Payroll Journal Automation ("The Payroll Connector")

1. Goal: Automated Gross-to-Net Accounting

Problem: Payroll is processed in a specialized system (ADP, Gusto, Datev). The accounting entry (Journal) is complex: Split by department, split by tax type, split by benefit provider. Currently, this is a manual CSV download + Excel manipulation + Upload process every month. Solution: A connector that ingests the "Payroll Register" and automatically maps it to the General Ledger (GL) with 100% accuracy.

2. Core Value Proposition

• Time Savings: Reduces a 4-hour sensitive task to 1 click.
• Privacy: No need to email sensitive salary spreadsheets around.
• Granularity: Can split salaries by Cost Center or Project automatically.

3. Workflow: The "Monthly Run"

1. Ingest: Connect to Payroll Provider API (or upload "Gross-to-Net" Report).
2. Mapping (The Brain):
   • System looks at "Pay Component" (e.g., Overtime, Bonus, Health Insurance).
   • Maps to GL Account (e.g., 6001 Salaries, 6005 Benefits).
   • System looks at "Department Code" (e.g., Sales).
   • Maps to Cost Center (e.g., CC-100).
3. Validation: Checks if Debits = Credits.
4. Posting: Pushes the Journal Entry to the ERP.

4. Data Model

PayrollMappingRule

• mapping_id
• pay_code_source: (e.g., "HOURLY_REG" from ADP).
• gl_account_target: (e.g., "6000-00 Wages Expense").
• department_source: (e.g., "Dept 101").
• cost_center_target: (e.g., "CC-Sales").

PayrollJournalEntry

• journal_id
• period_end_date
• source_system: ADP | GUSTO | DATEV
• lines[]:
  • gl_account
  • description: "Salaries - Sales - Oct 2024" (Anonymized).
  • debit_amount
  • credit_amount (Net Pay + Tax Liabilities).
  • cost_center_id
• status: DRAFT | VALIDATED | POSTED

5. UX/UI

• The Mapping Matrix: A drag-and-drop screen to link "Payroll Codes" (Left) to "GL Accounts" (Right).
• The Privacy Shield: Users with "Accounting" roles see the totals by department, but NOT individual employee rows.

6. Integration

• Inputs: Payroll Register (CSV or API).
• Outputs: Journal Entry (JE) to ERP.