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Relieving payroll encumbrances
Relieving payroll encumbrances
Description of Issue
How can I clear the encumbered amounts in the GL when an employee leaves or transfers to a new position?
Context
- Enterprise ERP
- Payroll
- General Ledger
- Encumbering
- Encumbrances
Cause
Resolution
There are a few ways to clear the encumbrance balances in the GL.
Option 1: Utilize the Zero Out Accounts option on the Encumbering menu
- Access Account Master (Financials > Set Up/Chart of Accounts > Account Master)
- Search for the account, click Update, check box for Payroll Encumbrance Account, click Accept
- Continue checking this box for all payroll encumbrance accounts
- Can use Global Update option in Account Master to update groups of accounts, see How to update multiple accounts at the same time in Account Master
- Access Encumbrance Proof/Post (Payroll > End of Period > Payroll Encumbering > click Encumbrance Proof/Post)
- Click Define, and enter the criteria, check box for Zero Out Accounts, click Accept, click Output/Post
Option 2: Enter an encumbrance journal in Financials, see How to Create an Encumbrance Journal
Option 3: Reset the encumbrances in Employee Job/Salary and Employee Deductions
If an employee is leaving:
- Set the Remaining salary amount to $0.00 in Employee Job/Salary for all encumbered pays
- If encumber benefits, set the Employer Remaining to $0.00 in Employee Deductions for all encumbered deductions
- Post the Encumbrance Proof/Post report
If an employee is transferring to a new GL account:
- Set the Remaining salary amount to $0.00 in Employee Job/Salary
- And, if encumber benefits, set the Employer Remaining to $0.00 in Employee Deductions
- Post the Encumbrance Proof/Post report
- Enter the new GL account in Employee Job/Salary. Enter the remaining salary that is left for the year
- If encumber benefits, enter the Employer Remaining amount that is left for the year in Employee Deductions
- Post the Encumbrance Proof/Post report
Additional Information
- Please note that GL accounts used for encumbering payroll, should only be used for payroll encumbering and not other types of journal entries.
- See also Understanding Payroll Encumbering
, multiple selections available,
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