Use the Define Departments option on the Payroll Setup menu to create departments for each general ledger account for gross pay. For example, if vacation pay is posted to a special account, you must create a department for it. You can create up to 99 departments and should create departments for all of the accounts you will use. You may want to group the departments so they are easier to remember. For example, you would use 10-19 for New Car, 20-29 for Used Car, 30-39 for Service, and so on.
Step 1. Click Accounting on the Autosoft DMS startup menu.
Step 2. Select Payroll from the Dealership Accounting main menu. The Dealership Payroll menu opens.
Step 3. Click Setup on the Dealership Payroll menu. The Payroll Setup menu opens.
Step 4. From the Payroll Setup menu, click Define Departments. The Define Departments screen opens.
Step 5. In Department Number, type the two-digit number you want to assign the department you are creating.
Step 6. Type the name/description of the department in Department Name.
Step 7. Use the Pay Line For Salary field to indicate the pay line to which the salary for this department should post on the Enter Employee Pay screen. This line corresponds to the line number on the Pay/Deduction Setup screen.
For example, let’s say you are creating a department for bonuses. If you entered bonus pay as line 06 on the Pay/Deduction Setup screen, you would type 06 in the Pay Line For Salary field on this screen. When you post the salary for this department, the system will automatically post it to the correct pay line.
Step 8. In Dept. Gross Pay, type the general ledger account(s) used to post gross pay for this department.
Step 9. Use the SA column to indicate if the general ledger account for the line is a scheduled account. If you type S for scheduled, the system will post to this account by line. If you type N for no, the system will post by totals to that account. You can click the Set Scheds button at the bottom of the screen to scan the general ledger and set the flags for the departments to ensure they properly correspond with the schedules in the general ledger.
Step 10. If you are distributing the pay to different general ledger accounts, use the % field to indicate the percentage of the pay you want distributed to each account. The Total Distribution field will calculate the distribution so you can ensure you are distributing 100% of the pay. If you are only entering one general ledger account, leave this field blank, as 100% of the pay will be distributed to the single account.
|Important: Each department must have at least one general ledger account to post the gross pay. If there is only one account, 100% of the pay will post to that account. If there are multiple accounts the pay will post to, you must specify the percentage of the pay that will post to each account.|
Step 11. In Payroll Tax Expense, type the general ledger account(s) used to post the payroll tax for this department.
Step 12. Click Save. The department is added to the list on the right side of the screen. Continue to enter departments as needed.
Step 13. When you are finished, click Exit to return to the Payroll Setup menu.