Employee Sale (UG)

Owned by Tatum Hohl (Unlicensed)
Last updated: Nov 18, 2020 by Tom Williams
8 min read

Overview

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, if the integration is turned on. By allowing the user to record sales to employees, these transactions create payroll deductions. 

Prerequisites

Required Prerequisites

Before entering an Employee Sale, the user must complete the following:

  • Employee Setup
  • Financial Account Setup

Optional Prerequisites

  • Turn on integration for journal entries and Employee Arrears.
  • Set the Purchasing Preference for “Default Employee Sale Payroll Deduction” 
  • Attributes setup for Employee Sale transaction

Understanding the data flow

An employee sale transaction can be used to record sales transactions to employees and returns from employees. When the transaction status is changed to “Ready to Post,” an arrears transaction entry is created in the host system’s HR & Payroll module for the employee and once the arrears transaction is integrated, a NorthScope employee deduction journal entry is created and sent to the host system as a transaction entry in the Financial module.

 The integration only occurs, when integration setup for Employee Arrears and Journal is set to Timed/Immediate.

To view the data flow of Employee Sale transactions, click here.

Step 1: Entering the transaction in NorthScope.

Entering a new transaction

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

Click the “New” toolbar icon to open the 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 Deduction header field will display.

For more information regarding the Employee Sale transaction fields, refer to the online help here. 

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

Click New from the grid toolbar to add blank rows for data entry. By default clicking New creates 5 blank rows. Complete the data entry by adding one line for each transaction.

Note: Clicking New from the grid toolbar saves the transaction.

Note: Additional lines can be added by clicking New grid toolbar icon.

Required line item fields

  • 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 default checkbook for each payment type can be configured in Sales Order Preferences. In order for the transaction to be approved or posted, 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, if the integration is turned on.

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: Assigning transaction properties (Optional)

The transaction GL date can be updated in the Properties tab. Other properties are displaying the transaction details and they are for informational use only and not editable. The GL date defaults to the transaction date, but the date is editable when the transaction status is New. The GL date must be greater or equal to the transaction date and must be within an open fiscal period. Save the transaction record after updating the transaction properties.

Step 4: Assigning Attributes (Optional)

The Attributes tab on the transaction will include all user-defined Attributes assigned to the Sales Order - Employee Sale Transaction.

To setup Attributes for the Sales Order - Customer Sale Transaction, navigate to Company → Attributes → Sales Order → Transactions → Employee Sale.

Step 5: 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.  

Approving the transaction

This step is optional and is used for companies that require a two-step process where there the person who approves the transaction cannot be the same person that posts the transaction.

To approve a transaction open it from the list view, change the status to “Approved”, and click the “Save” icon on the header toolbar. In addition to the validations performed each time the “Save” icon is clicked, there are additional validations that are performed:

  • Ensures there is at least one valid line item on the transaction
  • Ensures that all default GL Accounts can be assigned.
  • Ensures that required Attribute values have been entered. 

Once the status has been successfully updated to “Approved”, all the editable fields, with the exception of Status, will be disabled.

Finalizing the transaction

When the transaction is ready to be finalized, the user must open it and change the status to “Ready to Post” and save the transaction. Setting the invoice to “Ready to Post” does the following:

  • 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 an Arrears transaction entry for the Employee. This will be sent to the Host system's HR&Payroll module. 

  • Creates the NorthScope Employee Deduction journal entry and sends it to the Host System, if the integration is turned on. This will occur after the Employee Arrears transaction is integrated. 

Step 6: Posting and reviewing the transaction entries.

For every Employee Sale a journal entry will be made in the host system if the integration setup for Employee Arrears and Journal is set to Timed/Immediate. 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. 

Each Employee Sale journal entry description will be the NorthScope journal entry number followed by the NorthScope transaction ID followed by the NorthScope transaction name (i.e. 12345: INV123456 Emp Sale).

If the Integration Setup for Employee Arrears and Journal is set to None, the transaction is set to "Posted" when saved as "Ready to Post".

Journal entries for positive sale line items

  • One debit line showing the summarized amounts for the employee “Accounts Receivable” account. The GL Account comes from the employee’s “Accounts Receivable” account in the host system.

  • One credit line showing the summarized amounts for each unique “Sale Account” on the transaction.

Journal entries for negative sales line items (Returns)

  • One debit line showing the summarized amounts for each unique “Sale Account” on the transaction.
  • One credit line showing the summarized amounts for the employee “Accounts Receivable” account. The GL Account comes from the employee’s “Accounts Receivable” account in the host system.

Once the user is satisfied that all the GL Distributions are correct, the user can post the batch in the host system.

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

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.

Step 7: Reviewing in NorthScope.

Whether or not Step 5 is complete, the following will occur in NorthScope:

  • The posted Employee Sale(s) will automatically update from “Ready to Post” to “Posted” and will no longer be visible in the Purchasing Sale List View.

 Once Step 5 is complete, the following will occur in NorthScope:

  • The NorthScope journal entry will update from "Ready to Post" to "Posted" and will no longer be visible in the Financial Journal Entries List View