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The Employee Sale transaction is used to record sales to employees. These transactions upload to the host system as a transaction entry in the Financial module and an arrears transaction entry in the HR & Payroll module. By allowing the user to record sales to employees, these transactions create payroll deductions. Therefore, Employee Sales can be used to create reimbursements in the host system via entering negative arrears. 

Prerequisites

Required Prerequisites

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• Set the Purchasing Preference for “Enable Real Time Integration” to “Yes”. This user guide assumes that the preference is set to “Yes”. If the preference is set to “No”, then the events in Step 3 will not occur.
• Set the Purchasing Preference for “Default Payroll Deduction” to “Employee Purchases”Employee Sale Payroll Deduction” 

Understanding the data flow

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From NorthScope, expand the Purchasing module on the navigation menu and select “Sales”. This will open the Purchasing Sale List View, which displays all purchasing employee and customer sales with a status of New, Approved, or Ready to Post.

Click the “New” toolbar icon and select “Employee Sale” to open a blank record viewthe New Sale record view. On the New Sale record view Home tab header, select the Employee from the Sold To drop-down menu and click save. Saving the new sale with an employee as the sold to entity will refresh the transaction as an employee sale as opposed to a customer sale. Once the transaction has been initially saved, the Sold To header field becomes disabled and the Deduction header field will display.

Completing the header fields

• Cash: An optional field to enter the amount of cash received from the employee for the sale. 
• Check: An optional field to enter the amount received from the employee via check for the sale.
• Credit Card: An optional field to enter the amount received from the employee via credit card for the sale.
• Deduction: Select the payroll deduction for the employee sale.
• Description: An optional field for a description of the transaction.
• Doc Date: Identifies the date of the sale or return.
• Doc No: An optional field for a document number. If entered, the Doc No must be unique by transaction type.
• Sold To: Select the employee being sold the item(s) or returning the item(s).
• Status: This field is to select the status from the following options:
  • New - This is the default.
  • Approved - Used when there is a two-step process for finalizing transactions. Setting the status to “Approved” disables all editable fields except Status.
  • Ready to Post - Used when the user is ready to post the transaction. Setting the status to “Ready to Post” disables all editable fields including status.
• Tax Class: An optional field is to select the tax class to apply to the transaction in order to charge sales tax. This field is only enabled if the Company module preference for 'Enable Sales Tax on Employee Sales' is set to 'Yes'. 

Adding line items

By default, new employee sales open with 5 blank rows for data entry. Complete the data entry by adding one line for each transaction.

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• Description: Offers a description of the line item being sold or returned. This field defaults once the item has been selected.
• Extended: This field is read-only and displays the product of the price per UOM and the quantity. 
• Item: Select the item being sold or returned. This field offers a lookup of all active items.
• Payroll Deduction Code: Select the payroll deduction code the employee deduction will integrate under.
• Price: Enter the price per UOM for the line item. Prices must be greater than or equal to 0. This field defaults to 0.
• Quantity: Enter the amount of the line item being sold. This field defaults to 1.
  • Note: If the customer sale is recording a return, the user must use the Quantity field to record the negative (i.e. -1) and enter the absolute value of the price of the item(s) to be returned in the Price field. For example, a return of $500 would be entered by placing a -1 in the Quantity field and a positive 500 in the price field.
• Sale Account: Select the sale account to be credited on the line item journal entry. This field defaults once the item has been selected.
  • Note: If the customer sale is recording a return, the sale account will be debited.
• UOM: Select the unit of measure for the line item. This field defaults once the item has been selected.

Note: If a Tax Class is selected, a line item will auto-populate in the grid to display the total amount of taxes applicable to the transactions. This line item is not editable by the user. 

Step 2: Recording payments/refunds on the transaction. (Optional)

Payments received from the employee for the sale transaction may be recorded at the time of the transaction using the Payment Details tab.

To record payments received from the employee for the sale transaction, open the Payment Details tab. Then, enter the amount received in the Amount column corresponding to the 'Payment Type' through which the money was received - either Cash, Check, or Credit Card. In the reference field, the user has the option to enter a reference for the payment - however, this is not required. Finally, select the checkbook to receive the payment from the Checkbook drop-down menu. Selecting the checkbook will default the Cash Account field with the cash account assigned to the checkbook. The total payment amount for a employee sale cannot exceed the total transaction amount. However, partial payments can be applied. 

Once the payment has been entered and the transaction is saved as 'Ready to Post,' a journal entry and an arrears transaction for the sale will be sent to the host system.

Refunds to the employee for a return transaction may also be recorded at the time of the transaction using the Payment Details tab.

To record refunds to the employee for the return transaction, open the Payment Details tab. Then, enter the amount refunded in the Amount column corresponding to the 'Payment Type' to which the money was returned - either Cash, Check, or Credit Card. In the reference field, the user has the option to enter a reference for the refund - however, this is not required. Finally, select the checkbook from which the refund is being made from the Checkbook drop-down menu. Selecting the checkbook will default the Cash Account field with the cash account assigned to the checkbook. Employee returns must be refunded in full, meaning the total refund amount for an employee sale cannot exceed the total transaction amount and partial refunds cannot be applied. 

Once the payment has been entered and the transaction is saved as 'Ready to Post,' a journal entry will be sent to the host system.

Note: If payments/refunds are recorded, each payment/refund value must correspond to the overall transaction amount value. For example, if the overall transaction amount is positive, then each payment/refund amount value must also be positive. Alternatively, if the overall transaction amount is negative, then each payment/refund amount value must also be negative. 

Step 3: Finalizing the transaction in NorthScope.

Changes can be made to a transaction until it is finalized. To finalize a transaction, the user will need to change the status to “Ready to Post”. In some companies, posting is a two-step process where transaction(s) are “Approved” by one person and posted by another.  

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• Validates the same conditions as the approval status and locks down all editable fields including status.

• Updates the transaction status to Posted and removes it from the list view.

• Creates the NorthScope Employee Deduction journal entry and sends it to the Host System.

Step

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4: Posting and reviewing the transaction entries in the host system.

For every Employee Sale a journal entry will be made in the host system if the Purchasing Preference for “Enable Real Time Integration” is set to “Yes”. The journal entry will appear in the host system's Financial module as a Transaction Entry in the batch titled NS followed by the year, month, and day with the following format: NS: YY_MM_DD. For example, if the Employee Sale was integrated on July 14, 2015, the Batch ID for the transaction entry would be NS: 15_07_14. 

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Note: Although this step is required, it does not need to be done for each transaction. Posting can be done nightly or as needed.

In addition, an Arrears Transaction Entry will be posted in the host system’s HR & Payroll module under the employee for each transaction line item.

Arrears transactions for positive sale line items

• One arrears deduction for each sale line item under the “Payroll Deduction Code” specified on the transaction line item.

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• sale

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• One negative arrears deduction for each return line item under the “Payroll Deduction Code” specified on the transaction line item.

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