How to process and track an advance pay run in Payroll in Microsoft Dynamics GP

When you process an advance pay run in Payroll, only two pay codes exist that you can use when you process an advance pay run:

• Salary
• Commission

How to process an advance pay run for an employee

1. On the Cards menu, point to Payroll, and then click Pay Code.
2. In the Employee Pay Code Maintenance window, click the employee who you want to pay in the Employee ID field.
3. In the Pay Code field, click the Salary pay code or the Commission pay code.
4. In the Advance Amount field, enter the advance amount, and then click Save.
5. On the Transactions menu, point to Payroll, and then click Build Checks.
6. In the Build Payroll Checks window, click Advance Pay under Type of Pay Run.
7. Click Include Pay Codes, insert the pay codes that you want to include in this advance pay run, and then click OK.
8. Click Build.
9. On the Transactions menu, point to Payroll, and then click Calculate Checks.
10. In the Calculate Payroll Checks window, click OK, and then print the Precheck Report.
    
    
    No benefits, deductions or taxes are included in the pay run.
11. On the Transactions menu, point to Payroll, click Print Checks, and then print the employee checks.
12. Calculate the checks.
13. On the Transactions menu, point to Payroll, and then click Print Checks.
    
14. Click Process.

How to obtain the advance payback from an employee

To obtain the advance payback from the employee, you must set up the payback. The next time that a regular check run that includes a salary pay type or a commission pay type is processed for this employee, Microsoft Dynamics GP will automatically take as much of the advance amount as possible. (This excludes the deductions and the taxes.) To set up the advance payback, follow these steps:

1. On the Transactions menu, point to Payroll, and then click Build Checks.
2. In the Build Payroll Checks window, click Regular Pay under Type of Pay Run.
3. Under Include Pay Periods, click the appropriate pay frequency pay periods.
   
4. Under Include Automatic Pay Types, click to select the Salary check box.
   
5. If it is needed, click one or more of the following options to add deductions, benefits, or batches to the existing payroll build:
   
   • Include Deductions
   • Include Benefits
   • Select Batches
6. Click Build.
7. On the Transactions menu, point to Payroll, and then click Calculate Checks.
8. Click OK, and then print the Precheck Report. You can see the payback amount that will be taken from the employee's check on this report.
9. On the Transactions menu, point to Payroll, click Print Checks, and then print the employee checks.
10. Calculate the checks.
11. On the Transactions menu, point to Payroll, and then click Print Checks.
    
    
    You see the typical salary amount on the pay stub. You also see that a negative amount for the salary pay code is deducted for the amount of the advanced pay run.
12. Click Process.
    
    

How to track the advance amount that remains for an employee

The advance amount that remains will be tracked in the Employee Pay Code Summary window. The amount in this window will decrease until the whole advance amount has been paid back. To view the remaining advance amounts, follow these steps:

1. On the Cards menu, point to Payroll, and then click Pay Code.
2. In the Employee Pay Code Maintenance window, click the employee who received the advance in the Employee ID field.
3. In the Pay Code field, click the Salary pay code or the Commission pay code, and then click Summary.
   
   The advance amount that remains for the employee will appear in the Advance Taken field. This amount will decrease when the next pay run is completed for the employee who has this pay code.

Microsoft Dynamics GP will try to take the full advance amount that remains after taxes and deductions to pay off the advance amount. This may result in a zero dollar check for the employee. If you do not want Microsoft Dynamics GP to do this, you can set up a minimum net pay amount that you want the employee to receive until the advance is paid off. To do this, follow these steps:

1. On the Cards menu, point to Payroll, and then click Employee.
2. In the Employee Pay Code Maintenance window, click the employee who received the advance in the Employee ID field, and then click Additional Information.
3. In the Minimum Net Pay field, enter the minimum amount of pay that you want the employee to receive until the advance is paid off.
   
4. Click OK, and then click Save.
   
5. Process a regular pay run. To do this, follow the steps in the "How to obtain the advance payback from an employee" section.
   
   
   When the advance is paid off, you can clear the amount in the Minimum Net Pay field in the Employee Additional Information window.