Payroll Posting Accounts let’s get to know them! What are best practices, and how do they work?

We receive many common questions about payroll posting accounts. Such as the warning message: "Not all required payroll posting accounts have been assigned?” or, payroll posting accounts are not going to the correct account.

Let’s try to understand why some of these errors and issues occur.

What are the REQUIERED payroll posting accounts, and best practices of setting them up?

First, you must set up departments and positions in HR & Payroll before setting up payroll posting accounts.

Second, set up posting accounts, be sure to set the account format using the Account Format Setup window. Microsoft Dynamics GP button > Tools > Setup > Company > Account Format

Third, set up the Payroll Posting Accounts. The following table shows the posting accounts required in Payroll. Notice you MUST have an ALL Department and an ALL Position setup up for each account type on the list. This is to ensure that an account will be found should there be a payroll transaction in a department/position/code combination that is not specifically set up.

Entering Posting Accounts:

  1. Open the Payroll Posting Accounts Setup window. (Microsoft Dynamics GP button > Tools > Setup > Posting > Payroll Accounts)
  2. Select an account type and position for the employee’s payroll code.
  3. When you select an account type, existing accounts, and an account description will be displayed in the scrolling window. You can either accept the default entry for all departments and positions, or you can post with more detail to the General Ledger if you enter departments and positions. You also can enter a department and position for the employees’ pay code transactions when you enter transactions. (Don’t forget, using the  buttons in the window will display summary or detail information.)
  4. The Code lookup window displays codes for the selected posting account type. For example, if you selected Gross Pay for the Payroll account type, the window displays pay codes.
  5. Enter or select the posting account that transactions with the selected account type should be posted to.
  6. Repeat steps 2 and 3 for all posting accounts.
  7. Choose Save to save the posting accounts.
  8. Choose File > Print to print a Posting Accounts List to verify your information.

How do posting accounts work in Dynamics GP?

Posting accounts, are read left to right: Department then Position then Code then Account. GP will literally look for what you have setup, it is first looking for DETAIL DETAIL DETAIL, then ALL.

Below is a good summary / guide to go by of how payroll will post and read the accounts:

DETAIL-DETAIL-DETAIL

ALL-DETAIL-DETAIL

ALL-ALL-DETAIL

ALL-ALL-ALL default account.

Here are a few scenario examples for you…

  • If my department is 1278 > position is APA > code is 18 it will go to that account 000-1101-00 (see screen shot above)
  • If the department is 1278 > position is CEO > code is 18 > and there is no line set up for 1278 > CEO > 18, GP will not know where to put this transaction.
  • You set up a new position ‘Mechanic’. When setting up this position, the general ledger account did not get setup for the Mechanic position. When payroll runs, GP will have no idea where to put the employee(s) transactions amounts. GP will go through the motions of looking from left to right; Department > Position > Code > Account. When GP does not find an account for this position, GP will post the transactions into the ALL ALL ALL account.

Below are screenshot examples of when the new Mechanic position has been set up with the correct information to post the transactions. Notice how I still have the ALL, ALL, ALL set up in case another department combination posted to this MECH position.

We are so excited about these great features!!!

Posting Edit List - You can edit accounts on the fly! 

Note: You must complete payroll check calculation before using this window.

Payroll & HR > Transactions > Posting Edit List

If you have a payroll checklist you use, or a documented process procedure, please consider adding this step to your process, it could save you time, headaches and effort.

We recommend checking this window after the Calculate Checks process is complete. Payroll & HR > Transactions > Posting Edit List

If you have a suspense or a dump account, do a search on this account to see if any transactions are sitting in it. If there are, you can easily change this account to the correct account on the fly before you post payroll. This will save you time and energy trying to figure out why are the accounts not correct?

Navigation List for Payroll Posting Accounts - Check out this document for all the details!

https://community.dynamics.com/gp/b/dynamicsgp/archive/2016/05/26/payroll-payroll-posting-accounts-setup-enhancements

Microsoft Dynamics GP 2016 enhances a user’s ability to view, sort, search, set up, and edit their Payroll Posting Accounts.  This new Payroll Posting Accounts navigation list is a great new way to manage your Payroll Posting Accounts and allows for users to import and export their Payroll Posting Accounts setup.  

As we approach the end of Q2 2019, I hope this information is useful in identifying any issue you may have quicker and save you time in the future.

Margi Jandro

Other helpful payroll resources to consider:

https://docs.microsoft.com/en-us/dynamics-gp/payroll/payrollus