CenterPoint® Payroll - Interfund/Intercompany Payroll Distribution

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InterFund/InterCompany Payroll Distribution - Duration: 15 min 20 sec

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Interfund/Intercompany Payroll Distributions allow a fund/company to process payroll in one fund/company and distribute the expenses to other funds/companies. Distribution journal entries are created that include liability account offsets to the responsible funds/companies expenses and reverses expenses out of the payroll fund/company that are not the responsibility of the payroll fund/company. The offset to the distribution journal entries is to Receivable accounts for the amounts due from the accounting funds/companies.

Step A: Create Interfund/Intercompany Account Categories

Step B: Create Due From/To Accounts

Step C: Setup Interfund/Intercompany Distribution

Step D: Process Payroll with Distribution

Step E: Report on Distribution

Step F: Record Payment of Transfer of Liabilities/Expense

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Create an Interfund/Intercompany Receivables Account Category

1. Select Setup > Accounts > Account Categories.
2. Click New.
3. In the Name box, enter Interfund/Intercompany Receivables.
4. In the Type box, select Assets.
5. In the Class box, select Current Assets.
6. In the Subclass box, select Other Current Assets.
7. Determine if the account category should be Included in a Balance Sheet Group.

8. Click the Balance Detail tab.
9. Move Associated Fund/Company from the left list to the right list.

10. Click Save.

Create an Interfund/Intercompany Payables Account Category

1. Select Setup > Accounts > Account Categories.
2. Click New.
3. In the Name box, enter Interfund/Intercompany Payables.
4. In the Type box, select Liabilities.
5. In the Class box, select Current Liabilities.
6. In the Subclass box, select Other Current Liabilities.
7. Determine if the account category should be Included in a Balance Sheet Group.

8. Click the Balance Detail tab.
9. Move Associated Fund/Company from the left list to the right list.

10. Click Save.

Step B: Create Due From/To Accounts

Create Due From Account

1. Select Setup > Accounts > Accounts.
2. Click New.
3. In the Name box, enter Due From Fund/Company.
4. In the Type box, select Assets.
5. In the Category box, select Interfund/Intercompany Receivables.
6. Click Save.

Create Due To Account

1. Select Setup > Accounts > Accounts.
2. Click New.
3. In the Name box, enter Due To Fund/Company.
4. In the Type box, select Liabilities.
5. In the Category box, select Interfund/Intercompany Payables.
6. Click Save.

Step C: Setup Interfund/Intercompany Distribution

1. Select Setup > Payroll Details > Interfund/Intercompany Payroll Distributions.
2. Click New.

3. In the Payroll Fund/Company box, select the fund/company that processes payroll for other funds/companies. You will be warned if a fund/company already has an assigned distribution.
4. In the Distribute By box, select either Department/Profit Center or Location/Production Center.
5. In the Due From box, select the account you created in the previous step (the account has to be an account that is not in the following account categories: Accounts Receivable, Payroll Advance, Cash, or Lotted Inventory.).
6. In the Due To box, select the account you created in the previous step (the account has to be an account that is not in the following account categories: Accounts Payable or Line of Credit.).
7. Click the Distribution Detail tab.
8. On the left side of the screen, select the Department/Profit Center or Location/Production Center (your list depends on your Distribute By selection on the General tab).
9. The fund/company selected in the Payroll Fund/Company box on the General tab will display 100% in the right list.

10. Select each Department/Profit Center or Location/Production Center (depending how you selected to distribute) from the left list and determine the percentages that should be distributed from the fund/company you process payroll in to your other funds/companies. In the example below, 25% will be distributed to each fund/company for the Department Fire from the fund/company processing payroll.

11. Repeat Step 10 until all Department/Profit Center and Location/Production Center from the left list are distributed on the right list.
12. Click Save.
13. Click Close.

Step D: Process Payroll with Distribution

1. Process payroll as you normally would using either the Processing a Pay Run/Pay Employees or Processing Payroll Using Time Sheets topics.
2. When you have an Interfund/Intercompany Payroll Distribution set up, the only difference you will see in payroll processing is a notation on the 6.Print Checks tab that this fund/company will post Interfund/Intercompany Payroll distributions.

Step E: Report on Payroll Distributions

There are four reports specifically related to Interfund/Intercompany Payroll Distribution in Reports > Reports > Interfund/Intercompany Payroll.

• Payroll Fund/Company Distribution Setup List - Lists the funds that are paid by a payroll fund and the percentage of distributions for each.

• Interfund/Intercompany Payroll Receivables -Reports the amounts due from the funds/companies that are paid by a fund/company designated as the payroll fund/company.

• Interfund/Intercompany Payroll Payables - Reports the amounts due to a fund/company (Payroll Fund/Company) that processes payroll on behalf of other funds/companies (Accounting Fund/Company .

• Interfund/Intercompany Payroll Distributions - Lists the "Due From" and "Due To" journal entries distributed by the payroll fund/company to the fund/company it is paying the payroll for. No entries are made when the payroll fund and the accounting fund/company are the same.

Step F: Record Payment of Transfer of Due From/Due To

• The Interfund/Intercompany Payroll Distribution process does not perform the accounting entries to move dollars between funds/companies automatically.
• Use Processes > General Journal Entries to record your entries to move dollars between funds/companies.
• The Associated Fund/Company can be added to the General Journal Entries grid by right-clicking on the grid and Add/Remove Columns > Associated Fund/Company.

 

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