Oracle Payroll Accounting & Costing Basic Fundamentals Golden Rule of accounting from ORACLE PAYROLL Dr :- Actual Account Cr :- Balancing Account When LD(Labour Distributions) comes into play, “Actual Account in Payroll” is replaced by “Clearing Account in Payroll”. Based on above golden rule, for Earning Elements, following account entry takes place . The payroll run result value is +ve for “XX_Custom Basic Salary” Step Credit Debit Element How to recognise Post from Payroll Balancing Account XX_Custom Basic Salary Pickup Balancing entries for LD elements when in Credit Post from Payroll Clearing Account XX_Custom Basic Salary Ignore debit entries for LD elements Post from LD Clearing Account XX_Custom Basic Salary Post from LD Actual Account XX_Custom Basic Salary For Rebate element, following accounting takes place ( golden rule is violated, as the original entries need to be either fully or partially reversed). The payroll run result value is –ve for Rebate Element Step Credit Debit Element Post from Payroll Balancing Account NI Employers Rebate Post from Payroll Clearing Account XX_Custom Basic Salary Post from LD Clearing Account XX_Custom Basic Salary Post from LD Actual Account XX_Custom Basic Salary Conclusions( Not taking LD into account. These rules apply to costing entries in Payroll.) :- 1. The golden rule applies only when run result values are Positive. a. If run result value is positive, then v Credit Balancing Account v Debit Actual Account 2. The golden rule DOES NOT apply when run result values are Negative. a. If run result value is negative, then v Credit Actual Account v Debit Balancing Account 3. The distributed element has a negative run result value then a. Debit entry is made against Actual Element ( i.e. “NI Employers Rebate” ) b. Multiple Credit entries are made against elements in Distribution Set ( i.e. XXX_BASIC_SALARY, XXX_LONDON_ALLOWANCE etc) NI Employers Rebate 2.25 Dr Balancing Account Basic Salary 2.15 Cr Actual Account London Allowance 0.1 Cr Actual Account 4. The distributed element has a positive run result value then a. Credit entry is made against Actual Element ( i.e. “NI Employer” ) b. Multiple Debit entries are made against elements in Distribution Set ( i.e. XXX_BASIC_SALARY, XXX_LONDON_ALLOWANCE etc) NI Employer 399.99 C Balancing Account Basic Salary 382.57 D Actual Account London Allowance 17.42 D Actual Account