Account Fringe Benefits

The Account Fringe Benefit feature enables you to set up salary accounts with fringe benefit accounts attached and automatically create ledger accounts (budget unit-account combinations) for the fringe benefits when adding the salary accounts to the Expenditure Ledger. This eliminates the need to set up the ledger accounts separately.

Following are the basic steps for creating these ledger accounts:

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

Once you add the fringe benefit accounts, make budget adjustments or transfers to add funds to the new accounts. For details, refer to the Expenditure Budgets Adjustment Page and Post Budget Transfer Page sections.

Salary and Benefit Settings

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

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

You can only create fringe accounts 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:

• Account List
• Expenditure Budgets Page
• Post Original Budgets Page

Create Fringe Benefit Accounts in the Account List

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

1. From the Fund Accounting menu, select Reference Tables. From the Fund Accounting menu, select Account List.
2. Click Add New.
3. In the Account Data section, enter an Account Code within the range of Expenditure accounts defined in the Fund Accounting profile.
4. In the Title field, enter a title or description of the account.
5. Leave the section's Subtotal fields blank.
6. In the Allowed for Use In section, select B - Benefit for the Salary Charges.
7. Clear the Requisition/Purchase Order/Payments and Warehouse Charges fields.
8. Leave the Continuous field selected unless you are only creating one account.
9. Click OK to save the account.
10. To create additional fringe accounts, repeat Steps 3-9, or click Back when you are finished.

Create Salary Accounts and Attach Benefit Accounts

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

1. From the Fund Accounting menu, select Reference Tables. From the Fund Accounting menu, select Account List.
2. Click Add New.
3. In the Account Data section, enter an Account Code within the range of Expenditure accounts defined in the Fund Accounting Profile.
4. In the Title field, enter a title or description of the account.
5. In one of the section's Subtotal fields, add the appropriate fringe. You can use the other Subtotal fields as needed.
6. In the Allowed for Use In section, select S - Salary for the Salary Charges.
7. Clear the Requisition/Purchase Order/Payments and Warehouse Charges fields.
8. Leave the Continuous field selected unless you are only creating one account.
9. Click OK to save the account.
10. To create additional salary accounts, repeat Steps 3-9, or click Back when you are finished.

Add Expenditure Ledger Accounts for Salaries and Fringe Benefits

1. From the Fund Accounting menu, select Entry & Processing. From the Budget Ledgers menu, select Expenditure Ledger.
2. Click Add New.
3. In the *Budget Unit* field, enter the appropriate organization code (budget unit).

4. In the Account field, enter the salary account code that has the appropriate fringe account attached. This code defaults to the Budget Control *Budget Unit* field, which you may change if needed.

   

   22.4 and later. The Budget Unit and Account fields are replaced with an Account Number field if Full Account Format is selected on the Fund Accounting Profile.
5. Enter a Transaction Description, Control Number, and Budget Amount as needed.
6. In the Allocations section, enter a budgeted amount for each period, or enter the full Budget Amount in the 1st Period field, depending on your procedures. The total of these fields must match the amount in the Budget Amount field.
7. Leave the Continuous field selected unless you are only creating one account.
8. Click OK to add the salary budget unit-account and create the related benefit budget unit-account in the Expenditure Ledger.
9. To create additional ledger records, repeat steps 3-8, or click Back when you are finished.