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Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Pay code / Pay type qu...
Microsoft Dynamics GP (Archived)

Pay code / Pay type question

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Posted on by Community Member

I know how to set up Pay Codes in Microsoft Dynamics GP. However, I had a question.

Is the ‘Pay Type’ the driver that would move an expense from the Payroll Batch once posted, into A/P?

I am looking to set up 2 pay codes and notice I do not have a Pay Type setup option anywhere except for within the Pay Code Setup screen.

The goal is to pay 2 items with the payroll direct deposits weekly. P for Per Diem and R for Reimbursable Expenses.

Currently we have the E which is entered when a person’s time is entered, and when the payroll batch is committed/posted, the expense moves into open A/P.

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  • Suggested answer
    Terry R Heley Profile Picture
    Terry R Heley Microsoft Employee on at
    RE: Pay code / Pay type question

    U.S. Payroll only, sorry Beat!

  • Beat Bucher GP Geek GPUG All Star Profile Picture
    Beat Bucher GP Gee... 28,058 Moderator on at
    RE: Pay code / Pay type question

    Thanks Terry for the precision,

    Does the PIP also work with the Canadian Payroll ? or does it work only with the US payroll module ?

  • Suggested answer
    Terry R Heley Profile Picture
    Terry R Heley Microsoft Employee on at
    RE: Pay code / Pay type question

    Hi, you are correct that pay types are "driver's" in the system as during the calculate checks process it tells Microsoft Dynamics GP what to do with the dollar figures.  it will not say when to post to payables.

    We do have a free product called PIP , Payroll to Payables integration.  When you post payroll data, it will update a payables vendor.  Example taxes, health insurance, garnishments, etc. 

    Thanks

    Terry Heley

    Microsoft

  • Suggested answer
    Beat Bucher GP Geek GPUG All Star Profile Picture
    Beat Bucher GP Gee... 28,058 Moderator on at
    RE: Pay code / Pay type question

    Hi,

    I don't think that the PayCode type will drive anything with A/P for Employee Expenses.. (though I'm not a Payroll Master and do not process PR).

    Here's what the user guide says about this Pay Type :

    Business Expense   Business Expense pay type will be used to track the records of employees who are reimbursed for mileage and travel expenses. You can include the pay in the gross wages amount that will be reported on the W-2 statement.

    If you mark Report as Wages, the pay will be included in gross wages on the W-2 statement and will be treated as a nonaccountable plan. If you don’t mark this option, the pay won’t be included in gross wages on the W–2 statement and will be treated as an accountable plan.

    Nonaccountable plans are reported as wages on the W-2 statement and are subject to taxes. Accountable plans aren’t subject to taxes and aren’t reported on the W-2 statement.

    If you pay a per diem or mileage allowance and expenses exceed the Internal Revenue Service guidelines, you must tax the excess amount and report it as wages on the W-2 statement; the non-taxable portion must be reported in box 13. For more information, refer to the W-2 instructions supplied by the IRS.

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