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.