The process of running payroll creates numerous liabilities, paying a variety of vendors for garnishments, medical insurance premiums and taxes. And, as many folks have over the years, you may have developed a manual process to ensure these get paid:
- Giving the posting journals to payables, who rekey the information as an invoice
- Possibly having someone review the general ledger after posting to pull the liability amounts
- Making the payments yourself to ensure there is no mixup
Wouldn’t it be nice if you could simply post your payroll and the vendor invoices would be created automatically for inclusion in the next check or electronic funds transfer (EFT) run? Payroll Integration to Payables (PIP) allows just that. The good news: It’s easy to set up and use; there’s only one screen involved in the setup.
Payroll Vendor Setup Window
Human Resources and Payroll Page | Setup | Payables Integration | Vendors
First, select the transaction type to post from payroll to payables. Your choices include:
- Federal Tax—to post federal tax liabilities, for the FED tax code
- State Tax—to post state tax liabilities, for a selected state tax code
- Local Tax—to post local tax liabilities, for a selected local tax code
- Company Deduction—to post the total deduction liability, for a selected deduction code
- Employee Deduction—to post the deduction liability for a selected employee, for a selected deduction code
- Company Benefit—to post the total benefit liability, for a selected benefit code
- Employee Benefit—to post the benefit liability for a selected employee, for a selected benefit code
Depending on the selection made in the Transaction Type field, you may be required to select an Employee ID (for the Employee Deduction or Employee Benefit types) and then a benefit, deduction, state tax or local tax code.
You then can select the Voucher Description. You can choose from a combination of check date, code and employee ID (for the Employee Deduction or Employee Benefit types). Then click “Save.”
Payables Transaction Entry Window
Purchasing Page | Transactions | Transaction Entry
The next time you post payroll, the liabilities defined in the Payroll Vendor Setup window will automatically create an invoice batch in payables management.
The invoices will be created in a batch. The batch ID will be the audit trail code from the payroll posting. Note the description will default as defined in the Payroll Vendors Setup window.
Hint: Make sure you set up your vendors with the appropriate default posting accounts for Accounts Payables and Purchases (Expenses). Keep in mind the payroll will post the initial liability according to Setup | Posting | Payroll Accounts, and the invoice will post to offset this original liability. Plan your default posting accounts accordingly.
You can then review and post the payables batch as you would normally (Purchasing Page | Transactions | Batches). The invoices then can be paid with checks or EFT as part of your normal processing.
Note: PIP is part of Payroll Extensions and must be installed as part of Human Resources and Payroll Suite (GP2010) or as part of Payroll Extensions (GP 10.0).
For more information on PIP or for assistance in its installation, setup or use, contact our Dynamics GP support center at firstname.lastname@example.org.