Company-paid Deduction Expense Account

Note: The distribution company and accounting unit default together and can default independently of the account and sub account.

The wage expense account defined for the employee determines the general ledger expense account to which the company-paid deduction expense is charged unless it is overridden at other levels.

You can override the general ledger expense information used for company-paid deduction expense in the following areas:

  • A payroll distribution

  • The employee deduction master

  • The deduction code

  • Time record

If an override does not exist at any of these levels, deduction expenses follow wage expense account defaulting.

For company-paid deductions that are created by the Benefits Administration application, an additional level is included in the default scheme. For these deductions, the Payroll application looks first at PR23.1. If an override expense account is not defined for the deduction at this level, the application looks at the Employee Deduction file where benefit-deduction expense accounts are stored. If an expense account was not defined for the deduction created by the Benefits Administration application, the next level in the default scheme is PR05.1 If no expense account is defined for the deduction, the deduction expenses are posted to the same accounts to which the pay is posted.

Defaulting: Company-paid deduction expense account