Three Ways to Post Payroll

You need to establish the accounts that DPS will credit and debit when you process payroll.

There are three ways to establish the accounts where payroll posts:

• Post net payroll directly to a bank.
• Post payroll to a cash account.
• Post payroll to a liability account.

If your company uses the Organization Reporting feature, in addition to these three options, you can also configure DPS to post and track payroll by individual Organization.

Post Net Payroll Directly to a Bank

For this method, DPS posts the credit amount for net payroll to the asset account associated with the specified bank code. If you use organizations, DPS also associates payroll amount with the organization specified for the bank code in Bank Codes Configuration.

To use this method, you select Post net payroll directly to bank on the Payroll Setup form and enter a bank code in the Bank Code field. If this option is selected and your firm enabled cash-basis reporting, DPS makes cash-basis postings to your general ledger.

Post Payroll to a Cash Account

For this method, DPS posts salaries payable directly to a cash account (for example, 101.00).

To use this method, you clear the Post net payroll directly to bank option and enter the cash account in the Salaries Payable field on the Payroll Setup form. You enter the bank code associated with the cash account in the Bank Code field. Entering the bank code causes DPS to record each individual posted payroll payment in Bank Statement Reconciliation.

Post Payroll to a Liability Account

For this method, DPS posts salaries payable to a salaries payable account (for example, 231.00). To use this method, you clear the Post net payroll directly to bank option and enter the liability account in the Salaries Payable field on the Payroll Setup form. If you use this method you have the following options for the Bank Code field:

• Do Not Reference a Bank Code — If you leave the Bank Code field blank, DPS records a payment in Bank Statement Reconciliation at the time you enter the cash disbursement. One payment is listed for the total payroll.

• Reference a Bank Code — If you enter a bank code in the Bank Code field, each individual payment displays in Bank Statement Reconciliation as a payroll payment. If you use this method, use a journal entry to debit the liability and credit cash to avoid having the cash disbursement cause a double entry for the payments in Bank Statement Reconciliation.