revenue cycle expenditure cycle production cycle human res./ payroll cycle financing cycle general...
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Integrating GP Payroll into Accounting Information Systems ClassMike CanniffMIS FacultyUniversity of the Pacific
Academic Alliance Pre-Conference : Business Decision Making Track
Topics
Background and MotivationCurriculum Details
Business Process PedagogyGP Requirements
Future Enhancements
What was I Thinking???History
ERP Course within MBA Program 2003-2006Covered All Aspects of ERPVery Light on Accounting Content
AIS Course 2007-2009Focused on Primary Accounting Modules (GL, AR, AP)Covered Human Resources/Payroll at High Level
GoalsIntroduce Students to Detailed Accounting Related Transactions within PayrollExplore Dynamics GP PayrollAdd to Course Lab Sequence
Typical AIS PedagogyBased on Text Book Reviews
Text Book Allocation25% Devoted to Audit and Control20% Devoted to System Development and Documentation20% Database Modeling15% Traditional Accounting Functions (GL, AP, AR)5% Manufacturing5% Human Resources and Payroll
Training Material FocusPrimarily on Core Financials
RevenueCycle
ExpenditureCycle
ProductionCycle
Human Res./Payroll Cycle
FinancingCycle
General Ledger
and ReportingSystem
Silo Based Instruction
Funds
Labor
Commissions
Payroll Dr/Cr
Existing AIS Lab ScopeLab Scenario
Adopted from Kim’s Flower Shop (small Retail company)Stacy Kovar, Kansas State University
Lab SequenceGL SetupOrder ManagementProcurementBilling / ARAccounts PayablePeriod End Closing and Reporting
Lab EnvironmentSingle MS SQL Server environmentRunning on Virtual MachineEach Student is Assigned their own DB
Topics
Background and MotivationCurriculum Details
Business Process PedagogyGP Requirements
Future Enhancements
9
High Level ERP Functions
10
Human Capital Management
DefinitionHiring, developing, assigning, and retaining employees
Why do Accountants Care?Estimates value of human capital > $500,000 per personAverage cost of replacement is 1.5 times the employee’s salary.Company costs represent 43% of operating expenseEmployee Value = job-related knowledge, skills, and motivationMuch of HRM is NOT captured by GAAP – Accounts need to recognize implicit value
TrendsSelf Service, eHR (automation)Workforce
graying workforcevirtual teamstelecommutersConsultants and contractorspart-time and temporary employees
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Human Resource ProcessesHire to Fire
Pay
RetireRehire
DeployDeploy
Develop
Recruit
Hire
Enterprise Management
HR
Retiree
Applicant
Person (Workers,
Dependents, Beneficiaries)
Employee
Identify
12
Recruiting Components
Recruit WorkforcePart of Human Resources productApplicant tracking functionality
eRecruitSelf Service for Employees and External Applicants
Wally Looks for a Job!
13
Time and Labor Processes
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Payroll Process Data Flow DiagramContext Level
15
Accounting Entries in Payroll
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Payroll Has High Fraud Potential
Types of payroll frauds:Ghost employees Falsified hoursCommission schemesWorker’s comp schemesExpenses Fraud – Altering receipts, personal expenses
Payroll ControlsSegregation of duties between HR (employee record creation), payroll (prepares payroll) and AP/cashier (disburses cash)Direct deposit (eliminates opportunity for check fraud)Review of employee master data for duplicate names and/or social security numbersComparison of actual payroll to budget
Topics
Background and MotivationCurriculum Details
Business Process PedagogyGP Requirements
Future Enhancements
Payroll Lab DetailsAssumptions
Single Hourly EmployeeNo Medical BenefitsDeduct only Federal TaxesDefault Hours Worked
Payroll Lab SequenceGL Account DefinitionPayroll SetupHire Employee and Assign Pay CodesRun PayrollPrint ChecksPost to GL
Payroll Installation Note
Request Payroll License Key from MSFT AA
Login to ServerNavigate to Dynamics GP Tools Setup System RegistrationUpdate License Key
Restart Dynamics You will be prompted to download the latest Payroll tax updatesProceed with tax installation
GL Setup for PayrollRequired Accounts for Payroll
Other Payroll Setup
DefinitionsDepartmentsLocationsPositionsShift CodesPay Codes
Additional SetupLink Pay Code to PositionCreate Employee Class – sets defaults for an employee (Department, Position, Pay Codes)
Hire and Assign Employee
Add the Employee CardAssign New Employee to pre-defined ClassThis defaults all of the setup information
Specify Legal Information (I-9 data)Set Up Tax Records
Federal Filing Status (Single)Exemptions = 1Tax Withholding State
Run PayrollBatch needs to be
defined for computer checks
Enter the transaction values – note the
different types
Build Checks to collect all transactions for the
period
Print Checks
Run Pre-Check ReportVerify All CalculationsRequired Step before printing
Print ChecksStudents get to see basic payroll checkUpon exiting report, results will be posted to Payroll subsidiary ledger
Perform a Series Post to GL
Topics
Background and MotivationCurriculum Details
Business Process PedagogyGP Requirements
Future Enhancements
Lessons Learned
Payroll ModuleShould Really be Integrated with Time and AttendanceEntering transactions is too simplifiedAfter completing setup, payroll execution is relatively straightforward
Human Resource ModuleNot required to demonstrate impact on GLWould be useful, if faculty desires to use in an HRMS class
Plans for Next YearInclude Deductions
State TaxesBenefits or other Deductions (United Way)
Employee HoursCreate Multiple transactions for different types of hoursPossible Overtime
Highlight GL Transaction Flows for New DataReduce Setup Requirements
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Questions???