pastel question

[mango]

Hi Mike,

Yes.. this was processed from cashbook. Thing is.. i was told we need to do payroll journals in order to see "cost to company" and obviously this will report as "Nett salary" and Paye/UIF under control accounts.

Please note that the 2 accounts called "control accounts" is under current liabilities so i need to credit them and debit "salaries and wages".

Am i worrying to much about this or what is the norm in the industry? Do they also put it in a "control account" the journal to correct expense account?

[Mike C]

Ok - we will need to hear from others here.

I use Pastel Payroll which does the breakdown of "cost to company" and then put the Salaries to "Salaries and Wages" expense account and the UIF/SDL to it's respective expense account. I don't use control accounts for these. Perhaps the Auditor does it for me at the end of the year as he asks for a printout of the Payroll Report for the year.

[Dave A]

Hi there,

Sorry...i think i wasnt clear enough so ill explain again.

Lets say we have 1 employee called Mike , hes earning R 10 000 gross per month in the 2014 year.

This is what i did:
Nett salary is R 9 106.67 -- Credit bank and debited "Control account - salaries & Wages"
Paye & UIF R 993.33 -- Credit Bank and debited "Control account - Paye / UIF"

My question now is was this done correctly? if so how do i do the month end journals?

I'm not at all up to speed on Pastel, but that looks like there are a whole lot of entries missing. In an effort to assist I've attached a sample to illustrate the "short route" journal entry equivalents you are trying to achieve as an end result.

Options for tracking cost to company probably varies across the different accounting software platforms.
As a Quickbooks user, I have the option of using the Employee List functionality to effectively "tag" the expense lines against Joe and generate reports specifically relating to Joe's payroll expenses.

I expect other platforms have some sort of equivalent.

In principle, the presence of a control account generally indicates a separate ledger or "sub-system" that deals with the detailed breakdown of transactions within that control account. Common examples would be Debtors and Creditors. Perhaps Pastel has something similar going with Employees?

[Mike C]

I have the option of using the Employee List functionality to effectively "tag" the expense lines against Joe and generate reports specifically relating to Joe's payroll expenses.

I expect other platforms have some sort of equivalent.

Perhaps Pastel has something similar going with Employees?

I am not aware of anything like this in the standard version of Pastel Xpress. Perhaps it is included in an additional module that one can purchase.