This article reviews how estimated Labor Journal Entries are created from the DSS and how those estimates are then cleared when actual Payroll Journal Entries are approved.
Estimated Labor - DSS Journal Entries
When the Daily Sales Summary is approved, Journal Entries for the following JE Types are created: Sales, Statistical, and Labor.
Each DSS Labor Journal Entry will contain a distribution for the Labor for the approved DSS. This JE is only an estimate of the day's Labor because the amount is generated from the POS data and is not the actual amount that comes from processing Payroll.
The purpose of the DSS Labor Journal Entry is to provide Labor Reporting on Profit and Loss reports, as well as throughout Smart Ops, before the end of the pay period.
Actual Labor - Payroll Journal Entries
When Payroll is processed, actual Payroll Journal Entries are created. Payroll Journal Entries will capture any changes made to hourly and salary wages made as part of the Payroll process.
- Note: It is important to create Payroll Journal Entries using the Payroll Journal Entry form, and not the standard Journal Entry form. If a standard Journal Entry form 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 will match 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. Learn more about creating and editing Payroll Journal Entries here.
Estimated Labor Clearing
When the Payroll Journal Entry is approved, the estimated DSS Labor Journal Entries will be 'cleared'. The amounts cleared this way can be viewed on the 'Payroll Estimate Clearing' tab. This process reverses the amounts from the DSS Labor Journal Entry so that only the amounts from the Payroll Journal Entry remain.
|DSS Labor Journal Entry
|Payroll Journal Entry - Payroll Estimate Clearing Tab
The account details for actual labor created by Payroll Journal Entry are viewable on the Payroll Journal Entry 'Details' tab
When Payroll is processed, there may be variances between the estimated Labor and the Actual Labor. These differences are viewable on the 'Distribution' tab, which shows the net changes to each GL Account caused by the creation of the Payroll Journal Entry.
|Payroll Journal Entry - Distribution Tab
'6110 - Management Wages' is not included on the 'Distribution' tab because there was no variance between the DSS Labor Journal Entry and the Payroll Journal entry.
The debit or credit change for the following GL Accounts are listed because there was a variance for each between the DSS Labor Journal Entry and the Payroll Journal Entry: '6120 - FOH Wages', '6130 - BOH Wages', and '2200 - Accrued Payroll.