Salary Accounting - An overview

An accounting process refers to the generation of financial entry for posting into the books of accounts.  Once the payroll is processed, it must be recorded in the finance books in the form of accounting entries.  This component is used to record the processed pay element values to the books of accounts through the following activities that are briefly explained below.

Setting Salary Accounting Status

This activity is used to either abort or reset a Salary Accounting Process.

Aborting the salary accounting process - Aborting an accounting process, stops processing of salary accounting in between.

Resetting the salary accounting process - Resetting an accounting process reverses all that has been done during processing.

Processing Salary Accounting 

This activity is used to process the salary accounting for the specified payroll.  Processing salary accounting implies that the system generates financial accounting entries.  This posting is carried out cost center wise and account wise.   The system generates the debit and credit values, for posting them to the applicable cost center and account code.

Authorizing Salary Accounting

This activity is used to authorize salary accounting details of a payroll for a given process period.  After salary accounting is carried out in the “Process Salary Accounting” activity, the details must be checked and posted to the books of account. By authorizing, you indicate that the salary accounting details are verified and posted in the respective finance books. 

Viewing Salary Accounting Details

This activity is used to view details of processed salary accounting for a payroll. These details can be viewed cost center wise, account wise or by both cost center and account wise

Getting familiar with the activities inside

The following table lists the activities involved in the salary accounting component.