Integrate Payroll with Accounting

Summary

How to integrate Sage Payroll with Sage Accounting.

Description

Subscribing to both Sage Accounting and Payroll saves time when you pay employees. You can post:

A salary journal including the employee net pay payment
A journal for your Revenue payment details

NOTE: You must register Payroll and Accounting with the same email address to link them.

CAUTION: If you use Bank Feeds, the bank payments will also import from your bank. To make sure you don't duplicate these payments, make sure you match or delete them from your bank feeds import.

Resolution

How to set up Payroll integration with Accounting

By default, Sage enables the integration, but you may want to check the related settings.

▼Steps to enable integration for Accounting

Open Accounting.
From Settings, select Apps and Connections.
Select Sage Payroll.
Select Enable Journals from Payroll.
From the dropdown box, select your Default Payroll Bank Account.
Choose whether to record your net wages as a bank payment or a liability.
Select Save.

▼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.

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.