When it comes to processing payroll, Microsoft Dynamics NAV is easy to use, accurate and dependable. Best of all, the latter immediately calculates payroll totals and tax liabilities for your review and approval. Payroll supports both mid-sized and large organizations with an unlimited number of employees.
Before payroll can be posted all payroll headers must be calculated. All corrections must be made before posting because after posting the period is no longer accessible.
The following payroll verification aids (reports) are available to assist you in verifying payroll data before it is posted:-
• Pay slip – prints a test pay slip as it would print after posting
• Payroll Verification Report – prints all pay slips with signature and
Once all entries and values have been verified generate payroll general journals by clicking Payroll, Periodic Activities, Generate Payroll Journal Entries. Switch to the general template and batch specified in Payroll Setup to view and post payroll general journals.
Print Payroll Reports
INCOME TAX (Lookup Tables)
Lookup tables are used by payroll calculation function to look up rates based on certain parameters e.g. PAYE which is based on income tax table and taxable income, NHIF based on NHIF table or NSSF based on NSSF contribution rates.
Using lookup rates, a history of applicable rates can be maintained and the payroll can easily be amended when the rates change, for more details on rates amendment refer to “Calculation Schemes” section.
There are four types of look up tables: Percentage, Extract Amount, Month and Max-Min.
• Percentage - used to look up an amount and select a percentage in a specific range the amount falls into.
• Extract Amount - used to look up an amount and select an amount in a specific range.
• Months - used to look up a month and select an amount in that specific month.
• Max-Min - used to test an amount and adjust the amount according to max and min values.
To setup look up rates, click Payroll, Payroll Setup, Look Tables. Fill in the lookup details as below:-
1) Table ID - the system will fill in this field
2) Lower Amount - enter the lower amount in the range
3) Upper Amount - enter the upper amount in the range
4) Extract Amount - enter the amount you want to extract in that amount range
In case of look up type Month these field will be active
PAYROLL CODES (E/D Posting Groups)
E/D Posting Groups are used to group E/Ds (Earnings / Deductions) together to be able to post into the same accounts in the general ledger.
Each ED is assigned to an ED Posting Group if its Posting Type is set to G/L Account.
To set up E/D Posting Groups, in the Payroll menu, click Payroll Setup, E/D Posting Groups to open the following form.
For each posting group
• Fill in the ED Posting Group (max 20 characters)
• Fill in the Description (max 40 characters)
Mycrosoft Dynamics Nav will create payroll transfer files to allocated bank.
LINK TO KRA i TAX FORMAT
Mycrosoft Dynamics Nav will be customized to a format similar to KRA i Tax