Reporting for posting payroll results to Accounting, otherwise known as posting to Accounting, is a subsequent activity that is carried out after a successful payroll run. It usually takes place for each payroll period. During posting to Accounting, all posting data for the payroll results is selected, summarized, formatted, and then posted to the integrated components in Accounting.

Different R/3 components are involved in posting to Accounting, and these components have different data requirements:

• Payroll Accounting (PY)
• Financial Accounting (FI)
• General Ledger Accounting (FI-GL)
• Accounts Payable (FI-AP)
• Accounts Receivable (FI-AR)
• Special Ledger (FI-SL)
• Funds Management (FI-FM)
• Controlling (CO)

The principal organizational concept in Payroll Accounting is the wage type. A wage type classifies personnel expenses according to tax, social insurance, labor legislation, pay scales and other operational characteristics. In Payroll Accounting, wage types are also used for saving additional information in the payroll results, for example, in the form of cumulation wage types (total gross amount or gross tax amount), or in the form of wage types for other important amounts (statutory net pay or transfer amount). The organizational assignments valid for all periods are also created within Payroll Accounting as well as special cost assignments, and the wage types are assigned to this information.

During payroll accounting, additional wage types are created to provide data for cost accounting and these are saved in the payroll results, for example, the portion of the wage that is not applicable on public holidays.

Financial Accounting is responsible for the flow of payments. The payment flows are posted to particular accounts depending on the type or identity of the receiver, and on the due date of the payment. Financial Accounting can also provide an overview of funds utilization in the enterprise. Sometimes personal accounts are managed, for example, for loans, advances or deposits. In this case, the personnel number is often used for account determination.

In Funds Management, personnel expenses can be assigned to the Fund center and Funds account assignment objects.

Cost Accounting splits the costs according to the type (cost type = G/L account) and assigns them to cost centers or to other cost assignment objects (additional account assignment). Posting to accounting allows you to post costs to the following account assignment objects:

• Cost center
• Order
• Further account assignments:
• Cost object
• Work breakdown structure element
• Network number
• Activity number
• Sales order
• Position in customer order

To ensure that the process of posting to accounting is completed successfully and without problems, please make the following settings:

• Customize the components involved (wage types, accounts, other account assignment objects)
• Customize Reporting for posting to Accounting

The individual components involved in posting to Accounting can be organized as follows:

• All components are in the same clients of the R/3 System.
• The accounting components are in a different system to the Payroll Accounting application component. This could be a different R/3 System, an R/2 System, or a third-party system.

If the individual components are distributed in various systems, see setting up Posting to accounting.

Posting to Accounting allows you to perform the following functions: