Allocating payroll expenses

After completing a pay run, you can allocate expenses for it by creating a batch of allocation transactions and then releasing the batch.

Depending on your company's settings, an allocation batch might be automatically released when you create it. This happens if the Automatically Release Allocation checkbox is selected on the Expense Allocation Settings tab of the Payroll Preferences form (MPPP1100).

Creating a batch of allocation transactions

Create a batch for a single pay run

Go to the Manage Pays form (MPPP4110).
Click the Pay run ID for a completed pay. The Pay Run Details form (MPPP3120) opens.
On the form toolbar, click the ellipsis (...) and select the Allocate Payroll Expenses action. This creates an allocation batch and adds it to the Payroll Expense Allocation Batches form (MPPP3510).

Create batches in bulk

Go to the Run Payroll Expense Allocation form (MPPP5045).
In the Action field, select Allocate.

For historical pay runs whose expenses were allocated before the payroll expense allocation features in MYOB Advanced were set up, you can use the Mark as Allocated action. This marks pay runs as having been allocated without creating any allocation batches.
In the From and To fields, enter a date range to filter the list of pay runs by.
Optionally, complete the Pay Group field to only view completed pay runs for that pay group.
In the main table, select the pay runs you want to create batches for.
On the form toolbar, click Process. This creates allocation batches and adds them to the Payroll Expense Allocation Batches form (MPPP3510).

If you want to create batches for all completed pay runs, click Process All.

Reviewing batches

After you've created a batch, it's a good idea to make sure that its transactions are going to the right places. To view a batch's transactions, go to the the Payroll Expense Allocation Batches form (MPPP35PL) and click a number in the Batch Number column.

If you're happy with the batch, you're ready to release it. If you notice a mistake, you need to delete the batch, fix the underlying mistake, then create a new batch.

How are income and allowance transactions grouped?

The source expense transactions are grouped by: employee, pay item, source branch, source expense account, source expense subaccount.
The destination allocation transactions are grouped by: employee, pay item, destination branch, destination account, destination subaccount, project, project task, inventory item.

For example

In the table below, Pay Item A for a current pay has two general ledger transactions associated with it:

Source transactions for Pay Item A	Amount
Transaction 1: Account A – Subaccount X	$100
Transaction 2: Account A – Subaccount X	$200
Total	$300

In the table below, time sheet data or fixed allocation rules allocate the following percentage per project.

Allocation basis (timesheet data or fixed allocation rules)	Percentage
Project A	50%
Project B	20%
Project C	5%
Project D	25%
Total	100%

So, the following transactions will be created and added to the expense allocation batch:

Allocation transaction	Basis amount	Allocation %	Allocation amount
Tran 1 – Project A	$100	50%	$50
Tran 1 – Project B	$100	20%	$20
Tran 1 – Project C	$100	5%	$5
Tran 1 – Project D	$100	25%	$25
Tran 2 – Project A	$200	50%	$100
Tran 2 – Project B	$200	20%	$40
Tran 2 – Project C	$200	5%	$10
Tran 2 – Project D	$200	25%	$50
		Total	$300

Releasing batches

After reviewing a batch, you can release it to allocate its transactions to the appropriate general ledger and/or project.

Release a batch

Go to the Payroll Expense Allocation Batches form (MPPP3510).
For the batch you want to release, click the Batch Number.

You can only release batches with an Open status.
On the form toolbar, click Release. This allocates the transactions in that batch to the appropriate general ledger and/or project. It also sets that batch's status to Closed.

Fixing mistakes in a batch

Before you can fix a mistake in a batch, you need to either delete or reverse it. This depends on the batch's Status on the Payroll Expense Allocation Batches form (MPPP3510). If the status is:

Open, delete the batch.
Closed, reverse the batch.

After deleting or reversing a batch, you can fix the underlying mistake. Depending on the mistake, fix it by:

changing your company's expense allocation setup, or
adjusting the pay run you created the batch for.

Deleting a batch before its released

Go to the Payroll Expense Allocation Batches form (MPPP3510).
For the batch you want to reverse, click the Batch Number.
Make sure the batch's Status is Open.

If the status is Closed, you need to reverse the batch, not delete it.
On the form toolbar, click the Delete icon (
).

Reversing a released batch

Reversing a batch doesn't delete it, but it does let you create another batch for the pay run.

Batch reversals are posted to the current business date. If the original batch is posted to a previous financial period, the reversal will be posted to the current period unless you change the business date before reversing.

Go to the Payroll Expense Allocation Batches form (MPPP3510).
For the batch you want to reverse, click the Batch Number.
Make sure the batch's Status is Closed.

If the status is Open, you need to delete the batch, not reverse it.
On the form toolbar, click Reverse. This removes the batch's transactions from the general ledger and/or project they were allocated to. It also sets that batch's status to Reversed.

What if I adjust or reverse a pay run that has an allocation batch?

When adjusting a pay run that has an allocation batch, the negative adjustment pay run will copy the transactions from the allocation batch, writing them off. A new adjustment batch can then be generated from the positive adjustment pay run.

Reversing a pay run also reverses any of its allocation batches.