Processing Negative Deductions in Microsoft Dynamics GP VD06-001
Hi, I'm Dan Doolin with Integrity Data. In this video we're going to be talking about processing negative deductions in Dynamics GP. There's a couple of situations that come up where you might need to process the negative deduction. It could be the situation where an employee terminates and you've already deducted certain deductions for health insurance or life insurance and you need to return those to the employee or maybe the wrong deduction code was set up, so you need to reverse that deduction out and refund that deduction to the employee and begin withholding the correct deduction. To do those in Dynamics GP that can be done today, but it is a time-consuming process and it's a little bit of a confusing process and it's prone to errors. In this video, I'm going to show you a better way to process those transactions using a feature called Negative Deductions from Integrity Data.
Let's begin with a little bit of the setup. We begin by mapping deduction codes to a pay code and the reason that we do that is so that when we go to payroll transaction entry and we enter a negative deduction transaction, it will map to the correct pay code to pay the employee the money that we owe them. The primary reason for the mapping is to make sure that the correct pay code is used typically for purposes of taxation. For example, if it's a pre-tax deduction, we need the pay code to be taxable. The mapping prevents errors and helps ensure that the correct pay code is used for the transaction.
In payroll transaction entry, we're going to enter a negative deduction transaction for the employee. This can be for any deduction code. I want to choose the insurance deduction code and it recognizes that I'm going to try to create a negative transaction. The amount defaults to the per pay period amount for the employee. When I tab from the row the convert deduction window pops up to make sure that we are again using the correct pay code. Now we will begin processing the payroll and we'll show you some of the reports along the way.
During the build process, the negative deduction report will show you all negative deductions that are being processed in this pay run. On the build report our negative deduction transaction for the insurance deduction has been converted to the INSND pay code to provide that $12 back to the employee. On the calculate check report, of course, we also see that transaction. Again, we're doing that first step which is to provide the $12 to the employee as that refund and are returning that deduction to the employee. The employee will also see the refund they are receiving on their pay stub or on their direct deposit earning statement. They will see it on their direct deposit earning statement whether it's printed for them or whether they have an email to them using the Employee E-Mail Suite feature, also from Integrity Data. Now that we've posted that payroll, to this point all we have done is refunded the money to the employee, so if we were to look at our year-to-date records for the employee we would see $12 year to date for the INSND pay code and we haven't done anything with a deduction code. Second step of the process is to perform manual transactions that will remove the $12 from the pay code and also remove the $12 from the insurance record, which is the actual negative deduction.
Without the Negative Deduction feature from Integrity Data, you would need to manually create those transactions. What the Negative Deduction feature does for you is automate all of those transactions.
We've just finished posting our first payroll. Now it's created the manual transactions automatically and is posting those for us. We're gonna look at a couple reports from these maintenance actions. The first report we'll look at is a pay code posting journal. What we're looking at is the fact that we have removed that $12 of history from the pay code. We don't want year to date earnings in place for this pay code because it's only used to return the deduction to the employee. On the payroll deduction posting journal, we can see that we've achieved our goal, which is to reduce the insurance deduction for this employee by $12. For more information about the Negative Deduction feature and other features from Integrity Data, please visit www.integrity-data.com.