Example: Posting a Salary 

Payroll Results (HR)

Payroll calculates wage types with different business tasks. Some of these wage types (for example, the primary wage type MA10 Standard Pay or the secondary wage type /559 Bank Transfer) contain information that is relevant for Accounting. Thus, from the point of view of Financial Accounting, Wage type MA10, Standard Pay, contains a company-related expense while the wage type /559, Bank Transfer, contains a payable.

Within Posting to Accounting, wage type /559 Bank Transfer, is posted to a payables account. In this example, the wage type is posted to the account Wages and salaries payable.

The wage type MA10 Standard Pay is posted to an expenses account. In this example, it is posted to the Salaries account. As additional account assignment, this posting contains the master cost center of the employee, for example, cost center 600 Production.

Posting in Financial Accounting (FI)

Posting payroll results in Financial Accounting takes place in the following way:

 

Account

Debit

Credit

 

Salaries

2,000

 

to

Wages and salaries to be paid

  

2,000

The posting of payment transactions is not part of the technical process of Posting to Accounting. The procedure will, however, be described in the following documentation in order to demonstrate this example's relevance for business.

If you make payments to the employee, you must (within this payment transaction) make postings from the payables account above to the bank account involved, so that the clearing account is clear again after both posting transactions.

The following posting is to be performed within the payment transaction:

 

Account

Debit

Credit

 

Wages and salaries to be paid

2,000

 

to

Bank account

  

2,000

 

Posting to Cost Accounting (CO)

Cost Accounting interprets the posting of payroll results as the posting of primary costs to the value of the salary paid to the employee (2,000 euro). These costs are posted to cost center 600, Production, with the cost type Salaries.