Split employee benefit costs and wages in Microsoft Dynamics GP VD03-002
In this video we're going to talk about how to automatically split salaried employees costs across multiple departments in Dynamics GP. Many customers use allocation accounts in the general ledger to split the employee costs. I'm going to show you a much better way to do that.
We're going to pick up our employee and we're either going to set up a new split code for the employee or we're going to assign an existing split code In this case, we're going to select a split code that splits cost across multiple departments. This employee is assigned to the supporting services department, but we're going to split their costs across the supporting services department, the installation department and the sales department. What will happen is as we process payroll, it will split the transactions and then subsequently split the cost out to the general ledger accounts using payroll posting accounts set up.
As we process payroll, you can see the salary for this employee being split across the three different departments. As we post this pay run we will look at a couple reports that will show us how the employee costs has been split. On a payroll check posting register we can see the salaries and wages going to the different accounts associated with those different departments. When we look at the department posting journal, we will see the hours associated with that employee and the cost also going to those different departments. So now we will have the cost in the general ledger, the financial reports, as well as the payroll reports telling the same story. If we were just using allocation accounts in the GL, the hours associated with the department and the dollars in the general ledger would not match. This is a much better way of handling employees splits in Dynamics GP.