Populating employer-paid expense transactions

There are two ways to populate employer-paid expense records in the GMDISTREL (Unix/Windows) or DBGMGDI (IBMi) file, depending on how the affiliate organization charges for fringe.

  • If the affiliate organization charges actual fringe, create employer-paid expense records in detail by employee and check ID in the GMDISTREL (Unix/Windows) or DBGMGDI (IBMi) file. Each record must include check ID, employee, transaction date and expense code. The expense code identifies the expense as employer-paid FICA, Medicare, health insurance, etc.

    Employer-paid expense records should include the six-digit general ledger account to determine where the expense gets posted in the General Ledger. A placeholder activity and fringe account category should also be populated in each record. This ensures that the fringe account category is populated in employer-paid expense transactions generated during labor distribution. If no fringe account category is specified in the import record, GM500 populates the error/suspense account category in any employer-paid expense distributions that are charge to a grant rather than the labor account category specified in the labor distribution template.

  • If the affiliate organization charges fringe on employee labor at a rate, do not create employer-paid expense transactions in the GMDISTREL (Unix/Windows) or DBGMGDI (IBMi) file. Project Accounting burdens automatically calculate and charge fringe to grants when labor distribution transactions are updated during Activity Posting (AC190). Burden setup can be managed so that the burden offset is posted to the clearing account for the grant recipient company. Using burdens for fringe provides additional benefits, including retroactive burden calculation when rates change.

    Defining burdens for grant activities

    Examples: Affiliate Payroll Posting