a 12-character, alphanumeric field that is the lowest level of organizational reporting. Each business unit is assigned to a company and can be associated with 20 category codes for higher-level reporting. For example:

  • Department

  • Branch

  • Asset (revenue and maintenance expense)

The account number identifies whether the account is an asset, liability, or expense. The account number contains two parts:

  • Object account, a 6-character, alphanumeric field that is required on all journal entries.

  • Subsidiary, an 8-character, alphanumeric field that is optional on journal entries. For example, use this field to identify an employee number, equipment number, or asset number.

11.1.3 Dates That You Associate With Journal Entries

This chart shows the timing relationships that are important to payroll journal entries:

Figure 11-1 Dates associated with journal entries

Description of Figure 11-1 follows
Description of ''Figure 11-1 Dates associated with journal entries''

These definitions are important in understanding payroll and time and labor journal entries:

General ledger date

Enter the date that the system uses for posting to the proper general ledger. The table that defines date ranges for each accounting period is in the Date Fiscal Patterns table (F0008) for the JD Edwards EnterpriseOne General Accounting system.

For payroll, the system always uses the general ledger date.

For stand-alone time and labor, the system uses either the general ledger date or the system date, as set up in the processing options for Generate Timecard Entries (R052901).

Pay period ending date

Enter the last day of the pay period, as defined in the master pay cycles.

Payment date

Enter the payment date of the pay period, as defined in the master pay cycles.

Work date

Enter the actual date entered on a timecard.

Transition period

Indicates any pay period that has working days in two accounting periods.

Accounting period ending date

Enter the last day of the general accounting period.

Cost period

Enter the pay period that can be used with the creation of payroll journal entries for a transition period. Journal entries for those timecards with work dates that fall into the preceding accounting period are assigned a general ledger date equal to the last day of the preceding accounting period. Journal entries for those timecards with work dates in the succeeding period are assigned a general ledger date equal to the pay period ending date in pre-payroll processing.

Override date

Indicates the date that is used as the general ledger date for all payroll journals when defined in the journal entries step of the payroll cycle.

11.1.4 Payroll Journal Entries

When journal entries are created in the payroll cycle, the system assigns a general ledger date using a date associated with the payroll, such as pay period ending date or payment date. You define the general ledger date to be used for labor distribution and burden journals (T2, T3, T4, and T5) in the payroll journal entries step of the payroll cycle. Cash disbursement and liability journals (T1 and T7) use the payment date as the general ledger date. The accrual factor, a method for allocating a percentage of the T2s and T3s back to a prior month, creates an accrual entry (T6).

The Pay Cycle Review tracks the general ledger date for labor distribution to reference when you submit the next payroll.

You can define an override date when you submit the journal entry creation job. The override date that you define becomes the general ledger date for all journal entries created for all document types.

You can also use an accrual factor to allocate a portion of the T1, T2, and T3 entries back to a prior month. For example, if 40 per cent of the pay period occurs in one month, and 60 per cent of the pay period occurs in the next month, you can enter an accrual factor of 40 to accrue 40 per cent of the T1, T2, and T3 journal entries to the previous month and 60 per cent to the current month. Journal entries that are generated for the previous month use the ending date of that month and entries generated for the current month use the pay period ending date. When you use an accrual factor to create journal entries, the system generates T6 journal entries.

11.1.5 Time and Labor Journal Entries

When you use the JD Edwards EnterpriseOne Time and Labor system to create journal entries, the system can post the entries by the general ledger date that is associated with the journal entries, or by the system date on which the journal entries were created. You can specify which of these dates you want to use in the processing options for Generate Timecard Entries program (R052901). You can also use this program to post timecard journal entries between payroll cycles.

11.1.6 Default Journal Types

Each AAI table can have 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 up to any instructions, the system uses the instructions assigned to the default journal type. You can use a default journal type for a specific company and for Company 00000.

This table lists the default journal types and a description of how each is used:

Journal Type Description
LD and RD Use in labor, billings, and equipment distribution tables.
SD Use in labor, billing, and equipment distribution tables to set up suspense accounts.
PR Use in premium labor tables.
RO Use in labor billings tables.
AW Use in accrued wages in accruals and clearing tables.
IC Use in intercompany settlements in accruals and clearing tables
BF and BT Use in actual burden tables.
AL and AT Use in liabilities tables.

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

If you set up a default value with an invalid account number, the system prints a warning on the Journal Proof report.

11.1.7 Example: Payroll Journal Entry

This example of a Payroll Cycle Journal is based on a simple payroll:

  1. Employee: Home Company = 1, Home Business Unit = 25, Union = 1000

  2. Time Card: January 28, 1998 (Pay Code 001) 1,000 USD

  3. Payroll Taxes and Insurance (P.T.I.): FICA (Tax Type D & E) 70 USD

  4. Payroll Taxes and Insurance (P.T.I.): UIC (Tax Type CC & CD) 70 USD

  5. Deductions: Savings Bond (Ded Code 2000) 50 USD

  6. Benefits: Union 1000 (Ben Code 6000) 30 USD

  7. Payment Date: February 5, 1998

This table lists examples of the journal entries:

Date Account Description DR CR
01/28/98 1.4205 Wages Payable Blank 1000
01/28/98 25.8115 Labor Expenses 1000 Blank
Blank Blank TOTALS 1000 1000

This table lists examples of the actual burden journal entries:

Date Account Description DR CR
01/28/98 25.8146 Union Fringe 30 Blank
01/28/98 25.8135 FICA Burden 70 Blank
01/28/98 25.8135 UIC Burden 70 Blank
01/28/98 1.4333.FR Burden Clearing - Fringe Blank 30
01/28/98 1.4333.TX Burden Clearing - Tax Blank 140
Blank Blank TOTALS 170 170

This table lists examples of the disbursement journal entries:

Date Account Description DR CR
02/05/98 1.4205 Wages Payable 1000 Blank
02/05/98 1.1110.PAY Cash in Bank Blank 880
02/05/98 1.4316 Savings Bonds Blank 50
02/05/98 1.4332 Union Fringe Blank 30
02/05/98 1.4212.EE FICA Employee Blank 70
02/05/98 1.4212.ER FICA Employer Blank 70
02/05/98 1.4212.EE UIC Employee Blank 70
02/05/98 1.4212.ER UIC Employer Blank 70
02/05/98 1.4333.FR Burden Clearing - Fringe 30 Blank
02/05/98 1.4333.TX Burden Clearing - Tax 70 Blank
Blank Blank TOTALS 1100 1100

11.1.8 Codes That Are Used to Identify Journal Entries

When the system creates a journal entry for the general ledger, it assigns to the journal entry a document type and a reference number. The document type code is a two-character code that classifies journal entries into one of seven document types:

  • T1: Payroll disbursement

  • T2: Labor distribution and flat burden

  • T3: Actual burden

  • T4: Labor billing distribution

  • T5: Equipment distribution

  • T6: Payroll accruals and deferrals

  • T7: Payroll vouchers

You can create journal entries for these document types using the payroll or time and labor system:

System 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

Document types for time and labor T2: Payroll labor distribution

T3: Actual burden (when you calculate monthly benefits)

T4: Labor billing distribution

T5: Equipment distribution


The reference number, composed of journal type and the general ledger date (or another date used on journal entries), further identifies the source of each journal entry within a document type.

The reference number of a journal entry becomes the Reference 2 value in the F0911 table.

11.1.9 Document Type T1 - Payroll Disbursement Journal Entries

Document type T1 contains all journal entries associated with the writing of payments. The journal entries include cash-in-bank, relief of accrued wages, deduction, tax and benefit liabilities, and burden clearing entries.

The system creates T1 journal entries in the payroll cycle only. All T1 journal entries carry the same general ledger date, that is, the payment date or the override date. The specific journal types used for these journal entries include:

  • AL: Accrued liabilities (deductions, benefits)

  • AT: Accrued liabilities (taxes)

  • AW: Accrued wages - debit entry

  • CF: Burden offset (clearing) - Fringe - debit entry

  • CT: Burden offset (clearing) - Taxes - debit entry

  • DA: Auto-deposit amount

  • DP: Printed computer payments

  • IC: Intercompany settlements

11.1.10 Document Type T2 - Labor Distribution Journal Entries

The system creates journal entries for document type T2 directly from timecards for labor expenses and associated offsets for accrued wages. You can also generate journal entries to allocate an estimated or flat burden expense.

The system creates T2 journal entries during the payroll cycle or when you generate timecard journal entries using the JD Edwards EnterpriseOne Time Entry system.

Four possible general ledger dates exist for journal entries created during the payroll cycle:

  • The work date, which is the work date on the timecard.

  • The period ending date, which is the pay period ending date.

  • The cost period can be used with the creation of payroll journal entries for a transition period.

    Journal entries for those timecards with work dates falling into the preceding accounting period are assigned a general ledger date equal to the last day of the preceding accounting period. Journal entries for those timecards with work dates in the succeeding period are assigned a general ledger date equal to the pay-period ending date in pre-payroll processing.

  • An override date can be used when you submit the journal entry creation job.

    The date that you define becomes the general ledger date for all journal entries.

If you use Payroll, define which general ledger date to use for T2s in the payroll journal entry step of the payroll cycle. When you generate timecard journal entries using the JD Edwards EnterpriseOne Time Entry system, you must specify whether the system uses the general ledger date or the system date in the processing options for the Generate Timecard Entries program (R052901).

The specific journal types used for labor distribution journal entries are as follows:

  • AW: Accrued wages - credit entry

  • FB: Flat burden expense - debit entry

  • FC: Flat burden offset (Clearing) - credit entry

  • LD: Labor distribution straight time - debit entry

  • PR: Labor distribution premium time - debit entry

  • IC: Intercompany settlements

11.1.11 Document Type T3 - Actual Burden Journal Entries

The system calculates company-paid payroll taxes, insurance, and benefits on an employee-by-employee basis. These expenses are collectively referred to as burden. Actual burden journal entries are created when the employee burden expenses are allocated to expense accounts based on the individual timecards entered for each employee.

The system generates journal entries for document type T3 either during the payroll cycle or when you generate timecard journal entries using the JD Edwards EnterpriseOne Time Entry system. Actual burden journal entries have the same general ledger date as the associated labor expense. The specific journal entry types used for actual burden journal entries are as follows:

  • BF: Fringe burden (benefits and accruals) - debit entry

  • BT: Payroll tax and insurance burden (PTI) - debit entry

  • CF: Burden offset (clearing) - Fringe - credit entry

  • CT: Burden offset (clearing) - Taxes - credit entry

  • IC: Intercompany settlements

11.1.12 Document Type T4 - Labor Billing Distribution Journal Entries

Document type T4 journal entries are for labor billings (also known as recharge) and associated revenue offsets.

You use T4 labor billings for:

  • Billing internally

    For example, charging other departments for maintenance people or charging a supervisor's billing rate to a job

  • Billing externally

    For example, service billing for consulting services

The system creates these journal entries from the billing rate value. To create T4s for an associated timecard, you must set Record Type (originally set up in the Employee Master table) on the timecard to one of these settings:

2:Payroll and recharge processing

3:Recharge processing only

The system creates journal entries for labor billing distribution from timecards during the payroll cycle or when you generate timecard journal entries using the JD Edwards EnterpriseOne Time Entry system.

Four possible general ledger dates exist for journal entries that are created during the payroll cycle:

  • The work date, which is the work date on the timecard.

  • The period ending date, which is the pay period ending date.

  • The cost period can be used with the creation of payroll journal entries for a transition period.

    Journal entries for those timecards with work dates falling into the preceding accounting period are assigned a general ledger date equal to the last day of the preceding accounting period. Journal entries for those timecards with work dates in the succeeding period are assigned a general ledger date equal to the pay-period ending date in pre-payroll processing.

  • An override date can be used when you submit the journal entry creation job.

    The date that you define becomes the general ledger date for all journal entries.

If you use the JD Edwards EnterpriseOne Payroll system, define which general ledger date to use for T4s in the payroll journal entry step of the payroll cycle. When you generate timecard journal entries using the JD Edwards EnterpriseOne Time Entry system, you must specify whether the system uses the general ledger date or the system date in the processing options for the Generate Timecard Entries program (R052901).

The specific journal types used for labor-billing distribution journal entries are as follows:

  • RD: Labor billing (recharge) distribution - debit entry

  • RO: Labor billing (revenue) offset - credit entry

  • IC: Intercompany settlements

11.1.13 Document Type T5 - Equipment Distribution Journal Entries

Document type T5 journal entries designate billings associated with the use of equipment and the offsets for equipment revenue.

The system creates journal entries for equipment distribution from timecards. Equipment distribution journal entries can be generated during either the payroll cycle or when you generate timecard journal entries in the JD Edwards EnterpriseOne Time and Labor system.

Four possible general ledger dates exist for journal entries created during the payroll cycle:

  • The work date, which is the work date on the timecard.

  • The period ending date, which is the pay period ending date.

  • The cost period can be used with the creation of payroll journal entries for a transition period.

    Journal entries for those timecards with work dates falling into the preceding accounting period are assigned a general ledger date equal to the last day of the preceding accounting period. Journal entries for those timecards with work dates in the succeeding period are assigned a general ledger date equal to the pay-period ending date in pre-payroll processing.

  • An override date can be used when you submit the journal entry creation job.

    The date that you define becomes the general ledger date for all journal entries.

If you use the JD Edwards EnterpriseOne Payroll system, define which general ledger date to use for T5s in the payroll journal entry step of the payroll cycle. When you generate timecard journal entries using the JD Edwards EnterpriseOne Time and Labor system, you must specify whether the system uses the general ledger date or the system date in the processing options for Generate Timecard Entries program (R052901).

The specific journal entry types used for equipment distribution journal entries are as follows:

  • ED: Equipment billing distribution - debit entry

  • EO: Equipment billing (revenue) offset - credit entry

    Note:

    You must set up the credit entry in the equipment AAIs. See Setting Up Automatic Accounting Instructions for Fixed Assets in the Equipment Billing Guide for instructions.

11.1.14 Document Type T6 - Payroll Accruals and Deferrals

The JD Edwards EnterpriseOne Payroll system enables you to specify an accrual factor for transition pay periods instead of using the cost-period option of creating payroll journal entries. This feature enables you to use the accrual factor to accrue a portion of payroll expenses in the previous month and defer the expense to the next month. Prior period entries are made to the last day of the prior accounting period.

The journal entry types for T6 are the same as those for T2s and T3s.

The system creates journal entries for document-type T6 during the payroll cycle. You enter the accrual factor (percentage) in the journal entries step of the payroll cycle.

The accrual entries have a general ledger date that is equal to the last date of the prior accounting period. The reference number is equal to the journal entry type plus the original general ledger date.

The deferred entries have a general ledger date that is equal to the date of the original entries.

11.1.15 Document Type T7 - Payroll Vouchers

Document-type T7 journal entries designate accounts payable vouchers. Document-type T7s are created during the payroll cycle. All T7 journal entries have the same general ledger date, which is the payment date.

The specific journal-entry types used for payroll voucher journal entries are:

  • AL: Accrued liabilities - Credit entry

  • AT: Accrued taxes - Credit entry

    Note:

    No AAIs exist for T7s. The account numbers are assigned the same way that T1 account numbers are assigned.

11.1.16 Example: Journal Entry with Document and Journal-Entry Types

This example of a payroll cycle journal entry is based on these simple payroll conditions:

  • Employee: Home Company = 1, Home Business Unit = 25, Union = 1000

  • Timecard: January 28, 1998 (Pay Code 001) 1,000 USD

  • Payroll Taxes and Insurance (P.T.I.): FICA (Tax Type D & E) 70 USD

  • Deductions: Savings Bond (Ded Code 2000) 50 USD

  • Benefits: Union 1000 (Ben Code 6000) 30 USD

  • Payment Date: February 5, 1998

Type T2 - Labor Distribution Journal Entries:

Type Journal-Entry Type Date Account Description DR CR
T2 AW 01/28/98 1.4205 Wages Payable 0 1000
T2 LD 01/28/98 25.8115 Labor Expenses

Labor Expenses

1000 Blank
Blank Blank Blank Blank TOTALS 1000 1000

Type T3 - Actual Burden Journal Entries:

Type Journal-Entry Type Date Account Description DR CR
T3 BF 01/28/98 25.8146 Union Fringe 30 Blank
T3 BT 01/28/98 25.8135 FICA Burden 70 Blank
T3 CF 01/28/98 1.4333.FR Burden Clearing - Fringe 0 30
T3 CT 01/28/98 1.4333.TX Burden Clearing - Tax 0 70
Blank Blank Blank Blank TOTALS 100 100

Type T1 - Disbursement Journal Entries:

Type Journal-Entry Type Date Account Description DR CR
T1 AW 02/05/98 1.4205 Wages Payable 1000 Blank
T1 DA 02/05/98 1.1110.PAY Cash in Bank 0 880
T1 AL 02/05/98 1.4316 Savings Bonds 0 50
T1 AL 02/05/98 1.4332 Union Fringe 0 30
T1 AT 02/05/98 1.4212.EE FICA Employee 0 70
T1 AT 02/05/98 1.4212.ER FICA Employer 0 70
T1 CF 02/05/98 1.4333.FR Burden Clearing - Fringe 30 Blank
T1 CT 02/05/98 1.4333.TX Burden Clearing - Tax 70 Blank
Blank Blank Blank Blank TOTALS 1100 1100

11.1.17 The Search Criteria That the System Uses

Each time that the system creates a journal entry, it follows a hierarchy of search criteria to determine which distribution account to debit or credit. The system begins the search with basic data related to the type of accounting entry, referred to as the search argument. The system creates a search argument from the system data, such as the timecard, and searches the accounting rules tables for the table entry that best matches the search argument information.

On the first search, the system uses data appropriate for that table and looks for a match on all fields in the search criteria section of the form (the entire search argument). Then one by one, the system drops elements from the search argument until it finds a matching table entry. At the lowest level, the system tries to match only the journal type. In addition, you can have a line in an accounting instruction table that has no search criteria other than the journal type. This is the default line.

The system first searches the rules for a specific company. If it finds no applicable rules (matches) for that company, it continues with the rules for Company 00000.

Company 00000 is the default company in all of the AAI tables. Always start by setting up generic entries in Company 00000. Such entries provide a source for default accounts for all of the various types of journal entries. After you complete table entries for Company 00000, you can set up other companies. Entries for other companies should only be exceptions to the generic rules set up under Company 00000.

Every AAI table includes the Journal Type field, which contains one or more codes identifying the type of journal entry. Each table has a hard-coded set of journal types. Rules for some journal types must be set up. Other rules are optional.

11.1.18 Intercompany Settlements

If the organization consists of multiple companies and employees sometimes work in companies other than their home companies, intercompany settlements enable you to expense labor to one company and the associated liabilities to the home company.

Intercompany settlements keep the payroll journal entries for each company in balance by document type. These journal entries ensure that each company's net balance equals zero or that the debits equal the credits.

Before you can set up AAIs for intercompany settlements, you should verify that the chart of accounts contains intercompany settlement accounts. After verifying the chart of accounts, you set up AAIs for intercompany settlements. After you set up AAIs for intercompany settlements, you should create a payroll ID that generates intercompany settlements in the JD Edwards EnterpriseOne Payroll system rather than in the JD Edwards EnterpriseOne General Accounting system.

11.1.19 Example: Intercompany Settlements Using Document Type T2

In this example, assume that an employee, whose home company is Company 1, works in Company 50, business unit 501. The employee's gross wages are 1,000.00. All liabilities are posted to the home company.

11.1.20 Intercompany Settlements: Scenario One

Assuming that you have not set up intercompany settlements in the JD Edwards EnterpriseOne Payroll system, the journal entries for the employee are:

  • In balance by document type across all companies

  • Out of balance by company

  • Out of balance by document type within a company

These tables illustrate the document type T2 (labor distribution) journal entries for the employee.

Company 1:

Document Type Journal Type Account Description Debit Credit
T2 AW 1.4205 Wages Payable 0 1000

Company 50:

Document Type Journal Type Account Description Debit Credit
T2 LD 501.8115 Labor Expense 1000 0

11.1.21 Intercompany Settlements: Scenario Two

Assuming that you have set up intercompany settlements in the JD Edwards EnterpriseOne Payroll system, the entries for the employee are:

  • In balance by company

  • In balance by document type within a company

These tables illustrate document type T2 (labor distribution) journal entries for the employees in each company.

Company 1:

Document Type Journal Type Account Description Debit Credit
T2 AW 1.4205 Wages Payable 0 1000
T2 IC 1.1291.00050 Intercompany 1000 0

Company 50:

Document Type Journal Type Account Description Debit Credit
T2 LD 501.8115 Labor Expense 1000 0
T2 IC 50.1291.00001 Intercompany 0 1000

11.1.22 How Do You Generate Intercompany Settlements?

To generate intercompany settlements for payroll transactions, the JD Edwards EnterpriseOne Payroll system must be integrated with the JD Edwards EnterpriseOne General Accounting system. You can set up either of these systems to generate intercompany settlements for payroll transactions. You select the method that works best for the environment.

When you use the JD Edwards EnterpriseOne General Accounting system to generate intercompany settlements, the system processes all of the balancing journal entries through a single hub (main) company. The hub company is the same for all employees. You can designate the hub company in the intercompany constants for the JD Edwards EnterpriseOne General Accounting system. If you do not designate a hub company, the post program uses the first company that it encounters as the hub company. Therefore, the hub company might not be the employee's home company.

When you use the JD Edwards EnterpriseOne Payroll system to generate intercompany settlements for payroll transactions, the system creates the balancing entries before posting journal entries to the general ledger. The JD Edwards EnterpriseOne Payroll system ignores the intercompany constants for the JD Edwards EnterpriseOne General Accounting system and designates the employee's home company as the hub (main) company for processing balancing entries.

Note:

Intercompany settlements in the JD Edwards EnterpriseOne Payroll system apply to document types T1, T2, T3, T4, and T6. They do not apply to document types T5 and T7.

11.1.23 Verifying the Chart of Accounts

Before you can set up AAIs for intercompany settlements, you should verify that the chart of accounts contains intercompany accounts.

All intercompany accounts must use the same object number. The subsidiary (the third part of the account number) can represent either the company from or the company to which intercompany amounts are due.

For example, this table shows intercompany accounts for companies 1, 7, and 50, where 1291 is the object account for intercompany settlements:

Company 1 Company 7 Company 50
1.1291.00007 7.1291.00001 50.1291.00001
1.1291.00050 7.1291.00050 50.1291.00007

You must use the JD Edwards EnterpriseOne General Accounting system to set up the accounts. Typically, you verify the chart of accounts from the JD Edwards EnterpriseOne General Accounting system. If you do not have access to the JD Edwards EnterpriseOne General Accounting system, you can verify the chart of accounts from the AAI tables in the JD Edwards EnterpriseOne Payroll system. To verify the chart of accounts from the AAI tables, select the Help function for the business unit, object, or subsidiary fields.

11.1.24 Setting Up AAIs for Intercompany Settlements

You use the Dr/Cr - Accruals/Clearing AAI table to set up the AAIs for generating intercompany settlements. You define journal types for intercompany settlements so that the system tracks intercompany transactions for each company in the organization. You should set up intercompany settlements for Company 00000 only.

When you set up AAIs for intercompany settlements, you do not enter a business unit. When the system creates journal entries for intercompany accounts, it enters Company 00000, in which the journal entry is created as the business unit.

11.1.25 Setting Up a Payroll ID for Intercompany Settlements

After you set up AAIs for intercompany settlements, you should set up a payroll ID for intercompany settlements. When you use this payroll ID to process a payroll cycle, the JD Edwards EnterpriseOne Payroll system, rather than the JD Edwards EnterpriseOne General Accounting system, generates intercompany settlements before posting them to the general ledger.

Use this payroll ID to process payroll for employees who worked in companies other than their home companies. When you process this payroll ID, the system automatically creates balancing journal entries for intercompany settlements.

11.1.26 Journal Entry Setup by AAI Table

For journal entries to be calculated correctly, you must set up the correct journal types in each Automatic Accounting Instruction (AAI) table. These tables list all of the journal types that you must set up to process time and labor journal entries completely.

This table lists all of the AAI tables, and their corresponding numbers. For example, the Debit-Labor/Billing/Equipment table is table 1. These numbers are used in the subsequent tables to specify the AAI table in which you must set up each journal type.

AAI table numbers are:

AAI Application Name Application Number
Debit-Labor/Billing/Equipment Table 1
Debit-Burden/Premium - Labor Dist Table 2
Credit-Cash Bank Account Table 3
Credit-Liabilities Table 4
Credit-Labor Billings Table 5
Dr/Cr - Accruals/Clearing Table 6

These tables list the journal types that must be set up for each type of payroll journal entry. The tables are organized by journal entry document type (T1 though T7), and include this information for each journal type:

  • Description - The name of the journal type.

  • AAI Table - The specific AAI table where you must set up the journal type.

  • Entry - This specifies whether the journal type is used to create debit or credit journal entries.

This table lists the T-1 payroll disbursement journal entries:

Journal Type Description AAI Table Entry
AL Actual Liabilities (Deductions, Benefits) 4 Credit
AT Actual Taxes 4 Credit
AW Accrued Wages 6 Debit
CF Burden Offset (Clearing) - Fringe 6 Debit
CT Burden Offset (Clearing) - Taxes 6 Debit
DP Disbursed Amount (Computer Checks) 3 Credit
DA Disbursed Amount (Auto Deposit) 3 Credit

This table lists the T-2 payroll distribution journal entries:

Journal Type Description AAI Table Entry
AW Accrued Wages 6 Credit
FB Flat Burden Expense 2 Debit
FC Flat Burden Offset (Clearing) 6 Credit
LD Labor Distribution Straight Time 1 Debit
PR Labor Distribution Premium Time 2 Debit

This table lists the T-3 actual burden journal entries:

Journal Type Description AAI Table Entry
CF Burden Offset (Clearing) - Fringe 6 Credit
CT Burden Offset (Clearing) - Taxes 6 Credit
BF Fringe Burden (Benefits & Accruals) 2 Debit
BT Tax and Insurance Burden 2 Debit

This table lists the T-4 labor billing distribution journal entries:

Journal Type Description AAI Table Entry
RD Labor Billing (Recharge) Distribution 1 Debit
RO Labor Billing (Revenue) Offset 5 Credit

This table lists the T-5 equipment distribution journal entries:

Journal Type Description AAI Table Entry
ED Equipment Billing Distribution 1 Debit
EO Equipment Billing (Revenue) Offset See note. Credit

Note:

EO can be set up as the Revenue Credit on the Depreciation Information Form in the Equipment Master or the General Ledger AAIs or both.

This table lists the T-6 payroll accruals/deferrals entries:

Journal Type Description AAI Table Entry
AW Accrued Wages 6 Credit
CF Burden Clearing - Fringe 6 Debit
CT Burden Clearing - Taxes 6 Debit
FC Flat Burden Clearing 6 Credit
IC Inter-Company Settlements 6 Debit & Credit

This table lists the T-7 payroll voucher journal entries:

Journal Type Description AAI Table Entry
AL Actual Liabilities (Deductions, Benefits, and so on) 4 Debit
AT Actual Taxes 4 Debit

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

This section includes an overview of labor, billing, and equipment distribution AAIs, and discusses how to:

  • Set processing options for the Debit-Labor/Billing/Equipment program.

  • Set up AAIs for labor, billing, and equipment distribution.

11.2.1 Understanding AAIs for Labor, Billings, and Equipment Distribution

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 defining 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 set up AAIs separately for each company. Always set up generic instructions in Company 00000 first. When searching for AAIs, the system searches for a specific company. If it finds no AAIs for the specific company, it uses the AAIs defined for Company 00000.

The minimum information that you need to set up an AAI is the journal type. When you set up direct labor, billings, and equipment distribution AAIs, these items are the minimum setup requirements for journal types:

  • Payroll labor distribution (LD) is required if you use employee hourly and salary rates.

  • Labor billing distribution (RD) is required if you use billing (recharge) rates.

  • Equipment distribution (ED) is required if you use equipment 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 obtains the values from the Employee Master table (F060116), other sources, or the overrides that you supply. You use these search criteria fields to assign account numbers based on the specific timecard information.

Note:

If you enter an account number in an AAI table, you must first set up that account number in the chart of accounts. When you enter timecards for employees, the system enables you to enter any account number that is set up in the chart of accounts, regardless of whether the account is set up in the AAI tables. When you run the journal entries step of the payroll cycle process, you will receive errors on the Journal Batch Proof Report for any timecards that contain account numbers that were not set up in the AAI tables. You must either change the account number on the timecard to reflect an account number that is set up in the AAI table, or you must add the account number to the AAI table. After you make the account number corrections, you must reprocess the timecards through pre-payroll.

11.2.1.1 Search Criteria for Labor Distribution

The system uses certain fields as search criteria to determine a valid account for distribution of labor, billings, and equipment entries. The system searches these AAIs for a specific company:

  • On the first pass, the system compares the time entry record's business unit, union, job type, job step, and pay type to the search criteria defined in the AAI for labor distribution and attempts to match the AAI search criteria to the appropriate journal type.

  • On each successive pass the system 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, the system searches the rules for Company 00000.

This example identifies the search criteria that the system uses to match information from the timecard for a specific company:

Business Unit Union Job Type Job Step Pay Type Journal Type
100 3000 CARP APPR 1 LD
100 3000 CARP APPR (omitted) LD
100 3000 CARP (omitted) 1 LD
100 3000 CARP (omitted) (omitted) LD
100 3000 (omitted) (omitted) 1 LD
100 3000 (omitted) (omitted) (omitted) LD
100 (omitted) CARP APPR 1 LD
100 (omitted) CARP APPR (omitted) LD
100 (omitted) CARP (omitted) 1 LD
100 (omitted) CARP (omitted) (omitted) LD
100 (omitted) (omitted) (omitted) 1 LD
100 (omitted) (omitted) (omitted) (omitted) LD
(omitted) 3000 CARP APPR 1 LD
(omitted) 3000 CARP APPR (omitted) LD
(omitted) 3000 CARP (omitted) 1 LD
(omitted) 3000 CARP (omitted) (omitted) LD
(omitted) 3000 (omitted) (omitted) 1 LD
(omitted) 3000 (omitted) (omitted) (omitted) LD
(omitted) (omitted) CARP APPR 1 LD
(omitted) (omitted) CARP APPR (omitted) LD
(omitted) (omitted) CARP (omitted) 1 LD
(omitted) (omitted) CARP (omitted) (omitted) LD
(omitted) (omitted) (omitted) (omitted) 1 LD
(omitted) (omitted) (omitted) (omitted) (omitted) LD

This example identifies additional search criteria that the system can use to match information from the timecard for Company 00000:

  • On the first pass, the system 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 these search criteria fields to the appropriate journal type.

  • On each successive pass, the system drops a value and uses a different combination of data fields as search criteria.

  • Finally, if no matches exist in the rules for the specific company, the system searches the rules for the default journal type, LD.

Business Unit Union Job Type Job Step Payment Type Journal Type
(omitted) 3000 CARP APPR 1 LD
(omitted) 3000 CARP APPR (omitted) LD
(omitted) 3000 CARP (omitted) 1 LD
(omitted) 3000 CARP (omitted) (omitted) LD
(omitted) 3000 (omitted) (omitted) 1 LD
(omitted) 3000 (omitted) (omitted) (omitted) LD
(omitted) (omitted) CARP APPR 1 LD
(omitted) (omitted) CARP APPR (omitted) LD
(omitted) (omitted) CARP (omitted) 1 LD
(omitted) (omitted) CARP (omitted) (omitted) LD
(omitted) (omitted) (omitted) (omitted) 1 LD
(omitted) (omitted) (omitted) (omitted) (omitted) LD

11.2.2 Prerequisite

Set up the processing options to add a single account or multiple accounts at a time. You use the same steps to set up AAIs whether you are adding single or multiple accounts. This task demonstrates how to set up AAIs for multiple accounts.

11.2.3 Forms Used to Set Up AAIs for Labor, Billing, and Equipment Distribution

Form Name FormID Navigation Usage
Work With Accounting JE Rules - Labor/Billing/Equipment W069043B Automatic Accounting Instruction Setup menu (G05BT4), Debit - Labor/Billing/Equipment Review existing AAI table entries.
Revise Multiple Labor/Billing/Equipment W069043C Click Add on Work With Accounting JE Rules-Labor/Billing/Equipment. Set up AAIs for Labor, Billing, and Equipment Distribution.

11.2.4 Setting Processing Options for the Debit-Labor/Billing/Equipment Program (P069043)

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

11.2.4.1 Default

1. Select an entry form.

Specify the form that the system uses when you select a record or select the Add button. Values are:

1: Multiple Entry

Blank: Single Entry

11.2.5 Setting Up AAIs for Labor, Billing, and Equipment Distribution

Access the Revise Multiple Labor/Billing/Equipment form.

Journal Type

Enter a code that represents the type of transaction for which an account is to be derived.

Obj Acct (object account)

Enter the portion of a general ledger account that refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden.

Note:

If you use a flexible chart of accounts and the object account is set to 6 digits, you should normally use all 6 digits. For example, entering 000456 is not the same as entering 456 because if you enter 456 the system enters three blank spaces to fill a 6-digit object.
Job Type

Enter a UDC (07/G) that defines the jobs within the organization. You can associate pay and benefit information with a job type and apply that information to the employees who are linked to that job type.

PDBA Code (pay type, deduction, benefit, and accrual code)

Enter a code that defines the type of pay, deduction, benefit, or accrual.

Pay types are numbered from 1 to 999. Deductions and benefits are numbered from 1000 to 9999.

Sub (subset)

Indicates a subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account.

Note:

If you are using a flexible chart of accounts and the object account is set to six digits, you must use all six digits. For example, entering 000456 is not the same as entering 456 because, if you enter 456, the system enters three blank spaces to fill a six-digit object.

11.3 Setting Up AAIs for Burden and Premium Labor Distribution

This section includes an overview of burden and premium labor AAIs, and discusses how to:

  • Set processing options for Processing Options for Debit-Burden/Premium-Labor Dist program.

  • Set up AAIs for burden and premium labor.

  • Set up company burden rules.

  • Set up business unit burden rules.

11.3.1 Understanding AAIs for Burden and Premium Labor Distribution

You set up AAIs to define accounts for actual burden, flat burden, and premium time transactions for labor distribution. You can select a hierarchy method that controls the search criteria by which the system searches for accounts.

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

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) or RRSP plan

This table provides information that you should consider before you set up AAIs that are associated with burden:

Considerations Additional Information
Flat burden:
  • Is an estimate that is a predetermined percentage of an employee's gross wages. This estimate is approximate to actual burden costs.
  • Distributes the expense in the same amount throughout the entire year.

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

  • Is not calculated for lump sum amounts.

  • Is a median calculation of actual burden for the year.

Actual burden:
  • Is heavier at the beginning of the year until limits are reached. Examples in the U.S. are FICA, FUI, SUI, and SDI.
  • Can be turned on and off by company to complete the calculation.

Burden considerations for Time and Labor Time and Labor calculates flat burden instead of actual burden.

When you set up flat burden distribution debit instructions, you must, at a minimum, include the FB (Flat Burden) journal type code.

When you set up premium labor debit instructions, you must, at a minimum, include the PR (Payroll premium labor distribution) journal type code. You can specify whether the system splits the premium portion of overtime and creates separate journal entries for straight time versus premium time.

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

  • BF: Burden fringe benefits for actual burden

    Use this journal type for the burden fringe benefits that you do not want to distribute separately. The system uses the account number associated with this journal type when it does not find an entry for a specific fringe benefit.

  • BT: Burden taxes for actual burden

    Use this journal type for the burden taxes that you do not want to distribute separately. The system uses the account number associated with this journal type when it does not find an entry for a specific tax.


11.3.1.1 Search Criteria for Burden Fringe

The system uses certain fields as search criteria to determine a valid account for the distribution of burden fringe entries. The system searches the AAIs for a specific company according to this sequence:

  1. On the first pass, the system compares the time entry record's business unit, object, subsidiary, PDBA code, and journal type to the search criteria defined in the AAI for burden fringe, and attempts to match the AAI search criteria to the appropriate journal type.

  2. On the second pass, the system searches for business unit, object, subsidiary, and journal type.

  3. On each successive pass, the system drops a value and uses a different combination of data fields for the search criteria.

  4. Finally, if no matches exist in the rules for the specific company, the system searches the rules for Company 00000.

This table illustrates how the system can match information from a timecard for a specific company for burden fringe:

Timecard Business Unit Timecard Object Timecard Subsidiary PDBA Code Journal Type
1 1340 02200 1000 Blank
1 1340 02200 Blank BF
1 1340 Blank 1000 Blank
1 1340 Blank Blank BF
Blank 1340 Blank 1000 Blank
Blank 1340 Blank Blank BF

This table illustrates how the system can match information from a timecard for Company 00000.

Timecard Business Unit Timecard Object Timecard Subsidiary PDBA Code Journal Type
Blank 1340 02200 1000 Blank
Blank 1340 02200 Blank BF
Blank 1340 Blank 1000 Blank
Blank 1340 Blank Blank BF
Blank 00000 Blank 1000 Blank
Blank 00000 Blank Blank BF

11.3.1.2 Company Burden Rules

You can set up company burden rules to split the premium portion of overtime into a separate journal entry. You must set up company burden rules for a specific company. You cannot use Company 00000.

11.3.1.3 Business Unit Burden Rules

If you do not set up burden rules, the system creates T3s, but it does not write records to the Burden Distribution worktable (F07241) during the payroll process. If you set up burden rules, the system populates the Burden Distribution worktable (F07241), and updates the Burden Distribution table (F0724) during the final update step of the payroll process.

11.3.2 Prerequisite

Set up the processing options to add a single account or multiple accounts at a time. You use the same steps to set up AAIs whether you are adding single or multiple accounts. This task demonstrates how to set up AAIs for multiple accounts.

To set up business unit burden rules, you must set up each business unit for which you want to track burden information. You set up this information in the Business Unit Constants program (P059051A).

See "Setting Up System Options" in the JD Edwards EnterpriseOne Applications Human Capital Management Fundamentals Implementation Guide.

"Setting Up Business Unit Information" in the JD Edwards EnterpriseOne Applications Human Capital Management Fundamentals Implementation Guide

11.3.3 Forms Used to Set Up AAIs for Burden and Premium Labor Distribution

Form Name FormID Navigation Usage
Work With Burden Distribution AAIs W069043B Automatic Accounting Instruction Setup (G05BT4), Debit - Burden/Premium-Labor Dist. Review existing AAI entries.
Revise Multiple Burden Distribution AAIs W069043C Click Add on Work With Burden Distribution AAIs. Set up AAIs for Burden and Premium Labor.
Revise Company Burden Distribution Rules W069042E Select a company in the detail area and then select CO Burden Rules from the Row menu on Work With Burden Distribution AAIs. Set up company burden rules.
Revise Business Unit Burden Rules W069042D Select BU Burden Rules from the Form menu on Work With Burden Distribution AAIs. Set up business unit burden rules.

11.3.4 Setting Processing Options for the Debit-Burden/Premium-Labor Dist Program (P069042)

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

These processing options are identical to the processing options for Debit-Labor/Billing/Equipment Program (P069043).

11.3.5 Setting Up AAIs for Burden and Premium Labor Distribution

Access the Revise Multiple Burden Distribution AAIs form.

HM (hierarchy method)

This code is used to retrieve the business unit and subsidiary accounts for burden distribution. The Hierarchy Method controls the Business Unit and the Subsidiary values.

The available methods are:

  • Business unit: Employee Home Business Unit unless a table override exists

    Subsidiary: No Subsidiary.

    Subledger/Type: No Subledger or Subledger Type.

  • 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.

  • Business unit: Labor Business Unit unless a table override exists.

    Subsidiary: No Subsidiary.

    Subledger/Type: Labor Distribution Subledger and Type.

  • 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.

  • Business unit: Employee Home Business Unit unless a table override exists

    Subsidiary: Labor Distribution Subsidiary unless a table override.

    Subledger/Type: No Subledger or Subledger Type.

  • Business unit: Labor Business Unit unless a table override exists.

    Subsidiary: Labor Distribution Subsidiary unless a table override.

    Subledger/Type: No Subledger or Subledger Type.

Obj (object)

Indicates portion of a general ledger account that refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden.

Note:

If you use a flexible chart of accounts and the object account is set to 6 digits, you should normally use all 6 digits. For example, entering 000456 is not the same as entering 456 because if you enter 456 the system enters three blank spaces to fill a 6-digit object.
Timecard Obj (timecard object)

Indicates object account where labor is posted. All object accounts which might have wages posted to them must be entered into this field. This is the major element in determining where the corresponding burden is to be posted. If a business unit is defined, this field represents the unique labor object accounts associated to the job

To set up Company 00000, type 00000 in this field; otherwise, to set up a specific company, enter a valid object.

Timecard Bus. Unit (timecard business 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 in the header part of the screen to specify the Business Unit to be displayed first in the lower part of the screen.

Timecard Sub (timecard subsidiary)

Identifies subsidiary account associated with the labor object account. If both a Labor object and subsidiary account are defined, the combination may determine the burden accounts to be used in creating the distribution. This method will accommodate unconventional coding of the cost codes in a job cost environment, for example, the usage of cost codes to define a type of labor, versus using just the object account.

Sub (subset)

Indicates subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account.

Note:

If you are using a flexible chart of accounts and the object account is set to six digits, you must use all six digits. For example, entering 000456 is not the same as entering 456 because, if you enter 456, the system enters three blank spaces to fill a six-digit object.

11.3.6 Setting Up Company Burden Rules

Access the Revise Company Burden Distribution Rules form.

Do you wish to split the premium portion of overtime on labor entries?

Specify whether you wish to split the premium portion of overtime on labor entries. Values are:

Y: Yes

N: No

Do you wish to omit Actual Burden Distribution Journal Entries (Type T3)?

Specify whether you wish to omit Actual Burden Distribution Journal Entries (Type T3). Values are:

Y: Yes

N: No

11.3.7 Setting Up Business Unit Burden Rules

Access the Revise Business Unit Burden Rules form.

Burden Rule

Enter a code that determines how the system handles burden journal entries. Actual burden expenses are initially grouped into burden clearing accounts in the T1 section of the P/R 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 P/R 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 JD Edwards EnterpriseOne Payroll system to produce Job Billing Registers. These rule codes 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 Daily Post.

4: Same as 2 but reverse out the Flat Burden posted thru Daily Post.

11.4 Setting Up AAIs for Cash-in-Bank Account Distribution

This section includes an overview of cash-in-bank account AAIs, and discusses how to set them up.

11.4.1 Understanding AAIs for Cash-in-Bank Account Distribution

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

  • 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 journal types when other types of payments are drawn on different bank accounts.

If you create automatic deposits for interim payments, you must set up journal type DD. The Payroll Journal Proof/Edit Report (R05229) lists payments processed with journal type DD as journal type DI. These payments are also created in the F0911 table under journal type DI.

The system derives cash-in-bank account numbers during pre-payroll processing. If the cash account is incorrect, after correcting the cash account, you must rerun pre-payroll.

This table lists the various journal types and their purpose (the journal type represents the type of payment):

Journal Type Purpose
DA Automatic deposits
DC Currency disbursement (cash)
DD Interim automatic deposits
DI Interim computer checks
DM Interim manual checks
DP Printed computer checks from payroll cycle
DF Create separate payments by business unit

You set up DF entries only if you want the system to create separate payments for each business unit in which an employee works. To generate separate payments for each business unit, you must create an AAI entry using the DF journal type for each business unit in the organization. Each of these entries must also have a unique account number. Journal type DF is not used to derive the account number for payroll payments. Journal type DF is used to derive temporary account numbers that are unique for each business unit.

For example, if an employee works in two different business units during a pay period, you would set up an entry in the Cash-in-Bank Account AAI table for each business unit using journal type DF. You would also assign a unique account number to each of these entries. Then by referencing the business unit on each of the employee's timecards, the system would create two separate payments for the employee.

Temporary account numbers from the DF entries are used to create separate payments in one of these ways:

  • Using the Time Entry Interim Generator, the DF account number is assigned to the GL Bank Account field (GLBA) on the payment record in the Payment File table (F07350) when the timecard is added to the F06116 table.

  • Separate payments are generated for payment records with different DF account numbers.

  • When processing regular timecards, the DF account number is assigned to the GL Bank Account field (GLBA) on the payment record in the Payment File table (F07350) during pre-payroll.

  • Separate payments are generated for payment records with different DF account numbers.

These account numbers are used only during pre-payroll to determine whether separate payments are necessary. The actual cash-in-bank account for the payments is created using the DA, DC, DD, DI, DM, and DP entries in the AAI table.

11.4.1.1 Search Criteria for Cash-in-Bank Account Distribution

The system uses certain fields as search criteria to determine a valid account for distribution of Cash-in-Bank during pre-payroll processing. The system uses this sequence to search for AAIs for a specific company:

  1. On the first pass, the system compares the time entry record's business unit and journal type to the search criteria defined in the AAI for Cash-in-Bank accounts and attempts to match the AAI search criteria to the appropriate journal type.

  2. On each successive pass, the system locates either the business unit or the journal type.

  3. Finally, if no matches exist in the rules for the specific company, the system searches the rules for Company 00000.

This table illustrates how the system matches the type of payment and the home business unit for a specific company:

Business Unit Journal Type
1 DA
1 DP
Blank DA
Blank DP

This table illustrates how the system can match the type of payment for Company 00000:

Business Unit Journal Type
Blank DA
Blank DP

When the Business unit = none, the journal type can be DA or DP.

11.4.2 Forms Used to Set Up AAIs for Cash-in-Bank Account Distribution

Form Name FormID Navigation Usage
Work With Accounting JE Rules - Cash/Bank Account W069040A Automatic Accounting Instruction Setup (G05BT4), Credit-Cash Bank Account. Review existing AAI entries.
Revise Multiple Cash/Bank Account W069040C Click Add from Work With Accounting JE Rules-Cash/Bank Account. Set up AAIs for Cash-in-Bank Account Distribution.

11.4.3 Setting Up AAIs for Cash-in-Bank Account Distribution

Access the Revise Multiple Cash/Bank Account form.

Company

Enter a code that identifies a specific organization, fund, or other reporting entity. The company code must already exist in the Company Constants table (F0010) and must identify a reporting entity that has a complete balance sheet. At this level, you can have intercompany transactions.

Note:

You can use company 00000 for default values such as dates and automatic accounting instructions. You cannot use company 00000 for transaction entries.
Journal Type

Enter a code that represents the type of transaction for which an account is to be derived.

Obj Acct (object account)

Indicates portion of a general ledger account that refers to the division of the Cost Code (for example, labor, materials, and equipment) into subcategories. For example, you can divide the Cost Code for labor into regular time, premium time, and burden.

Note:

If you use a flexible chart of accounts and the object account is set to 6 digits, you should normally use all 6 digits. For example, entering 000456 is not the same as entering 456 because if you enter 456 the system enters three blank spaces to fill a 6-digit object.
Sub (subset)

Indicates subset of an object account. Subsidiary accounts include detailed records of the accounting activity for an object account.

Note:

If you are using a flexible chart of accounts and the object account is set to six digits, you must use all six digits. For example, entering 000456 is not the same as entering 456 because, if you enter 456, the system enters three blank spaces to fill a six-digit object.

11.5 Setting Up AAIs for Liabilities

This section includes an overview of liabilities and discusses how to set up AAIs for liabilities.

11.5.1 Understanding AAIs for Liabilities

You set up AAIs for liabilities to define accounts for the payroll disbursements journal.

At a minimum, you must set up these default journal type codes when you set up AAIs for liabilities:

  • AL - Accrued liabilities for deductions and benefits

  • AT - Accrued liabilities for payroll taxes

11.5.1.1 Search Criteria for Liabilities

The system uses certain fields as search criteria to determine a valid account for the distribution of liabilities. The system uses this sequence to search for AAIs for a specific company:

  1. On the first pass, the system compares the home business unit PDBA code and journal type of the time entry record to the search criteria defined in the AAI for Liabilities and attempts to match the AAI search criteria to the appropriate journal type.

  2. On each successive pass, the system uses the business unit or the journal type.

  3. Finally, if no matches exist in the rules for the specific company, the system searches the rules for Company 00000.

This table illustrates the fields that the system uses as search criteria for a specific company. For tax liabilities, the system matches the journal type and, optionally, the employee's business unit. For PDBA liabilities, the system matches the PDBA code and, optionally, the employee's business unit.

Business Unit PDBA Code Journal Type
1 Blank H
1 Blank AT
Blank Blank H
Blank Blank AT
1 5000 Blank
1 Blank AL
Blank 5000 Blank
Blank Blank AL

This table illustrates the fields that the system uses as search criteria for Company 00000. The system matches the PDBA code; if it does not locate a match, it uses the default journal type.

Business Unit PDBA Code Journal Type
Blank Blank H
Blank Blank AT
Blank 5000 Blank
Blank Blank AL

11.5.1.2 Understanding Distribution Account Fields for Liabilities

You can override the value, or use one of these constants in the Subsidiary field so that the system can designate distribution account information. You must have valid general ledger account numbers set up.

Constant Description
*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 uses 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 these constants in the Subledger field:

Constant Description
*SBLE To move the employee number to the Subledger field.
*SBLP To move the DBA code to the Subledger field.

11.5.2 Prerequisite

Create accounts in the chart of accounts before you add them to the payroll AAIs. See Account Setup in the General Accounting Guide.

Set up the processing options to add a single account or multiple accounts at a time. You use the same steps to set up AAIs whether you are adding single or multiple accounts. This task demonstrates setting up multiple accounts.

11.5.3 Forms Used to Set Up AAIs for Liabilities

Form Name FormID Navigation Usage
Work With Accounting JE Rules - Liabilities W069045A Automatic Accounting Instruction Setup (G05BT4), Credit-Liabilities Review existing AAI entries.
Revise Multiple Liabilities W069045C Click Add on Work With Accounting JE Rules - Liabilities. Set up AAIs for liabilities.

11.5.4 Setting Up AAIs for Liabilities

Access the Revise Multiple Liabilities form.

Subledger

Enter a code that identifies a detailed, auxiliary account within a general ledger account. A subledger can be an equipment item number or an address book number. If you enter a subledger, you must also specify the subledger type.

Sub Type

Enter a UDC (00/ST) that is used with the Subledger field to identify the subledger type and how the system performs subledger editing. On the User Defined Codes form, the second line of the description controls how the system performs editing. These values are either hard-coded or user-defined. Values include:

A: Alphanumeric field, do not edit.

N: Numeric field, right justify and zero fill.

C: Alphanumeric field, right justify and blank fill.

11.6 Setting Up AAIs for Labor Billings

This section includes an overview of labor billing AAIs and discusses how to:

  • Set processing options for the Credit-Labor Billings program.

  • Set up AAIs for labor billings.

11.6.1 Understanding AAIs for Labor Billings

You set up AAIs for labor billings to define 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 the company does not use labor billings, you do not need to set up these AAIs.

For the most common account distribution, you can use the journal type RO with the appropriate account information to define a default rule for labor billings. The system uses the default rule when it does not find a rule for a specific business unit in a specific company.

11.6.1.1 Search Criteria for Labor Billings

The system uses certain fields as search criteria to determine a valid account for the distribution of labor billings. The system searches these AAIs for a specific company:

  • On the first pass, the system compares the time entry record's home business unit, charge to unit, PDBA code, and journal type to the search criteria defined in the AAI for Labor Billings and attempts to match the AAI search criteria to the appropriate Journal Type.

  • On each successive pass, the system 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, the system searches the rules for the default company (Company 00000).

This table illustrates the search sequence:

Home Business Unit Charge to Unit PDBA Code Journal Type
9 501 1 RO
9 501 Blank RO
9 Blank 1 RO
9 Blank Blank RO
Blank 501 1 RO
Blank 501 Blank RO
Blank Blank 1 RO
Blank Blank Blank RO

This table identifies the fields that the system uses as search criteria to match information from the timecard to the default company (Company 00000):

Home Business Unit Charge to Unit PDBA Code Journal Type
Blank 501 1 RO
Blank 501 Blank RO
Blank Blank 1 RO
Blank Blank Blank RO

11.6.2 Forms Used to Set Up AAIs for Labor Billings

Form Name FormID Navigation Usage
Work With Accounting JE Rules - Labor Billing Credits W069044B Automatic Accounting Instruction Setup (G05BT4), Credit-Labor Billings Review existing AAI entries.
Revise Multiple Labor Billing Credits W069044C Click Add on Work With JE Accounting Rules - Labor Billing Credits. Set up AAIs for Cash-in-Bank Account Distribution.

11.6.3 Setting Processing Options for Credit-Labor Billings (P069044)

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

These processing options are identical to those for Debit-Labor/Billing/Equipment Program (P069043).

11.6.4 Setting Up AAIs for Labor Billings

Access the Revise Multiple Labor Billing Credits form.

11.7 Setting Up AAIs for Accruals and Clearing

This section includes an overview of accrual and clearing accounts, and discusses how to set up AAIs for accruals and clearing.

11.7.1 Understanding Accruals and Clearing

For the JD Edwards EnterpriseOne Payroll system, you set up AAIs for accruals and clearing to define accounts for:

  • Accrued wages (T1, T2)

  • Flat burden clearing (T2)

  • Recharge flat burden clearing

  • Intercompany settlements (T1-T6)

  • Actual burden clearing (T1-T3)

For the time and labor process, you set up AAIs for accruals and clearing to define accounts for:

  • Accrued wages (T2)

  • Flat burden clearing (T2)

When you set up the accrued wages account, you must, at a minimum, include the AW journal type code to record labor distribution and payroll disbursements journals.

When you set up the flat burden clearing account, you must, at a minimum, include the FC, flat burden clearing journal type code for labor distribution.

When you set up intercompany settlement accounts, you must, at a minimum, include IC journal type code to record 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 RC (recharge burden relief) journal type code for the actual burden expense and payroll disbursements journals.

When you set up actual burden clearing accounts, you must, at a minimum, include these 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

11.7.1.1 Search Criteria for Accruals and Clearing

The system uses certain fields as search criteria to determine a valid account for distribution of accrued wages, flat burden clearing, intercompany settlements, and recharge flat burden clearing. The system searches these AAIs for a specific company:

  • On the first pass, the system compares the time entry record's business unit and journal type to the search criteria defined in the AAI for Accruals and Clearing and attempts to match the AAI search criteria to the appropriate journal type.

  • On the next pass, the system looks only at journal type.

  • Finally, if no matches exist in the rules for the specific company, the system searches the rules for Company 00000.

This table identifies the search criteria that the system uses to match information from the timecard for a specific company for clearing tax burden:

Business Unit PDBA Code Journal Type
1 Blank H
Blank Blank H
1 Blank CT
Blank Blank CT

This 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 PDBA Code Journal Type
Blank Blank H
Blank Blank CT

This 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 PDBA Code Journal Type
1 1000 Blank
Blank 1000 Blank
1 Blank CF
Blank Blank CF

This 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 PDBA Code Journal Type
Blank 1000 Blank
Blank Blank CF

This 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 PDBA Code Journal Type
1 Blank AW, FC, IC, or RC
Blank Blank AW, FC, IC, or RC

This 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 PDBA Code Journal Type
Blank Blank AW, FC, IC, or RC

11.7.1.2 Understanding Distribution Account Fields for Accruals and Clearing

You can enter values in the Business Unit and Subsidiary fields when you create AAI tables. However, if you enter an actual value, that value is used in the account number for all journal entries that are created using that entry in the AAI table. You can enter wildcard values in the Business Unit and Subsidiary fields so that the system creates more detailed account information for certain journal entries. Distribution account fields

This information can help you determine what values to enter in the account number fields when you set up the AAI tables so that the system can automatically derive detailed account information.

  • Business Unit

    Enter *LABOR in the Business Unit field if you want the business unit for all FC journal entries to use the same business unit as the associated labor, even if the employee's home business unit is different.

  • Subsidiary

    Enter *PAY in the Subsidiary field if you want the subsidiary for all CF journal types to be the DBA associated with the journal entry. This feature works for benefits and accrual DBAs only.

    If you are creating intercompany settlements during the payroll cycle, enter *CO in the subsidiary field if you want the company associated with the intercompany settlement to be used as the subsidiary for all IC journal types.

    Note:

    If you enter a subledger in the AAI table, you must also enter a subledger type.

11.7.2 Forms Used to Set Up AAIs for Accruals and Clearing

Form Name FormID Navigation Usage
Work With Accounting JE Rules - Accruals/Clearing W069041B Automatic Accounting Instruction Setup (G05BT4), Dr/Cr-Accruals/Clearing Review existing AAI entries.
Revise Multiple Accruals/Clearing W069041D Click Add on Work With Accounting JE Rules-Accruals/Clearing. Set up AAIs for Accruals and Clearing.

11.8 Setting Up Journal Summarization Rules

This section provides and overview and instructions about how to set up journal summarization rules.

11.8.1 Understanding Journal Summarization Rules

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

Note:

If you use the JD Edwards EnterpriseOne Time and Labor system to generate journal entries, you can set a processing option in the Generate Timecard Journals program (R052901) to override the journal summarization rules that you set up in this task.

Defining journal summarization rules enables you to:

  • Summarize journal entries for specific companies and for 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 that are set up for 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 increases processing time. Therefore, we recommend that you:

  • Set up summarization rules for Company 00000.

  • Avoid setting up summarization rules at the business unit level.

  • Whenever possible, define the same summarization code for each object account range.

11.8.2 Forms Used to Set Up AAIs for Accruals and Clearing

Form Name FormID Navigation Usage
Work With Payroll JE Summarization Rules W06914C Automatic Accounting Instruction Setup (G05BT4), Journal Summarization Rules Review existing journal summarization rules.
Revise Payroll JE Summarization Rules W06914A Click Add on Work With Payroll JE Summarization Rules. Set up or revise journal summarization rules.

11.8.3 Setting Up Journal Summarization Rules

Access the Revise Payroll JE Summarization Rules form.

Object Account

Enter the Object account number where summarization is to begin within the Business Unit or Company specified.

Beginning Obj. Acct. (beginning object account)

Enter the Object account number where summarization is to begin within the Business Unit or Company specified.

Ending Obj. Acct. (ending object account)

Enter the Object account number where summarization is to end within the Business Unit or Company specified.

Sum. Code (summary code)

Enter a value for a rule. 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. Values are:

1: Full summary

The system looks for the same values for:

  • Business unit

  • Object

  • Subsidiary

  • Subledger

  • Subledger type

  • Fiscal year

  • General accounting period number

  • Equipment or asset number

  • Document type

  • Journal reference

Also consider data 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 name.

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.