| Button | Description |
|---|---|
| Actions – Posting – Post | Document posting. |
Payroll Scenario
Payroll Calculation Scenario
Payroll calculation in Microsoft Dynamics is managed through a payroll document that displays all earnings and deductions applicable to the employee, as well as the tax amounts that must be charged to the employee.
There are two types of payroll calculations:
• Interim payroll calculation (all calculations from the previous final payroll calculation to the next one);
• Final payroll calculation at the end of the month or on the employee’s termination date.
Interim payroll calculation is performed for payroll calculation groups of type Interim. When a payroll document with this calculation group is posted, no transactions are generated in the payroll journal, vendor journal, or in the General Ledger. However, payment documents for employees can be generated from the interim payroll calculation. Payments made during the interim period are taken into account when calculating the final payable amount at the end of the month or upon termination. Multiple interim calculations and payments can be made during a payroll period (month).
Final payroll calculation is carried out at the end of the month or on the employee’s termination date. A calculation is considered final if it is done for a payroll calculation group with a type other than "Interim”. If the "Create Payroll Status Details" checkbox is disabled on the Human Resources and Payroll Setup page, then only one final calculation per employee is allowed during the payroll period. If the setting is enabled and a Transfer to another payroll group line is approved for the employee during the period, then multiple final calculations will be created for each unique payroll calculation group.
To perform the final payroll calculation, the employee’s timesheet must be released.
A payroll document does not need to be created manually – it is generated using the Suggest Documents function.
Step 1: Structure of the Payroll Document
The header of the payroll document contains the following information:
Payroll Document page, Header
| Field | Description |
|---|---|
| No. | The payroll document number is generated automatically according to the defined number series. The number series for payroll documents is specified in "HR and Payroll Module Setup" in the "Payroll Document Number Series" field (General Module Setup scenario). |
| Employee Code | Employee code. |
| Full Name | Employee's full name. |
| Posting Description | Description of the payroll document. When the document is generated automatically, this field is filled in automatically and includes the employee’s full name and the payroll period corresponding to this document. |
| Posting Type | Posting type: • Calculation – regular payroll calculation. • Data Entry – manual entry of a payroll document to input data for past periods. This type is used to record payroll data for previous periods at the beginning of using the HR and Payroll module. |
| Period Code | The calculation period code defines the payroll period for which the calculation/data entry is performed. |
| Calculation Group Code | The document’s calculation group code. |
| Posting Date | The posting date determines the date for generating ledger entries and entries in the operation books when the payroll document is posted. |
| Adjustment | The field is not editable and may be set automatically. See more in the Payroll Calculation scenario. |
| Canceled Document No. | The field is not editable and may be set automatically. See more in the Payroll Calculation scenario. |
| Status | This field shows the status of the payroll document (Open or Released). |
| Package Code | The package of documents that includes this payroll document. |
| Send Status | This field shows the send status of the payroll document, recorded as: "Successful + date + time". |
| Responsibility Center | Responsibility center. |
| Dimension Label 1 Code (Costcentre Code) | Defines the label 1 dimension code, which is one of the two global dimension codes set up in the "GL Setup" window. |
| Dimension Label 2 Code (Pyelm Code) | Defines the label 2 dimension code, which is one of the two global dimension codes set up in the "GL Setup" window. |
The payroll document lines have the following structure:
Payroll Document Page, Lines
| Field | Description |
|---|---|
| Element Type | Type of the element for the element code. |
| Element Code | Payroll element code. |
| Description | Description from the element code. |
| Description (English) | Description from the element code in English. |
| Directory Code | The income directory code is determined automatically after specifying the "Element Code". |
| Planned Days | Number of planned days in the calculation period. Automatically defined during payroll elements calculation based on planned days from the timesheet. Filled in by payroll calculation functions (see payroll calculation scenario). |
| Planned Hours | Number of planned hours in the calculation period. Automatically defined during payroll calculation based on planned hours from the timesheet. Filled in by payroll calculation functions (see payroll calculation scenario). |
| Worked Days | Number of worked days in the calculation period. Automatically calculated based on the actual worked days in the timesheet. Filled in by payroll calculation functions. |
| Worked Hours | Number of worked hours in the calculation period. Automatically calculated based on the actual worked hours in the timesheet. Filled in by payroll calculation functions. |
| Payable Days | Number of payable days for the line. By default, taken from the Employee Ledger Entry. May also be filled in by payroll calculation functions (see Payroll Calculation Functions scenario). |
| Payable Hours | Number of payable hours for the line. By default, taken from the Employee Ledger Entry. May also be filled in by payroll calculation functions (see Payroll Calculation Functions scenario). |
| Amount | Amount of accrual/deduction set for the employee. Filled in by payroll calculation functions depending on (based on the type of accrual) the Employee Ledger Entry or working time calendar. |
| Quantity | Number of days/hours/deductions or other data that may be used to calculate the element. By default, taken from the Employee Ledger Entry. May also be filled in by payroll calculation functions (see Payroll Calculation Functions scenario). |
| Salary Amount | Accrued/deducted salary amount. Calculated and assigned to the field using the configured payroll algorithm. Users can manually change the calculated value. If edited manually, other document lines using this line in calculations must be recalculated. If the element is part of the "Calculation Base Details" table (used for taxes/deductions), you must also manually update this table to reflect the change in reports. |
| Taxable Amount | Taxable amount of the payroll element for the current document line. Calculated using the configured payroll algorithm. Users can manually change the value. Note: the tax amount is calculated from the base indicated in the "Adjusted Amount" field. |
| Effective Start Date | Start date of the accrual/deduction. Filled in automatically based on the Employee Ledger Entry. |
| Effective End Date | End date of the accrual/deduction. Filled in automatically based on the Employee Ledger Entry. |
| Accrual Period From | Start of the accrual/deduction period. Filled in automatically based on the Employee Ledger Entry. Used to determine the Accrual Period in the calculation algorithms. |
| Accrual Period To | End of the accrual/deduction period. Filled in automatically based on the Employee Ledger Entry. |
| AE Period From | First period used in average salary calculation. Filled in automatically when the "CALCULATE AVERAGE SALARY" function is called in the payroll algorithm. |
| AE Period To | Last period used in average salary calculation. Filled in automatically when the "CALCULATE AVERAGE SALARY" function is called in the payroll algorithm. |
| Total Indexed Salary for AE | Employee’s earnings in the average salary calculation period. Filled in automatically when the average salary calculation function is used. |
| Total SIF Salary for AE | Earnings with limits considered for average salary calculations. Filled in automatically when the average salary calculation function is used. |
| Total Days for AE | Number of days included in the average salary calculation period. Filled in automatically by the average salary calculation function. |
| Average Daily Earnings | Average daily earnings. Filled in automatically by the average salary calculation function. |
| Payment Percentage | Payment percentage based on average earnings. Filled in automatically by the average salary or other payroll calculation function. |
| Payroll Posting Group | Posting group for the current payroll element line is automatically determined based on the group in the employee card, payroll element, or calculation group. |
| Calculation Type Code | Code of the calculation type, determined automatically when the document is generated, based on the group and types used in the calculation. |
| Payment Source | Available values: • Employer • Social Insurance Fund. Determined automatically for sick leave or by the payroll document algorithm. |
| Deduction for Vendor | Must contain the individual’s code for deduction under a writ of execution (in favor of whom the deduction is made). The value is transferred from the Employee Ledger Entry (see the “Writs of Execution” scenarios for details). |
| Tax Deduction Code | Code for the tax social benefit. Filled in by payroll calculation functions (see the PIT scenario). |
| Accrual Type Code | The value is transferred from the payroll element card and used for reporting purposes. |
| SIC Code | The value is taken from the Employee Ledger Entry transaction, the employee card, or the payroll element card, and is used in reporting. |
| Rate | Tax rate value filled in by payroll document calculation algorithms. |
| HR Order No. | HR order number. |
| Document Type | Type of related document. |
| Period Code | Period code. |
| Person with Disability | Selectable option. |
| Dimension Label 1 Code | (Costcentre Code) One of the two global dimension codes set in the "GL Setup" window. |
| Dimension Label 2 Code | (Pyelm Code) One of the two global dimension codes set in the "GL Setup" window. |
The following fields are also displayed: Dimension Set Code, Calculation Group, Original Amount, Original Payroll Operation Number, Payment Posting, Paid Amount, and others.
The Payroll Document card includes a number of useful functions that allow you to modify the payroll document or retrieve additional information about the employee. Functional buttons in the Header:
The lines of the payroll document have the following structure:
Page Payroll Document, functional buttons in the Header
| Button | Description |
|---|---|
| Actions – Posting - Post | Document posting. |
| Actions – Posting – Batch posting | Posting of multiple documents. |
| Actions – Posting – Posting preview | Allows previewing financial transactions for a document or a batch of payroll documents. |
| Process – Suggest documents | Launches the function for generating payroll documents (for more details, see the step "Generating Payroll Documents"). |
| Process – Release | Approval of the payroll document. The document receives the "Released" status, which protects it from accidental changes. |
| Actions – Functions – Open | Opens the payroll document for editing. |
| Actions – Functions – Copy document | Launches the function to copy a payroll document (for more details, see the step "Copying Payroll Documents"). |
| Process – Statistics | Document statistics page showing the total payroll amount, amount to be paid, and total taxes. |
| Process – Employee card | Displays the employee card. |
| Related – Document – Dimensions | List of dimensions for the document. |
| Related – Document – Daily timesheet | Displays the timesheet for the payroll period. |
| Process – Send calculation | An email is generated on the server for the payroll document (posted or not), and sent to the employee’s email address (taken from the "Org. Email" field in the employee card), with the calculation file attached. The email subject and file name contain the posting description from the document header. If sent successfully, the field "Payroll Document Send Status" is updated with: "Successful + date + time". |
| Approval request – Approval | Displays a list of records pending approval. Document Approval Workflow scenario. For example, you can see the name of the user who requested the approval, the request time, and the approval due time. |
| Approval request – Submit for approval | Sends the payroll document for approval. |
| Approval request – Cancel approval request | Cancels the approval request for submitted payroll documents. |
Page Payroll Document, functional buttons of the page “Lines”, menu “Functions”, “Line”
| Button | Description |
|---|---|
| Recalculate Line | The function initiates recalculation of the current document line. It must be run for all lines whose calculation may be affected by changes made to the “Salary Amount” field in another line. |
| Recalculate Lines | The function initiates recalculation of the current line and all subsequent lines in the document. It should be used starting from the line following the one where the “Salary Amount” field was changed. |
| Calculation | Displays the results of each calculation stage for the item. The list of form fields is similar to that of the calculation algorithm settings. Additionally, the form includes: • Result Value – the value obtained as a result of calculating the line. • Number of Runs – the number of calculations performed for this line. If the value is 0, the line has not been calculated. |
| Dimensions | Dimensions of the individual document line. |
| Comments | Comments for the individual document line. |
| AE Transactions | Displays payroll transactions included in the salary calculation for the document line. |
| AE Periods | Displays the total accrual amount and number of days worked for each period included in the payroll calculation period. |
| Calculation Base Details | For accruals, displays lines with taxes/deductions/social contributions (USC) for which this accrual was used as a base. For taxes/deductions/social contributions, displays the accrual lines that were included in the deduction base. The data is populated by a special function called by the payroll document line calculation algorithm (scenario: Payroll Calculation Functions). These amounts are used in generating reports and forming the payable amount (scenario: Salary Payment). |
Step 2: Payroll Document Generation
To generate payroll documents, a special function Suggest Documents is used| (launched from the list or the "Payroll Document Card"). Payroll documents can be generated for all or specific employees, as well as for selected departments. Filter parameters must be set on the "Filter: Employee" tab of the report launch page.
The user can add additional fields to the form to refine the selection criteria| On the Parameters tab, it is necessary to specify the generation parameters.
Report Suggest Payroll Documents
| Field | Description |
|---|---|
| Calculation Period | Specify the calculation period during which the calculation should be performed. Note that accruals/deductions assigned to the employee are selected based on the specified calculation period and the “Include in Calculation” option of each payroll element’s settings. |
| Calculation Date | The field is automatically set to the last day of the selected calculation period. The user can change this value. The value will be used as the "Posting Date" field in the payroll document. |
| Up to Date | (For interperiod only.) Specify the date by which the system will filter and include in the calculation only those documents whose “Start Date” is less than or equal to this date. |
| Calculation Group Code | Specify the code of the calculation group by which the employee’s calculation will be performed. For the final payroll calculation, this field should be left empty. In that case, the calculation group assigned to the employee’s card will be used (if the “Create Payroll Status Details” setting is enabled on the "HR and Payroll Setup" page, all calculation groups from the "Payroll Status Details" table will be used when creating payroll documents). Note that accruals/deductions assigned to the employee are selected based on the calculation types (Calculation Types scenario) assigned to a specific calculation group (Calculation Groups scenario). |
| Create New Documents | Set to “Yes” if a new payroll document should be created for the calculation. If this option is not enabled, and a payroll document already exists for the employee that calculates payroll for the same period (the “Period Code” field in the document header matches the “Period Code” specified in the task), then existing payroll document lines will be deleted, and the entire payroll calculation will be redone in the same document. If a value is selected in the “Calculation Group Code” field, the “Create New Documents” option is automatically set to “Yes”. |
| Show Messages | Set to “Yes” if you want to display messages about the function’s results. If there are errors, the user will also receive notifications if this field is checked. Regardless of this option’s value, payroll documents with errors will not be created. It is recommended to always run with “Yes”. |
| To start the task of creating payroll documents, click OK. |
Step 3: Deleting Payroll Documents
To delete a payroll document, on the payroll documents list page or on the payroll document card, click the Delete button.
To delete multiple documents (those currently selected) on the payroll documents list page, click the Delete Selected button.
Only an open document can be deleted.
Step 4: Posting Payroll Documents
To post a payroll document, on the payroll documents list page or on the payroll document page, click Actions – Post – Post or Batch Posting to post multiple documents at once:
When posting a payroll document whose calculation group type is Interperiod, only a posted payroll document is created – an exact copy of the document before posting, with no operations created. This document is intended for forming payments in the interperiod (Salary Payment scenario). Note that there is no limit on the number of posted documents in the interperiod.
When posting a payroll document with the posting type Calculation, whose calculation group does not have the type Interperiod, the following operations are created: • In the Payroll Ledger Entry and the Detailed Payroll Ledger Entry; • Employee liabilities and tax liabilities in the Vendor Ledger Entry and Detailed Vendor Ledger Entry; • Financial postings in the general ledger and corresponding entries (if automatic generation is enabled) according to the posting group settings (Posting Groups scenario); • In the personal income operations table.
When posting a payroll document with the posting type Data Entry whose calculation group type is Interperiod, operations are created only in the Payroll Ledger Entry and Detailed Payroll Ledger Entry. Posted payroll documents can be viewed in the Archive. For payroll documents posted with the posting type Calculation and a calculation group that does not have the type Interperiod, posted operations can be viewed by clicking the Find Operations button on the posted document card. After posting such a document, the final payment for the month may be formed (Salary Payment scenario).
Step 5: Canceling Payroll Documents
In some cases, such as mechanical data entry errors, changes in data after the document has been posted, etc., it is necessary to cancel an already posted payroll document. When canceling and reposting a document, several checks are performed: the payroll period must be open, there must be no later payroll documents or orders, and so on. The system also checks for the existence of statutory reports for the cancellation period and notifies the user that these reports must be corrected or regenerated.
The Cancel Document function is located on the posted payroll document card, under the Home tab, by clicking the Cancel Document button:
After cancellation, a corrective payroll document will be automatically created (not posted) – an exact copy of the canceled document, but with reversed signs. The document will be marked as a Correction and will include the *Cancelled Document No.”.
This corrective document cannot be edited; to make corrections to operations, it must be posted.
For non-interperiod documents (final payroll calculation): the document adds operations during the posting of the correction; all operations will be executed as red storno (negative reversing entries). When attempting to post the document, a validation may occur that prevents the document from being posted.
If the document indicated in the Canceled Document No. field has applied operations in the Vendor Ledger Entry:
You must cancel the application of such operations first.
After posting the corrective document, the correction operations will be applied to the original operations.
After canceling the document, a new payroll document can be created for that period. If a payment was made based on the canceled document, it will be applied to the new payroll document after it is posted (Payroll Operations Application scenario). For interperiod documents: such documents do not create operations during posting and are only used to form the payment amount based on the document. The corrective and canceled documents are not included when selecting documents for payment generation (Salary Payment scenario). When attempting to post the document, a validation may occur that prevents the document from being posted.
This means a payment has already been posted for the interperiod document. To cancel the document, you must first reverse that payment in the Vendor Ledger Entry.
After canceling the interperiod document, you can create a new payroll document and a new payment based on it (Salary Payment scenario).