Accounting Splits offer you greater insight into your payroll expenses, as they split payroll items according to how you wish to account for the various expenses associated with particular employees or departments.
You will be able to see the impact of the Accounting Split in the Accounting Info report, which contains a summary of your payroll information. It also shows the effect of the split across the various expense and liability amounts for the pay run – useful for reporting purposes.
Setting Up Accounting Splits
- Click on Settings > Accounting > Accounting Splits > Add Accounting Split
- Insert Split name in the field and click +
- Select the entity / entities (individual employees or Pay Points) that need to be added to the Accounting Split and click Add
- Select Done once you have finished adding all of the relevant entity / entities to that Accounting Split*
- Click Save Changes once you have finished setting up the Accounting Split. You can repeat the above steps as many times as necessary to correspond with your company’s needs and structure
- Once you have finalised your payslips and created a pay run, you can access the Accounting Info report, available on the Pay Runs tab. You will be able to check if your company’s structure and requirements reflected in the Accounting Splits are correct as the impact of the splits is clearly shown in this report
- Should you need to update the Accounting Splits i.e. add or remove an entity, simply follow the steps above to make the necessary changes
*Please note: If an employee is part of a Pay Point that is added to an Accounting Split, and that same employee is included in a separate Accounting Split, then the information for that employee will not be included in the accounting information for the Pay Point Accounting Split.
- For example: an Engineering Department is a Pay Point and is added to an Accounting Split called Engineering Department, with the Engineering Department comprising a Director and one employee. However, there is also a separate Accounting Split for Directors, which includes the Director from the Engineering Department.
- This results in the information for the Director (who is part of the Engineering Department) being included in the accounting information for Directors instead of in the accounting information for the Engineering Department.
Once your Accounting Splits have been set up, the next step would be to map them. More information is available here:
About the Accounting Info Report
The Accounting Info report provides an overview of how your payroll expenses are split and can be used to capture the information in your accounting records.
In this report you can:
- Use this overview to check if the mapping of the payroll items for the Accounting Split is correct
- Preview the accounting information before posting it to your journal in your accounting system