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Journal Entries Not In Chart of Accounts

Before finalizing payroll, you must check for problems using the Errors tab of the payroll register. Errors #62 and #82 may appear if the payroll register wants to post entries to an account that is not in the Chart of Accounts (COA).

#62 Payroll Journal entries will use accounts that are not in the Chart of Accounts
#82 Payroll Journal entries will use accounts that are inactive on the Chart of Accounts

In either case, read the row carefully to understand which employee, position, and payroll item is causing the error. You will need to use your own judgment and knowledge of your district’s account structure to determine if the account is correct or if a different account should be used instead.

You can then do one of the following:

  1. Add the account to the chart of accounts
  2. Change the status of the account to active
  3. Change the settings so that a different account will be used

Add a new account (#62)

If you see error #62 and decide that the account really should be used, you can add it to the Chart of Accounts.

To add a new account to the COA:

  1. Go to Financials Main > Setup > Chart of Accounts
  2. Create
  3. Enter a Description and Dimensions
  4. Save

Mark an inactive account active (#82)

If you see error #82 and decide that the account really should be used, you can find the inactive account and mark it active.

To change the status of an inactive account:

  1. Go to Financials Main > Setup > Chart of Accounts
  2. Click the three vertical dots icon in the Active column
  3. Hover over Filter
  4. Check No instead of Yes
  5. Filter
  6. You may scroll through the list of inactive accounts, sort, or filter to find the one you want
  7. Edit
  8. Check the Active box
  9. Save

Change the settings to use a different account

Every payroll item is essentially a mini transaction, debiting at least one account and crediting at least one other account. For example, a health insurance benefit in IL might use the accounts:

  • Debit FF-ENNNN-222-R
  • Credit FF-L48110

The placeholder letters for Fund (F), Function (N), and Responsibility Center (R) are populated based on the employee’s payroll account breakdown (PAB), found on the Positions tab of Employee - Single View.

If an employee is paid out of 10-E1110-110-37 (with 37 representing a specific grant), then their health insurance item will:

  • Debit 10-E1110-222-37
  • Credit 10-L48110

If either of those accounts is not in the chart of accounts, you will see error #62. If either account is inactive, you will see error #82.

If 10-E1110-222-37 is incorrect, and you actually want to debit 10-E1110-222-1 instead, there are several ways of resolving this, depending on the situation.

PAB and benefit are both incorrect

If the employee should not be paid out of that grant at all, so the 37 is incorrect on both the payroll account breakdown and the payroll item, then you should edit the employee’s PAB. This will also stop the item from inheriting the 37.

To edit the PAB:

  1. Go to Financials Main > Human Resources > Employee - Single View
  2. Look up the employee
  3. Open the Positions tab
  4. Edit the position
  5. Change the Payroll Account Breakdown to the correct account
  6. Save

PAB is correct but benefit is not

If the employee should truly have their wages paid out of the grant 37, but the benefit should not, instead use responsibility center 1, then you can edit the individual employee payroll item.

  1. Go to Financials Main > Human Resources > Employee - Single View
  2. Look up the employee
  3. Open the Payroll tab
  4. Edit the health insurance benefit
  5. Change the Expenditures account to FF-ENNNN-222-1
  6. Save

Benefit should be the same for everyone

If every single employee’s health insurance benefits should be paid out of responsibility center 1, then you can edit the District Payroll Items settings to change the default, and update all employees.

  1. Go to Financials Main > Payroll > District Payroll Items
  2. Edit the health insurance benefit
  3. Change the Expenditures account to FF-ENNNN-222-1
  4. Save & Mass Edit Employee Payroll Items
  5. Check Update box above the Expenditures account
  6. Check all employees, payroll item templates, and draft payroll runs
  7. Save

Correcting Past Data

If you realize that you have been using the wrong expenditure account for a while and need to make changes to past data, then you will need to move the money into the correct expenditure account with a journal entry. This will involve:

  1. Running a Transactions Report to find out exactly how much needs to be moved
  2. Temporarily keeping or making the incorrect account active
  3. Creating a journal entry that credits the incorrect account and debits the correct account
  4. Making the incorrect account inactive after the balance is $0.00

If you need assistance with this process, please reach out to our support team.