How to Post Employees’ Net Pay to Different G/L Accounts Based on Payment Type

  • by Pavan Tatiparthi
  • June 28, 2013
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.
Key Concept

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.


Table 1
Payment breakdown (direct deposit or check)

Pavan Tatiparthi

Pavan Tatiparthi is a senior SAP ERP HCM consultant with more than 10 years of experience specializing in core HCM functionality and SAP ERP HCM Talent Management. He is involved in full implementation project cycles, specific module implementations, upgrades, and international roll-outs of SAP ERP HCM functionality.

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Comments

7/25/2013 9:23:38 AM
Pavan Tatiparthi

Hi Murali,

The payment method for wage type /559 can be left blank (Similiar to screenshot - Figure 10). Please let me know if you are having issues with the set up.

Thanks,
Pavan Tatiparthi
7/24/2013 1:32:23 PM
Murali

Hello Pavan,
Nice article. One simple question. What's the payment method for wage type /559 in the table 'V_T52POST_PAY'?
Please let me know.

Thanks,
Murali

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