Integrate Payroll with Accounting
If you subscribe to both Accounting and Payroll, save time when you pay employees and send salary details directly to Accounting.
Here we'll tell you
- How to turn on the integration with Accounting .
- How to choose whether to create a bank payment for your net wages or enter this as a liability.
How the integration with Accounting works
Once set up, a journal is created in Accounting every time you complete a pay run in Payroll.
The journal is always recorded using the default ledger accounts set up in Accounting.
If you want to record the journal using your own ledger accounts, then you may need to continue creating the journal manually. You may need to do this if you want to run more detailed reporting or you want to use a different set of ledger accounts.
If you want to watch a video that explains how to set up the integration with Accounting, you can do so below:
Set up the integration with Accounting
From Settings, select Payroll & Accounting Integration Settings.
Select Allow Payroll to create journals in Accounting.
Choose whether to record your net wages as bank payment or as a liability
Save your changes.
- Click Save.
You’ve successfully integrated your payroll with Accounting. The next time you complete your pay run, the salary information posts to your accounts.
Record net wages as a bank payment
As you'll actually be paying money to your employees, save time by recording this bank payment automatically when you complete your pay run.
Use this when you pay your employees from the same bank account and are happy to show this as a single payment, rather as an individual amounts to your employees.
- Just select Post employee net wages to the default bank account and choose the bank the payment will come out of.
When you choose Record Payment / EPS from the Summary page in Payroll, the corresponding bank payment is created in Accounting.
Don't forget you still need to actually send the money to HMRC!
If you use bank feeds
Remember that the bank payment will also be imported from your bank.
To make sure you don't duplicate this payment, make sure you delete it from your bank feeds import.
To discard a transaction, just select the cross to the left of the transaction.
Record net wages as a liability
If you don't want to automatically record the bank payment, then your total net wages are recorded against the Net Wages ledger account. Just choose Post employee net wages to liability account.
You will also need to
- Enter details of the bank payment to show when you have paid your employees,
- Enter details of the payment made to HMRC.
For information of the how salary details are recorded in Accounting and details of the other transactions you may need to create, see https://help.sbc.sage.com/en-gb/accounting/settings/settings-payroll-integration.html
For details on how to create salary journal without using the integration, see https://help.sbc.sage.com/en-gb/accounting/adjustments/salary-journals-manual.html