Work with pay statements
Important
This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2
This topic describes the process that you use to generate pay statements, as well as other tasks, such as reversing a pay statement, that you might need to do after you generate pay statements.
When you generate pay statements, all worker deductions and employer contributions for benefits and taxes are calculated, benefit accruals are processed, and the worker’s net pay is determined.
When you generate pay statements, we recommend that you use the batch processing mode to improve performance.
Completed pay statements are used to issue worker payments. For more information, see Issue worker payments.
What do you want to do?
This task is part of a bigger process
Prerequisites
Generate pay statements
Delete pay statements
Modify earning lines on pay statements
Modify benefit lines and tax lines on pay statements
Modify benefit accrual lines on pay statements
Reverse a pay statement
Technical information for system administrators
Find related tasks
This task is part of a bigger process
This illustration shows where generating pay statements fits into the larger picture of payroll processing. Other tasks that are described in this topic are not part of the end-to-end payroll process.
For an overview of the process, see Processing payroll.
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Prerequisites
The following table shows the prerequisites that must be in place before you start.
Category |
Prerequisite |
|---|---|
Version |
Microsoft Dynamics AX 2012 R2 or Microsoft Dynamics AX 2012 R3 Cumulative Update 8 |
Country/region |
(USA) The primary address for the legal entity must be in the following countries/regions: United States |
Related configuration tasks |
Make sure that the following parameters are set up in the Payroll parameters form:
|
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Generate pay statements
Pay statements are generated for the pay cycle, pay period, and payment run type that you specify. When you generate pay statements, all released earnings that fit the specified criteria are automatically collected.
Before you generate a pay statement, you must generate and release the earnings for the pay cycle and pay period. For more information, see Generate earnings and Work with existing earnings.
Note
If a worker payment occurs outside Microsoft Dynamics AX, see “Record payments made outside Payroll” in Pay statements and the payment generation process.
To generate pay statements, follow these steps:
Click Payroll > Periodic > Pay statement processing > Generate pay statements.
You can also generate a single pay statement from the Payroll tab in the Worker or Position forms.
In the Pay cycle field, select the pay cycle that includes the earnings to generate the pay statement for.
In the Pay period field, select the pay period that includes the earnings. The pay periods that are displayed are available for the selected pay cycle. The default pay period is the first open pay period, but you can select any open pay period from the list.
In the Payment run type field, select the payment run type. The default payment run type is Primary, which is used for regular payroll runs.
The Manual payment run type is used to enter payments, such as vested stock options, that are made outside payroll. If you select Manual in the Payment run type field, the Disable accounting check box is displayed. When this check box is selected, accounting information isn’t recorded or posted to the general ledger. For more information, see Pay statements and the payment generation process.
Note
If the earning code for a released earning isn’t set up for the selected payment run type, the earning isn’t included on the pay statement. If the accrual rate basis for a benefit accrual plan is a fixed amount, earning lines that are related to the plan are processed only in primary payroll runs.
Click OK to generate pay statements. A message is displayed when the pay statements are generated successfully.
Close the form.
Verify that the batch job finished correctly. (Click Home > Inquiries > Batch jobs > My batch jobs. Click Log, and then inspect the log for any errors that occurred.)
To post pay statements to the general ledger, see Post payroll and generate vendor invoices. To submit pay statements for payment, see Issue worker payments.
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Delete pay statements
You can delete pay statements only if they haven’t been posted or submitted to Accounts payable for payment, and if the payment hasn’t been issued. If pay statements have been posted, submitted, or paid, you must reverse the pay statement instead of deleting it. For more information, see Work with existing payroll payments.
This is what happens when you delete a pay statement:
The earnings statement lines aren’t deleted, and you can include them when you generate a new pay statement.
Any arrearages that were created by the pay statement are deleted. If an amount in arrears is partially or fully recovered by a later pay statement, you must delete the pay statement that recovered the amount before you delete the pay statement that created the arrearage.
To delete a pay statement, follow these steps:
Click Payroll > Common > Pay statements > All pay statements.
Select the pay statement to delete, and then click Delete.
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Modify earning lines on pay statements
You maintain earning lines in the Earnings statement form. You can remove earning lines from a pay statement, but you can’t add or change earning lines. To add or change earning lines, you must first delete the pay statement, as described in the following procedures.
Add earning lines to a pay statement
Click Payroll > Common > Pay statements > All pay statements.
Select the pay statement.
Click Delete.
Click Payroll > Common > Earnings statements > Earnings statements.
Double-click the earnings statement that contains the lines for the deleted pay statement.
Review the lines that weren’t included on the deleted pay statement, and make any changes or corrections. Most often, missing lines were unintentionally deleted from the pay statement or haven’t been released. The lines might be in a different pay cycle or pay period, or the earning code for the earning line isn’t set up for the selected payment run type.
Generate a new pay statement.
Remove earning lines from a pay statement
Click Payroll > Common > Pay statements > All pay statements.
Double-click the pay statement to remove lines from.
Click Edit.
Select the earning lines, and then click Remove.
The earning lines that you remove aren’t deleted from Payroll, and you can include them on a future pay statement.
In the message bar, click Recalculate.
Important
You must recalculate the pay statement before you can submit it for payment or post it to the general ledger.
Close the form.
Modify earning lines on a pay statement
Click Payroll > Common > Pay statements > All pay statements.
Select the pay statement.
Click Delete.
Click Payroll > Common > Earnings statements > Earnings statements.
Put the earnings for the deleted pay statement on hold, change the earning lines if you have to, and then release the earnings. For instructions, see Work with existing earnings.
Generate a new pay statement.
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Modify benefit lines and tax lines on pay statements
You can add or remove benefit lines. You can also change benefit lines that were added by a user. And if benefit lines were created automatically, you can change them if the benefit plan isn’t locked for pay statements. For more information, see Benefit elements (form).
You can add, remove, and change tax lines, except for Medicare and Federal Insurance Contributions Act (FICA) tax lines.
Click Payroll > Common > Pay statements > All pay statements.
Double-click the pay statement to modify.
Click Edit.
Click the Benefit calculations link and make any changes to the benefit lines. Benefit lines that can’t be changed are marked with a red circle that has a line through it. Benefit lines that have already been changed by a user are marked with a pencil icon.
Warning
If arrearages were created when the pay statement was generated, the arrearage amounts are displayed in the Arrears FactBox. The arrearages might cause the pay statement benefit lines to differ from the lines and amounts that you expect. For more information, see Pay statements and the payment generation process.
Click the Tax calculations link and make any changes to the tax lines. Tax lines that can’t be modified are marked with a red circle that has a line through it. Tax lines that have already been changed by a user are marked with a pencil icon.
In the message bar, click Recalculate.
Important
You must recalculate the pay statement before you can submit it for payment or post it to the general ledger.
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Modify benefit accrual lines on pay statements
Benefit accrual lines are created when you submit a pay statement for payment. You can’t add, remove, or change benefit accrual lines. If the benefit accrual lines on a pay statement create incorrect balances in a benefit accrual plan, you must change the plan balances. If you change the worker’s plan balances, the amounts on the pay statement aren’t updated. The change is reflected on the next pay statement that is processed. For more information, see Benefit accrual plan tasks.
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Reverse a pay statement
To reverse a pay statement that has been posted or submitted for payment, see Work with existing payroll payments.
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Technical information for system administrators
If you don't have access to the pages that are used to complete this task, contact your system administrator and provide the information that is shown in the following table.
Category |
Prerequisite |
|---|---|
Configuration keys |
Payroll - USA Important When you use Payroll, we highly recommend that you turn off the Payroll information configuration key under the Human resource I configuration key. The forms and tables that are enabled by that configuration key are not used by Payroll. If Payroll is installed and the configuration key is enabled, it might be difficult to make sure that your data is entered and tracked correctly. |
Security roles and duties |
To work with pay statements, you must be a member of a security role that includes this duty:
|
Security roles and privileges |
To work with pay statements, you must be a member of a security role that includes these privileges:
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