About the Employee Liability Element Value

The employee’s portion of a deduction/benefit will be allocated to the default account code containing the liability element value selected in Manage Deductions > Employee Information. The list includes only the payroll liability element values that have not been excluded in Payroll Configuration > Element Restrictions.

When the deduction is applied during payroll processing, the selected liability element value is used as part of the account code for the employee’s liability for this deduction. The fund element value(s) from the account code(s) to which the employee’s salary was allocated will also be used in the liability account code. All other element values for the resulting liability account code(s) will be the default element value.

Example

The element value 0247 was selected as the liability element value.

The first job was allocated to two expenditure account codes:

The second job was allocated to one account code:

The resulting liability account codes for the employee’s portion of the deduction are:

Note: The account codes are consolidated for the two account codes that share the same fund.

Creation of account codes during payroll processing

You have the option to set a configuration value that will cause the system to automatically create the resulting liability account codes if any of them don't exist.

Set the Auto Create Balancing Account Codes in System Configuration to Yes. Then if the account codes don't exist, they'll be created when the employee is submitted to payroll.

 

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