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Change from manual to automatic payroll journals

Created on  | Last modified on 

Summary

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.

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.

Other things to consider

Related Solutions

Manual payroll journals overview

Payroll and Accounting integration