SAP system tax wage types can be posted to different general ledger (G/L) accounts in the financial accounting (FI) system based on the tax authority. Learn how the posting of payments functionality enables you to post an employee’s net pay (wage type /559) to two different G/L accounts in FI based on the employee’s payment type (i.e., direct deposit or paper checks). Learn the required process and configuration steps. The distribution of the net pay to different G/L accounts enables easier cash reconciliation.
During payroll processing employees are paid with a check or via direct deposit to their bank accounts. During the subsequent traditional payroll posting to finance, an employee’s net pay (irrespective of the payment type) is being posted to one general ledger (G/L) account. After the posting to the accounting process, the additional step of executing a posting run for payments allows the net pay (wage type /559) to be distributed to different G/L accounts based on the payment type (i.e., check or direct deposit).
Using these simple steps and some example scenarios, I show how to navigate through payroll and the posting to financial accounting (FI) for employees who are paid via different payment methods.
During payroll processing employees are paid either by check, direct deposit, or sometimes a combination of the two. In the following example (Table 1), the first employee is paid by check, the second employee is paid via direct deposit, and the third employee is paid with a combination of a check and direct deposit.
Payment breakdown (direct deposit or check)