When integrating FlexiTime with Xero, you're able to split your wages expenses into different Xero accounts for easy reporting. There are a number of different options in FlexiTime depending on what suits your business. You can:
- Use employee account codes. Each employee can have a Xero expense account code that their wages should be recorded against.
- Use a separate Pay Code for each account code. This option works well if the costs for a single employee need to be split across multiple accounts.
- Use Xero tracking categories to enable reporting to different categories for a single expense account. See this support article.
Splitting by Employee Account Codes
To set up an account code for an employee go to Setup > Employees and edit the employee. Under the Employment tab enter an account code in the Xero Account Code field:
With this field entered for an employee any Pay Codes that have the option 'Use Employee Account' turned on will post to the employee home account rather than the Pay Code account:
This option can be turned on for all gross earnings and taxable allowance pay codes such as Ordinary Time, Time and a Half, Holiday Pay, Annual Leave Taken, etc. FlexiTime will then split out the payroll invoice lines into separate cost centres based on each employee's home account code. If an employees doesn't have a home account code specified, FlexiTime will use the Xero Account Code specified on the Pay Code instead.
Splitting by Pay Codes
If you need to split the payroll costs for individual employees across multiple accounts you may prefer to create a pay code to handle each Xero account code. Simply create a new Gross Earnings type pay code for each account, entering the corresponding account code in the Xero Account Code field.
You can then add these pay codes directly into the employee's pay and allocate the appropriate hours to each.
Alternatively, if you will be using the Timesheets you can create Work or Work Categories linked to those pay codes and employee time can then be recorded against that Work to populate the pay runs automatically. Simply ensure that Derived from Timesheet is ticked on the pay code.