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Dynamics NAV 2018 New Feature Deep Dive: Employee Expenses and Payments

Microsoft Dynamics NAV 2018 Employee Expenses and Payments

Overview of Employee Expenses and Payments in Dynamics NAV 2018

A notable new feature added in Dynamics NAV 2018 is the ability to post transactions to employee records. Up until this recent version, end-users that wanted to reimburse their employees for incurring expenses out of their own pocket often resorted to setting up vendor cards of each individual employee, and issuing a payment to them that way. Although this approach has been a sufficient workaround, the downside was this muddled employee and vendor expenses.

NAV 2018 now gives you the ability to pay employees separately from your vendors. Below is an overview of the setup and processes to run employee expenses and payments.

Employee Posting Group – Payables Account

In order to map employee payments to the proper G/L Account, NAV 2018 has introduced a new Employee Posting Group. In it, you have just one column that you can map to your Employee Payables Account.

Employee Posting Groups in Dynamics NAV 2018
Figure 1 - Employee Posting Groups in Dynamics NAV 2018

Employee Card – Payments FastTab

Dynamics NAV 2018 added new fields that you can store payment information to each individual employee under the Payments FastTab. Options include:

  • Employee Posting Group – enter the Employee Posting Group code that will map to the employee payable G/L account when posting expenses and payments.

  • Application Method – this field operates the same as in Customer and Vendor cards, you have one of two options:

    • Manual

    • Apply to Oldest

  • Bank Branch No./Bank Account No./IBAN – fill in the employee’s bank information if applicable.

Dynamics NAV 2018 Employee Card
Figure 2 - Dynamics NAV 2018 Employee Card

Journal Entry – Record Employee Expenses

You can record employee expenses through a Purchase Journal (or General Journal) by setting the Account Type column to Employee, and recording the expenses as you normally would. In this example, I have recorded an employee’s travel expense.

Figure 3 - Journal Entry in Dynamics NAV 2018
Figure 3 - Journal Entry in Dynamics NAV 2018

Payment Journal – Record Employee Payment

Next, we can navigate to the Payment Journal to post a reimbursement to the employee. Similar to paying vendors, we have the option of manually entering all of the payment transactions that we want to post, or we can run the Suggest Employee Payments routine to list the outstanding employee payments automatically.

In the Suggest Employee Payment window, you have a short list of fields that you can use to refine your results.

  • Available Amount ($) – you can apply a maximum amount that you will be willing to pay an employee this payment cycle. A $0.00 value means that there is no limit.

  • Summarize per Employee – if selected true, this will consolidate outstanding employee balances into single lines.

  • Summarize By Dimensions – select Dimension Codes to group employee payments

  • Posting Date

  • Starting Document No.

  • New Doc. No. per Line

  • Bal. Account Type – two options available:

    • G/L Account

    • Bank Account

  • Bal. Account No. – Balance account that the payment is posted to (i.e. G/L Account or Bank Account)

  • Bank Payment Type – three options available

    • <BLANK>

    • Computer Check

    • Manual Check

Figure 4 - Suggest Employee Payments Action in NAV 2018
Figure 4 - Suggest Employee Payments Action in NAV 2018

Running the Suggest Employee Payments action has resulted in an outstanding employee payment journal entry, which I can then post.

Figure 5 - Employee Payment Journal Entry in NAV 2018
Figure 5 - Employee Payment Journal Entry in NAV 2018

Employee Ledger Entry

The Employee Ledger Entry will give you an overview of all of the employee expenses and payments recorded, including the unapplied entries. After posting the initial employee travel expense, and then the employee reimbursement, you will notice that I have two entries posted in the Employee Ledger Entry table. I have the option of manually applying payment to the outstanding employee balance by clicking into the Apply Entries action in the ribbon. There, I can apply payment to the employee expense (which is the same approach as applying vendor payments).

Figure 6 - Manually Apply Employee Ledger Entry Payments
Figure 6 - Manually Apply Employee Ledger Entry Payments

I can then review the application entries from the Applied Employee Entries or Detailed Employee Ledger Entries windows.

Figure 7 - Detailed Employee Ledger Entries in NAV 2018
Figure 7 - Detailed Employee Ledger Entries in NAV 2018

I can also use the Navigate action to review the resulting G/L entries from the Employee Ledger Entries page.

Figure 8 - Employee Ledger Entries in NAV 2018
Figure 8 - Employee Ledger Entries in NAV 2018

This is another useful feature Microsoft added to NAV 2018 that provides an easy way of reimbursing your employees: a process that will be very familiar to anyone that runs vendor payments.

To see a demonstration of this feature, view our NAV Coffee Break: Employee Ledger Entries video blog. For more Dynamics NAV information delivered to your inbox, be sure to subscribe to our blog and newsletters.




Great new feature, I am curious if you ran into any issues when you printed the check for the employee.  I was following along with your text and after selecting the printer I got a message:  The Windows Language does not exist.  Identification fields and values: Language ID='0'.  Thank you.

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