How can I enter payroll deductions for employee purchase?

How can I enter payroll deductions for employee purchase?

Postby M1EnterpriseTech » Mon May 08, 2017 10:06 am

Employee purchased parts on a work order, and the invoice was posted "on account" to the employees receivable account. How can I show payments made to the AR through payroll deductions?

To make payments through payroll deductions, DO NOT enter the purchase amount as a payroll advance.
This will add it to the bank account selected in the payroll entry and you do not want that. Instead follows steps below:

    Go to Setup on the home ribbon
    Type Payroll Agencies in the search box and select it from left panel
    Click Add from the ribbon
    Create a Payroll Agency called " Employee Purchase"
    Create a liability under Employee Purchase called "Employee A/R"
    Click Ok

Next payroll entry for the employee, proceed by entering the hours and rate as normal.
Now go to the Payroll Liability section to enter the payment amount to be deducted from
the employee's paycheck using the Employee A/R liability account.

Next you will need to clear the payroll liability of the payment, and offset the entry to the employee's
receivable account using the GL Adjustment tool as follows:

    Debit the Payroll Liability- Employee | Employee Purchase/Employee A/R account
    Credit the Employee's Receivable Account
    Post

This will now show a credit in the Employee's A/R account.

    Go to Accounting Module on the home ribbon

    Select Receivables

    Highlight the Credit /Payment Amount

    Select Apply Credit from the ribbon.(You can now see the payment and the correct balance due, if any.)

Do these steps for each payment made as a payroll deduction until employee purchase is paid in full.
M1EnterpriseTech
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Posts: 26
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Re: How can I enter payroll deductions for employee purchase

Postby M1EnterpriseTech » Fri May 26, 2017 11:26 am

IMPORTANT SIDE NOTE

Please know that when you do a manual entry to a Payroll Liability without an employee selected the system will automatically

create an employee called "Ledger Transactions". You will only see this employee name referenced in Payroll Reports that include

Payroll Liability entries.
M1EnterpriseTech
25 Club: Starting Contributor
 
Posts: 26
Joined: Wed Aug 24, 2016 9:22 am

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