Posting payroll results ensures that the personnel expenses that arise within the company are posted in Financial Accounting and Cost Accounting. The resulting payables are also offset as follows:

• Payables to employees are offset against the Wages and Salaries Payable account
• Payables to the recipients of the deductions retained from the employees are offset in additional payables accounts. This is country-specific.

These payables are triggered in Financial Accounting as follows:

• Payables against the employees are settled by payments.
• The receivables against third parties (for example, tax, social insurance) are settled by payments.

The following steps are performed for each transaction:

1. The amounts payable are calculated.
2. The amounts calculated are paid.
3. A Payables account to bank clearing account posting is created.

When the appropriate account statements are created, the Bank clearing account to bank posting run clears the bank clearing account.