Deduction Accrual Company and Accounting Unit
When you set up a company in the Human Resources application, you can define a distribution company and accounting unit for deduction accruals on the Accounts tab on Company (HR00.1). If you leave the Deduction Accrual fields blank on HR00.1, the Payroll application uses the default scheme to determine the distribution company and accounting unit used for deduction accruals.
The Payroll application lets you define an accrual distribution company and accounting unit for a specific deduction or process level. If you do not define an accrual distribution company and accounting unit for a deduction, process level, or company, the application uses the expense account distribution company and accounting unit defined for the employee on the Pay tab on HR11.1 (Employee) for the accrual accounting unit.
There are five levels at which you can identify an accrual accounting unit.
Employee Deduction
For deductions created by the Benefits Administration application, the first default level for accrual account information is the employee deduction file where the accrual account information defined for deductions created by the Benefits Administration application is stored. If an account number without a distribution company or accounting unit is found, the application uses the normal default scheme to display the distribution company, the accounting unit, or both.
Deduction
You can assign a general ledger accrual account to a deduction. If you leave the Accrual Distribution Company and Accounting Unit fields blank, Payroll uses the deduction-accrual distribution company and accounting unit defined for the process level.
Process level
You can define a general ledger deduction accrual distribution company and accounting unit for a process level on the Accounts tab on Process Level (HR01.1). If you leave either the Deduction Accrual Distribution Company or the Accounting Unit field blank, the application uses the distribution company or the accounting unit, or both, defined for the company.
Company
You can define a general ledger deduction accrual distribution company and accounting unit for a company on the Accounts tab on Company (HR00.1). If you leave either the Deduction Accrual Distribution Company or the Accounting Unit field blank, the application uses the distribution company or the accounting unit, or both, defined for the employee.
Employee
The application uses the expense distribution company and accounting unit defined on the Pay tab on Employee (HR11.1) for deduction accruals if neither the distribution company nor the accounting unit is defined at the deduction level, process level, or company level. The expense distribution company and accounting unit can default to the employee from the process level or company. Wage Expense Account
