You can enter payroll transactions in the Microsoft Dynamics GP Payroll Transaction Entry window and assign each transaction to a job.
Note: If you marked the Payroll Post to Job Cost Only check box in the Posting Options window, your payroll batch will be deleted after posting the batch to Job Cost. Also, you can choose to have Microsoft Dynamics GP Payroll offset your Job Cost payroll offset credit. This would be offset by the gross wage entry by department, position, and pay code.
The Microsoft Dynamics GP Payroll module must have been purchased to enter payroll transactions.
Entering payroll transactions involves the following:
Step 1: Complete the Payroll Transaction Entry window.
Step 2: Enter job-related information.
Step 3: Build checks.
Step 4: Post payroll transactions to Job Cost.
Step 5: Calculate and print checks.
Step 1:         Complete the Payroll Transaction Entry window.

1. Choose Transactions > Payroll > Transaction Entry. The following message displays: Did you know you can use the Payroll Mass Transaction Entry window instead, to enter several similar pay transactions at the same time?
2. Choose Transaction Entry. The Payroll Transaction Entry window opens.
3. Complete the window. See the Microsoft Dynamics GP Payroll Manual for more information. Overtime and doubletime functionality has no effect on Job Cost transactions.

Step 2:         Enter job-related information.
To assign a transaction to a job, you must choose a transaction type of Pay Code and a pay code with a pay type of Hourly, Overtime, Double Time, Vacation, Sick, or Holiday.

1. Choose the show details button and complete the additional fields:
   • Date From, Date ToTo print certified payroll reports accurately, the beginning and ending dates entered in the Build Payroll Checks window must match the beginning and ending dates in the Payroll Transaction Entry window for the transactions in the given certified payroll pay period.
   • PositionEnter the employee's position.
   • ShiftShift premiums cannot be applied to Job Cost transactions. You can apply a shift ID to the transaction, but it cannot have a premium.
   • ProductChoose Job Cost. Unbilled is for Microsoft Dynamics GP general ledger transactions.
   • Job Number, Cost CodeIf you enter a certified payroll job in the Job Number field, the Certified Payroll Entry window opens automatically for you to distribute the hours. Distribute the hours using a separate entry for each day of the week.
2. Zoom on the Product field to open the Job Cost Payroll Entry window. The payroll transaction is saved when you zoom on the Product field. In the Job Cost Payroll Entry window, you can enter a transaction description, rate class, union, federal class code, number of overhead units and production units, and estimated percent complete.

Note: The rate class you enter in the Rate Class field will override the rate class that is assigned to an employee (in the Employee Maintenance Codes window) or assigned to a job (in the Job Maintenance window).

1. Choose Save and close the Job Cost Payroll Entry window.

To move to the next transaction, choose Next in the Payroll Transaction Entry window.
Once a transaction is assigned to a job and saved, you cannot change the Product field. You must delete the transaction and reenter the information.
Step 3:          Build checks.
You can build checks to pay employees for their work. Conditions that apply to building checks include:

• If you marked the setup posting option Payroll Post to Job Cost Only, you do not need to build checks before posting the transactions to Job Cost.
• If you use Microsoft Dynamics GP Payroll to print payroll checks, include the job-related batches in the build process before printing an edit list or posting.

Note: Microsoft Dynamics GP uses the employee pay rate when you build checks to print and post payroll transactions to the Microsoft Dynamics GP Payroll module. Job Cost uses the pay rate for the employee when the transaction is entered. If you enter job payroll transactions daily and change an employee's pay rate in the middle of a pay period, transactions may post to Payroll and Job Cost at different pay rates.
Note: If you post payroll transaction to accounts in Job Cost, do not change employee pay rates until checks print and process for all transactions entered with the old pay rate.

1. Choose Transactions > Payroll > Build Checks.
2. Complete the Build Payroll Checks window. See the Microsoft Dynamics GP Payroll Manual for information on completing this window.

Step 4:          Post payroll transactions to Job Cost.
The Job Cost posting process creates a journal entry that does the following:

• Debits the general ledger account number(s) for the labor cost codes selected.
• Credits the payroll and overhead offset accounts for the associated job labor and overhead costs. See Setting up revenue accounts.

You cannot print or process your payroll if you do not complete the Job Cost Posting process.
Note: See Distribution of payroll transactions below for information on how payroll transactions are distributed in the general ledger.
Note: If you changed overhead detail codes (or created new codes and assigned them to affected overhead accounts) since the unposted transactions were entered, DO NOT proceed to post these transactions. Posting these transactions could result in unbalanced general ledger entries. Contact Key2Act Support for assistance.
Note: (rate classes) If you are posting payroll transactions on a daily, when you calculate checks, benefits/deductions will only be calculated for one day instead of five. Therefore, when using rate classes, you cannot run Job Cost Posting daily; only once a week.

1. Choose Transactions > Payroll > Signature Payroll Posting.

Note: You can only post the batches marked by the user that is logged in.

• • Posting DateEnter a posting date.
  • Display BatchesChoose to display batches created by all users or by the current user only. The batches are marked in the Job Cost or Service column to let you know the contents of that batch. If a batch contains transactions attached to a job number or service call ID, the appropriate column(s) will be marked with an asterisk .
  • StatusMark the check box in this column to choose the batches you want to post.
  • Post Job Cost, Post ServiceMark these check boxes, as desired.

Note: If you are not using Service Management or you are, and the Service Invoicing feature is not registered, or the Post to Service Only option is not marked in invoice options, the Post Service check box will be disabled.

1. Choose Post.

After completing the Job Cost posting process, the batch of Job Cost payroll transactions can be included in the next batch of printed payroll checks.
Job Cost batches may not be available to post prior to building checks, depending upon Job Cost setup and validation performed in this window. However, a batch that contains both Job Cost and Service related transactions will be available to a user who wants to post only the Service related contents of a batch. Unless posting to Job Cost is selected along with Service, all job-related transactions will remain un-posted in the batch and only the Service related transaction will be posted and Microsoft Dynamics GP payroll transactions deleted. This allows for Job Cost and Service to be posted at separate times, as required by the business processes of each product.

Distribution of payroll transactions

The general ledger journal entry for each payroll transaction distributes as follows:

• Debit amountsDebit amounts distribute to the -labor or other general ledger account you defined for the cost code entered in the Payroll Transaction Entry window. The debit amount equals the total labor cost posted, including overhead.

• Credit amountsThe payroll and overhead offset credit amounts post to the default overhead and payroll offset credit accounts defined in the Revenue and Exp Account Setup window, based on a job's assigned division. The following example shows a typical Job Cost payroll posting entry. Overhead calculates automatically based on the overhead group code you assigned to the employee's department and position. See Setting up overhead group codes for more information on how Job Cost automatically calculates overhead for payroll transactions.

  Account	Account Description	Debit	Credit
  000-1411-00	Labor	$1135.47
  000-2135-00	Accrued Payroll		$959.47
  000-2125-00	Benefits Allowed		$176.00

  Step 5:         Calculate and print checks.
  See the Microsoft Dynamics GP Payroll Manual for more information on calculating and printing checks.

  Processing payroll with union rate classes (optional)

  When processing payroll with union rate classes, perform the following steps.

1. Set up rate classes in Job Cost. See Setting up rate classes for union payroll.
2. Enter payroll transactions. See job_cost_entering_payroll_transa_4495. When processing payroll with rate classes, consider the following:
   • If you are posting payroll transactions on daily, when you calculate checks, benefits/deductions will only be calculated for one day instead of five. Therefore, when using rate classes, you cannot run Job Cost Posting daily; only once a week.
   • Rate classes work only with the Microsoft Dynamics GP Payroll and Signature TimeTrack modules.
   • You can enter/change the rate class when entering payroll transactions. This change affects only that transaction.
   • When building payroll checks, make sure to include benefits and deductions in the calculations.
   • Rate classes work only with Job Cost labor cost elements.
   • When entering payroll transactions, do not enter a rate class for non-union employees.
   • You can assign a rate class to a labor transaction in TimeTrack. See "Entering labor transactions" in the TimeTrack User Manual for more information.

Example Rate Class Scenarios

This section includes example scenarios on how you can use rate class to satisfy your complex union payroll needs. The first example takes you through from setup to calculating payroll checks (including sample windows), and show how the system calculates your payroll based on the setup criteria given. The remaining examples illustrate additional combinations of rate classes.
Example 1: Employee works on a heavy commercial job as a temporary Foreman
In this example, an employee, ALAN FLINT, works on a heavy commercial job as part of union Local 7 - Pipefitters in Milwaukee. His job title (position) is normally Journeyman, but on this job, he is Foreman.
FLINT's normal pay rate, as set up in his employee record, is $27.00/hour. Conversely, a Foreman's general pay rate is $37.00/hour. But because a) ALAN is going to be a temporary Foreman on this job, and b) the pay rate increases to $40.00/hour for a Foreman on heavy commercial jobs, the system needs to determine ALAN's payroll at the adjusted rate; that rate will be set up as a rate in Rate Class setup.
ALAN's company will set up their rate class by location/job type.
Step 1:         Set up rate classes
In this step, we will set up a rate class called MILW-HVYCOMM. Sample data used is summarized below, followed by sample screen shots.
Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Rate Class. The Rate Class Setup window opens.

• Rate Class: MILW-HVYCOMM
• Union Code: Local7
• Position: Pipefitter Foreman
• Deduction Code: DUES (union dues) = $0.50/unit
• Benefit Code: PENS (pension) = $3.00/unit
• Pay Rate: $40.00/hour

See the sample screenshots below:

Rate Class Setup

Notes:
All we had to do here is set up a rate class with the appropriate union/pay rate/etc. combination; nothing needed to be changed at the employee record level (then subsequently changed back again). We set up a pay rate for a Journeyman and Foreman, to illustrate the difference.
When ALAN goes back to being a Journeyman, his pay rate, deductions, benefits, and so on, will be calculated based on the conditions at that time. On his next job, he might be a Journeyman again, and his pay rate could come from his employee record, or if driven by the job, another rate class could be set up then.
Step 2:         Assign rate class MILW-HVYCOMM to the HVYCOMM job
In this step, we will assign the rate class MILW-HVYCOMM to a job called HVYCOMM. This will allow us to apply the correct payroll costs (based on rate class and union) to the job.
Cards > Job Cost > Job. The Job Maintenance window opens. Choose the job. In the Rate Class field, choose the MILW-HVYCOMM rate class. Because multiple unions are assigned to this rate class, you will choose the union when entering payroll transactions for each employee.
Step 3:         Create payroll transactions for ALAN
In this step, we will create payroll transactions for ALAN. In this example, we will create the transaction using the TimeTrack Time Card Entry window. When you choose the job, the pay rate as specified with the MILW-HVYCOMM rate class will automatically fill into this window.
In addition, because ALAN is classified as a Pipefitter Journeyman, but instead is a Pipefitter Foreman on this job, you must edit the Position code for each transaction (using the expansion button next to the Pay Code field to open the Edit Payroll Fields window).

• Batch: HVY-COMM
• TRX Type/Cost Type: JOB COST
• Job Number: HVYCOMM
• Cost Code: 00-1000-001

After creating transactions, save and commit the batch. A snapshot of part of the Signature Time Card Commit report displays below.

Notes:
Because we can change the Position during payroll transaction entry, we do not affect the employee record at all; ALAN is still classified, by default, as a Pipefitter Journeyman.
Step 4:         Build checks
Transactions > Payroll > Build Checks. Choose the batch, then choose Post.
Step 5:         Calculate checks
Transactions > Payroll > Calculate Checks. The Calculate Payroll Checks window opens. Choose OK to begin the calculate process.
Step 6:         Post payroll transactions to Job Cost
In this step, we will post the payroll transactions for ALAN using the Signature Payroll Post feature.
Transactions > Payroll > Signature Payroll Posting. The Signature Payroll Post window opens. Choose the appropriate batch.

What is posted to Job Cost?

You can view posted costs that include rate class pay rates, deductions, and so on, just as you would any payroll transaction,
Inquiry > Job Cost > Job Status. The Job Status window opens.
Drill down all the way to the Payroll Entry Zoom window (Drill on Posted Costs, Cost Code, Actual Cost Amount, double-click a transaction).
Zoom on the posted costs amount until you reach the Payroll Transaction Summary window. This window shows a breakdown of costs posted. The window below shows a breakdown of costs for our fictitious employee ALAN.
Gross wages = $320.00 ($40 * 8)
Overhead calculation:
Benefit - $6 * 8 hours = $48.00
Burden - $10 * 8 hours = $80.00
ETax – 15% of $320.00 = $48.00
W/C – 7% of $320.00 = $22.40
Total overhead amount: $198.40
Total amount applied to the job: $320.00 + $198.40 = $2,592.00 ($518.40 * 5)
Example 2: Two employees work on the same job, each with his own union (one a Pipefitter, the other an Asbestos worker). They both work in Milwaukee on a light commercial job, and are assigned to the same rate class.
In this example, our fictitious employees, ALAN FLINT and CHARLEY NICK, work on the same job in the same week. ALAN is back to being a Journeyman Pipefitter, and is classified as such on this job. CHARLEY is an Asbestos Journeyman Class II.
ALAN's pay rate is $27.00/hour.; CHARLEY's is $35.00/hour. In addition to the pay rates being different, their benefits and deductions also vary between the two positions.
Step 7:         Set up rate classes
In this step, we will set up a rate class called LIGHT-COMM-MILW. Sample data used is summarized below, followed by sample screen shots.
Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Rate Class. The Rate Class Setup window opens.

• Rate Class: LIGHT-COMM-MILW
• Union Codes: Local7 and Local6
• Positions: PF-TM (Pipefitter Journeyman) and IBJ3 (Asbestos Journeyman Class II)
• Deduction Codes: DUES (union dues) = $0.75/unit and .0.85/unit
• Benefits: PENS (pension) = 3% of gross wages for both unions.
• Pay Rates: $27.00/hour and $35.00/hour

Rate Class Setup.

Step 8:         Assign rate class LIGHT-COMM-MILW to the LIGHT-COMM JOB
In this step, we will assign the rate class LIGHT-COMM-MILW to a job called LIGHT-COMM (for light commercial work). This will allow us to apply the correct payroll costs (based on rate class and union) to the job.
Cards > Job Cost > Job. The Job Maintenance window opens. Choose the job. In the Rate Class field, choose the LIGHT-COMM-MILW rate class. Because multiple unions are assigned to this rate class, you will choose the union when entering payroll transactions for each employee.
Step 9:         Create payroll transactions for ALAN and CHARLEY
In this step, we will create payroll transactions for ALAN and CHARLEY In this example, we will create the transaction using TimeTrack Time Card Entry window. When you choose the job, the pay rate as specified with the LIGHT-COMM-MILW rate class will automatically fill into this window. After, we will save and commit the batch.

Step 10:    Build checks
Transactions > Payroll > Build Checks. Choose the batch, then choose Post.
Step 11:    Calculate checks
Transactions > Payroll > Calculate Checks. The Calculate Payroll Checks window opens. Choose OK to begin the calculate process.
Step 12:    Post payroll transactions to Job Cost
In this step, we will post the payroll transactions for ALAN using the Signature Payroll Post feature.
Transactions > Payroll > Signature Payroll Posting. The Signature Payroll Post window opens. Choose the appropriate batch.
Example 3: Employee works on two jobs in one week, at two different locations, for two different unions, two rate classes
In this example, our fictitious employee, ALAN FLINT works on two different jobs in the same week, for two different union locals. On both jobs, he is classified as a Journeyman Pipefitter.
The first job is in his home union local, Milwaukee. He will be receiving his regular pay rate of $27.00/hour. The second job is in Chicago, and the Pipefitters union there pays their Journeyman at $32.00 per hour; ALAN will be receiving that higher rate while on the Chicago job. In addition, ALAN's benefits will change with the Chicago union local, which he will inherit for the period within which he is on that job.
ALAN's company must set up the rate class feature to account for that higher pay rate in Chicago. We could set up a new record that covers the Chicago union in the existing rate class: MILW-HVYCOMM. However, because we have organized rate classes by location-job type, we will set up an entirely new rate class for Chicago, as ALAN's company will be doing a lot of work there over the next year.
Step 13:    Set up rate classes
In this step, we will set up a rate class called CHIC-HVYCOMM. Sample data used is summarized below, followed by sample screen shots. In addition, this example will also use the MILW-HVYCOMM rate class that was used in Example 1.
Microsoft Dynamics GP > Tools > Setup > Job Cost > Payroll Setup > Rate Class. The Rate Class Setup window opens.

• Rate Class: CHIC-HVYCOMM
• Union Code: Local7
• Position: Pipefitter Foreman
• Deduction Code: DUES (union dues) = $0.75/unit
• Benefit Code: PENS (pension) = $3.50/unit
• Pay Rate: $32.00/hour
• Rate Class: MILW-HVYCOMM
• Union Code: Local7
• Position: Pipefitter Foreman
• Deduction Code: DUES (union dues) = $0.50/unit
• Benefit Code: PENS (pension) = $3.00/unit
• Pay Rate: $40.00/hour

Rate Class Setup

Notes:
Although we decided to create an entirely new rate class name, because of the Chicago location, you can organize your rate class hierarchy any way you want. For example, instead of by location and type of job, we could have set it up only based on the type of job, for example, light vs. heavy commercial jobs, and so on.
Step 14:    Assign rate class CHIC-HVYCOMM to the HVYCOMM-CHIC job
In this step, we will assign the rate class CHIC-HVTCOMM to a job called HVYCOMM-CHIC. This will allow us to apply the correct payroll costs (based on rate class and union) to the job.
Cards > Job Cost > Job. The Job Maintenance window opens. Choose the job. In the Rate Class field, choose the CHIC-HVYCOMM rate class. Because multiple unions are assigned to this rate class, you will choose the union when entering payroll transactions for each employee.
Step 15:    Create payroll transactions for ALAN
In this step, we will create payroll transactions for ALAN. In this example, we will create the transaction using TimeTrack Time Card Entry window. ALAN is working in Milwaukee on Monday and Tuesday, then in Chicago on Wednesday through Friday.
The first two transactions will use the HVYCOMM job, MILW-HVYCOMM rate class, and the Local 7 union; the last three transactions will use the HVYCOMM-CHIC job, CHIC-HVYCOMM rate class, and the Local 8 union. The position will be PF-TM (Pipefitter Journeyman) for all transactions. We must edit some fields (using the expansion button next to the Pay Code field to open the Edit Payroll Fields window).
A summary of the data entry values appears below:

• Batch: HVY-COMM
• TRX Type/Cost Type: JOB COST
• Job Number: HVYCOMM
• Cost Code: 00-1000-00
• Rate Class: MILW-HVYCOMM
• Union Code: Local7
• Batch: HVY-COMM
• TRX Type/Cost Type: JOB COST
• Job Number: HVYCOMM-CHIC
• Cost Code: 00-1000-00
• Rate Class: CHIC-HVYCOMM
• Union Code: Local8

After creating transactions, save and commit the batch. A snapshot of part of the Signature Time Card Commit report appears on the next page.

Step 16:    Build checks
Transactions > Payroll > Build Checks. Choose the batch, then choose Post.
Step 17:    Calculate checks
Transactions > Payroll > Calculate Checks. The Calculate Payroll Checks window opens. Choose OK to begin the calculate process.
Example 4: Employee works on a job for a different union local, and has been approved to get paid the higher rate, which happens to be his home union local.
This example uses TimeTrack for payroll transactions.
Employee, WILLIE GREEN, is working on a job for the Sheet Metal Local Appleton union. His home union is Milwaukee, and he is performing the same duties in Appleton as does in his home union. In spirit of reciprocity, the Appleton local has agreed to pay Willie his home rate, which is the higher rate of the two unions.
For purposes of this example, we will assume that the User higher pay rate check box has been marked for all rate classes in the Job Cost system. This example uses TimeTrack.
Pay rates:
Our fictitious system is set up with the following pay rates:

• Job pay rate (from a rate class assigned to job): $23.45/hour
• Home union pay rate (from a rate class assigned to employee): $26.75
• Pay code pay rate: $20.00

Transaction:
We will create TimeTrack transaction for WILLIE GREEN and show that the system will use the highest pay rate of the three:

The Pay Rate filled correctly with $26.75.
In the Edit Payroll Fields window (expansion button in Pay Code field), the Rate Class fills from the job, and the Union from employee. Because the rate class and union code for Willie's union differ from the Milwaukee union, we must change the union.

After changing the union. the Window looks like this:

If you create more transactions for this job, and the unions differ, you must change the Union field in the Edit Payroll Fields for every transaction.