How to set up Payroll integration with Accounting By default, Sage enables the integration, but you may want to check the related settings. How the integration with Accounting works Once you set it up, you can make two types of postings. 1. Salary details Salary Journals Sage Payroll automatically creates a journal in Accounting every time you complete a pay run in Payroll. It posts with the date you’ve used for your pay date when processing the pay run. The journal uses the default ledger accounts set up in Accounting. If you want to record the journals using your own ledger accounts, you need to create manual journals instead. You may also want to do this if you require more detailed reporting. For a list of the journals posted, read What's posted to Accounting when integrated with Payroll. Net wage payment Sage Payroll records the value of your net wages in two different ways. You can record it as a bank payment or as a liability. ▼Record your net wages as a bank payment As you'll actually be paying money to your employees, you can save time by recording this bank payment automatically. This line of the journal will post to the bank account chosen when you enabled Payroll integration. Use this when you pay all your employees from the same bank account. It shows as a single payment, rather than as individual amounts to your employees. ▼Record your net wages as a liability You may not want to automate recording the bank payment and post this at a later date. Sage will instead record the total net wages against the Net Wages ledger account. Do this by choosing Post employee net wages to liability account when enabling Payroll integration. When you make the real life payment, manually enter these details into Accounting.
2. Revenue payment details When you complete a pay run, you can record your payment details to Revenue. You complete this using Record payment. ▼How to record - Select Summary from the menu bar.
- Under Revenue Payment Record, select Record Payment.
- Check the Amount Paid is correct. This is what posts to Accounting.
- Enter a Payment date. This is the date the journals and payment will use.
- Select Save.
Revenue journals Accounting creates a journal using the default ledger accounts set up in Accounting. If you want to record the journal using your own ledger accounts, you need to create a manual journal instead. You may also want to do this if you require more detailed reporting. For a list of the journals posted, read What's posted to Accounting when integrated with Payroll. Revenue liability payment The journal includes the amount you owe Revenue as a payment from your bank. This uses the same bank account where your net wages post to. You choose which account to use when enabling Payroll integration. | 
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