Posting payroll results ensures that the personnel expenses within the company are posted to 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 tax office are offset against the Taxes Payable account

• Payables to the social insurance agencies are offset against the Social Insurance Contributions Payable account.

In certain cases, further payables against other recipients can arise.

These payables are cleared in Financial Accounting as follows:

• Payables to employees are effected using payments (usually bank transfers).

• Taxes are based on the Employment Tax Notification and are transferred to the tax office with the other general company tax payments.

• The social insurance contributions payable are based on the Statement of Contributions and are transferred to the health insurance funds using the Transfer to HI Fund function.

The following graphic shows an overview of integration with the posting of payment transactions:

The following steps are performed for each of these payment transactions:

1. The amounts payable are calculated.
2. The amounts calculated are paid. This takes place based on the transaction either automatically or manually.
3. A Payables account to bank clearing account posting is created. You must perform this posting manually.

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