Payroll posting

[Former Member]

Hello Gurus,

Please help me in understanding FI-CO postings relavant to payroll.

Suppose an employee worked 8 hours on particular activity in a network and confirms it through CATS. So the activity gets posted with equivalent cost. Parallely, the employee gets salary for a day to work too. This salary is posted to a GL account u2013named Salary in SAP, which is perhaps an expense account. With reference to this posting, there will be posting to CO too.

The question is if I will see two postings in CO, one coming from FI to CO and another because of confirmation i.e double costing.

May be my understanding is wrong somewhere but would be glad to know as where am I thinking wrongly.

Cheers

Sunny

[Former Member · Accepted solution]

No replies guys ???

[Former Member · Accepted solution]

Employee Home Cost Centre, in your case X will be debited as result of payroll processing.

Sender Cost Centre, in your case Y will be credited as result of activity allocation.

If the employee is working for home cost centre (i.e., employed by cost centre=works for cost centre) debit of payroll and credit of activity allocation goto the same cost centre.

Activity allocated costs can be greater or less than payroll cost and this results in under/over absorption at the cost centre

Regards

Sreenivas

[Former Member]

Thanks Virender,

I need some more clarification. It would be great if you could reply.

All personal numbers are assigned a cost centre too. Lets say pernr 2000 is assigned cost centre X in PA30 transaction.He is paid Rs 50000 per month for working 100 hours.

He makes activity confirmation in PS for 80 hours with a work centre (with cost centre assigned Y and activity tyoe 123).

With respect to confirmation, cost centre Y/123 will get credited and PS activity will get debited and it will be totally Co posting and no FI posting.

With respect to payroll posting, 50000 will get debited to salary account and employees account will get credited. CO posting pertaining to it may for example to a cost centre.So what this cost centre going to be? X or Y or something else.Is there any reconcilation needed between X and Y or some other cost centre?

I hope my question is clear now.

Thanks in advance

Sunny

[virendra_pal]

FI posting is the primary posting

CO posting is the secondary posting that is internal allocation

hence there is no double counting

Imagine the scenario

Administration Department pays salary to the employees say total 1000 via payroll

Admin get maintenance department to pay 500 via book adjustment and Finance department to pay 500 via book adjustment

basically the FI posting is the Admin paying 1000 - goes out of your company albeit to the employees

CO posting is who actually pays internally i.e. Finance and Manitenance

Hope you understand