Payroll Accruals

posted Jun 30, 2015, 8:45 AM by Vanessa Boyle   [ updated Jul 27, 2016, 3:12 PM by Peyri Herrera ]
UPDATED JULY 2016

From MITI: Year End is here and one of the many accruals that are posted each year is payroll accruals. This is to accrue time worked in June but paid in July. In PeopleSoft the process is a bit easier than it was in Legacy Payroll. Unlike the separate screen in Legacy where districts choose what is accrued, this is an automated process in PeopleSoft. 

Time Entry

In PeopleSoft HCM, time entry is done just as in any month. When time is entered into the system, the pay period to which it applies is indicated. In this case, during July you posted time and indicated that it was time worked in June on the normal Timesheet. Other adjustments made in July that affect June were entered on normal Paysheets. There are no special screens that you had to remember to use.

Accrual Journal posting into June

Once the time and adjustments were entered into HCM, the normal confirm process and other regular payroll processing for the July payroll were completed. A special accrual process will be run to generate a journal entry file that will be used to post the payroll accruals into PeopleSoft Financials. The upload process will create and post one journal entry for each district. This accrual posting does not require any steps or effort by the district.

Accrual Journal reversing into July

When the accrual journal posts into June, it will be marked as a reversing journal. This means that it will reverse in July.

The entries:
June Accrual Journal
posts payroll accrual

July Accrual Reversal

July Payroll – Regular Posting
  • Expense accounts (Debit) 
  • 9510000 (Credit)
  • Expense accounts (Credit) 
  • 9510000 (Debit)
  • Expense accounts (Debit) 
  • 9910xxx (Credit)

Note that once the July payroll posts, the expense accounts net to zero for the accrual. The only expense that will show as an actual expense in July will be the July payroll. All of the accrued expenses will have been moved out of the expense lines into 9510.

For navigations to screens and FAQs about the Payroll Accrual Process, please see http://crc.sdcoe.net/announcements/peoplesoftnews/payrollaccrualprocessinpeoplesoft.