Payroll Deduction for School Bill

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ngaham
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Joined: Wed Mar 15, 2017 10:25 am

Payroll Deduction for School Bill

Post by ngaham »

Hey Neil,
I am wanting to setup a payroll deduction for a school payment. The school has its own accounting fund and obviously its own income account. I have gone through and setup a liability account with the "Maintain Item Descriptions" screen in the payroll module. It created a liability account for me. My question lies in what is next. I added it to the pay items on the correct employee and entered the correct amount. How do I get this deduction to show up as income for our school?

NeilZ
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Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: Payroll Deduction for School Bill

Post by NeilZ »

ngaham wrote:Hey Neil,
I am wanting to setup a payroll deduction for a school payment. The school has its own accounting fund and obviously its own income account. I have gone through and setup a liability account with the "Maintain Item Descriptions" screen in the payroll module. It created a liability account for me. My question lies in what is next. I added it to the pay items on the correct employee and entered the correct amount. How do I get this deduction to show up as income for our school?
You can't ... not the way you have it setup.

I can show you the easiest way, it will show up in the proper Accounting Fund as income, and do what you want without much fuss.

1. Go to Contributions (don't worry, there's a method to this madness), create a Contribution Fund using some number that will never be used for regular contributions (I'd use something like 8888), UNcheck the box that says Include fund on statements, and the one for Allow designations. For accounting, use the checking account for the School as the Debit account, for example: (SC-1110-000) and for the Credit account, the INCOME account for the school, again as an example (SC-4010-000). I have a few of these setup for special fund transfers to make it easy for our admin, so I have a Contribution Fund Type created of Office Use Only.

2. Create a Payroll Item of Contribution Deduction in Payroll => Maintain Item Descriptions. Give it a normal number in the series you have for deductions, and a name like School Tuition, then select the contribution fund you created in item 1. If the employee is also a member and has an envelope number enter it on his employee record's Payroll Information tab under Maintain List of Employees. If not, create a number for the employee that's not in the normal series for members or visitors.

Then each payroll, the funds will be deducted, and credited to that Contribution Fund, which then shows up as Income to the school.


Now logically, this should work, but I have not tested this as its 12 am, and I haven't the time.

Testing would involve this:

A: I would do a backup of your accounting files (A), and perform the steps as listed above.

B: do another backup (B), then run payroll to see if the money was deducted, post payroll, and see if funds were showing under the Contribution fund and that the payroll transaction sitting in the Unposted Transaction queue has a line that transfers funds to the school income account.

C: if everything is OK in step B (Contribution shows up if you run a funds report) and the transaction has two lines showing income to the school, then restore the backup (B) so that you're ready to go the next time you actually run payroll. If it didn't come out as expected, well its back to the drawing board, and you should restore the backup (A) performed in the above step A to return everything to where you started from.
Neil Zampella

Using PC+ since 1999.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Payroll Deduction for School Bill

Post by NeilZ »

Couldn't edit that post .. backup the entire system, not just the accounting files.
Neil Zampella

Using PC+ since 1999.

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