ERP/ Accounting Integration with Jisr: Comprehensive User Guide

What is accounting integration?

Accounting integration is a technical process aimed at ensuring a seamless integration of financial data that is essential to complete the payroll cycle with ideal accuracy and efficiency between Jisr HR system and the company's ERP/ Accounting system. Accounting integration can automate the exchange of Journal entries directly between the two systems, thereby reducing wasted time and potential errors resulting from manual operations.

Importance of Accounting Integration

• Time-Saving: Accounting integration can save companies about 70% of the time wasted on manual accounting tasks.
• Error Reduction: It helps in reducing accounting errors and improving the accuracy of operations by more than 30%.
• Automation of Processes: Automation facilitates the creation of payroll journal entries and synchronization of employee data between the systems, ensuring data accuracy.
• Improvement of Work Efficiency: Automation allows focus on more important tasks rather than being occupied with manual data exchange.
• Comprehensive View: Integrated tools provide a comprehensive view of human resources data and financial data in one place.

Popular Accounting Systems that Support Integration with the Jisr System

• Odoo
• SAP Business One
• Oracle NetSuite
• QuickBooks
• Xero
• Zoho Books
• Microsoft Dynamics Finance
• Microsoft Dynamics 365 - Business Central
• Qoyod
• SAP S/4HANA
• Oracle Fusion

How to Start Accounting Integration Process

Before starting the accounting integration steps, the user must ensure that the basic requirements (Pre-requisites) for integration with the accounting system are available, such as: the supported version of integration with Jisr, permissions, roles, settings on the client's accounting system, etc.

The user can view the requirements for each system by reading the articles added in the pre-requisites section for enabling the activation with the accounting system (name of the system) from here.

Note: The user who will activate the accounting integration process must have the permission to “manage integrations” from Jisr system.

After verifying that all the accounting integration requirements are met, the users can easily perform the steps to activate the integration between their accounting system and Jisr HR system.

The stages of accounting integration that the user goes through in Jisr system are considered the same stages that do not differ regardless of the user's accounting system.

Accounting integration stages:

Subsidiaries Mapping

The step of subsidiaries mapping is considered one of the first steps in the actual integration process, as the client’s subsidiaries appear on this screen in the accounting system, so he can choose the companies to be integrated with Jisr system.

After clicking “Next,” this screen appears, and then the customer integrates the subsidiary companies in the accounting system with their Jisr business units as configured on the system.

If you do not want to use the business units defined in Jisr as sub-companies, the user can choose a dedicated sub-company to create and add employees to the sub-company.

Note: Some accounting systems in the integrating process require that the customer have at least one subsidiary company, and the solution in this case is that the user can integrate his own company (in the accounting system) into a designated subsidiary company (in Jisr system) and then add employees to the designated company from  “Employees” tab or in the “Employee Allocation” stage.

Below are the systems that support adding subsidiaries and which systems mandate adding one subsidiary at least to process the integration: 

Cost Centers Mapping

After mapping the subsidiaries, the user links the type of cost centers used in the accounting system through which the user can track employee costs and integrate them to Jisr. If you do not use cost centers, please select the “I do not use cost centers” option.

The user links the accounting system cost center type with Cost Center type in Jisr (sites, regions, departments, divisions). If you do not use these classifications, please select Create as "Cost Center" option.

Note: Some accounting systems in the integration process allow the possibility of adding cost centers, some systems provide default cost centers in the system, and some systems show cost centers with a specific name. For example: the cost center in Odoo system is named as "Analytic Accounts".

Note: When an employee's "Department" or "Location" field (which dictates their organizational unit) is updated in the HR system, their assigned "Cost Center" is automatically changed to the corresponding cost center linked to the new department/location.

This automatic update applies to employees with a single cost allocation and changes scheduled for future will take effect as soon as they get reflected in employee profile

This table displays the details of each system along with the cost center: 

• Default cost centers: means that the cost centers are default, and you as a user cannot add another center.
• Cost center name: It is the designation of the cost center in the accounting system.

Chart of Accounts Mapping

After mapping the cost centers is completed, we move to the next step, which is integrating chart of accounts with the corresponding financial Jisr transactions. If there is a special chart of accounts for each cost center, the user can add it via (+)

When the user chooses the (accounting system) account, and the “Basic Salary” account is the “Basic Salary” account for financial transactions, each employee’s basic salary will have their accounting entry appear in the accounting system under the “Basic Salary” account.

Note: If the user forgets to link a financial transaction to a specific account, this message will appear to the client when they export the journal entries from Jisr system to their accounting system.

Journal Entry Structure

In this step, the method of displaying the journal entry (the final form of the journal entries) is determined so that it is in totals or in detail for each subsidiary company or for each cost center (if any) or at the employee level or based on the payment method.

For example, in “Journal Entry Grouping”: When you select the (Subsidiary Company) option, the system will create one entry file for each subsidiary in the system.

In this step, the user can choose the method of displaying the description of the entries file and the line for the entry by selecting the information to be displayed. The display of details in the description will help the Finance Department recognize and distinguish journal entries during the audit process.

Note: If “Cost Center Information” is activated, cost center information will appear in the accounting entry

By choosing a specific cost center, this cost center will appear in the entry, and this picture is for clarification

Employees Allocation

In this step, the user can preview and review the final form of employee Allocation among subsidiaries and cost centers (if any) for the purpose of ensuring that he does not forget to add an employee during the preparation and integration process that has taken place.

Note: An employee's information data cannot be synchronized if not associated with the subsidiary.

 

Settings

In this step, the system allows the user to activate employee information sync, which will update and add information for employees in the accounting system.
 

Benefits:

• Employee sync enables customers to get the journal entry lines at the employee level

• It lets customers keep both systems in sync in terms of employee information

 

The user can choose the vacation settlement journal and specify whether vacation pay paid in the settlement is treated as a regular salary expense or a vacation expense.

If the user selects the "Salary-Based Method": Vacation benefits (due to employees) are treated as a regular expense, such as monthly salaries.

 

If the "Accrual-Based Method" is selected: Vacation benefits are treated as vacation expenses and are deducted directly from vacation entitlements.

The User can also choose to calculate Vacation Accrual

1. Calendar Days (Daily Calculation Based on Actual Days in the Month)

 

This method is based on "calendar days," an approach that calculates the daily salary split based on the actual days in the month (salary/actual days).

 

2. Fixed 30-Day Month (Daily Calculation Based on 30 Days in the Month)

 

It is based on the assumption that "a fixed month has 30 days" (salary/30).

 

How does it work? Regardless of the actual number of days in the month, an employee's monthly salary is always divided by 30 days to determine the daily wage. This means that the daily wage will be the same regardless of whether the month has 28, 29, 30, or 31 days.

Key Challenges Customers Face in the Accounting Integration Process

1- Ensuring that Jisr supports the accounting integration system used by the customer.

2- Ensuring that the version of the system is compatible with the integration in Jisr.

3- The readiness of the pre-requisite requirements is essential to complete the accounting integration by the customer’s accounting system.

Tips to Overcome the Challenges

1- Users can identify the systems supported by Jisr for accounting integration by accessing the store in the system, then entering the applications where all systems that support accounting integration with Jisr will appear.

2- Users can review the scope/key features of integrating for each system by clicking on the system icon displayed in the marketplace. 

3- Review articles specific to accounting integration.

4- Contact technical support if any obstacle arises; they will provide assistance and answer any questions related to accounting integration.

Note: It is recommended that the person responsible for the integration process is a user with sufficient accounting expertise to determine the best solutions suitable for the company and to implement the accounting integration efficiently. 

Note: Employee data can be synchronized in some systems: Odoo - SAP Business One - Oracle NetSuite - Oracle Fusion - Microsoft MS Dynamics Finance & Operation - Microsoft Ms Dynamics 365 - Business Central. However, there are some systems that do not support the ability to synchronize employee data, such as: Qoyod System - Zoho Books System - Xero System - QuickBooks System.