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.