Journalising allows you to establish a link between the salary administration and the financial administration.
A large part of the journalising is configured at a high level. In this process the CLA, the chart of accounts and the journal structure are crucial:
- The CLA contains the wage components that you can journalise. For each wage component you specify whether you want to journalise it and whether you want to allocate it.
- The chart of accounts contains all ledger accounts (number and description). These have to exist in your financial administration as well. For each ledger account you specify how it can be allocated.
- In the journal structure you link all wage components per CLA to a ledger account and a contra account. In addition, you specify one fixed contra account in the journal structure.
For each employer, you define the journalising, link a journal structure and define how Profit should allocate the entries. In the below diagram the allocation is not taken into consideration:
You have the following options, which you set per employer:
- You allocate by employer, employee, job or organisational unit. In addition, Profit also allocates by the position allocation that you can define per employee.
- You allocate by cost centre or cost unit. If you select this option, you also have to specify the cost centres and cost units at the employer level. You then link a cost centre and cost unit to each employee.
- You allocate based on the project actual costing.
If you want to allocate, you will also have to configure the wage components and the chart of accounts correctly.
The financial administration receiving the journal entry, must have all the required ledger accounts, cost centres and cost units. If you integrate the journal entry to Profit Financieel, Profit Financieel must have all the required ledger accounts, allocation axes, cost centres and cost units.
You allocate by organisational unit to allocation axis 3.
The administration must contain all ledger accounts from the chart of accounts of Profit Payroll. The allocation axis must have been activated in the desired administration and all (codes of) organisational units must have been defined as cost centres.
Integration with Profit Financial
You can integrate the wage journal entries with Profit Financieel.
The configuration of the integration of Profit Financial and Profit Payroll looks as follows in a diagram:
Click on a step in the above procedure to go to the explanation of that procedure step.
In the above diagram you see that the ledger accounts and the allocation axes are not linked. For example, if you make a change to the ledger accounts in Profit Financieel, you also make the change in Profit Payroll.
Some organisations journalise employer data separately in different administrations. In that case, a separate administration for each employer is added in Profit Financieel and you link these administrations in the properties of the employers. In this way, Profit journalises to a different administration for each employer and you retain an overview of the journal entries in the financial administration for each employer. For each financial administration you add a journal. You specify the journal you want to journalise to in the properties of the salary processing plan.
Journalising a change to a job line
The position allocation affects journalising in Profit Payroll. If an employee gets a new job line, Profit journalises the whole period based on the new job line. If you want to use the start date of the new job line for journalising, you need to add a position allocation to the properties of the job line.
- Add the Payroll chart of accounts
The chart of accounts contains the ledger accounts for journalising the wage costs. This chart of accounts has to seamlessly match the chart of accounts of your financial administration.
- View the Payroll chart of accounts
The chart of accounts contains the ledger accounts for journalising the wage costs. You can use the Chart of accounts configuration (Profit) report to display the configuration of the chart of accounts. This report shows the allocation for each ledger account
- Journal structure
In the journal structure you link a debit and credit account to each wage component.
- Configure an employer
For each employer you determine how Profit journalises. In Profit Payroll, you can generate a wage journal entry per period and you can transfer the entry to Profit Financieel or export it.
- Wage component journalising
For each wage component you specify how Profit journalises it.
You determine if Profit automatically generates the journal entry following the approval, transfers the journal entries to Profit Financieel or exports them.