Labor data in R365 can originate from two sources: Daily Sales Summary (DSS) journal entries and payroll journal entries. DSS Journal entries provide labor estimates, while payroll journal entries reflect actual payroll amounts.
Beta
The payroll journal entry record has been updated and is currently in beta. All users can access the new experience.
Learn about the new journal entry features and how to switch to the new journal entry.
See documentation for the classic payroll journal entry record.
Estimated Labor Data from DSS Journal Entries
DSS journal entries can be viewed from the DSS Journal Entries page.
When a Daily Sales Summary is approved, R365 generates journal entries of the following types:
Sales: Record sales, discounts, taxes, receivables, and expected cash and credit card deposits associated with a day of sales.
Statistical: Record non-GL (general ledger) impacting information from the POS Import: guest count and transaction count.
Labor: Record the labor accrual based on the hours worked and pay rates pulled from the pos and the job title mapping completed in R365.
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The labor journal entry is an estimate of daily labor costs based on imported POS data. This estimate provides near real-time visibility into labor costs for profit and loss reports and powers labor-related metrics throughout Smart Ops.
These estimated values are not final and will later be cleared by actual payroll data.
Labor totals are not calculated for employees in polled data who have both of the following settings enabled on their R365 employee record:
- Exclude Labor Hours
Exclude Labor $
This exclusion applies to labor rules, daily sales summary, and labor reporting. These employees’ punch details will display $0 and 0 hours.
Actual Labor Data from Payroll Journal Entries
Actual payroll journal entries are created when data is entered or imported from a third-party payroll provider. Payroll journal entries include changes to hourly and salary wages during the payroll process.
Payroll journal entries are created using the Payroll Journal Entry record, and not the standard Journal Entry record. If a standard Journal Entry record is used, the estimated DSS labor journal entry will not be cleared.
Payroll Journal Entries reflect actual labor expenses and are created when payroll data is entered or imported from a third-party payroll provider.
These entries are created using the Payroll Journal Entry record (not the standard Journal Entry form).
Each payroll journal entry includes the pay period start and end dates.
These dates are used to match and clear estimated DSS labor entries for the same period.
The labor cleared is dependent on the payroll clearing method set in the miscellaneous tab of system preferences:
Per Location - Payroll clearing only occurs for the location specified in the payroll journal entry.
Per Legal Entity - Payroll clearing occurs for all locations that share a legal entity with the header location specified in the payroll journal entry.
Per Common Payer - Payroll clearing will occur for all locations for all child legal entities that are listed under the specified parent legal entity, or payroll common payer.
If this setting is in place and multiple Payroll Journal Entries (for the same period) are entered representing different locations that are part of the same legal entity, the Payroll Clearing Process will run as many times (for all locations) as there are Journal Entries that are entered.
A payroll journal entry includes four tabs:
Details – Account-level actual payroll data.
Distribution – Variance between estimated and actual amounts.
Payroll Estimate Clearing – Labor estimates cleared from DSS journal entries.
Statistical - Statistical entries that do not impact the general ledger.
To learn more, see Payroll Journal Entries.
Clearing Estimated Labor Using Payroll Journal Entries
When a payroll journal entry is approved:
R365 matches it to DSS labor entries for the selected pay period.
The estimated labor amounts are reversed, leaving only the actual payroll data in the system.
On the Payroll Estimate Clearing tab, users can view all DSS labor amounts that were cleared.
On each cleared DSS labor journal entry, a reference to the clearing payroll journal entry appears in the header. Click this link to review the payroll record used for clearing.
Example: |
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DSS Labor Journal Entry |
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Payroll Journal Entry - Payroll Estimate Clearing Tab |
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The Details tab of the Payroll Journal Entry record, displays account details for actual labor created by payroll journal entries.
The Distribution tab of the Payroll Journal Entry record displays any variances between the estimated labor and the actual labor as well as the net changes to each GL account caused by the creation of the payroll journal entry.
Example: |
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Payroll Journal Entry - Distribution Tab 6110 - Management Wages does not appear on the Distribution tab because no variance occurred between the DSS labor journal entry and the payroll journal entry. However, the debit or credit change for the following GL accounts are listed because there was a variance for each: 6120 - FOH Wages, 6130 - BOH Wages, and 2200 - Accrued Payroll.
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