Reconciling GL to HR

The GL Reconciliation Report can save you or your bookkeeper a great deal of time when reconciling your payroll accounts between the GL and Marlin HR.

The report is a year-to-date report that can be generated at any time of year to instantly show which payroll accounts are in balance and which ones have discrepancies that need to be investigated.

To generate the report:

• Simply select Reports > GL Reconciliation Report from the Marlin HR menu, select the tax year to be reconciled and click on the Generate button.
• Use the icons to save the report to Report Keeper for future reference and/or Print it as required.

The report lists every GL account that the pays have posted to, showing the amount posted to the account by Marlin HR, the current balance in the account in the GL, and any difference between the two amounts.

If the differences column (GL - HR) displays all zeros, you are reconciled. If not, it shows you exactly which accounts are out of balance and the GL Reconciliation Guide tells you the possible reasons and what to check.

If you accrue provisions for leave in your General Ledger (e.g. unpaid Annual Leave and unpaid Long Service Leave), the report also shows any differences in their opening balances, movement, and closing balances so that you can re-synchronise them.

The GL Reconciliation Guide explains the possible reasons for differences and also the journal required to re-synchronise the current balances.

The report shows the amount posted to the PAYG To Pay account by the pay journals. Some of you prefer to have this account setup as a liability account whilst others will have it setup as a Supplier account. As there are other transactions applied to this account that don't come from Marlin HR (e.g. payments), you will need to manually reconcile the PAYG figure as per the instructions in the GL Reconciliation Guide.

GL Reconciliation Guide

Please see the Reconciling your GL to Marlin HR quick reference guide for step by step instructions on using the GL Reconciliation Report to reconcile your GL payroll expense with Marlin HR.

Implementation of the new automated GL Reconciliation Report has eliminated the need for you to print 5 or 6 reports and has enabled us to reduce this guide from five pages to only one page.

The guide explains how to use the GL Reconciliation Report and ensures that you use only the correct GL accounts during the reconciliation.

If you have manually posted transactions to wages related GL accounts that are not posted to by Marlin HR (i.e. do not appear on the GL Reconciliation Report), they may be the cause of any difference between the total payroll expense figure on the GL Reconciliation Report and the P&L but should not be used in reconciling your General Ledger to Marlin HR.

The Guide will tell you exactly what to check if any figures on the GL Reconciliation Report are different in Marlin HR and the General Ledger.

We recommend that you generate the GL Reconciliation Report monthly so that you can identify and address any issues whilst still fresh in your mind.

This will help to ensure a quicker and easier reconciliation at the end of the tax year.

Payrun Analysis Report vs. Payment Summary Verification Report

These reports have a different purpose and therefore represent data differently.

However, customers sometimes try to compare the total of the Gross column in each of these reports and ask us why they are different.

Payrun Analysis Report (PAR)

Gross column includes all Earnings and Allowances.

Payment Summary Verification Report (PSVR)

Gross Salary column includes Earnings and any Allowances that are pointed to the Gross Payments box on the Payment Summary.

Allowances column includes Allowances that are pointed to the Allowance 1/2/3/4 boxes on the Payment Summary.

The total of these 2 columns should normally equal the Gross column on the Payrun Analysis Report.

Neither of these reports include superannuation information or leave accrual information and they are not directly comparable to figures in the two reports below.

GL Reconciliation Report vs. Pay Journal Report

The purpose of the Pay Journal Report is to show the amounts debited and credited to each GL account by the journal for each pay run.

By selecting ALL pay runs you can generate a consolidated journal for the year (or year to date).

The purpose of the GL Reconciliation Report is to automate much of the effort required to reconcile the GL to Marlin HR.

It is effectively a more user friendly version of a year to date pay journal report, with each GL account shown only once (with debits and credits already summed for you) and it's current balance in the GL also shown along with any discrepancy between the two.

This saves you the effort of performing an account by account comparison, instantly showing you which accounts already balance and which ones require further investigation.

GL Reconciliation Report (GLRR)

Salaries & Wages figure includes the sum of all debits and credits to this account
during the year

Pay Journal Report

Salaries & Wages expense account:

• Sum of all debits & credits in the Wages Paid section includes everything posted to this account.
• Sum of all debits & credits in the Leave Accrual section includes the accrual value for each leave type.

The total of these 2 amounts should equal the Salaries & Wages figure on the GL Reconciliation Report.