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Issue worker payments [AX 2012]

Updated: November 27, 2013

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2

This topic explains how to submit pay statements, generate checks or electronic payments, generate a positive pay file for payroll, and post the payment journal.

You can pay workers by check or by electronic payment. When you submit pay statements, an invoice is created and posted to the general ledger for the sum of the worker’s net pay for the vendor. A payment journal with lines is created, which lets you generate and post payments. In addition, you can optionally post the payroll costs that are associated with workers to the general journal when you submit payments.

NoteNote

This topic describes functionality that is available only if Payroll for Microsoft Dynamics AX 2012 is installed.

This topic has been updated to include information about features that were added or changed for cumulative update 7 or later for Microsoft Dynamics AX 2012 R2.

Don’t know what version you’re using? See Find out which version of Microsoft Dynamics AX you are using.

Click these links to find more information about the concepts that are discussed in this topic.

Processing payroll

Work with existing payroll payments

The following tasks must be completed before you can perform the tasks in this topic:

  1. Set the Payroll clearing account on the Calculation settings tab in the Payroll parameters form so you can issue worker payments. For more information, see Payroll parameters (form).

  2. Set the Check method of payment, Vendor account for worker payments, Payment journal name, and Procurement category on the Payment issuance tab in the Payroll parameters form so you can issue worker payments. For more information, see Payroll parameters (form).

  3. Before you can generate a positive pay file for payroll, you must first set up positive pay. For more information, see Set up positive pay.

  4. If you are generating payments electronically, make sure that the Electronic method of payment field is set on the on the Payment issuance tab in the Payroll parameters form and that you have entered the bank account disbursements for each worker. For more information about worker bank account disbursements, see Bank account disbursements (form).

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Complete the following steps to create a payment journal for multiple pay statements at the same time.

TipTip

You must generate and release earnings before you generate pay statements. For more information, see Generate earnings.

  1. Generate pay statements so that earnings, benefits, and taxes are calculated. For more information, see Work with pay statements.

    TipTip

    Before you complete this procedure, we recommend that you view the Pay statements to recalculate list page to verify that there are no pay statements that must be recalculated. For more information, see “Modify pay statements” in the Work with pay statements topic.

  2. Click Payroll > Periodic > Pay statement processing > Submit pay statements.

  3. In the Pay cycle field, select the same pay cycle that you selected when you generated and released earnings.

  4. In the Pay period field, select the same pay period that you selected when you generated and released earnings. The pay periods that are displayed are available for the pay cycle. The default pay period is the first open pay period, but you can select any open pay periods from the list.

  5. Click OK to submit the pay statements. A vendor invoice for the sum of the net pay of all of the pay statements and a payment journal with lines are created and posted, which lets you generate and post payments. A message is displayed to indicate that the payment journal was generated successfully and that a voucher and invoice details were created.

  6. Close the confirmation message.

  7. Click Payroll > Common > Pay statements > Submitted pay statements. A list of submitted statements is displayed and an icon appears in the first column of the Pay statement grid to indicate that the payment has been submitted.

  8. View the payment journal, and then generate checks and electronic payments. Click Payroll > Periodic > Pay statement processing > Payment journal.

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Complete the following steps to create a payment journal for an individual pay statement.

  1. Generate pay statements so that earnings, benefits, and taxes are calculated. For more information, see Work with pay statements.

  2. Click Payroll > Common > Pay statements > Calculated pay statements.

  3. Select the worker pay statement to create the payment journal for, and then click Submit for payment.

    NoteNote

    The Submit for payment button is also available in the Pay statement form.

  4. Optional: Select the Post the selected pay statement check box to post the pay statement.

    TipTip

    You can post the pay statements as a separate step at any time. Click Payroll > Periodic > Pay statement processing > Post pay statements.

  5. Click Submit to submit the pay statements. A vendor invoice is created and posted for the net pay of the pay statement, and a payment journal with lines is created, which lets you generate and post the payment. A message is displayed to indicate that the payment journal was generated successfully and that a voucher and invoice details were created.

  6. Close the message. An icon appears in the first column of the Pay statement grid to indicate that the payment has been submitted.

  7. View the payment journal and generate checks and electronic payments. Click Payroll > Periodic > Pay statement processing > Payment journal.

  8. Continue to the next section.

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To generate checks and electronic payments for workers, follow these steps after you have submitted the pay statements and generated the payment journal.

Caution noteCaution

If you did not finish the bank account disbursements before the pay statements were generated, the worker will be paid by check. For more information, see Bank account disbursements (form).

  1. Click Payroll > Periodic > Pay statement processing > Payment journal.

  2. Select the payment journal and then click Lines in the action strip to view the Journal voucher.

  3. Validate that the number of vouchers is correct. There will be one journal voucher line for each check pay statement and one or more journal voucher lines for each electronic pay statement.

  4. From the Functions menu, select Generate payments.

    NoteNote

    This step must be completed for electronic and check payments separately. Therefore, if you are generating both, you must complete this step two times.

  5. In the Generate payments form, select the method of payment and the bank account.

  6. Click OK to generate the payment for the records that match the method of payment and the bank account.

    • If you selected Check method of payment, the Payroll check payment form opens. Verify the starting check number in the From field and the printing destination, and then click OK to print the checks.

    • If you selected the electronic method of payment, the Payroll electronic (Direct deposit) form opens. Enter the path of where you want the ACH file to be created (including the file name), enter an effective date and the printing destination, and optionally, select the Pay statement check box to print the pay statements. Click OK to create the ACH file.

      TipTip

      Pay statements can later be printed from the Reports menu.

  7. The Payment status is set to Sent for each payment that was generated.

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You can generate an electronic list of payroll checks that is provided to the bank. When a payroll check is presented to the bank, the bank compares the check with the list of checks. If the check matches what the bank has on file in the list, the bank clears the check. If there is a difference, the bank holds the check for review.

Complete the following steps to generate a positive pay file for payroll:

  1. Click Payroll > Periodic > Pay statement processing > Payroll positive pay.

  2. In the Cut-off date field, enter the last check date to include in the positive pay file. All checks that haven’t been included in a positive pay file through this check date are included in the file.

  3. Click OK.

    NoteNote

    If you receive the following error message, contact a system administrator because the security for the positive pay file folder has not be set up correctly and you can’t complete this procedure: Endpoint is not allowed to perform this action.

After the checks that are listed in a payroll positive pay file have been paid, you receive a confirmation number from your bank. Then, you can confirm the positive pay file in Microsoft Dynamics AX. When you confirm a positive pay file, you record the confirmation number that you received from the bank.

To confirm a positive pay file, follow these steps:

  1. Click Payroll > Inquiries > Payroll positive pay file summary.

  2. Select a payroll positive pay file that has a status of Created.

  3. Click Confirmation.

  4. Enter the confirmation number that you received from the bank.

  5. Click OK.

If you have to change a payroll positive pay file, you can recall it. Recalling a positive pay file resets the field that indicates whether each check has been included in a positive pay file. Then, you can create a new positive pay file.

To recall a positive pay file, follow these steps:

  1. Click Payroll > Inquiries > Payroll positive pay file summary.

  2. Select a payroll positive pay file that has a status of Created.

  3. Click Recall. A message confirms that the recall process was successful.

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Complete the following steps to post a payment journal.

TipTip

You must generate checks and electronic payments as described in this topic before you complete this procedure.

  1. Click Payroll > Periodic > Pay statement processing > Payment journal.

  2. Select the payment journal, and then click Lines in the action strip to view the Journal voucher.

  3. From the Post menu, select Post. The payment journal lines will be settled to the vendor invoice that was created and posted. A message is displayed to indicate the number of vouchers that were posted.

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