As part of our commitment to constantly improve our processes, the product team has added a new time-saving functionality to our ERP solution called Payroll Journal Validation. To further explain the details and increased efficiencies that come with this new feature, we spoke with Senior Application Consultant, Victor Bacho, to get the full scoop on this new Altus functionality.
Why did Altus create this feature?
“Historically, the application did not resolve an issue when payroll was processed if it mentioned that the selected did not comply with the Dimension Rules set in the chart of accounts. The system would actually lock the user from making changes to the information that was supposed to be processed and the only recourse was to change posting rules and then make manual posting adjustments. The only other way to address this issue was to have someone from Altus Support go in and make the adjustments, but this also wasn’t ideal. ”
So what does the Payroll Journal Validation function do to correct this issue?
“The Payroll Journal Validation actually looks at the validation from a GL perspective prior to processing payroll, so that it helps the user to make corrections in a proactive way rather than having to make adjustments downstream in the process. Basically, once the user has all of the organization’s payroll calculated, they use the Validation, and it tells them what their problems are so they can make the appropriate corrections prior to payroll processing.”
Are there any additional process enhancements within this functionality?
“Yes. We created some additional securities so there would be some segregation of duties; the Payroll Clerk can declare payroll, and the manager has to approve it by releasing it to pass the validation process. This means that someone can actually look at the numbers to ensure that the right people are getting paid the right amounts, and once the person actually releases that data the clerk can finalize the posting, cheques, and the GL. So now when they release payroll the solution performs the validation and also acts as an approval process.”
What validation issues does the functionality cover?
“The functionality extends to cover a number of potential validation issues:
- Missing Payroll Posting Group: Payroll Control that posts to GL must have a posting group
- Net Pay testing: If a payment is due, the Net Pay sign must be negative
- Allocations Warning: Payroll Control set to allocate and no allocations exist
- Net Pay or PAP Warning: Ensuring payroll results in Net Pay or PAP (Pre Authorized Payment)
- Out of Balance: If manual overrides take place which may result in Gross to Net not balancing
- EI AUDIT: Ensuring EI AUDIT is configured properly in order to be able to generate ROEs
- Posting of Expenses and Liabilities: Ensuring G/L Rules are met
- Dimension Combination Validation: Ensuring that where applicable, validations are met
- Overriding Earnings/Expense Account in Payroll Journal: Ensuring rules are enforced”
To conclude, what are the highlights for users?
“The main highlight is really that it allows users to be proactive. It gives the users more time to address any potential issues. Another highlight is the ability for a manager to approve payroll before it gets processed. It allows the organization to prove to auditors that there is an approval process in place for payroll.
In a sense, it gives the payroll clerk comfort in knowing that any potential issues are being addressed proactively and not in the eleventh hour when they have to present it to the bank and are on a very tight timeline.”
Want to learn more about this new functionality? Register for our user conference, Altus Alliance 2016, and see it in action!