Summary

A split period liability is generated when there are timecards in a single Computer Checks or Retro Pay batch that span more than one GL fiscal period. For example, assume there are timecards in two fiscal periods in a single Computer Checks batch. The wages, benefits and liabilities associated with the timecards in period 1 will be posted to period 1. In order for the journal entry to balance in fiscal period 1, the net check amount will be posted to the GL account entered in this field. In fiscal period two, all of the wages, benefits and liabilities associated with the timecards in period two will be posted to period two. The net check amount will be posted to the GL cash account associated with the bank account selected during the Generate step (PR> Computer Checks> Generate> Bank Account field). The split period liability GL account will then be debited for the amount of the period 1 net check.

Direct Deposits and other liabilities will be cleared with the AP and CH processes in period 2.

In order to use this feature, you must have a split period liability GL account defined in the Payroll module Setup window (PR> Utilities> Setup> General> Split Period Liability field).

Journal Entry