Payroll Manual Check – Fields to Watch

Occasionally, you may have to re-enter a payroll check using the Manual Check window in Payroll.

Transactions | Payroll | Manual Checks

Payroll Manual Check Adjustment Entry Window

This window can be used to enter three transaction types:

  • Beginning Balances – Recorded as checks with a gross and net amounts, but do not post to the general ledger or bank reconciliation
  • Manual Check – Recorded as checks with a gross and net amounts, do update general ledger and bank reconciliation
  • Adjustment – The gross and net must be zero; this type is used to move amounts between codes. For example, moving pay recorded under one pay code to another pay code.

When entering a transaction in this window, you can select a Batch ID (highly recommended to allow you to review the transaction before posting) and then select:

  • Checkbook ID (if using Manual Check type)
  • Check number (if using Manual Check type)
  • Check date (very important for proper reporting)
  • Posted date (very important for proper posting)
  • Employee ID

Click the “Transactions” button to enter the individual transactions to appear on the check.

Transactions | Payroll | Manual Checks | Transactions Button

Payroll Manual Check Transaction Entry Window

What is unique about manual checks is that NOTHING is calculated for you. You must enter every aspect of the transaction, from the taxes to the taxable wages. If you click the “Transaction Type” drop-down list, you will see all of the different transaction types available.

You can see now how mistakes are possible. For example, when you select a Pay Code transaction type, you need to make sure that the correct department, position, state, local, SUTA state and workers comp codes are populated so the wages are reported correctly. However, the most common issues are around the Federal Tax, FICA Soc Sec Tax, FICA Medicare Tax, State Tax and Local Tax transaction types. When you select one of these types, special fields are displayed for taxable wages and, in the case of FICA, the employer’s portion of taxes.

You not only need to record the amount of tax taken out of the check, but you also must record the correct amount of taxable wages to be reported for this tax and, in the case of FICA, the correct amount of employer’s FICA tax. Again, none of this is calculated for you, so be very careful.

  • Amount – Tax Amount
  • Taxable Wage – Wage Amount to be reported as taxable for this tax
  • EFIC Amount – Applicable to FICA only, the tax amount for the employer’s portion of the tax

To further complicate matters, none of these fields appear on the edit list for manual checks.

Transactions | Payroll | Manual Checks | Printer Icon

Note the tax amount is displayed, but not the taxable wages, and the employer FICA tax amount is only displayed in summary. Unfortunately, these common mistakes will impact the amounts on the 941 report and payroll summary, causing these reports not to reconcile as you might expect.

The lesson here is to make sure you review the actual transactions and not rely solely on the edit list for your review.

For assistance with recording payroll manual checks or making corrections to payroll, contact BKD’s Microsoft Dynamics GP support center at gpsupport@bkd.com.

14 thoughts on “Payroll Manual Check – Fields to Watch

  1. avatarOra Goldman

    Hi Christina,
    Interesting article!

    Do you happen to know if it is possible on the standard GP payroll check to report Taxable wages to the employee on their check stub? The only fields we see available are Gross wages and one of our clients wants taxable wages (like those found on the Employee Summary Inquiry window).

    1. avatarChristina Phillips

      Taxable wage info is actually stored in the transaction history table (UPR30300) after posting, or in a temp table (by transaction) during posting Payroll TEMP Check Detail/uprTempCheckDetail since the taxable wages have to be calculated based on TSA settings. Feel free (Hi! Ora– It’s Christina Phillips) to shoot me an email at cphillips@bkd.com if you want to discuss further.

  2. avatarSusan W.

    I noticed some people are using the manual check as a place to make adjustements for wages and taxes. Have you ever used this for that purpose?

    1. avatarChristina Phillips

      Yes, you can use a manual check to adjust wages and taxes. Just make sure you adjust both the tax and the taxable wage where appropriate. Also, keep in mind that a manual check (if there is a net amount) will post to bank rec and the GL. So you might choose to use a beginning balance instead, as it does not post to the GL or bank rec….in the case where adjustments to the GL have either already been made or are not necessary.

  3. avatarPatricia

    Christina,
    We had issue with a check our 1st PR and used this process to get our entries corrected. It was a tremendous help, thanks !

    Another issue we have discovered is a Pay type is wrong on our paycode for “additional hours worked”. Pay type was set up for holiday rather than salary. We just ran our 1st PR and of course because of the pay code/type error it reduced the salaries rather than increasing them. We use Business Portal to report time and do not want to create a new code because of all the “re-set up” involved in the Business Portal. How can this code be fixed ? Is it possible to inactivate it and then reenter it correctly ? Is there anyway to fix the pay type error behind the scenes in the SQL db ? Many thanks for your suggestions. Patricia

  4. avatarrana

    hello cristina
    it is really interesting article but is related to only transaction type “FICA social security tax” would you please elaborate other transaction types available on manual checks window. more specifically i want to know about “advance pay”

    what is the nature of advance pay transaction type & how i can use it for paying advances to employees.

    1. avatarChristina Phillips

      Yes, I was just pointing out key fields in the window that typically cause issues for users when recording transactions. The Pay Advance transaction type is used to record an advance against a salary pay code, which can then be collected automatically in a subsequent pay run (or by recording a manual check using the Withhold Advance transaction type). The Dynamics community is a great place to post specific questions about functionality, http://community.dynamics.com/product/gp/default.aspx?ref=hp.

  5. avatarKristin

    We are wondering how to adjust federal withholding on a bonus check? Also, would we use the manual check method if the taxes we’re incorrect and then reprint a check? Thanks

  6. avatarJessica Richardson

    I have a question. Is there anyway to set an employee that is on salary where his check would be a certain dollar amount every payday after taxes? Like can you put a dollar amount in and the program figure the amount it would need to be before taxes for the net to be a certain amount?

  7. avatarS Hammond

    How do you correct SUTA wages? We have employees who live on the border of one state but work in another and the SUTA code defaulted to the address state which is incorrect.

  8. avatarSara Romigh

    How do you account for the EMPLOYER”S portion of the SSA & MEDI taxes when using “Beginning Balances”? Does it automatically account for them once the batch is posted?

  9. avatarSara Romigh

    Never Mind. After re-reading your article I see where you are describing how to account for the employer’s portion of the taxes. This was very helpful.

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