Estimated and Actual Payroll Journal Entries

This article reviews how estimated labor-related journal entries are created from the DSS and how those estimates are cleared when the corresponding actual payroll journal entries are approved.

Get Estimated Labor Data From DSS Journal Entries

When the Daily Sales Summary is approved, journal entries of the following types are created: Sales, Statistical, and Labor.

Each labor journal entry contains a distribution of labor from the approved DSS. This journal entry is only an estimate of the day's labor because the amount is generated from POS data. The actual amount can only come from processing payroll.

The labor journal entry provides pay period data for profit and loss reports and is used throughout Smart Ops, as shown below.

Get Actual Labor 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 have additional fields for the start and end of the pay period. Using these dates, R365 matches the payroll journal entry with all DSS labor journal entries for those dates.

Payroll journal entries have three tabs: Details, Distribution, and Payroll Estimate Clearing. To learn more about tabs and fields on the Payroll Journal Entry record, see Payroll Journal Entries.

Clear Estimated Labor Using Payroll Data

When the payroll journal entry is approved, R365 subtracts these amounts from the matching labor journal entries, zeroing out the estimated totals so that only actual data remains in the system. This process reverses the amounts from the DSS labor journal entry so that only the amounts from the payroll journal entry remain.

When viewing the payroll journal entry, select the Payroll Estimate Clearing tab to view cleared amounts.

When viewing the labor journal entry, the information shown in the header displays the matched payroll journal entry that was used to clear the labor journal entry. Select the Clearing Payroll Journal Entry link to access the payroll journal entry.

Example:
DSS Labor Journal Entry
Payroll Journal Entry - Payroll Estimate Clearing Tab

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:
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.