This article reviews auditing R365 Payroll and troubleshooting discrepancies.
TABLE OF CONTENTS
- Payroll Audit Overview
- POS Data Audit: Step-By-Step
- Employee Record Audit: Step-By-Step
- Benefit and Deduction Review
- Gross to Net Calculation Review
Payroll Audit Overview
A full Payroll Audit will confirm that all areas of R365 are configured properly for Payroll purposes, and will assist in tracking down the causes of discrepancies.
A Note About Rounding
While auditing and reviewing reports related to Payroll, be mindful of the system that calculated the report. Often, different systems round partial minutes and percentages differently. This can result is small discrepancies in earning, deduction, and tax amounts.
Typically, discrepancies of less than 10 cents are caused by differences in rounding.
Audit and Review Descriptions
| Audit/Review | Description | Data Reviewed | Discrepancy Troubleshooting |
| POS Data Audit | The POS Data Audit compares POS punch and pay rate information to the punch and pay rate information in R365. This audit is done first, as punch and pay rate information from the POS is one of the main sources of earnings information used for Payroll. |
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| R365 Employee Record Audit | The R365 Employee Record Audit compares the list of Employees expected for Payroll to the list of Employees Onboarded for Payroll in R365. |
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| Benefits and Deductions Review | The Benefits and Deductions Review reviews the list of configured Deductions per Employee. |
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| Gross to Net Calculation Audit | The Gross to Net Calculation Audit reviews the calculated earnings, deductions, and taxes within Workforce. During Onboarding, this audit is often compared with the payroll register from an existing payroll system to confirm calculations in R365 before go-live. It is recommended that this review be performed for each Payroll Batch prior to approval. |
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Areas and Configurations for Troubleshooting Discrepancies
The following areas and configurations within R365 will impact earning, deduction, and tax amounts after POS data has been polled in. Issues found within the data provided by the POS must be fixed in the POS before data is polled.
| Discrepancy | Area/Setting | Impacts to Payroll |
| Overtime Hours or Earnings | Fiscal Calendar: Operational Calendar | The Operational Calendar for a Location determines the first day of the week. The first day of the week is used for overtime calculations. |
| Missing Employee Tax Location | System Preferences: Employee Master | The Employee Master setting should be set to 'R365'. This ensures that Employee information such as address, name, hire date, etc. updated in R365 is not overwritten nightly by POS data. |
| Tax Location | Payroll Location: Address | The address for each Payroll Location is used to determine required Taxes. |
| Overtime Hours or Earnings | Location Record: Overtime Tracking | When Overtime Tracking is set to 'R365', overtime is calculated in R365 using R365 Overtime Rules. Overtime calculations provided by the POS are not used. |
| Punch Date or Time Regular Hours Overtime Hours | Location Record: Punch Edits | When R365 Punch Edits are enabled, edits to punches made in the POS after the DSS is polled will not be imported. Punch edits must be maintained in R365. |
| Penalty Earnings Overtime Hours Overtime Earnings | Labor Admin: Labor Rules
| When Labor Rules are configured, additional earnings will be calculated and automatically added. These earnings will not appear in POS reports. |
| Overtime Hours Overtime Locations Punch Date | Operations Admin: Start of Day Time | Overtime calculations use business days to determine the hours worked by an Employee in a 'day'. By default, business days in R365 start at 12:00 am. Start of Day settings determine the start time for a Location's business day. It is recommended to align a Location's Start of Day Time to the POS End of Day Time. |
| Punch Date or Time Regular Hours Overtime Hours | DSS Punch Edits | When enabled, Punches must be edited directly in R365. Edits made to punches in R365 are not reflected in reports from the POS. |
| Regular Earnings Overtime Earnings Penalty Earnings | DSS Pay Rate Edits | When enabled, Pay Rates can be edited per punch in R365. Pay Rate Edits are not reflected in reports from the POS. |
| Tips | DSS Tip Import | Tips can be redistributed via import in R365. Tips re-distributed in R365 are not reflected in reports from the POS. |
| Earnings | Workforce: Adding and Editing Earnings | Earnings can be added or edited directly in Workforce. Edits made to earnings will not appear on POS or DSS reports. |
| Earnings Deductions Taxes | Workforce: One Time Payments | One-Time Payments can be used to add earnings or deductions in Workforce. One-Time Payments will not appear on POS or DSS reports. |
| PTO Earnings | Labor Admin: PTO Accruals | PTO Accruals allows for managing employee PTO balances within Workforce. Balances can be viewed on the Time Off tab of Employee Records. Approved time off requests will add PTO earnings to the DSS. Note: If PTO Accruals is not enabled, the legacy PTO Policy is used to configure paid time off within Workforce and automatically add PTO earnings to pay cycle payroll batches. These earnings will not appear on POS or DSS reports. |
| Taxes | Workforce: Unemployment Rate | A Payroll Location's unemployment rate is used when calculating taxes. |
| Payroll Batch Date Range | Workforce: Pay Cycle Setting | A Payroll Location's Pay Cycle is used to determine the date range of each Pay Cycle Payroll Batch. |
| Tax Location | Employee Record: Employee Address | The Home Address for each Employee is used to determine the required taxes for that Employee. |
| Tax Location | Employee Record: Primary Location | The Primary Location for an Employee is used to determine the required taxes for an Employee's work Location. |
| Salary Earnings | Employee Record: Salary Jobs & Pay Rates | The Jobs and Pay Rates of Salary Employees are used to automatically populate Salary Earnings per Pay Cycle Payroll Batch. Salary Earnings will not appear on POS or DSS reports. |
| Deductions | Employee Record: Deductions | The Employee-specific Benefits and Deductions configurations are used to calculate deductions per Payroll Batch. |
| Missing Employee | Employee Record: Payroll Status | Only Employees who have been fully Onboarded to Payroll will be included in Payroll Batches. |
| Missing Employee | Employee Record: Employment Status | Only Active Employees will be included in Payroll Batches. Employees with the status of 'Leave' or 'Terminated' will not be included. |
| Missing Employee Duplicate Employee | Employee Record: Integrations | POS Employee Records are linked to Employee Records to connect the Employee Record to Employee-specific POS data. Incorrectly matched POS Records and incorrectly merged Employee Records can result in missing Employees. Employees with multiple POS Records will appear as duplicates and will need to be merged. |
POS Data Audit: Step-By-Step
The POS Data Audit compares POS punch and pay rate information to the punch and pay rate information in R365.
This audit is done first, as punch and pay rate information from the POS is one of the main sources of earnings information used for Payroll.
| 1) | Select a data range to compare It is recommended to compare all dates within a single full pay period. |
| 2) | From the POS: Run a punch report for the selected date range that shows all punches, pay rates, hours, and tips. |
| 3) | From Workforce: Run the Workforce Preview Report with the following report settings:
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| 4) | Compare the key fields for each Employee and punch:
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| 5) | Troubleshoot discrepancies |
Employee Record Audit: Step-By-Step
The R365 Employee Record Audit compares the list of Employees expected for Payroll to the list of Employees Onboarded for Payroll in R365.
| 1) | Compile a full list of Employees expected from Payroll The punch report generated from the POS can be used as a basis for this full list of expected Employees. Salaried Employees and Employees who otherwise do not punch in through the POS will need to be added from another source. |
| 2) | Within Workforce: Download the Employee Census Report with the following settings:
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| 3) | Compare reports and confirm all expected Employees are listed on the Employee Census:
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| 4) | Troubleshoot discrepancies |
Benefits and Deductions Review: Step-By-Step
The Benefits and Deductions Review reviews the list of configured Deductions per Employee.
| 1) | Within Workforce: Download the Benefits and Deductions Report with the following settings:
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| 2) | Confirm the following key fields:
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| 3) | Troubleshoot discrepancies |
Gross to Net Calculation Audit: Step-By-Step
The Gross to Net Calculation Audit reviews the calculated earnings, deductions, and taxes within Workforce.
During Onboarding, this audit is often compared with the payroll register from an existing payroll system to confirm calculations in R365 before go-live.
It is recommended that this review be performed for each Payroll Batch prior to approval.
| 1) | Select a Pay Period to audit |
| 2) | Within Workforce: Run the 'Payroll By Pay Period' report for the selected Pay Period |
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| 3) | If completing a parallel audit prior to go-live, run a payroll register report for the selected Pay Period in the existing payroll system. |
| 4) | Review Key Fields:
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| 5) | Troubleshoot discrepancies before approving the associated Payroll Batch |