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Payroll real Function?

Posted on by 36
What is the real purpose of the payroll function in Business Central? Is it to only record expenses from the employees that need to be paid? 
For example: If an employee went and bought utilities with his own money, the company needs to reimburse that money to the employee, should we only use this employee function to record these things?
 
How do people in Business Central directly record their employees' total salary, tax, social security, and more deductions?
 
Thanks!
  • Andera_P Profile Picture
    Andera_P 37 on at
    Payroll real Function?
    Hi!
     
    In my experience using payroll functionality is a great feature to allocate costs to departments.
    I assign default dimensions to each employee card and then via payroll journal I process payroll transactions.
    Payroll transactions are calculated outside Business Central, I use copy form excel and paste in D365 Business  Central Feature.
    This not the best solution, but in my case works fine.
     
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    Khushbu Rajvi. Profile Picture
    Khushbu Rajvi. 4,509 on at
    Payroll real Function?
    Business Central doesn’t have a dedicated payroll module out of the box; it relies on integrations or third-party solutions for payroll management. While you can manage employee expenses and salaries, full payroll processing typically requires additional tools or extensions.
     
     
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    Valentin Castravet Profile Picture
    Valentin Castravet 24,785 Super User 2024 Season 2 on at
    Payroll real Function?
    Business Central doesn't have a dedicated payroll module; what you're referring to is more like an HR module. With this module, you can:
    • Create a list of employee cards on the Employees page, where you can record additional information for each employee, including their absences.
    • Register employee expenses as you mentioned.
    • Pay employees using the payment journal.
     
     For example: If an employee went and bought utilities with his own money, the company needs to reimburse that money to the employee, should we only use this employee function to record these things?
     
    You can set up the employee on the Employees page, which is one option. Alternatively, you can set up the employee as a vendor card. The difference is that by setting them up as employees, you can distinguish between actual vendors and internal employees, which some companies prefer for audit and internal control reasons. However, the downside is that vendor cards have more functionality in the system that employee cards do not offer.
     
    How do people in Business Central directly record their employees' total salary, tax, social security, and more deductions?
    If you're referring to using Business Central for payroll, companies typically do one of two things: either they use external software or websites for payroll and then import or enter the GL entries for the total amounts into Business Central.

    Alternatively, if you want to handle payroll directly within the system, it is possible, but you will need to acquire a third-party payroll add-on.
     

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