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 Overview

Use the following procedure to set up postings for vacation liability, sick leave liability, and other liability. To make sure liability amounts are reversed when benefits are paid, you must create an earnings code for each liability account.

 

To set up liability postings

1. Select Payroll Setup menu > Earnings Code Maintenance.

2. Create earnings codes for vacation, sick leave, and other benefits.

1. In the Earnings Code field, enter an earnings code. For more information, see Earnings Code Maintenance - Fields.

2. In the Description field, type a description for the earnings code.

3. In the Type of Earnings field, select the appropriate type of earnings for this earnings code, such as Vacation Pay.

4. Select the Post Exp. by Dept. check box, and click Accept.

3. Select Payroll Setup menu > Department Maintenance.

4. Enter the Department. For more information, see Department Maintenance - Fields.

5. In the Vacation Liability, Sick Liability, and Other Liability fields, enter the appropriate liability general ledger accounts.

6. In the Vacation Expense, Sick Expense, and Other Expense fields, enter the appropriate expense general ledger accounts, and then click the Earnings tab.

7. In the Earnings Code field, enter the appropriate vacation, sick leave, or other benefit earnings code.

8. In the Expense Account field, enter one of the following liability accounts, and click OK:

9. Enter the vacation liability general ledger account, if the vacation earnings code is entered in the Earnings Code field.

10. Enter the sick leave liability general ledger account, if the sick leave earnings code is entered in the Earnings Code field.

11. Enter the other liability general ledger account, if the other benefit earnings code is entered in the Earnings Code field.

9. Repeat steps 7 and 8 for each additional vacation, sick leave, or other benefit earnings code.

10. Click Accept.

Vacation liability, sick leave liability, and other liability accounts are set up for posting.