Journal entry error when reimbursing employee through payroll

Question

Whenever I reimburse an employee for a non-related expense through payroll, it adds the amount to the WIP account (which it shouldn't) - but then creates a job cost without the amount added in. This makes my general ledger WIP amount for that job out of balance with the job costs. How can I set up a reimbursement payroll calculation so that Sage won't inlcude the reimbursement in WIP? And how can FIX my WIP account that is out of balance with Job costs? The sensible thing is to debit the expense (telephone, in this case) and credit WIP. The problem is, it then insists on creating a job cost, but #1 - the job cost doesn't need fixing and #2 - it doesn't fix the problem of WIP being out of balance with job costs. Sage correctly won't allow you to save a transaction when the job costs don't balance to the WIP amount - but it does this on it's own in payroll. This should not be allowed.

Char DeLange · Answer

Hi Sam 
 Can you please provide a screenshot of the payroll calculation you are using to reimburse the expense? Each account type should be represented appropriately. But also, if the job is flagged as WIP in 3-5, then you are correct it will hit the WIP GL account instead of Direct Expense but both will still create job costs. So if that job is not supposed to be WIP then uncheck the box.

Char DeLange · Answer

I should have been more clear. The calculation in 5-3-1 
 of the item you are using to reimburse. So #159? 
 but is the job supposed to be WIP (owned property) so showing as an asset or not? Most companies do not use the WIP box unless you are a developer or maybe manufacturing

Char DeLange · Answer

This is the issue. You cannot use an overhead acct in all those boxes. Each one must be in its proper designated expense range. However if you need it to hit 6003 then it is best pay it as AP not through the payroll service. You can still do it as direct deposit 
 Or enter the reimbursement as a separate payroll record with no job so it does hit 6003.

Char DeLange · Answer

Sage does handle it. But you are asking it to book to an overhead expense on a job that is designated as WIP. So do the separate payroll record without a job and it will work just fine. You can give it the same check number.

Char DeLange · Answer

That is correct, any "adds" from a payroll calc that is not part of a paygroup assigned to specific job lines (the ones that show up on the calculation tab and not the timecard) will get distributed to the same accounts that the payroll is. So a payroll record with no job would automatically hit the overhead or admin account that is assigned on the employee positions tab. When there are adds and that employee is job costed, the add gets job costed. If the timecard is split between job and non-job time then the add also gets split. But because you have the job labeled for WIP, you cannot post a payroll record to direct expense. You would have to do it as a separate payroll record, or start paying reimbursements through AP so you directly control what account is affected.

Sage Construction & Real Estate

Journal entry error when reimbursing employee through payroll

COMMUNITY

COMPANY

PARTNERS

SUPPORT & TRAINING