How to automatically create journals in Accounting Start each time you complete a pay run.
Description
If you subscribe to both Accounting and Payroll, you can automatically create journals in Accounting with details of wages. This happens each time you complete a pay run.
If you have previously migrated your data from Sage 50 or another provider, integrate Payroll and Accounting.
Here we'll tell you:
- How to set up the integration with Payroll
- How your system records salary details, wage payment, and pension payments
Resolution
How the integration with Payroll works
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 continue 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.
NOTE: You can also automatically record your payment to HMRC and pension providers. For more information, read Integrate Payroll with Accounting.
Switching from manual to automatic journals
Before you set up the integration:
- Make sure you have completed manual journals for your previous pay periods.
After setting up the integration:
- A journal automatically creates each time you complete a pay run
- Make sure you don't complete a manual journal for the same pay period
Before we can record the automatic journal:
- We need to set up the default ledger accounts used to create the journal
Once you allow the integration and complete a pay run, we create the required ledger accounts for you.
If any of your ledger accounts use the same code, we'll use the next available code number.
Set up the integration
You carry out the process in Sage Accounting.
▼Steps to enable integration for Accounting Start
- From More, select Apps & Connections.
- Select Sage Payroll.
- Select Enable Journals from Payroll.
- Choose the Default Payroll Bank Account.
- Choose whether to record your net wages as a bank payment or as a liability.
- Select Save to enable the integration settings.
Recording net wages
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.
Other things to consider
▼Bank feeds If you use a bank feed:
Your bank feed will also import the wage payments.
To avoid creating duplicates, either
- Delete the transactions imported through the bank feed, or
- Match the imported transactions to the bank payments created by Payroll
▼Manage existing ledger accounts You may have made manual payroll journals before. In that case, enabling payroll integration creates extra ledger accounts in Accounting.
On your reports, you'll see values in the old and the new ledger accounts. To report on the total wages over the year, add up the totals of both ledger accounts.
You can keep both sets of ledger accounts or move the values from the old to the new ledger accounts using a journal.
If you keep both sets of ledger accounts, hide the old ledger accounts so they don't get selected when new transactions create.
▼Hide ledger accounts - From Settings, then Business Settings, select Chart of Accounts.
- Open each ledger account and clear the Visibility check boxes.
▼Manage your settings You can manage the connection between your Payroll and Accounting subscriptions at any time. Go to Payroll & Accounting Integration Settings in Accounting.
Related Solutions
Africa
Asia
Australia
Canada
France
Kenya
Nigeria
Portugal
South Africa
Spain
United Arab Emirates
United Kingdom
United States
Germany