With the Payroll financial Year-End upon us, we have created this document to assist you to submit your company’s EMP501 reconciliations and import the IRP5/IT3 electronic certificates.Download
The end of August marked the halfway point in the tax year which means all companies need to submit their Interim EMP501 Submissions. The Interim Submission is a reconciliation of all the EMP201 submissions ie: PAYE, SDL and UIF payments made to SARS.
To ensure a seamless process please follow the following steps
- Step 1 Ensure all payroll cycles have been closed for all periods to August.
- Step 2 Run a Validation Report to ensure there are no errors.
- Step 3 Generate the IRP5/IT3a electronic certificate file
- Step 4 Import the file to E@syfile
- Step 5 Reconcile the EMP201’s to the EMP501
- Step 6 Submit
Below is a Basic Guide on how to process your interim EMP501 submission in Palladium Payroll
Step 1 Ensure all payroll cycles have been closed for all periods to August
To do this go to the Company Menu, Company Information, then Payroll Setup Tab
Then Pay Cycle to confirm that the pay periods including August have been processed.
Step 2 Run a Validation Report to ensure there are no errors.
To this go to Statutory Reports in the Menu and select the IRP5 / IT3 Electronic Certificate Submission
- The contact person details will default from the Company representative tab
- Select the Tax Year
- Select TEST if you would like to TEST the submission or LIVE when ready to submit.
- Select MID YEAR as your submission period.
- Select the IRP5/IT3 Validation Report to clear all exceptions.
Step 3 Generate the IRP5/IT3a electronic certificate file
The file will automatically save to your download folder
Step 4 Import the file to E@syfile, selecting Palladium Payroll as your software provider.
Step 5 Reconcile the EMP201’s to the EMP501
Print the EMP501 and the monthly EMP201’s. The Monthly EMP201 should reconcile to your EMP501. These reports can be printed from the Statutory reports Menu.
EMP501 Reconciliation Report
Step 6 Submit
This function is designed to allow you to process general receipts and payments directly to a General Ledger account without the need to create a sundry Supplier of Customer account. In the past, this could always be processed through the General Journal function but was a little complex. Now all you have to do is to select the Bank account from which you wish to process, then switch between the Receipts and Payments tabs to enter the relevant transactions as illustrated below. A batch can have a combination of both receipts and payments or can just have payments or receipts on their own.
The Update Bank In Detail option at the bottom of the screen affords you the ability to post one contra entry to the bank account as a summary figure, of or whether you would like to post a contra entry to the bank account for each transaction in the batch.
If the batch transactions are of a nature that you process regularly such as bank charges or debit orders, you can save the batch of transactions for recall later, alleviating the need to have to recapture the batch details again. Simply recall the batch, amend the transactions and update accordingly.
The Receipts and Payments Journal is donated by the icon underneath, and is found in the General Ledger Section, the main as well as the Main section under processing items, and is also located in the Cashbook function in the Business section of the application.
The Inter-Branch (Warehouse) Transfer function has been greatly enhanced to cater for Inter-Branch Transfers where there is a delivery lead-time. The new feature caters for the following:
- The creation of an Inter-Branch Order
- The Transfer / Part-Transfer of the order with the ability to either process directly to the receiving Warehouse or have the ability to Post this to Goods In Transit
- A separate WIP Receiving function for Transfers posted to Goods In Transit
The purpose of this feature is to include a Branch Transfer Request process that would incorporate a centralised ordering function. In addition we no longer need to use a virtual “IBT Warehouse” but actually post these items to the Goods-In-Transit account, removing them from the Transferring store, and Receiving them from the GIT account using the actual cost of the item at time of transfer, giving a much greater control of the Goods-in-Transit and allows reporting from the Transferring as well as the Receiving store.
There are 2 ways in which we can process IBT Transfers, with Direct Transfers, as well as a Transfer to and from Goods-In-Transit. Note that in both methods we can still create the transfer from a IBT Order Form.
As you also see icons below, we have the Option for a Branch Transfer Order, The Actual Transfer Function Itself, as well as the Warehouse Transfer Receipt (for GIT Transfer receipts only).
The processing of Warehouse Orders are optional whether you process a Direct Order or whether you process a GIT Order. Below we have created a Warehouse Transfer Order for 3 items. The values in Red represent the From Locations, while the values in Orange represent the Ordering Location Values allowing users to order to Reorder Levels. Note that you are still able to change the Quantities at time of Transfer.
In terms of processing Direct Warehouse Transfers, we can either Convert this from an IBT Order, or you can create a New Transfer. When you select Convert you will see the list of Open IBT Orders.
Once selected, we now have the option to Process the Transfer directly or to process this to GIT. To Process the Transfer directly, we just need to leave the GIT option below blank.
For GIT Transfers (where there is a lead time between the delivery and receipts), we select the Goods in Transit option as seen below. We also have the option to change the quantities, as required. In our example below I have changed the quantity below from 19 to 5.
We can also run the Goods-In-Transit reports either in summary or in detail as seen below.
To receive the GIT Transfers we need to select the Branch Transfer Receipt option, and select the Convert where the Receipt document will display below.
In terms of short-receipts, we don’t have the option to change the GIT receipt quantities. To manage this we would either have to process a WHT return or process an Inventory Adjustment.
There have been an extensive number of Changes to the Customer, Vendor and General Ledger Journals in the last update that this document intends to highlight. These range from Currency Valuations, to ‘In-line” formulas, Partially Saving Journals, a Journal Line verification function as well auto-reversing Journals.
The Journal function caters for Customer, Vendor and Inventory Journals all rolled into one, as seen below. This allows you to perform functions like reallocate balances from Customer to Vendor Accounts in one function. In addition, you can process single journals with the respective contra accounts in one line for ease of use.
The foreign Currency revaluations caters for Customer, Vendor and Bank Account revaluations at any day in the current or previous year. Once we select the Revaluation, we then select whether this is Customer Vendor or Bank, then decide which of the Accounts we would like to Revalue, regardless of currency, as displayed the screen below.
The in-line formula function allows you to enter formulas with the result being automatically applied to the Journal value, with a positive value as a debit and a negative value as a credit as seen below. This acts as a complete audit trail to show precisely how the journal values were derived. The document attachment function at Line Item level completes this function allowing you to attach all related supporting documentation relating to that specific transaction.
The new Save function allows you to save, or park, a journal and go back into it at a later stage. In addition, we have added a Verify check box that is essential when processing Recurring or Reversing journals as you can not identify which lines have been verified (checked) or not and allows you to immediately start where you left off previously.
The reversing Journal function allows you to set a Reversing Date on a Journal then run the Reversing Journal function as seen below between any date range. The system will then create an opposite Journal of the original swapping Debits and Credits, allowing you to adjust as required. This is ideal for monthly accruals or provisions that need to be reversed at the beginning of the following month. Yu can also edit the reversing Date as required using the “DocInfo” button as found on other processing documents that allows you to edit “non-financial” information. Here we select the reversing function and select the required journals that we would like to revere. After we run the process the Reversing Journal flag is cleared on the Primary Journal.
This function allows you to preview the effects of the Journal on the Financial Statements before updating the Journal. Below you will see that you can preview the Income Statement, Balance sheet and Trial Balance, with the only condition being that he Journal must be in Balance on order to Generate Balance Sheet or Income Statement reports. You will see in the screen below that the Journal has not yet been Updated, or Recorded.
This document will assist you in applying the Supplier Reconciliation functionality available in Palladium Premium Edition.
Probably the most important function that is overlooked in most businesses and not catered for in the “Traditional” Accounting Software program is that of Supplier Reconciliations. It is because of this, that Financials are generally misstated with belated Supplier Invoices getting processed after the fact. With our Supplier Reconciliation function, managers can print one Control Sheet that will display all the Reconciliations with all the Reconciling Items grouped. In addition you can even perform Zero-value reconciliations for completeness. In addition users can perform Reconciliations at any day, catering for Monthly, Weekly or even Daily Controls.
Users can set as many Reconciliation Item Types as required, in addition to the Standard types as displayed below.
You can process a Reconciliation either by selecting the Supplier Recon icon or by drilling down from the Reconciliation Control Sheet. In terms of processing, once you have selected the Reconciliation Date, Palladium will populate the Supplier Balance for the selected date. Once you have entered the Supplier Statement Balance, you will be required to enter the variances and reasons in order to reconcile back to your Palladium System Balance.
The reconciliation control sheet performs a dual function in that it displays a summary of the Supplier Reconciliations grouping the Reconciliation Reasons, but also acts as a proof of Evidence for the reconciliations completed, or not completed for a period, allowing management and external stakeholders like Auditors to be able to place additional reliance thereon.
Below is an example of the control sheet where you can see which Vendor Accounts have been reconciled and which haven’t. You will also see that accounts with Zero balance have also been reconciled from a completeness point of view. The columns in red show the different reconciling item types with the columns on the right totalling the balance on the left.