Depending on the type of payroll category, they are processed in a particular order by default. You can use the "Processing Order" field in the payroll category setup to override this. For example, if you have two formula-based payroll categories, they will be processed in a particular order, which may not be what you're looking to do.
By default, this is how your payroll categories are processed:
- Static payroll categories, including statutory holiday (Canada only) and scheduled deductions
- Built formula payroll categories in the order of: Basic Salary - Earnings - Benefits - Deductions
- Predefined formula payroll categories in the order of: Basic Salary - Earnings - Benefits - Deductions
- Predefined contributions
- Formula-based accruals in the order of: Basic Salary - Earnings - Benefits - Deductions
- Predefined formula-based accruals
- Static taxes
- Predefined formula-based taxes
Verifying the Current Processing Order
- Navigate to Payroll Setup > Payroll Categories.
- Select a payroll category.
- Navigate to the formula (fx) tab.
- Next to the "Processing Order" field, click the button. This will open a window of the current processing order. The payroll categories are divided by section according to the eight groups above. While payroll categories cannot be moved from one group to another, they can be reordered within their group.
Changing the Processing Order
- Navigate to Payroll Setup > Payroll Categories.
- Select the payroll category you want to change the processing order of.
- Navigate to the formula (fx) tab.
- Enter "1" into the "Processing Order" field if you want the payroll category to be processed first (before any other payroll categories in the same group). Note: Payroll categories that do not have a processing order will automatically be processed first. You may want to navigate to the other payroll categories to change their processing order to "2", "3", or so on.
- Save the payroll category to save your changes. You can view the processing order again to confirm your changes.