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Distribution Codes

Access this form using Maintain>Payroll>Distribution Codes.

Use this form to enter a standard entry template, called a Distribution Code. Distribution Codes allow you to specify, in advance, the funds and/or other account segments to which you want to distribute transaction amounts. Distribution Codes help to reduce transaction entry time and increase accuracy for common entries. Distribution codes are used for the Payroll transaction entry that is created when Payroll is transferred to Accounting. They are the basis for all payroll transactions created by the system. Note that the Payroll module can use the same Distribution Codes as Accounting. You can designate the code to Apply To Payroll, both Accounting and Payroll, or to Accounting.

When Hours are entered on a line, the system automatically calculates (or recalculates) percentages for each line item. Note that you cannot enter percentages on your own. Generally, use Hours to distribute payroll based upon direct labor hours rather than specifying a fixed distribution (see the following note for further discussion).

Note: Do you want to distribute a payroll based on direct labor hours?

If the payroll distribution is based upon direct labor hours, enter the direct labor hours under the Hours column, and the system automatically computes the related percentage for each line item. Simply set up the initial Distribution Code with all the line items or potential line items that represent the codes to which you will distribute payroll. Then, during timesheet entry, enter the actual direct labor hours for each line item. Payroll will be distributed according to the direct Hours you enter for each line on the timesheet.

All Distribution Codes must have Percentages that equal 100 percent. Dollar amounts are applied first, and any remainder is applied according to percentages.

General Ledger accounts for Distribution Codes are not entered on this form. They are obtained from the Payroll and Tax Code information (Maintain>Payroll>Benefit Codes and Workers' Compensation Codes; and Maintain>Payroll>Federal Taxes, State Taxes, and Other Taxes).

 

Code: Enter a code that describes the payroll transaction template you are creating. We recommend limiting your entry to strictly alphabetic characters (A through Z) or numeric characters (0 through 9), and avoiding the use of symbols, such as: | " '.

Status: Specify the status of the Distribution Code. When creating a new code, accept the default status, A (Active), or select I (Inactive) or D (Discontinued), from the drop-down list. The status can be changed at any time. Below are valid status entries and their descriptions:

  • Active - An active status allows payroll to be processed using this code.
  • Inactive - Set a code to inactive when it is not used regularly, but it still may need to be used at some point. A warning message appears when attempting to use an inactive code. The warning message is for notification only; the code can still be used in a transaction.
  • Discontinued - Designate a code as discontinued when it is no longer being used. The system does not allow any processing using a code with a discontinued status.

Apply To: Select whether to apply Distribution Codes to Payroll only (P), both Accounting and Payroll (B), or Accounting only (A).

Description: Enter the description of the Distribution Code.

Distribution Codes: The distribution code must equal 100%. Therefore, if you only enter Dollar amounts, you must add an additional line that equals 100%.

  • Segment Codes: Enter the codes for the account segments displayed. (All of the segments that were specified when the Chart of Accounts were set up (Maintain>Chart of Accounts Codes) are available here.) All of the segments must be completed on each line. Click Display/Hide Titles to see the codes titles at the bottom left of the form.
  • Percent: Enter the percentage to distribute to the current line item. There must be at least one line item with a percentage and the total percent must be 100. When entering percentages, do not include a decimal point. For fractional percentages, enter the leading zeroes. The system calculates up to four places to the right of the decimal point.

    • You type…

    System displays…

    0005

    .5%

    005, 05, or 5

    5%

    50

    50%
  • Hours: Enter a value for all line items other than those designating a dollar amount. The system automatically calculates the resulting percentages; percentages cannot be manually entered on any line.
  • Amount: Enter the fixed amount you want distributed to the current line item. During transfer (when the Accounting entry is created), the system first distributes amounts. If more than one line has an amount, then the system distributes amounts in the order in which they were entered. Any remaining amount is distributed according to percentages.
  • Use the Reports>Payroll>Lists>Distributions Codes form, to print the data entered on this form.
  • Distribution Codes are required for Payroll. When entering timesheets, specify, for each Earning Code, the related Distribution Code. The Distribution Codes tell the system—through the transfer process—how to distribute salary-, benefit- and tax-related expenses among the various Account Code segments in the system.
  • When Tracking Labor Hours, use one line item per distribution. So that each Distribution Code contains one distribution only. This is the most accurate way to track labor hours and earnings.
  • For other employer expense-related items—such as benefits, workers' compensation, and federal, state, and other taxes—specify how the expense is distributed using the Distribution tabs on the various Tax and Code forms (such as the Benefit Codes form, the Federal Taxes form, or the State Taxes form). The Distribution tab allows you to designate whether you want the benefit or tax expense to follow the Distribution Code(s) related to earnings, or to follow a separate Distribution Code.
  • Distribution Codes distribute amounts according to the dollar amounts (if any) and percentages or hours entered. Use dollar amounts when there are line items with fixed distribution amounts (that is, the same dollar amount each time, regardless of the total amount of the distribution).
  • You can have as many or as few Distribution Codes as required, based on the complexity of allocations. Different types of earnings may be distributed differently. Also, each employee might have a different mix of segments to which payroll is normally distributed. In this case, create a Distribution Code for each employee (you might use each employee's ID as the Distribution Code ID for easier identification). Otherwise, create one Distribution Code and use it for all earnings/employees.
  • All distribution codes can be viewed, including those that are specified as Accounting only. However, Accounting only distribution codes cannot be edited in Payroll. Accounting only distribution codes can be copied to a Payroll only code using Copy , as long as the two distribution codes have unique code names.