Account Fringe Benefits

Budget Preparation's Account Fringe Benefit feature enables you to set up salary accounts that have fringe benefit accounts attached and then automatically create ledger accounts (budget unit-account combinations) for the fringe benefits when you add the salary accounts to the Expenditure Ledger. The feature, which also applies to the PowerSchool ERP Fund Accounting System, eliminates the need to set up the ledger accounts separately.

Following are the basic steps for creating these ledger accounts:

Create new benefit accounts in the Account List table.
Create each salary account in the Account List table and assign one or more benefit accounts to the table's Subtotal fields.
Create the new salary account in the Expenditure Ledger, which will automatically create the benefit account.

For details on the individual procedures, refer below.

Salary and Benefit Settings

The Account List's Salary Charges field includes two settings that distinguish the two types of accounts and that make the Account Fringe Benefit feature possible:

S - Salary - identifies salary accounts. These accounts usually should be set up after you add the benefit accounts.

B - Benefit - identifies fringe benefit accounts. These accounts usually should be set up first so that you can attach them to the salary accounts.

The creation of the fringe accounts can only be done when you are setting up new ledger records for salaries. You cannot automatically create the budget unit-fringe accounts by changing existing records.

The procedures for creating salary and fringe benefit accounts involve the following pages. For field descriptions and additional information, refer to the appropriate topics:

Creating fringe benefit accounts in the Account List

This procedure sets up the following procedure. Complete this procedure first.

Select Budget Preparation > Reference Tables > Reference Tables > Account List to display the Account Listing page.
Click Add New.
In the Account Data section, enter an Account Code that is within the range of Expenditure accounts defined in the Budget Preparation Profile.
In the Title field, enter a title or description of the account.
Leave the section's Subtotal fields blank.
In the Allowed for Use In section's Salary Charges field, select B - Benefit to identify this as a benefit account.
Clear the Requisition/Purchase Order/Payments and Warehouse Charges checkboxes.
Leave the Continuous checkbox selected, unless you are only creating one account.
Click OK to save the account.
To create additional fringe accounts, repeat Steps 3-9, or click Back when you are finished.

Creating salary accounts and attaching benefit accounts

This procedure depends on the previous procedure. Complete that procedure before proceeding.

Select Budget Preparation > Reference Tables > Reference Tables > Account List to display the Account Listing page.
Click Add New.
In the Account Data section, enter an Account Code that is within the range of Expenditure accounts defined in the Budget Preparation Profile.
In the Title field, enter a title or description of the account.
In one of the section's Subtotal fields, add the appropriate fringe. You can use the other Subtotal fields as needed.
In the Allowed for Use In section's Salary Charges field, select S - Salary to identify this as a salary account.
Clear the Requisition/Purchase Order/Payments and Warehouse Charges checkboxes.
Leave the Continuous checkbox selected, unless you are only creating one account.
Click OK to save the account.
To create additional salary accounts, repeat Steps 3-9, or click Back when you are finished.

Adding Expenditure ledger accounts for salaries and fringe benefits

Complete the previous procedures to set up salary and fringe accounts in the Account List.
Use one of the following menu paths to access the Expenditure Budget page.
- Budget Preparation > Entry & Processing > Budget Preparation > Budget Entry and then select any option in the Expenditure section to display that respective Expenditure Budget Process page.
- Budget Preparation > Entry & Processing > Budget Preparation > Budget Administrator > Expenditure > Display Budget to display the Update Expenditure Budget - Administrator page.
Click Add New to display the Add Ledger Entry page.
Enter the Budget Unit field and Salary Account to create the Expenditure Ledger.
Complete the fields in the Ledger Record Information section, and then click OK to add the salary account.
In addition to the ledger for the salary account, an additional expenditure ledger will be created for the Budget Unit used and all accounts that have B - Benefits in the Salary Charges field.