Allocate payroll journal entries across departments and entities from payroll provider data

Verified steps

1. Extract the payroll register from your payroll provider's API or export for the pay period, obtaining gross pay, employer taxes, benefits, and deductions broken down by employee and, where available, by department or cost center code.
2. Maintain an employee-to-GL mapping table with columns: employee_id, home_department, home_entity, cost_center_code, allocation_type (direct or split), and for split employees, an allocation_split table with rows per department and percentage.
3. Apply the allocation rules to each payroll line: for direct employees, map 100% of each component (gross wages, payroll tax, benefits) to the employee's home department and entity; for split employees, distribute each component proportionally per the allocation_split percentages.
4. Build the journal entry: debit each wage, tax, and benefits expense account by department/entity combination; credit the corresponding payroll liability accounts (wages payable, payroll tax payable, benefits payable) at the entity level.
5. Post the journal entry to the ERP via the journal entry API for each entity involved, using the pay-period end date and including the payroll run ID in the memo; for multi-entity payrolls, post separate entries per entity rather than a single cross-entity entry unless the ERP supports intercompany journaling natively.
6. Reconcile the total debits across all departments to the payroll provider's total payroll cost report and the total credits to the net pay and tax remittance amounts to confirm the entry is in balance before final posting.