How the system generates ECs 994-999

Owned by Valentyna Plokhykh, created
Last updated: Mar 12, 2024 by Helen Ustych

How the system generates ECs 994-999.

Introduction

ECs 994-999 are automatically generated by the system in response to changes in the employee's total wage balance during the payroll period.

Balance Action dependency

ECs 994 and 995 are generated by the system based on the Balance Action defined in the crew’s Payment tab in Payroll as well as the amount of the balance, as long as the ending balance is positive.

The Balance Action “Carry Forward to Next Month” will generate EC 995, and all the rest - EC 994.


When an employee is added to the system their Balance Action is defined by the employment Organization company settings under Payroll > Payment> Balance Actions. By default, it is “Carry Forward to Next Month”.

Each customer can choose their own default Balance Action which will be the one automatically set when a new person is created.

Details of generation

  • EC 994 Net Wage is generated only when you are making a payment to the crew during the period, meaning the Payment tab has been updated to any Balance Action except “Carry Forward to Next Month” and the person has a positive balance.

  • EC 995 Balance Carried Forward is generated when the Balance action is “Carry Forward to Next Month”, meaning you are not making the payment to the employee in the current payroll period, and the person has a positive balance. This EC has a net amount for the period and it is “deducted” from the crew Net wages balance to transfer it to the next period. It is a deduction as the system is always leveling and bringing the employee's total balance to 0 in the period to be sure that there are no loose ends and nothing is forgotten to be paid to the crew. 

    • If you are not running payroll by employer/vessel, the balance from EC 995 will be saved on ACC17 to be carried forward.

  • EC 996 Balance Brought Forward is generated when there is a positive balance due from the previous payroll period, no matter what the Balance Action on the Payment tab is. If the crew has had EC 995 calculated in the previous month, EC 996 will always appear automatically. The amount on EC 996 will be a positive amount, as it is bringing in the net amount that is due to be paid.

    • If you are not running payroll by employer/vessel, EC 996 is paying out the amount saved on the ACC17 Balance B/F column. If a mistake has happened in a previous month and an employee should not have any balance brought forward, you can correct the calculations by removing the value from the ACC17 Balance B/F column.

  • EC 999 Negative Balance Carried Forward will be generated when the total balance for the employee is negative, meaning the deductions from the crew wage are higher than the crew allowances, no matter what the Balance Action on the Payments tab is. The amount of this entry is positive, as it brings the total balance in the period to 0. In short; If a person's total net wages is negative, the EC 999 will balance it to 0, and the negative amount will be transferred to the next month.

    • If you are not running payroll by employer/vessel, the balance from EC 999 will be saved on ACC12 to be carried forward.

  • EC 998 Negative Balance Brought Forward - will always generate when there is a negative balance from the previous payroll period, no matter what the Balance Action on the Payment tab is. If the crew has had EC 999 calculated in the previous month, EC 998 will appear automatically in the current month. The amount on this entry will be negative.

    • If you are not running payroll by employer/vessel, EC 998 is paying out the amount saved on the ACC12 Balance B/F column. If a mistake has happened in a previous month and an employee should not have any balance brought forward, you can correct the calculations by removing the value from the ACC12 Balance B/F column.

A few additional points worth noting:

  • In a newly installed empty APM system, EC 994-999 should be created manually or imported in Payroll > Entry codes like any other entry codes. Debit/ Credit options should be set correctly at this point as it’s not possible to correct that on the user screen afterwards:
    EC 994 - Deduction
    EC 995 - Deduction
    EC 996 - Allowance
    EC 998 - Deduction
    EC 999 - Allowance

  • It is up to you to update the naming of these Entry Codes as you like, but it won’t affect how they are generated by the system.

  • EC 994 can only be created in the same month with EC 995 or EC 999 if EC 994 was paid out to the bank and locked, and after that, some new additional balance appeared and Balance Action was changed to  “Carry Forward to Next Month” or an over-deduction to the crew wage was inserted. In all other cases, in the same period, there will be only one of the three Entry Codes.

  • EC 996 and EC 998 can be created in the same month with ECs 994, 995, and 999 if there is a positive or a negative balance due from the previous month.