Payroll retrieves the General Ledger account number it needs for any entry by searching through Payroll, Job Cost, and Equipment Cost. As soon as a complete General Ledger account is located, that account is used for the entry. During the search process, if an account cannot be found in one location, the next level of the hierarchy is searched to determine the account to be assigned.

In general, how accounts are searched and retrieved is determined by:

• Payroll Setup—PR Settings is used to indicate whether you are using intercompany accounting, retrieving prefixes, default account numbers, etc.
• Job Cost Setup—JC Settings is used to indicate how General Ledger accounts should be retrieved for all Job Cost entries, even if accounts are entered in Payroll. The retrieval method specified in the GL Entry Settings window determines if General Ledger accounts are retrieved from the job, cost code, or category for Job Cost entries entered in Payroll. For additional information, refer to the Job Cost Help topic, Cost account retrieval. See What is the General Ledger cost account retrieval hierarchy in Job Cost? for details on Cost account retrieval.
• Equipment Cost Setup—EQ Settings is used to indicate if intercompany accounting is used in Equipment Cost, and if account tables are used.

Specifically, there is a hierarchical structure that is used to determine how expense accounts and liability accounts are assigned to various entries.

How General Ledger expense accounts are assigned

The charts below specify how Payroll finds the appropriate General Ledger expense account numbers to use for debit entries. Several locations are accessed for the account number based on the features and applications you are using. For example, the expense account for pays is accessed first in Job Cost for any earnings entered with job information. If an account number is not found in Job Cost, the pay is accessed, then the department, then the pay group, then the time entry for the earnings, and finally the default earnings expense account.

How General Ledger expense numbers are retrieved depends on whether you are retrieving prefixes. Whether or not you are retrieving prefixes is determined by your selection in the GL Entry Settings window when using PR Settings.

Note: As you enter earnings information using Enter Time and Enter Checks and depending on your setup in Job Cost, you may be able to override the General Ledger account that normally is expensed for the earnings by entering an account in the Account column.

How General Ledger liability accounts are assigned

The chart below specifies how Payroll finds the appropriate General Ledger liability account numbers to use for credit entries. Several locations are accessed for the account number based on the features and applications you are using. For example, the union class is the first place accessed for the liability account applicable to fringes. If not found there, the account for the fringe is accessed, and finally the default liability account in PR Settings.

How General Ledger expense numbers are retrieved depends on whether you are retrieving prefixes. Whether or not you are retrieving prefixes is determined by your selection in the GL Entry Settings window when using PR Settings.

Notes:

• Liability entries made from the EQ Detail Entries window (when using Enter Time, Enter Checks, or Change Unposted Time) use the General Ledger retrieval methods in Equipment Cost.
• It is possible, but not recommended, to override this retrieval process by entering a full liability account (prefix plus base account number) for any General Ledger account number.