You need to establish the accounts that Vision 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 Vision Organization Reporting feature, in addition to these three options, you can also configure Vision to post and track payroll by individual Organization.
Post Net Payroll Directly to a Bank
For this method, Vision posts the credit amount for net payroll to the asset account associated with the specified bank code. If you use organizations, Vision 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, Vision makes cash-basis postings to your general ledger.
Post Payroll to a Cash Account
For this method, Vision 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 Vision to record each individual posted payroll payment in Bank Statement Reconciliation.
Post Payroll to a Liability Account
For this method, Vision 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, Vision 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.