Payroll ledger mapping for Xero

Before mapping your payroll data, we would like you to consider a few items. Please read the following, as they could significantly impact the amount of work you need to do going forward. 

• Depending on your role and business, more than one person may be required to complete this task. You will need your Chart of Accounts and a good understanding of your business's accounting setup. 
• Xero and MYOB are currently the only accounting software supported by the Payroll Ledger Mapping tool. In the future, more accounting software solutions will be supported. 
• Payroll ledger mapping is completed per paying entity. 
• Payroll ledger mapping can be redone or edited as required. 
• If your Chart of Accounts changes, it can be re-imported and re-mapped.
  • Adding new accounts will not affect the mapping you have set up already. 
  • Removing mapped accounts will give you a warning, letting you know that the account is mapped but allowing you to continue if you choose. Any mapped payroll items will then become unmapped. 
• Consider how you would like to import your data into Xero. You can either use the direct Xero integration or download the CSV file to import. 
  • We recommend using the direct integration; however, both options will be further detailed below. 

  Contact us: While we are not accounting experts, our Support team are still on hand to assist you with troubleshooting any issues that may arise while mapping your Chart of Accounts or exporting your ledger. 

The first step to setting up your Payroll Ledger export is to import your Chart of Accounts. You don't need to edit or review your Chart of Accounts before you import it. 

To import your Chart of Accounts:

1. From the main menu, navigate to Payroll Settings > Payroll Ledger Mapping. 
2. Select Create Map to the right of the paying entity you want to configure. 
3. Select your accounting software and then Begin Mapping. 
4. If you haven't already done so, download your Chart of Accounts from Xero.
5. Select browse, locate the downloaded file and select open. This will import your Chart of Accounts. 

6. Please confirm the codes thoroughly and ensure that they are marked correctly. If necessary, you can change how a code is marked. 

   • The mapping tool will have pre-selected the codes marked as Expenses or Liabilities. Everything else will be marked as Non-payroll. 
   • Non-payroll codes won't be included in the mapping process. 
   • The Chart of Accounts can be reimported if necessary. 
   • Selecting only the expenses and liabilities you intend to map will make the following two steps more manageable.
     
     
     
       Please note: If you need to change what the account type a code is marked as after you have completed your mapping, any items already mapped to that code will be removed.

   

7. Select Start mapping. 

After importing your Chart of Accounts, the next step is to map your expenses. Expenses are any items that could contribute to the overall costs of running a business.

Before mapping your expenses, please note the following:

• All the GL accounts you specified as expenses in your Chart of Accounts will be visible on the left of the screen. 
• The expense mapping can be set up so that all payroll items from foundU are mapped to a single GL code. Alternatively, you can set up rules to divide the payroll items into multiple codes.
  • Single GL code - For example, all OTE hours could be mapped into '477 Wages & Salary'.
  • Multiple GL codes - For example, all OTE hours could be divided into '477 Wages & Salary-Management' or '478 Wages & Salary Support'. 
• To the right, you will see all available expenses within foundU. As you map your foundU expenses to the codes, the list on the right will reduce, leaving only the unmapped ones. This lets you easily confirm when all your costs have been mapped.
• You may complete the mapping process without mapping all expenses. 

Mapping for a single code

To map an expense to a single GL code:

1. Select + Map expense to the right of the code. 
2. All of the available expenses in foundU will be presented for selection. You can select the expenses that map to your chosen code individually or by selecting a group heading to select all within. 
3. Select Save map. 
4. Repeat these steps until all single codes have been mapped. 

In this example, we allocate all Superannuation payroll expenses to the Superannuation account. 

  Please note: The above is an example only and may differ for your business mapping.

Mapping for multiple codes

When mapping multiple GL codes simultaneously, it is important to note that not all payroll items can be split by the same conditions. 

The following items will have limited options available:

• ETP/Terminations
• On costs (Workcover, payroll tax)
• Superannuation (except super guarantee)
• Deductions

To map an expense to multiple GL codes:

1. Select Divide expense between codes in the top right. 
2. From the drop-down menu, select at minimum two codes.
3. Choose the expenses that will be divided into these codes, then select Map rules. 
4. On the left, select your conditions. You can divide expenses by up to 2 conditions.
   The following items can be used to split your expenses:
   • Cost code
   • Employment type
   • Location
   • Office code
   • Operation
5. On the right, add the conditions to be met to map the expenses. 
6. Optionally select Include fallback code. This will act as a catch-all code. If an expense doesn't trigger any of the rules you have set up, it will fall into the code you have selected here. 
7. Save, name your rule and confirm. 
8. Repeat these steps until all expenses are mapped. 

In the below example, we split the wage payroll expenses among several wage accounts based on the cost code. 

  Please note: The above is an example only and may differ for your business mapping.

After mapping expenses, the next step is to map your liabilities. Liabilities are obligations that businesses owe. 

Before mapping your liabilities, please note the following:

• All of the codes you specified as liabilities in your Chart of Accounts will be visible on the left of the screen. 
• The mapping of liabilities can be set up so that all payroll items from foundU are mapped to a single GL code. Alternatively, you can set up rules to divide the payroll items into multiple codes.
  • Single GL code - For example, all OTE hours could be mapped into '477 Wages & Salary'.
  • Multiple GL codes - For example, all OTE hours could be divided into '477 Wages & Salary-Management' or '478 Wages & Salary Support'. 
• To the right, you will see all available liabilities within foundU. As you map your foundU liabilities to the codes, the list of liabilities on the right will reduce, leaving only the unmapped ones. This feature lets you quickly verify that all your obligations have been identified and recorded accurately.
• You may complete the mapping process without mapping all liabilities. 

Mapping for a single code

To map a liability to a single GL code:

1. Select + Map liability to the right of the code. 
2. All of the available liabilities in foundU will be presented for selection. You can select a liability to map to your chosen code individually or by selecting a group heading to select all within. 
3. Select Save map. 
4. Repeat these steps until all single codes have been mapped.

In this example, we allocate all Superannuation payroll liabilities to the Superannuation account. 

  Please note: The above is an example only and may differ for your business mapping.

Mapping between multiple codes

When mapping multiple GL codes simultaneously, it is important to note that not all payroll items can be split by the same conditions. 

The following items will have limited options available:

• ETP/Terminations
• On costs (Workcover, payroll tax)
• Superannuation (except super guarantee)
• Deductions

To map for multiple codes:

1. Select Divide liability between codes in the top right. 
2. From the drop-down menu, select at minimum two codes.
3. Choose the liabilities that will be divided into these codes. 
4. Select Map rules. 
5. On the left, select your conditions. You can divide expenses by up to 2 conditions.
   The following items can be used to split your liabilities:
   • Cost code
   • Employment type
   • Location
   • Office code
   • Operation
6. On the right, add the conditions to be met to map the liabilities to the codes. 
7. Optionally select Include fallback code. This will act as a catch-all code. If a liability doesn't trigger any rules you set up, it will fall into the selected code. 
8. Save, name your rule and confirm. 
9. Repeat these steps until all liabilities are mapped. 

In the below example, we split the net payable liabilities into two wages payable accounts based on employment type. 

  Please note: The above is an example only and may differ for your business mapping.

If your business uses tracking categories in Xero, these can be set up as the last step. With tracking categories configured for your Payroll Ledger export, the resulting export will be split according to your tracking categories. 

You can read more about tracking categories in Xero here. 

To configure your tracking categories:

1. Select the toggle to enable one or both of your Xero tracking categories. 
2. From the foundU drop-down menu, select from the following:
   • Cost code
   • Employment type
   • Location
   • Office code
   • Operation
3. Name the categories and options on the right to match what is in Xero. 
4. Finish set up to save.

  Hot tip: Once your mapping is saved, you can navigate to the Payroll Ledger report by selecting the Report icon.

You can set up the Xero Integration link to send your Payroll Ledger data directly from your foundU platform to your Xero account. Once your integration is connected, you can run your Payroll Ledger Export and send it to your Xero account with just a few simple clicks.

  Permission reminder: To set up the Xero Integration, you must have 'Access Integration Centre' turned on in your Admin User permissions. 

To connect the Xero Integration:

1. Navigate to the main menu > Integrations > Integration Centre.
2. From the Accounting section, find the Xero Integration.
3. Select Connect to log in to your Xero account and confirm foundU's access.
4. Once connected, you will be redirected back to your platform. The integration will be marked as 'Connected'.

Once the integration is connected, you can see a 'Send to Xero' button on your Payroll Ledger Export page. 

With all your mapping done, you can now run your Payroll Ledger Export and either directly send it to your Xero account or export it into a CSV to have on file. 

  Please note: Your data isn't locked to the Payroll ledger mapping if there's an issue with how your data exports or with your mapping, you can edit your Payroll ledger mapping and re-run your report. 

To run your Payroll Ledger Export:

1. Navigate to Reports > Financial and select Payroll Ledger Export. 
2. Select Create report to the right of the paying entity you'd like the export for. 
3. Select your date range and optionally filter to specific employees. 
4. Select to run your report either by:
   • Accrual Basis - Reports based on your period end dates. 
   • Cash Basis - Reports based on your payment dates. 
5. Create Report.
6. The Payroll Ledger report will display the following fields:
   • Narration - The name of the admin user generating the report. 
   • Date - The period ends or payment dates, depending on your selections. 
   • Description - The name of the accounts you mapped your payroll data into during the mapping process. 
   • Code - The codes you mapped your payroll data into during the mapping process. 
   • Tax Rate - This is imported with the Chart of Accounts and exported with the same detail. 
   • Debit - The value of expenses per your mapping. 
   • Credit - The value of your liabilities per your mapping. 
   • Tracking Name - The name of your tracking categories if you set them up. 
   • Tracking Option - The name of your tracking options, as seen in Xero and set up during the mapping process. 
7. To import your data to Xero, you can select from one of the following options.
   • Send direct to Xero - When running your Payroll Ledger Export, select Send to Xero to send your data directly to your Xero account as a draft. 
     
       Please note: This option will only appear once the integration is set up. For instructions on how to do this, please refer to the relevant section above.
      
   • Export to CSV - When running your Payroll Ledger Export, select Export CSV to produce a CSV file that can be manually uploaded into your Xero account or kept on hand in your external files. 
     • If you have set up your integration, you can still export your data into a CSV by selecting the drop-down arrow to reveal the Export CSV option.
8. To download the export into a CSV File, from the drop-down arrow, select Export CSV.

  Hot tip: If any new or unmapped payroll items exist, a warning will appear at the top of your report. Allowing you to navigate back to your Mapping and review those items seamlessly. 

What do we do if we change our Accounting structure?

You can reimport your Chart of Accounts and re-map anything that needs to be. If you are adding new accounts, none of your existing mapping will be affected. If you are removing accounts, only the mapped items will be affected. 

I need assistance importing my file into Xero, and there are a few other issues from the Xero end. Who do I go to for assistance on this?

That's understandable! Our foundU team members are experts in foundU but not Xero, but the team at Xero have a dedicated Support Centre with guides on all things Xero and Support!

Access the Xero Support Centre here!

What do I need to do if I add a cost code to the system and I'm dividing Journal Accounts by cost code?

If you are adding anything to the system that will impact your Journal Export (cost codes, operations, or office codes) you will need to edit your mapping to account for this. 

Having a fallback account is a good way to catch any values that have no rules assigned to them when diving payroll items. You should also be reconciling your Journal Export to ensure the values line up. 

If you do notice that something has been missed, you can edit your mapping and re-run the report without issue. 

A lot of our paying entities are set up similarly. Can we copy the mapping between them?

No. Payroll ledger mapping must be done per paying entity.

Although your paying entities may be configured similarly, from a system-side there are differences between them. This includes which cost codes, Operations, and office codes are available to select within the paying entity.