E1: 07: Automatic Accounting Instruction (AAI) Journal and Document Types (Doc ID 625868.1)

Last updated on APRIL 15, 2024

Applies to:

Purpose

Overview

This document describes the journal and document types for Payroll AAI (Automatic Accounting Instructions) tables.

AAIs assign account numbers to the journal entries created in the Payroll or Time Accounting systems.  During the payroll cycle, the system creates a journal entry of every calculation for every employee.  These calculations include salary and wage expenses, burden, cash disbursements and liabilities.  As an option, you can create journal entries for labor and equipment billings and accruals for payrolls that cross accounting periods.  The AAIs control the account to which each journal entry is assigned.  After the journals are created and assigned account numbers, the system summarizes them and passes them to the general ledger.

You can establish AAIs separately for each company and general rules for the default company 00000.  The rules are flexible and are changeable within the payroll cycle.  For example, labor distribution account numbers can be assigned by company, business unit, group (union), job type, job step, and pay type.  If some employees do not follow general rules, you can specify instructions for labor distribution at the employee level.

You can set up rules to summarize journal entries.  As full detail exists in payroll or time accounting history, you might not need full detail in the general ledger.  You can set up rules to summarize account ranges and business units.

You can post the journals either automatically or manually for each payroll.

When the system creates a journal entry for the general ledger, it codes the journal entry with a document type and reference number.  The document type is a two-character code that classifies payroll journal entries into one of seven document types, T1-T7.  The reference number, composed of journal type and general ledger date, further identifies the source of each journal entry within a document type.

The journal entry reference number becomes the Reference 2 value in the actual Account Ledger table (F0911).

Company 00000 is the default company in all of the AAI tables.  Always start by setting up generic entries in Company 00000.  Such entries provide a source for default accounts for all of the various types of journal entries.  After you complete table entries for Company 00000, you can enter other companies.  Entries for other companies should only be exceptions to the generic rules established under Company 00000.

Each time the system creates a journal entry, it follows a hierarchy of search criteria to determine which distribution account to debit or credit.  The system begins the search with basic data related to the type accounting entry, referred to as the search argument.  The system creates a search argument from the system data, such as the timecard, and searches the accounting rules tables for the table entry that best matches the search argument information.

On the first search, the system uses data appropriate for that table and looks for a match on all fields in the search criteria section of the form (the entire search argument).  Then, one by one, the system drops elements from the search argument until it finds a matching table entry.  At the lowest level, the system tries to match only the journal type.  In addition, you can have a line in an accounting instruction table that has no search criteria other than the journal type.  This is the default line.

the system first searches the rules for a specific company.  If it finds no applicable rules (matches) for that company, it continues with the rules for Company 00000.

Scope

The document is intended for users who are setting up Payroll AAIs for E1 Payroll processing.

Details

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