Record Journal Entries

This activity requires you to login to QuickBooks to record Journal Entries representing the information downloaded during the ADP Payroll Run. 

Compensation Journal Entry

1. In QuickBooks, browse to Transactions>Chart of Accounts and click "View register" for account# 11005.

2. Edit the most recent journal entry with the memo “ADP Tax”, click “More” at the bottom and “Copy” to make a copy of the journal entry. 

3. Change the date, memo/descriptions and the amounts to match the General Ledger Company Preview report. There should be a detail line in the journal entry for every line in the report (see images).

4. Delete the copied attachment and drag the General Ledger Company Preview as an attachment to the journal entry

5. Click on "Save and Close".

Direct Deposit Journal Entry

1. In QuickBooks, browse to Transactions>Chart of Accounts and click "View register" for account# 11005.

2. Edit the most recent journal entry with the memo “Direct Deposit”, click “More” at the bottom and “Copy” to make a copy of the journal entry. 

3. Change the date, memo/descriptions and the amounts to match the General Ledger Employee Preview report. There should be a detail line in the journal entry for every line with an account name of "ADP Clearing Acct" in the report (see images).

4. Take note of the Total Debits and enter the same amount as a Credit on the detail line for the checking account.

5. Delete the copied attachment(s) and drag the General Ledger Employee Preview and any vendor invoices as attachments to the journal entry 

6. Click on "Save and Close".

Journal Entry Distributing Combined Salaries

Note: This step is applicable only as long as the same person fills all three roles and splitting the amounts out will reflect properly on the Income Statement.

1. In QuickBooks, browse to Transactions>Chart of Accounts and click "Run report" for account# 60544.

2. Edit the most recent journal entry with the memo “Account Split”, click “More” at the bottom and “Copy” to make a copy of the journal entry. 

3. Change the date and the memo/descriptions to reflect the current month. The amounts will not change from month to month as long as the salaries have not changed.

4. Click on "Save and Close".