Lesson 5 of 5 · 5 min read
GL impact & compliance
The complete payroll GL posting, the compliance reports AION ships (GOSI, WPS, EOS, tax), and the real-dollar ROI of running HR & payroll on a system instead of spreadsheets.
The monthly payroll GL entry, in full
For the March pay run in Lesson 4 (~20 employees):
| Account | DR | CR |
|---|---|---|
| 6200 Salary Expense | 185,000 | |
| 6210 Allowances Expense | 45,000 | |
| 6220 Employer GOSI | 22,000 | |
| 6230 End-of-Service Accrual | 15,000 | |
| 2300 AP — Salaries Payable | 192,000 | |
| 2310 GOSI Liability (both sides) | 40,000 | |
| 2330 Loan Deductions Liability | 8,000 | |
| 2340 EOS Liability | 15,000 | |
| 2350 Tax Withheld | 12,000 |
Total DR = Total CR = 267,000 SAR.
Everything is posted in one balanced entry by the payroll SLA resolver. No manual journal entries.
The follow-on entries
Salary payment (typically same day or within 3 days):
| Account | DR | CR |
|---|---|---|
| 2300 AP — Salaries Payable | 192,000 | |
| 1010 Bank | 192,000 |
GOSI remittance (monthly, to the authority):
| Account | DR | CR |
|---|---|---|
| 2310 GOSI Liability | 40,000 | |
| 1010 Bank | 40,000 |
Tax remittance (monthly, if applicable):
| Account | DR | CR |
|---|---|---|
| 2350 Tax Withheld | 12,000 | |
| 1010 Bank | 12,000 |
EOS accrual clears at separation — when someone leaves and takes their EOS, the 2340 liability clears against the cash payment.
Compliance reports AION ships
Saudi Arabia
- GOSI Monthly Form — XML file ready for GOSI portal upload
- WPS File — Wage Protection System-compatible bank file
- Mudad Integration — for employers registered on the labour law portal
- Iqama / Residence Permit expiry tracking — with renewal alerts
- Nitaqat (Saudization) metrics — Saudi vs. expat counts
Egypt
- Social Insurance Monthly — formatted file for the social insurance authority
- Form 4 (labour) / Form 6 (social insurance) — statutory forms
- PIT withholding report — personal income tax remittance
UAE
- WPS file — UAE format
- Employee Gratuity tracking per UAE labour law
Cross-jurisdiction
- Payroll journal — detailed breakdown by employee, period
- Cost center allocation report — payroll by department, plant, cost center
- EOS accrual report — running balance per employee
- Leave balance report — per employee, per leave type
- Loan balance report — outstanding loans and collection schedule
KPIs to watch
| KPI | Target | Source |
|---|---|---|
| Payroll accuracy | > 99.5% of pay slips correct first time | Exception report |
| Payroll cycle time | < 1 hour from cut-off to GL post | Pay run timestamps |
| Attendance compliance rate | > 98% | Attendance register |
| Leave utilization | Balanced (not hoarded, not exhausted) | Leave balance report |
| Time to close EOS settlement | < 30 days from separation date | Separation report |
| Overtime as % of base payroll | < 10% (else rethink workforce plan) | Payroll analytics |
| Labour court disputes | 0 | External metric |
The real-dollar ROI
Before AION (typical F&B factory, 20 employees)
- Payroll effort: 3-5 days per month for 1 payroll clerk + 1 HR manager reviewing = ~50 hours × 150 SAR = 7,500 SAR/month in direct labour
- Payroll errors: 3-5% error rate × 20 employees × SAR variance = ~10,000-30,000 SAR/year in corrections, disputes, catch-ups
- Compliance fines: late or incorrect GOSI/tax filings = 5,000-50,000 SAR/year in typical cases
- EOS under-accrual: balance sheet understated by 1-3 months of EOS = ~45,000 SAR (one-time correction)
- Labour court exposure: typically 1-2 disputes per 100-employee company per year = 10,000-100,000 SAR in legal + settlement costs
After AION
- Payroll effort: 30-60 minutes per month = ~900 SAR/month (vs. 7,500)
- Payroll errors: near zero; documented audit trail defends every calculation
- Compliance fines: near zero; all filings generated from the system
- EOS accrual: built monthly, balance sheet always right
- Labour court exposure: reduced — documented audit trail, defensible calculations
Direct annual savings: ~80-100K SAR/year on a 40-employee factory — and materially more on larger sites.
What you should do now
- Do the March payroll lab in Lesson 4 if you haven’t.
- Open the Employee Master in the demo and see how the data is structured.
- Open a pay slip PDF from the demo and see how it looks — bilingual, with year-to-date, deductions clearly broken out.
- Reach out if you want to talk through your own workforce structure, leave policies, and payroll complexity.
You’ve completed all 5 courses
Procure-to-Pay, Order-to-Cash, Plan-to-Produce, Record-to-Report, Hire-to-Retire. The five standard ERP cycles that every business runs on, automated in AION with the SLA engine keeping the GL continuously in sync with operations.
What’s next is entirely up to you:
- Try the demo deeper — navigate around, try reports you haven’t seen, break things
- Book a walkthrough — we’ll tailor a 30-minute session to your specific factory and process
- Share these courses with your CFO, operations manager, or accountant — they’re free, they’re bilingual, they teach real ERP cycles no matter what system you eventually choose
Thanks for reading.