Closing the payroll cycle

Closing payroll completes a payroll cycle, allows the start of a new cycle, creates payroll accruals, updates payroll history with information from the completed payroll cycle, deletes processed time records from the application, and clears the cycle indicators in Payroll Cycle Status (PR00.1).

Before you can start another payroll cycle, you must close the current payroll cycle and update the history files for the processed employee records.


	Caution: We recommend backing up the database before running the payroll close. After you close the payroll cycle, the cycle programs cannot be re-run for that cycle, and GL changes must occur through GL programs.

Before updating the close, run the Payroll Close (PR197) in report mode to verify GL transactions. The payroll cycle is closed after PR197 is run in update mode. Calculating tip credit records (U.S. and CA)

Close the payroll cycle

Access Payroll Close (PR197).
With the Add form action type the name of the job in the Job Name field.

– or –

With the Inquire form action, select a previously defined job. The jobs displayed are for the active user.
Select the Selection tab. Use the following guidelines to enter field values:

Processing Group

Select a processing group to close a payroll cycle for a specific processing group.

Process Level

Select a process level to close a payroll cycle for a specific process level.

General Ledger Date

Type a general ledger date to use for general ledger entries of wage and company-paid expenses.

Report Sequence

Select the option indicating how you want to sort the report.

Update Option

Select whether you want to update the application with GL transactions and create a report of the transactions.

– or –

Create a report of GL transactions without updating the application.

We recommend running Payroll Close (PR197) in report mode before completing the cycle by choosing the update mode.

Percent Distribution

Select the value determining if the report uses employee percent distribution records without a pay summary group or deduction for expensing pay only, company-paid deductions only, or both. The selection overrides the normal expense defaulting path.

Employee Detail Report

Select whether or not you want to create an employee detail report.

Note: The Payroll Close (PR197) not only updates payroll history created through the payroll cycle, but also updates voids, manuals, and adjustments.
Select the Submit form action to submit the job.
Access Payroll Cycle Status (PR00.1) .

Note: You will see a blank screen when Payroll Close (PR197) is successfully run in Update mode.
Verify the completion of the payroll close.

Options for closing the payroll cycle

You can run Payroll Close (PR197) in report mode to see what GL transactions will be posted to the GL before you run PR197 in update mode. Once you run PR197 in update mode, the payroll cycle is closed.

If the Create Distributions fields on Company (HR00.1) and Process Level (HR01.1) are set to N (No), you cannot use payroll inquiry forms and reports that access distribution history if you do not create distribution history.

Regardless of the selection you make in the Create Distributions flag on Company (HR00.1) or Process Level (HR01.1), PR197 creates open distributions, which General Ledger Posting (PR198) uses to post to the General Ledger.

General Ledger Posting (PR198) deletes the records if the Create Distributions field is set to N (No). Records are not deleted if the Create Distributions fields is set to (Y) Yes.