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 Overview

Use the following procedure to set up postings for the time off liability. To make sure liability amounts are reversed when time off 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 each of the time off types defined in Payroll Options.

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 type of earnings for this earnings code, such as Vacation Pay.

   Note The descriptions for the time off types are based on what is entered in Payroll Options.

4. Select the Post Expense 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 Time Off Accrual Accounts area, enter the appropriate general ledger liability and expense accounts.

6. Click the Earnings tab and, in the Earnings Code field, enter a time off earnings code.

7. In the Expense Account field, enter the liability account that you are using for the time off type that corresponds to the earnings code that you entered.

   For example, if you entered the vacation earnings code, enter the vacation liability general ledger account.

8. Add additional earnings codes and liability accounts for the remaining time off types.

9. Click Accept.

The time off liability accounts are set up for posting.