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Introduction

Use the Create Other Trans. Docs (Payroll Expenses) job, to view the payroll cost of your company's employees and transfer it to the Financials module. From there, you can track the total employee's cost, i.e. the expenses from the payroll module, but also from all the sections of the Commercial management (e.g. travel expenses, mobile telephony, vehicles, etc.). 

The job massively creates Other transactions documents for the employees, the Insurance & Pension Funds (IPF or Funds) and the Tax office, including all the debits/credits set per Payroll element and Fund.

You will find it available:

  • in the Jobs Menu → H.R. & Payroll → Payroll Period Jobs,
  • in the Jobs Menu → Financials → Other transactions,
  • through the Employees List, by right-clicking on an entry/ies, to run the job for specific employees.


Configuration in Soft1

In short, the proper functioning of the job requires that:

  • the employees, Funds and Tax Office, that participate in the creation of the documents, are linked to Trading parties.
  • the proper debits/credits are set, in all the Payroll elements and Funds types involved in the creation of the documents.

Employees parameters

In the Employees Parameters (Parameters → C.R.M. → Employees - Contacts) select the Trading partner entity, i.e. the type of trading party in which the employees' transactions will be monitored. For example, by selecting Creditors, the employees' documents created by the job, will be Creditor other transactions.

Next, you have to assign the Trading party (here Creditor) to the Employee, through the Employee's Other data tab. This will be the trading party, that will participate in the Other transactions documents.

Payroll parameters

In the Payroll parameters (Parameters menu → H.R. & Payroll), set the Expense document data, that will be created by the job, i.e.:

  • select the Funds/Tax section, i.e. the type of trading party in which the Funds' and Tax office's expenses will be monitored. For example, by selecting Creditors, the Funds' and Tax office's documents created by the job, will be Creditor other transactions,
  • assign the Tax office to the trading party (here the Creditor), that will participate in Creditor other transactions. 💡 See how to assign the Fund to a Trading party in step 4,
  • set the Payable amount payroll elements, e.g. the PE 3200 "Payable amount", the PE 3168 "Gross salary", e.tc. that will participate in the employees' Other transactions documents,
  • set the Taxation payroll elements, e.g. the PE 3195 "Period tax amount", that will participate in the tax office's Other transactions documents,

Period payroll elements per employee

For each Payroll element you stated above in the Expense document data, you will need to set a Debit/Credit.

In the Period payroll elements per employee (Parameters menu → H.R. & Payroll, → Calculation parameters), select the Payroll elements, and define the Debits/Credits.

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You can set the same or separate Debit/Credit per Payroll element. It is suggested that you use separate Debits/Credits, to achieve better results analysis.

Insurance & Pension Funds Types (Types - IPF)

In the Types - IPF (Parameters menu → H.R. & Payroll → Pension Funds), set the data that will participate in the Other transactions documents of the Funds, i.e.:

  • the Trading party, e.g. the Creditor "Social insurance fund",
  • the Employee and Employer contributions debits/credits,
  • the Total contributions debit/credit,
  • the Other Employee/Employer Payroll Data, e.g. the PE 3032 "Arrears deductions" etc. (Note that in each PE you select, a debit/credit must be defined.)

Operational scenarios

Before running the job you need to decide how you want the Employees Payable to be calculated and displayed in the expense documents, e.g.:  

  • only the payable amount of employees,  
  • analysis of the payable amount, i.e. an analysis of the expenses from the calculation of which the payable amount is derived (e.g. Gross salary, employer contributions, employee contributions, Taxes, e.tc.). 💡This scenario could be suitable for agreement with the G/L Accounting entry. 

Scenario #1: Calculation based on the employees net payable amount

💡 First of all, in the Payroll parameters, you need to select the PE 3200 "Payable amount", in the Payable amount payroll elements field.

1. Select the Payroll months (payroll periods) and

2. the Calculation date range, based on which the employees' payable amount will be calculated.

(Activate the Analysis into cost center, in case you want the results to be calculated per cost center.)

3. Set the Payable analysis to No, to calculate the payable based on the PE 3200 "Payable amount", selected on Payroll parameters.

4. Select Update from payroll calculation and

5. Run the job.

View the employees' payable, on the Payable (employee) tab.

In the Fund contribution tab, view in detail and per Fund, the contributions that correspond to the employee and the employer. 

In the Tax on income tab, see the payable to the Tax Office amounts. In the example, the calculated taxes correspond to the payroll element PE 3195 "Period tax amount", selected in the Payroll Parameters.

Issue the expense documents

Fill in the Expense document data.

Set the registration Date of the expense documents.

In the Transaction series (Employees)/(Ins. & Pension Funds)/(Tax office), select the corresponding series, e.g. the Creditors Other transactions series, in case you have selected the employees, funds and Tax office to be Creditors.

Select Issue documents and Run the job.

Job results

The job creates as many Other transactions documents as the Employees, the Funds and the Tax Office, that have been calculated.

The Employees' and Tax office's documents include the debits/credits that correspond to the Payable amount payroll elements and Taxation payroll elements, selected on Payroll parameters.

The Funds documents include the debits/credits stated in the Types - IPF.

Tip!

After issuing the expense documents, you can create payment wire transfers for the employees of your company (e.g. creditor wire transfers), either manually or in bulk, through the Payments Plan (wire transfers) job.

Finally, you can generate SEPA bank payment files in bulk, using the Create SEPA file job. 

Scenario #2: Calculation with analysis of the employees' payable amount.

In this scenario, the functionality differs only in terms of the calculation of the Employees Payable and the way the expenses are displayed in the Other transactions documents.

💡 First of all, in the Payroll parameters, you need to select the PE 3168 "Gross salary", in the Payable amount payroll elements field.

In the job, after you fill in the necessary fields (see scenario #1):

  • Set the Payable analysis to Yes,
  • Select Update from payroll calculation and Run the job.

View on the Payable (employee) tab, the employees' payable that resulted from the calculation below:

Gross salary + Employer contributions - Period Tax Amount - Total contributions

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In the Fund contribution and Tax on income tabs, the contributions to the Funds and the payable to the Tax office are calculated in the same way as described in Scenario # 1.

Tip!

Enable Analysis into cost center, by selecting Cost values only, to analyze per cost center only the payroll elements that are real costs to the company (e.g. Gross salary and Employer contributions).

Job Results

After you Issue the documents (see in scenario #1), the Other transactions documents of the Creditors, include the Debits/Credits, that were stated in the Payroll elements and the Types - IPF, i.e.:

  • the debit/credit 55.00.00.0000 "Total contributions payable", stated in the Type of the Fund, in the Employee contribution field,
  • the debit/credit 54.04.00.0000 "Taxes", stated in the PE 3195 "Period tax amount",
  • the debit/credit 60.03.00.0000 "Employer contributions", stated in the Type of the Fund, in the Employer contribution field,
  • the debit/credit 60.00.00.0000 "Employees Gross Pay", stated in the PE 3168 "Gross salary". 


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The Tax office's and Funds documents are created in the same way as described in Scenario # 1.

At the same time, the expenses included in the Other transactions documents of the Creditors, agree with the payroll elements found in the Employee's Payroll financial data.