General Ledger (GL) Accounts on ZenHR

General Ledger (GL) Accounts are crucial in financial systems, serving as the cornerstone for maintaining meticulously organized and precise financial records. We are excited to announce that we have added the capability to assign Payroll GL Accounts at the organizational level, providing flexibility and customization rather than enforcing a uniform setup across the entire branch.

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General Ledger (GL) Accounts on ZenHR

Add Payroll GL Accounts

Payroll GL accounts can be defined on ZenHR by following a few simple steps based on the Journal type specified in your Journal Entries Structure.

Detailed Journal Entries:

If you use Detailed Journal Entries, where transaction amounts for each employee are individually listed within the journal entries, you can assign distinct Payroll GL accounts for each department or work location of your employees.

You can assign the Payroll GL accounts to departments or work locations by navigating to:

User Menu → System Preferences → Organizational Setup → Organizational Levels

Activate your financial integration.

Click on the pen icon in the actions column of an existing work location record to edit it, or click on the “+ Add” button to add a new work location.
Scroll down to the GL Accounts section and click on it to expand the options.

Use the drop-down lists that appear to select all Payroll GL accounts you would like to be used for all employees assigned to this work location.

Notes:

If an employee is assigned to a department or work location without defined GL accounts or is not assigned to any work location or department, the GL accounts defined at the branch level will be utilized.

Clearance GL accounts for detailed payroll journal entries that are not generated at the employee level will always be assigned at the branch level.

Summarized Journal Entries:

If you use Summarized Journal Entries, which include the total amount of transactions grouped by the organizational level of your choice (branch, department, project, section, work location, or hierarchy group). You will be able to assign distinct Payroll GL Accounts to the organizational level you are summarizing your journal entries by.

E.g., If you’re summarizing your Journal Entries by departments, you can assign specific Payroll GL Accounts for each department by following these steps:

Activate your financial integration.
Navigate to User Menu → System Preferences → Organizational Setup → Organizational Levels

Click on the pen icon in the actions column of an existing department record to edit it, or click on the “+ Add” button to add a new department.
Scroll down to locate the GL Accounts section, and click on it to expand the options.

Use the drop-down lists to select all Payroll GL Accounts you would like to be used for this department.

Notes:

When using summarized journal entries by an organizational level that is not assigned specific Payroll GL accounts, branch GL accounts will be used.

When using summarized journal entries at an organizational level without checking Generate a separate journal for each group option, payroll clearance GL accounts assigned at the branch level will be used.

Branch Payroll GL Accounts

In case you would like to use the same Payroll GL accounts across the entire branch, you can set up your Payroll GL accounts in the Payroll setup of your branch by following these simple steps:

Activate your financial integration.
Navigate to User Menu → System Preferences → Financial Setup → Payroll Setup.
Scroll down to locate the GL Accounts section, and click on it to expand the options.

Use the drop-down lists that appear to select all your payroll GL accounts.

Description of Payroll GL Accounts:

Within the Social Security section, you have the option to define your GL accounts pertaining to GOSI/Social Security. This section provides the following drop-down lists:

Employee GOSI/Social Security: This is the GL account related to employees’ GOSI/Social Security contributions.
Company GOSI/Social Security: This is the GL account related to the company's GOSI/Social Security contribution.

Health Insurance GL Accounts:

Within the Health Insurance section, you have the option to define your GL accounts associated with health insurance. This section provides the following drop-down lists:

Employee Health Insurance: This is the GL account related to employees’ Health Insurance contributions.
Company Health Insurance: This is the GL account related to the company’s Health Insurance contribution.

Service Termination Benefits GL Accounts:

Within the Service Termination Benefits section, you have the option to define your GL accounts that are associated with employees’ service termination benefits at the end of their service.

Service Termination Benefits: This is the GL account related to the employees’ service termination benefits (STBs).

General Salary Details GL Accounts:

In the General Salary Details section, you can define the GL Accounts associated with employees' salaries. This section provides dropdown menus for the following GL accounts:

Branch: This account is utilized for offline integrations. You may skip this step if it is not relevant to you.
Total salary: This GL account corresponds to employees' total salary.
Basic salary: This account corresponds to the basic salary paid to employees.
Absence amount: This GL account corresponds to deductions related to employee absences.
Worth basic salary: This account corresponds to employees’ worth basic salary.
Total deduction: This GL account corresponds to the total deduction of employees' salaries.
Clearance account: This is the GL clearance account for salary details.
Net Income: This GL account corresponds to the net income received by employees after accounting for all deductions.
Tax: This GL account corresponds to the amount of tax deducted from employees' salaries as required by tax regulations.
Off-cycle settlements clearance account: This account is used to clear off-cycle salary settlements, maintaining financial accuracy.
Company expenses clearance account: This account is used for clearing financial transactions associated with company expenses.
Vacation in-advance salary: This GL account corresponds to the amount of vacation in-advance salary.
Vacation in-advance salary clearance: This GL account corresponds to the clearance of vacation in-advance salaries.

Provisions GL Accounts:

In the Provisions section, you can define the GL accounts associated with employees' provisions. This section provides dropdown menus for the following GL accounts:

Service termination benefits provision: This GL account corresponds to the provisions for employees' end-of-service termination benefits.
Service termination benefits provision clearance: This clearance GL account corresponds to the provisions for employees' end-of-service termination benefits.
Service termination benefits provision difference: This corresponds to the difference between the Service Termination Benefit (STB) amount, calculated at the end of the service period, and the STB provision amount, calculated based on the user's defined default STB.
Service termination benefits provision difference clearance: This is the clearance account for service termination benefits provision difference.
Air ticket provision: This is the GL account that corresponds to Air ticket provisions.
Air ticket provision clearance: This is the clearance account of Air ticket provisions.
Vacation compensation provision: This is the GL account employees’ vacation compensation provisions.
Vacation compensation provision clearance: This is the GL clearance account for Vacation Compensation provisions.
Extra salary provision: This is the GL account employees’ extra salary provisions.
Extra salary provision clearance: This is the GL clearance account for extra salaries

Add Financial Transactions GL Accounts

Click your user icon on the upper right corner and go to System Preferences → Financial Setup → Financial Transaction Types → Incomes & Deductions.
Open the Financial Transaction Type by clicking “Edit” on the Transaction Type record.

Select the GL Account and Clearance Account.

Then click “Update Financial Transaction Type”.

Add Loans GL Accounts

Go to System Preferences → Financial Setup →Financial Transaction Types → Loan Types
Open the Loan Type by clicking “Edit” on the Loan Type record.

Enter GL Identifier and Clearance account.
Then click “Update”.

Add Overtime GL Accounts

Click your user icon in the upper right corner and go to System Preferences → Financial Setup →Financial Transaction Types → Overtime Types
Open the Overtime Type by clicking “Edit” on the Overtime Type record.

Enter GL Identifier and Clearance Account.
Then click “Update Overtime Type”.

Add Air Ticket GL Accounts

Click your user icon in the upper right corner and go to System Preferences → Financial Setup → Air Ticket Policies
Open the Air Ticket Policy by clicking “Edit” on the Air Ticket record.

Enter GL Identifier and Clearance Account.
Then click “Update”.