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How do I handle payroll that is posted the month after in Setup and Operation?

Accrue the payroll in the month it is posted, and add one extra month at the end. Otherwise the final forecast is missing about one month's payroll.

Setup and Operation is based on when the cost is posted. Payroll for a month is often posted the month after. Therefore, accrue the payroll in the posting month, and add one extra month at the end.

How to do it

  1. Go to Setup and Operation and open the payroll expense item by clicking the name.

  2. Extend the period in the From / To date field under the General tab by one month after the last production month.

  3. In the Cost Price Estimate tab, accrue the amounts in the months the payroll is posted, not the months it is earned. Remember payroll in the extra month.

  4. Save and check the final forecast.

The Cost Price Estimate tab on an expense item in Setup and Operation, with one row per month. 1 points to the Cost Price Estimate column, where the amount is accrued per month, and 2 to the last month in the period, where an extra month is added when the period is extended.

Why is this important?

If you accrue by when the payroll is earned, AIMZ in practice skips one month. The final forecast is then too low by about one month's payroll.

Good to know

  • Instead of an extra month, you can increase the budget in a later month.

  • Setup and Operation does not show liquidity. Use Liquidity to see when the money actually goes out.

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