If the payroll function within LawMaster is not being used and an external payroll system is being used, the payroll transactions are entered into LawMaster by way of a journal.
This journal can be done manually, with each line being entered separately.
A faster way to enter this information is by way of uploading the data into LawMaster from a spreadsheet. These steps are outlined below.
Create the Payroll Journal spreadsheet using MS Excel. You can prepare this as an xlsx however when you are ready to upload to LawMaster it must be saved as a txt file format.
The columns in the spreadsheet need to stay in the same order as the example below:
Sample spreadsheet can be found here.
The heading will be ignored when the data is uploaded.
The General Ledger code for the corresponding GL Account where: Line #2 = Bank account where wages are paid from; Line #3 = Liability account for PAYG Withheld; Line #4 = Expenses account for Wages/Salaries; Line #5 = Liability account for Superannuation; Line #6 = Expense account for Superannuation.
Note: Line #2 + Line #3 + Line #4 should equal zero. Also, Line #5 + Line #6 should equal zero. The total of all lines should equal zero.
The date of the transaction.
This is the description for each line of your journal transaction. Alter this to correspond with the payment frequency e.g. if you pay wages weekly than it might read as "Wages paid to week ending 14/12/18"
The total amount for each line transaction, the amount needs to have the correct sign, i.e. negative or positive. The total of all the lines should be 0. The total of the credits for Wages paid + PAYG withheld should equal the debit amount for the Wages expense. The two superannuation amounts should be the same but with opposite signs (i.e. the liability is a negative amount and the expense is a positive amount).
When you have created the file, make sure that you save it as a .txt file. MS Excel will ask if you would like to keep the Text format. Select "Yes".
Make sure not to enter anything other than the required text in the spreadsheet or it will not upload correctly.
Upload the spreadsheet into LawMaster.
To do this, go to Main Menu > Accounting > General Ledgers > Journals > Import GL Journals.
Name of the Input File:
This is the spreadsheet you have prepared and saved. Use the ellipses to select the spreadsheet.
Choose "List Only". This will enable you to do a test run of the journal to check it is ok.
This should be the year that you want the transaction to appear in i.e. Current.
This is the Accounting Period in which the transaction should take place.
Select OK and the journal will upload which will open the Tab for Import GL Journals.
Once the test journal has been loaded, you will be able to see if it looks OK. The lines will appear for you to check. The total of the journals should equal zero.
If you have selected the update option to "List Only" the journal will not have posted so you will not see any numbers in the "Journal No." column. Also at the top of the screen, in the Report Remarks, the "Update Option" will have an "N" next to it.
To check for Errors, go to the Errors tab and see if anything is listed. If there is data in this tab, then there is an error with the upload. If there are no errors, the tab will be blank, like the example below.
Where you are satisfied that the test journal is OK, repeat the process outlined in Step 2, however select the Update Option "Update as Well".
You will now see the Journal number appear in the "Journal No" column. In the Report Remarks, the "Update Option" will show "Y".
The journal is now posted and you will be able to see the allocation in the Bank Reconciliation screen. You do not need to enter a Payment Voucher for the wages payment as it is entered through the journal.
When you go to pay the superannuation in LawMaster, you would raise your Payment Voucher to the relevant Superannuation Fund and then in the allocation screen, choose G-Non Matter G/L account and choose the Superannuation Payable liability account.
When you go to pay to the ATO the PAYG, you would allocate the Payment Voucher against the PAYG Liability account used in the Journal in Step 2.
All other aspect of managing payroll such as leave entitlements, pay slips and other reporting will continue to take place in your other system.
These journal entries are the only items required to be posted to LawMaster so that the accounts remain balanced and in order.