--- title: "Create a Payroll Journal Entry" slug: "create-a-payroll-journal-entry" description: "Manually create a payroll journal entry in R365: enter pay period dates, add wages, taxes, and deductions as line items, then save or approve." updated: 2025-08-28T11:30:07Z published: 2025-08-28T11:30:07Z canonical: "docs.restaurant365.com/create-a-payroll-journal-entry" --- > ## Documentation Index > Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt > Use this file to discover all available pages before exploring further. # Create a Payroll Journal Entry [Payroll journal entries](/doc/docs/payroll-journal-entries) are created from the Create Menu and record the financial transactions including wages, taxes and deductions, within the general ledger. > [!NOTE] > For organization accruing labor from [POS Integrations](/doc/docs/pos-integration-overview), all [Daily Sales Summaries (DSSs)](/doc/docs/daily-sales-summary-dss-classic) from the pay period must be approved before the associated payroll journal entry is approved. --- ## Security Users must have the following permission to create a payroll journal entry: - General Ledger → Payroll Journal Entries → Create Payroll JEs These permissions can be added to [custom user roles](https://restaurant365.us.document360.io/doc/docs/custom-user-roles) or [individual users](https://restaurant365.us.document360.io/doc/docs/users-overview-and-security). The [Permission Access report](https://restaurant365.us.document360.io/doc/docs/generating-a-permissions-access-report) can be used to determine which user roles or users already have these permissions assigned. For more information, see [User Setup and Security](/doc/docs/user-setup-security-and-location-access). --- ## Create a Payroll Journal Entry To create a payroll journal entry, follow these steps: *Click steps to expand for additional information and images.* ****1)** Open the **Create** menu, then select **Payroll Journal Entry**.** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-4L32XXE9.png) Learn more about the [payroll journal entry record](/doc/docs/payroll-journal-entry-record). ****2)** Enter the **date** for the payroll journal entry.** > [!TIP] > **R365 Best Practice** > > Use the Payroll End (pay period end date) as the journal entry date. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-3T6Y8361.png) ****3)** Select the **location** for the payroll journal entry.** > [!TIP] > **R365 Best Practice** > > It is recommended to select the location according to the payroll clearing method selected in the [Miscellaneous tab of System Preferences](/doc/docs/system-preferences-miscellaneous) to ensure accurate [payroll estimate clearing](/doc/docs/est-act-payroll-journal-entries). > > | If the clearing method is set to: | Then | > | --- | --- | > | Per Location | A payroll journal entry should be created per location, the same location should be used in the header and in the detail rows. | > | Per Legal Entity | A payroll journal entry should be created per legal entity. The location in the header should be associated with the legal entity the payroll is cleared by, and all locations in the detail rows should share a legal entity with the header location. | > | Per Common Payer | A payroll journal entry should be created for each [payroll common payer](/doc/docs/payroll-common-payer). The location in the header should be associated with the legal entity indicated as a payroll common payer, and the locations in the detail rows should not all share a legal entity. | ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-C6OTMR4J.png) ****4)** Select the **Payroll Start Date**.** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-XC8EK046.png) ****5)** Enter the **Payroll End Date**.** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-N2F7VB6H.png) ****6)** In the details section, click **add** to add a detail line row.** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-FKFR04PG.png) ****7)** In the line detail, use the dropdown to **select the GL** **account** for the row.** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-ZUTISCLZ.png) ****8)** Enter the **debit** or **credit** amount for the row.** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-72L54Q2E.png) ****9)** Enter a **comment** for the row. *(Optional)*** ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-RG3P6ACX.png) ****10)** Use the dropdown to **select one or more locations** for the row.** If multiple locations are selected, the debit or credit amount is distributed evenly, and additional rows are added for each location. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-9BQTX902.png) ****11) Repeat steps 6-11** to add all desired detail lines of the payroll journal entry.** If the journal entry is out of balance, additional detail lines will be added automatically for the unassigned amount. The unassigned amount will also appear in the General Information section. > [!TIP] > **R365 Tip** > > Press enter within the debit, credit, or comment column to move down to the next row in the same column. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-DNCMS2H1.png) ****12) Save** or **Approve** the payroll journal entry.** > [!WARNING] > All Daily Sales Summaries (DSS) within the pay period must be approved before approving the payroll journal entry. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-TBCZZQIP.png) For locations with POS labor accruals, approving a payroll journal entry, triggers the system to adjust the journal entry to reflect the differences between the estimated labor and the actual labor recorded in the journal entry. Once approved, the adjusting values can be viewed in the distribution tab of the payroll journal entry. Learn more about [estimated and actual payroll journal entries.](/doc/docs/est-act-payroll-journal-entries-classic) ## Related - [Import a Payroll Journal Entry](/import-a-payroll-journal-entry.md)