Using Microsoft Dynamics GP, if you do Bi-weekly payrolls, you pay employees 26 times a year. If you have monthly deductions, like health insurance, you have a monthly amount for each employee to deduct.
Posted 2012
Using Microsoft Dynamics GP, if you do Bi-weekly payrolls, you pay employees 26 times a year. If you have monthly deductions, like health insurance, you have a monthly amount for each employee to deduct.
Problem? If you annualized the monthly deductions and divide by 26 and use that amount each pay period, than you’ll have great difficulty balancing your payroll accounts in the General Ledger. Also, if an employee leaves your company, it’s likely you’ll have to settle up for the difference in the deductions, which usually means the employee will owe you money.
How to fix it? Divide the monthly deduction amount by half and take out of each pay period for the first 2 pay periods of the month.
If a month has 3 pay periods, use a different “Build Payroll Check” ID and on the Deduction and Benefit button, use the Selected radio button and do not select those monthly deductions. This means a couple of pay periods during the year the employee will get more money which will make them happy. Also, you’ll be able to balance your General Ledger payroll accounts more easily! Its a win win!
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Author: Belinda Allen
Belinda Allen (Microsoft MVP) is both a Microsoft Certified Professional for Dynamics GP (MCP) and a Microsoft Certified Trainer (MCT). She is also the co-founder of Smith & Allen Consulting, Inc. (www.saci.com), a business management software consulting firm for over 24 years.
Belinda began implementing ERP systems so long ago that Windows was not an operating system, but an application. Larger businesses used old Main Frames with monitors that were Green and Black and smaller business did accounting by hand. Having seen the evolution that has taken place over the years from pieces of paper to analytics, Belinda still gets excited every time she helps a business improve.
Belinda is also well known for her Blog www.BelindaTheGPcsi.com. Her blog is about sharing really useful information about the product quickly and succinctly. She has earned the nickname GP CSI because she excels at reviewing GP problems and figuring what went wrong and why. With followers all over the Globe she is able to share knowledge and achieve her mission: “To Improve the Lives and Business Success of my Followers.”
In her time off, Belinda enjoys sailing, woodturning, crochet/knitting, sewing/quilting, reading and playing the ukulele (Belinda often participates in Ukulele Jams in NYC.)
View all posts by Belinda Allen
Belinda Allen, Microsoft MVP Business Solutions 