General Ledger: Set-Up and Report

General Ledger is one of the most requested and most awaited features in Sprout Payroll. It is a must-have feature in a payroll system to have a reporting function that will help the finance team to monitor a part of the financial activities of the company. With this new release, users will have an important insight regarding the financial health of their business.

General Ledger Set up is now available under SETUP > Company > General Ledger, this will allow you to build your chart of accounts and map the corresponding payroll components included in it.

Configuring the Access to a Role

• By default, the General Ledger Setup and Report are available to the following roles:
  • Super Admin
  • Payroll Admin
  • Accountant

Setup Permissions

Report Permissions

Adding GL Account

• Under SETUP > Company > General Ledger, click on Add New Record fill out the following details
  • GL Name - max 50 characters
  • GL Code - max 50 alphanumeric characters
  • Normal Balance
    • Debit - is an accounting entry that either increases an asset or expense account
    • Credit - is an accounting entry that either increases a liability or equity account
  • Negative Balance - this setup decides what happens to the negative balances
    • Deduct - the negative balances will be deducted from the total amount of the normal balance.
    • New Entry - the negative balance will have its own entry and will be placed on the opposite classification
  • Account Summary - how you want your GL Account to be presented in the General Ledger Report.
    • Totals
    • Per Department
    • Per Cost Center
    • Per Employee Type (Pay Group)
  • Adjustments - all payroll components that affects the earnings and deductions of the employees. Keep in mind that the Adjustment selection dropdown is based on the Adjustment Names.
    • Example:
      • Basic
      • Deminimis
      • ECOLA
      • Basic Adjustment
      • Allowance
      • Bonus
      • 13th Month
      • Reimbursement
      • Commission etc.

Note: You may refer to the attached video for a detailed walkthrough regarding the above steps.

Editing a GL Account

• Under SETUP > Company > General Ledger, select a GL Account that you wish to update and click Edit
• Configure the necessary adjustments needed in the GL Account and once done click Update
  • Everything is editable if the account has not been used yet or no processed payroll using the adjustments mapped on GL account.
  • GL Name & GL Code are not editable if there are adjustments mapped that are used in a Payroll Run.

Note: You may refer to the attached video for a detailed walkthrough regarding the above steps.

Deactivating a GL Account

• GL accounts with linked adjustments can only be deactivated.
  • If you want a GL account to be excluded in your GL report moving forward, just click Deactivate
    • Deactivated accounts cannot be edited.

NOTE: GL Accounts can only be deleted if there are no adjustments linked to it.

Generating the General Ledger Report

To access the General Ledger report, hover on Reports > Payroll > click on General Ledger Report

• Click Select beside the desired month to get the details, Choose the Payroll Run and Pay Period that you want to include in the report.
• Once done, click the Export to Excel

Note: You may refer to the attached video for a detailed walkthrough regarding the above steps.