ACCOUNTING SYSTEM OF WAGES AND SALARY

1. ACCOUNTING SYSTEM OF WAGES AND SALARY Karina Adhitia (105030200121015)

2. Documents Needed • Supporting documents of wages and salary modification • Clock Card • Job Ticket • List of wages and list of salary • List of wages and salary recapitulation • Wages and salary statement letter • Wages and salary envelope • Proof of cash disbursement

3. Accounting Report

4. Related Function Responsible to find new employee, employee candidate selection, deciding employee placement, make decision letter of wages and salary tariff Personnel function Time keeping function Responsible to implement job time keeping for all of the employee in the company Responsible to make wages and salary list that contain gross wages and salary that become a right and other deductions that become an expense of each employee in a wages and salary payment period Responsible to record liabilities that appear in relation with the payment of wages and salary The list maker of wages and salary function Journal department Cost Card department Debt department Accounting Function Financial Function Responsible to fill the check of wages and salary payment and cash down it to bank. Then, that money will be insert to an envelope and will be give to the employee

5. Elements of Internal Control • ORGANIZATION • List of wages and salary making function should be separated from financial function • Attendance time recording should be separated from operational function • AUTHORIZATION SYSTEM • Every people that their name is appear on the list of wages and salary should has employment decision letter as an employee, together with the sign of the Director • Every modification in employee’s wages and salary because of the changes in position, changes of wages and salary tariffs, and family addition should base on financial director’s decision letter • Every deductions of wages and salary (except employee’s income tax) should be base on deduction letter of wages and salary that authorized by the personnel function • Clock card should be authorize by the time keeping function • Overtime job order should be authorize by the head of personnel department • Wages and salary list should be authorize by the personnel function • Proof of cash disbursement for wages and salary payment should be authorize by the accounting function

6. RECORDING PROCEDURE • Modification in employee’s salary record should be reconciliation with the list of wages and salary • Verified the wages tariffs, whether it’s accurate or not by the accounting function • HEALTHY PRACTICES • Clock card should be compare with the job card before this card used as a base of direct-labor cost distribution • Entering clock card to the time record machine should be supervise by the time keeping function • Wages and salary making should be verified first about its validity and its accurate calculating by the accounting function before they do the payment • Income tax calculation of the employee will be recon- ciliate with the employee’s fee record • Employee’s fee record saved by the list of wages and salary maker function

7. Wages and Salary Dept. Time Keeping Dept. 1 8 START Clock Card 2 ESC Attendance 1 List Recording attendance time Salary List 2 PCD 3 Make salary list T Clock Card T A Make salary recapt. Make attendance list SSL 2 Clock Card 2 SLR 1 Attendance 1 list 2 Salary Procedure Salary list 1 1 Salary card 2

8. Debt Department 2 7 ESC SSL 2 SLR 2 SLR 1 Salary List 1 2 PCD 1 Salary list 1 9 Make PCD ESC SSL 2 Record the check number from Register PCD SLR 1 2 Salary list 1 3 2 PCD 1 4 3 Register PCD

9. 4 6 ESC ESC SSL SSL SLR 2 SLR 2 2 2 Salary list 1 Salary list 1 3 Insert to the envelope together with money 3 PCD 1 PCD 1 Fill check, give sign Cash down the check, enveloping money 8 7 Pay the salary, ask for sign Paid in full stamp 6

10. 5 3 9 SLR 2 PCD 2 PCD 2 Salary list 1 SLR 1 SLR 1 PCD 1 Memorial evidence Make memorial evidence Check Register Cost Card N N PCD 2 FINISH SLR 1 Memorial evidence General Journal 5

11. WAGES PROCEDURE START START Recording attendance time Recording Job time Clock Card Job Card Make attendance list Make Job Time list Clock Card 2 Job Card 2 Attendance list Job time list 1 2

12. 1 2 9 Clock Card 2 Job Card 2 Attendance list Job time list Wages card Compare Wages List 2 PCD 3 Make wages list Recap. & Wgs statement letter T A WSL 2 WLR 1 2 Wages list 1 Wages Card 3

13. 3 7 EWC WSL 2 WLR 2 WLR 1 Wages List 1 2 PCD 1 Wages list 1 10 Make PCD EWC SL 2 Record the check number from Register PCD WLR 1 2 Wages list 1 3 2 PCD 1 4 5 Register PCD

14. 4 6 EWL EWL WSL WSL WLR 2 2 WLR 2 2 2 Wages list 1 Wages lis 1 3 Insert to the envelope together with money 3 PCD 1 PCD 1 Fill check, ask for sign Cash down the check, enveloping money 8 7 Pay the wages, ask for sign Paid in full stamp 6

15. 9 5 10 WLR 2 PCD 2 PCD 2 Wages list 1 WLR 1 WLR 1 PCD 1 Memorial evidence Make memorial evidence Check Register N N PCD 2 FINISH WLR 1 Memorial evidence Staple Products Price Card Cost Card General Journal 9

16. WAGES AND SALARY COST DISTRIBUTION