Payroll Deduction Frequency and posting to the GL

Issue/Symptom/Question

We have a payroll deduction set to Frequency #2 - Once Per Month – 1st Period however, the deduction schedule does not seem to be taking/posting these deductions according to this Frequency. What Penta is taking the deduction on the first check with a check date in a month but then posting the deduction based on the period ending date. So if our week ends on Saturday, April 29th but the check for that week is dated Wednesday, May 3rd Penta will calculate the deduction and post it to the GL on April 29th. The issue becomes that also at the beginning of April the first check of the month was on Wednesday, April 5th and for the period ending Saturday, April 1st. So Penta posted the deduction for April to April… but it also posted the deduction for May to April. So now April has two deductions posted to the GL and May only has one.

Applies To

Penta for Windows

Payroll > Master Deductions

System Options

Resolution/Fix/Answer

From the Penta Reference Manual: Payroll > Window Descriptions > Master Deductions:

  • A month’s definition is based on the value of System Option 102 (“Use Check Date for Ded/Reimb Freq”).

    • If System Option 102 is Y, the monthly edit check is based on the check date associated with the employee’s check, or

    • If System Option 102 is set to N, the monthly edit check is based on the period end date associated with the employee’s timecard records.

  • System Option 212 (“Use Accounting Period for Deduction/Reimbursement”) controls period determination for Frequencies 2, 4, and 5. The default for this System Option is calendar month; however, you can change it to the accounting period. Entry is required. No default.

The customer had System Option 102 set to Y - Use Check Date

In the examples provided, the check date used May 3rd therefore, the check for this date had the deduction. 

Another setting that will affect the posting date is in Penta can be found via System Management > System Rules > System Configuration > Payroll tab. Customer had this set to P = Period End Date. The setting for Payroll Accrual/Expense Transaction Dating set to P = Period end date means Penta will use the period end date to post the transaction. In this example, Penta used the Period End Date of April 29 to post the transaction. 

NOTE: The above settings will affect all transactions that fit this criteria. It is best to make updates in your testing environment before changing anything in production.