Support employee's mid pay period rate changes in Microsoft Dynamics GP VD09-004

In this video, we're going to talk about how to enforce an employee's pay rate change when it happens in the middle of a pay period. Now, as you know, Dynamics GP only has the ability to store the current pay rate for the employee, so when the pay rate changes the entire pay period is paid at the latest rate.

I'm going to show you a very quick way to pay the employee at their old rate as well as their new rate within the same pay period. In the payroll transaction entry window we have a payroll batch that has the employees pay rates for this pay period and it's set to $18 because we haven't changed it yet. It's important to note that I'm going to use a batch that's already been created in this example. This would also be effective if the transactions are being imported after the pay rate change is made and this will work for hourly as well as salaried employees.

Let's go ahead and change the employees pay rate on the employee pay code maintenance window. Adam Barr's current pay rate is $18 we're going to change that to $18.50. We are going to provide an effective date for this pay change to be May 6, 2017 and give our reason for change. Now you'll see that since we already have the batch in place, so you didn't have to watch me type in all the transactions, that it's going to ask if we want to update that existing batch for this employee. We'll say yes. In the interim, what we can do is we can look at existing pay rate changes that might be current for this particular employee. Let's look at cards, payroll, mid pay period rate and we'll pull up our employee, Adam Barr. Here you can see that we have Adam's old rate, his new rate and, of course, the effective date. Dynamics GP will now use this information as it's updating the payroll transactions.

As we go back to our payroll transaction, you will see that we now have automatically some of the transactions at the old rate and some of the transactions at the new rate before and after the effective date of that pay change. Now, let's begin the payroll process and show you some of the preliminary reports. On the build report in Dynamics GP, you will see the two different pay rates being displayed both before and after the effective date that we put in on our pay rate change for the employee. And, of course, you'll see the same effect on the calculate check reports.

As we print the check and process payroll that pay rate change that happened in the middle of the pay period is now being automatically enforced. Therefore, saving you the time of having to update the transactions or over or under paying the employee depending on the type of change that you're making to their pay rate. Simply make the change and let the system do the rest for you.

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