Monday, September 10, 2018

Allocating Payroll Expenses of an Employee to Different Departments

NetSuite currently allows only one department to be selected per employee, thus, allocation of payroll expenses to multiple departments for a single employee is not yet supported via payroll.

Below are the steps on how to create a manual Journal Entry that would allocate payroll expenses to different department:

1.      Navigate to Transactions > Financial > Make Journal Entries

2.      Set journal entry's correct information (it is advised that posting period and date follows the paycheck's posting and check date).

3.      All line entries that would be entered in the journal entry should be associated to the specific employee.

4.      First line of the journal entry should be a Credit to the payroll expense account for the total amount of the expenses that should be allocated to other departments aside from the one selected in the transaction, line should have the same Department as that which was committed in the paycheck. (Credit because paycheck's GL Impact is Debit to payroll expense account).  Please note that account used in this step (4) is for illustration purposes only.  GL account to be selected is customer's option. 

5.      Next lines of the journal entry would be for the same expense account but would be the corresponding Debits for the different Departments that the amounts should be allocated to.

  • Notes:
    • Before creating the journal entry, user may opt to manually calculate (if necessary) the total expenses that would have to be allocated.
    • Journal entry created above can be memorized if user has the same exact amounts every payroll.
    • GL account to be used is user's option.
    • Enhancement 141934 has been filed as a request for the automation of the effect of the above discussed journal entry.


No comments:

Post a Comment