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NAV Updates

NAV Employee Expenses and Payments Overview

In this Article, we are going to discuss the Dynamics NAV Employee Expenses and Payments.

A notable new feature added in the Dynamics NAV 2018 is the ability to post transactions to employee records. Up until this recent version, the 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 issue payment to them that way. Although this approach has been a sufficient workaround, the downside was this muddled employee and vendor expenses.

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

Employee Posting Group – Payables Account

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

NAV Employee Expenses

Employee Posting Groups in Dynamics NAV 2018

Employee Card – Payments FastTab

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

  • Employee Posting Group – enter 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 2 options:
    • Manual
    • Apply to Oldest
  • Bank Branch No./Bank Account No./IBAN – fill in the employee’s bank data if applicable.
Dynamics NAV 2018 Employee Card

Dynamics NAV 2018 Employee Card

Journal Entry – Record Employee Expenses

You can record the 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 the employee’s travel expense.

ournal Entry in Dynamics NAV 2018

Journal Entry in Dynamics NAV 2018

Payment Journal – Record Employee Payment

Next, we can navigate to the Payment Journal to post the reimbursement to the employee. Similar to paying vendors, we have an 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 the short list of fields that you can use to refine your results.

  • Available Amount ($) – you can apply the maximum amount that you will be willing to pay an employee this payment cycle. A $0.00 value that means that there is no limit.
  • Summarize per Employee – if chosen true, this will consolidate outstanding employee balances into single lines.
  • Summarize By Dimensions – choose 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 payment is posted to (i.e. G/L Account or Bank Account)
  • Bank Payment Type – three options available
    • <BLANK>
    • Computer Check
    • Manual Check
Suggest Employee Payments Action in NAV 2018

Suggest Employee Payments Action in NAV 2018

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

Employee Payment Journal Entry in NAV 2018

Employee Payment Journal Entry in NAV 2018

NAV Employee Expenses Ledger Entry

The Employee Ledger Entry will provide you with 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 see that I have two entries posted in the Employee Ledger Entry table. I have the option of manually applying the payment to the outstanding employee balance by clicking into the Apply Entries action in the ribbon. There, I can apply the payment to the employee expense (which is the same approach as applying vendor payments).

Manually Apply Employee Ledger Entry Payments

Manually Apply Employee Ledger Entry Payments

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

Detailed Employee Ledger Entries in NAV 2018

Detailed Employee Ledger Entries in NAV 2018

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

Employee Ledger Entries in NAV 2018

Employee Ledger Entries in NAV 2018

This is another useful feature Microsoft included 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.


In this Article, we dealt with Dynamics NAV Employee Expenses and Payments and its Overview.

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