Monday, September 10, 2018

Adjust General Ledger Entries for Payroll Posted to an Incorrect Posting Period

NetSuitefollows cash basis in recording payroll transactions. This is in accordancewith the IRS as this recognize wages and taxes on the actual receipt of funds. Inthe line with this, the following date and field are available in NetSuitePayroll which may affect the company reporting.


Check Date

-This is the date used in recording GL Impact of Employee Paycheck, BankRegister, and is also the basis for Payroll Reports.


Posting Period

-This is the basis of the Financial Reports if Report by Period via Home > SetPreferences > Analytics Tab is set to either All Reports or Financials Only. 


IfCheck Date is different from Posting Period, NetSuite Payroll Reports will bedifferent from the Financial Reports. This normally happens if there arepayroll that cross over two months, i.e. if periodto pay was related to the previous month, but check datefalls on the next month.


Onthese cases, the user has the following options to move the GL Impact to theperiod they want payroll expenses to be reported.


1. Create two journalentries


FirstJournal Entry to reverse GL Impact of the paycheck

Dateand Period to be selected should be the same on the committed paycheck.


Date= 02/01/2017

Period= January 2017


SecondJournal Entry to re-post in the correct period.

Dateand Period to be selected will depend on which dates the user wanted the GL Impactto be posted on Financial Reports.


Date= 01/31/2017

Period= January 2017


Thisoption is also applicable if the company records payroll expenses using accrualmethod.


2. Reverse theoriginal paycheck and Reprocess by creating a new paycheck.



a.    For Premier payroll users, this step may result to over collection of taxes orfunding issues if the reversal and reprocessing is not done within the samecut-off (before 2pm Pacific the same day). 


b.   Ensure to review the Check Date and Post Date and compare with the dates on theoriginal paycheck.



The option to use thePeriod Ending Date or the Posting Period as the basis for GL Impact is currentlybeing tracked via Enhancement 155245






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