Chapter 8: Set Up Initial Payroll Environment
CHAPTER 8: SET UP INITIAL PAYROLL ENVIRONMENT Objectives The objectives are •
Provide procedures for setting up date information and pay groups.
•
Introduce detailed procedures associated with setting up organizations.
•
Introduce the detailed procedures associated with setting up Person Information.
•
Introduce procedures for setting up positions.
•
Introduce procedures for setting up salaries.
•
Introduce the detailed procedures associated with setting up Union affiliations and certifications.
Introduction This course explains the procedures required for setting up the initial Microsoft Dynamics® AX 2009 Payroll environment for a client. The initial environment for the Payroll module consists of the company-specific periods, cycles, groups, types, definitions, and parameters that are needed before you can set up a company's earnings, shifts, rotations, rule groups, benefit/deductions, payments, postings, entitlements, and so on. In this course, the initial Payroll environment is divided into the following setup groupings: •
Date information and pay group
•
Organization
•
Person
•
Position
•
Salaries
•
Unions
This course includes key procedures. Some supporting procedures are available for self-study in white papers on Partner Source.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
8-1
Microsoft Dynamics® AX Payroll
Date Information & Pay Group Setup This section provides procedures and guidelines for setting up date information and pay groups. These are among some of the most important parameters in the Payroll module, and must be set up before you can set up any financial or payment information. You must set up date information and pay groups to support how the company wants to manage employee pay calculations, and both how and when they are paid. Correct setup of the date and pay group environment must reflect client requirements because they have direct affect on how you will set up employee shifts, rotations, positions, earnings, benefits, and payments. Before setting up any financial institution and payment information, the implementer must set up the following (in order): 1. 2. 3. 4.
Date periods Date period dates Pay cycles Pay groups
About Date Information Recall that during each pay cycle a payroll department collects data, calculates earnings, produces payments, oversees all applicable taxes and benefits/deductions, and performs required reporting tasks. Because all these activities tie to very specific time periods and dates, they are affected significantly by how you define: •
date periods
•
date period dates
•
pay cycles
A date period is period of time that has specific dates associated with it, and the Payroll module uses it for a variety of purposes. Examples of date periods include the following:
8-2
•
Calendar-based periods such as calendar month, calendar quarter, and calendar year
•
Reporting periods (such as fiscal year)
•
Pay-group-specific pay periods
•
Weekly, bi-weekly, and semi-monthly pay periods
•
Pay year
•
Ongoing
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment When you set up a date period, you are basically setting up a template for re-use in as many iterations as required. For example, after you set up a date period called Calendar month, you can define individual iterations of that period for each month in as many years as required. Each iteration is defined by the start date and end date assigned to it. "Versioned," or pre-determined date periods may be available for some locations, and can be included during implementation. However, implementers should ensure they provide the client with all the date periods they need to meet their requirements. Date period dates are the specific dates associated with a date period. Examples include the following: •
Date period year
•
Date period start date
•
Date period end date
•
Date period active date
NOTE: During implementation, initial date period dates will be set up for a period of time agreed upon by the partner and organization implementation teams. Setting up subsequent date period dates at the appropriate time(s) each year is the responsibility of the organization's payroll administrators. A pay cycle (or pay period cycle) is the defined period in which a complete iteration of a company's payroll process occurs. Different groups of employees may use different pay cycles, so that more than one may be defined for the same company. Examples include "Bi-weekly" and "Weekly." When multiple pay cycles are used, the system creates a unique pay group for each. The following procedures may also be required when you set up date information, and are available in a white paper on Partner Source: •
Set Up Derived Dates
•
Set Up a Date Type
•
Set Up a Date Group Date Type
•
Set Up a Date Group
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
8-3
Microsoft Dynamics® AX Payroll Customizing Date Periods & Date Period Dates You can set up date periods to reflect: •
Calendar-based periods (month, quarter, year, and so on)
•
Reporting periods (such as fiscal year, or annual tax reporting periods)
•
Payroll-related periods (such as pay year)
The way implementers set them up will depend on local requirements (such as tax reporting periods) and company-specific policies (such as how they organize their pay year). Even if two companies used exactly the same calendar, pay, and reporting date periods and date period dates, the way that each company applies them (for example, to accumulator updates, statutory reporting, and payment processing) may be completely unique. The interaction of calendar years, pay years, and local statutory reporting requirements is one example of how implementers need to consider both location and company requirements when they set up date periods.
Calendar Year and Pay Year Calendar year and pay year are two terms that are common in the payroll industry; they refer to common payroll management concepts. Generally, a calendar year will start on 1 January and end on 31 December. A pay year will be defined to include all pay periods in that year, but its start and end dates may or may not correspond to the calendar year. For example, the first pay period in a pay year might start prior to 1 Jan, or the end date of the last pay period in the year might occur after 31 Dec. Such differences are important to remember when you set up features such as accumulators, which might be used to track annual pay or statutory deductions for tax reporting. For example, when you set up an accumulator to track annual pay during a pay year, the implementer might decide to set up the accumulator to update on the end-date of every pay period and to stop all updating after the last pay period in that pay year. This accumulator would serve the company well for purposes such as payroll planning and record-keeping. If the last pay period extends into the next calendar year and that company's location requires tax reporting by calendar year, however, then this accumulator may not be usable for tax reporting. Similar complications can occur if tax reporting for the location is based on pay statement dates (the date the pay actually is received by the employee), instead of pay period end dates (the end-date of the period the employee is being paid for).
8-4
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment Pay Period Start, End, and Statement Dates It is important to differentiate between three key date period dates: pay period start, end, and statement dates.
FIGURE 8.1 PAY PERIOD START, END, AND STATEMENT DATES.
It is also important to understand how they may fall across a calendar or pay year boundary. Because Payroll module features, such as accumulators, depend on the date period dates that you define, implementers must understand the implications of these choices. A good example of where this is important is in statutory deductions and tax reporting.
Date Periods and Tax Reporting To report on statutory deductions for a given tax year, the company must identify the pay periods that will be covered during the tax reporting period mandated for their location. Because of the issues with date periods and pay/calendar year boundaries (illustrated above), you must identify the first and last pay periods in a year. Some tax jurisdictions require tax reporting based on the calendar year and only include payments that are received during the calendar year, which means that they require companies to report pay that has been documented by pay statements produced during the calendar year.
FIGURE 8.2 FIRST PAY PERIOD OF THE YEAR DETERMINED BY STATEMENT DATE (2 JAN 08).
In contrast, other jurisdictions may also require tax reporting based on the calendar year, but on payments calculated for pay period dates that fall within the calendar year.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
8-5
Microsoft Dynamics® AX Payroll Procedure: Set Up a Date Period Date periods are periods of time that have specific dates associated with them. Follow these steps to set up a new date period. 1. In the Payroll area page, click Dates in the Setup area, and then click Date Periods. 2. To add a new date period, click the Overview tab and press CTRL+N. 3. To define the new record, use either the Overview or General tab and name the new date period. Enter a description, and set the Active date and Expiry dates. Alter the Short code if you want (such as for clarity or avoiding repetition). 4. Ignore the Version field, which is used only if some date periods are initially supplied during implementation. Country/region and state fields are provided for use during implementation, if: •
You are importing period data from a spreadsheet; and
•
You have to filter by country/region or state after importing.
NOTE: Do not confuse the Active date and Expiry date specified for the date period with the Start date and End date for its individual iterations (the Date period dates) - these are defined in the Date period dates form.
Procedure: Set Up Date Period Dates This topic describes how to set up date period dates, which control when calculations are performed. The effective dates of a date period cannot overlap with other date periods of the same type. The following examples explain how to arrange date period dates. Date Period Name
Date Period Dates
Pay Period 1
12/26/2005 - 01/08/2006
Pay Period 2
01/09/2006-01/22/2006
Calendar Month 1
01/01/2006-01/31/2006
Calendar Month 2
02/01/2006-02/28/2006
Use the Fast Entry tab to generate multiple date periods automatically based on a start date. For example, set up the system to generate all the pay periods for the current pay year at one time.
8-6
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment NOTE: During implementation, initial date period dates are set up for a period of time agreed upon by the partner and organization implementation teams. Setting up subsequent date period dates at the appropriate time(s) each year is the responsibility of the organization's payroll administrators. Follow these steps to set up new date period dates. 1. In the Payroll area page, click Dates in the Setup area, and then click Date period dates. 2. To add a new date period date, click the Overview tab and press CTRL+N. To define the new record, use either the Overview or General tab. 3. If the date period date is only going to be available for use by one of several existing pay groups, then select that pay group in the Pay group field. 4. Select the date period to use in the Date period field. 5. Enter or select the Date period year for the date period date. The system is uses the year to index date period numbers, which it then assigns to each date period date. 6. Enter or select the Date period number for the date period. For example, if you are generating the second pay period in a year, the number would be 2. You cannot repeat these numbers during the same date period year. 7. Verify that the Date period active date for this date period is correct. To see the active and expiry dates listed in the Date periods table for this date period, select the Date period active date field and click the calendar icon that appears. All active/expiry dates for all instances of this date period will display. 8. Select the Start date to define when this date period begins. 9. Select the End date to define when this date period ends. 10. In the Statement date field, enter the date that will print on the direct deposit or check (for use only with pay periods). 11. In the Work days field, you can enter the number of work days to include in the date period. The Payroll module does not use this information, but you can include it in reports. Follow these steps to concurrently set up multiple date period dates. 1. In the Payroll area page, click Dates in the Setup area, and then click Date period dates. 2. Click the Overview tab and press CTRL+N. 3. Click the Fast Entry tab. To define the new record, use either the Overview or General tab. 4. If the date period date will be available only for use by one of several existing pay groups, then select that pay group in the Pay group field. 5. Select the date period to use in the Date period field.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
8-7
Microsoft Dynamics速 AX Payroll 6. Enter or select the Date period year for the date period date. This is used to index date period numbers, which the system assigns to each date period date. 7. Enter or select the first Date period number for the date period. For example, if you want to create all 12 calendar months for a year, the first number would be 1. 8. Verify that the Date period active date for this date period is correct. To see the Active dates and Expiry dates listed in the Date periods table for this date period, select the Date period active date field, and click the calendar icon that appears. All active/expiry dates for all instances of this date period will display. 9. Select the Start date of the first date period to create. 10. In the Statement date field, enter the date that will print on the direct deposit or check (for use only with pay periods). 11. In the Work days field, you can enter the number of work days to include in the date period. The Payroll module does not use this information, but you can include it in reports. 12. Enter the Increment cycle, which is the period of time used to define the increment between your multiple date period dates. Examples include days, weeks, months, and so on. 13. Enter the Cycle length, which is the number that the increment cycle multiplies by to determine the next set of date period dates. For example, a biweekly cycle that increments by days has a cycle length of 14, whereas if the same biweekly cycle had an increment cycle of weeks, its cycle length would be 2. 14. In the Cycle number field, enter the number of cycles, or date period dates, to create. For example, a biweekly pay cycle generated for one year will produce 26 date period dates. 15. Click the Generate button to automatically create the new date period dates. 16. Use the Check for gaps section of the form to check for gaps between the date period dates. Select the Pay group to check for, then select the Date period and click the Check button. If any gaps exist, a warning message will display.
Procedure: Set up Derived Dates You can use derived dates to create time-related eligibilities for benefit/deductions through using the Benefit/Deduction rule group dates form. Derived dates calculate the difference between the employee's start date and a specified date interval. The employee's start date comes from the "valid from" date of their employee record. Derived dates can be useful when certain deductions or benefits have timerelated eligibilities before an employee becomes able to receive them.
8-8
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment For example, if employees are ineligible to receive a health care benefit until three months after their start date, you can set up a derived date to calculate three months from their start date. Then you can use the Benefit/Deduction rule group dates form to assign that derived date to the benefit/deduction (for any benefit/deduction rule group that the benefit/deduction belongs to). Follow these steps to set up a derived date. 1. In the Payroll area page, click Dates in the Setup area, and then click Derived dates. 2. To add a new derived date, click the Overview tab and press CTRL+N. To define the new record, use either the Overview or General tab. 3. Enter the Derived date name. Be sure to use a name that is indicative of what type of date is being derived. 4. Alter the Short Code if you want. 5. Enter the Derived date description. 6. In the Start increment type field, select the type of date to derive. For example, if you want the derived date to be three months after the employee's start date, select months. To have the derived date start 30 days after the employee's start date, select days. The valid selections are: • Days •
Weeks
•
Months
•
Pay Periods
7. In the Start increment value field, enter the number value that represents how many increments should pass before the start date takes effect. In our above example of 3 months past the start date, the Start increment type would be months, and the start increment value would be 3. 8. Use alignment type if your benefit/deduction start date should be adjusted after the date is initially derived. For example, if the deduction code should become active on the 15th of the month that falls 30 days after their hire date, an alignment type of Day number with a day value of 15 can be used. For a more detailed description of Alignment type, alignment days and operators, use the Payroll help by pressing F1. This field can be left blank if no adjustment to the benefit/deduction begin date or alignment is necessary. If being used, valid options for Alignment type are: • Day number •
End of month
•
Day increment
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
8-9
Microsoft Dynamics速 AX Payroll 9. Verify that the Active date and Expiry date for this derived date is correct. 10. Using the Functions button on the right side of the screen, test the derived dates and verify the derived dates work as desired.
Procedure: Set up a Date Group Date Type Use a date group date type to differentiate between different sets of dates within a date group for reporting purposes. Date group date types are not mandatory for date groups, and are set up optionally. Follow these steps to set up a date group date type. 1. In the Payroll area page, click Dates in the Setup area, and then click Date Group Date types. 2. To add a new date group date type, click the Overview tab and press CTRL+N. To define the new record, use either the Overview or General tab. 3. Enter the Date group date type name. 4. Alter the Short Code if you want. 5. Enter the Date type description. 6. Verify that the Active date and Expiry date for this date group date type is correct.
Procedure: Set up a Date Type Use date types to assign a user-maintained date to an employee. You can use these employee-specific dates to drive calculations based on them in the Calculations form. For a more detailed discussion of using date types in the Calculations form, see course 7, "Payroll Calculations". Follow these steps to set up a date type. 1. In the Payroll area page, click Dates in the Setup area, and then click Date Types. 2. To add a new date type, click the Overview tab and press CTRL+N. To define the new record, use either the Overview or General tab. 3. Enter the Date type name. 4. Alter the Short Code if you want. 5. Enter the Date type description. 6. In the Date type section, enter the Minimum date and Maximum date a user can enter for this date type when the user assigns the date to the employee.
8-10
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment 7. Verify that the Active date and Expiry date for this date type is correct. 8. Assign the date to the specific employees that should have it. Do this by navigating to the Employees list, highlighting the selected employee, clicking on the Payroll tab, and then selecting dates in the setup section.
Procedure: Set up a Date Group A date group is a common set of dates required for calculating time rule premiums, such as statutory holidays. You also can use date groups in association with earning thresholds. For more detailed discussion on using date groups in conjunction with time premiums or earning thresholds, refer to the procedures on setting up those tables, detailed in Course 9, "Set Up Time and Earnings". NOTE: If you do not use time rule premiums or earning thresholds, you do not need to create entries in this table. Follow these steps to set up a Date Group: 1. In the Payroll area page, click Dates in the Setup area, and then click Date groups. 2. Press CTRL+N to create a new date group code. 3. In the Date group field, enter the code that represents the date group. 4. Alter the Short code if you want. 5. In the Date group description field, enter a brief description of the date group date type. 6. Verify that the Active date and Expiry date are correct for the date group date type. 7. Select the Dates tab. 8. Press CTRL+N to create a new date group date. 9. In the Date field, enter the date of the date group date in the format MM/DD/YYYY, or: • Type T to enter the machine date. •
Type D to enter the system date.
•
Select a date by using the calendar function.
10. In the Date description field, enter a brief description of the date group date. 11. In the Date type field, select the date group date type, if any. This is optional; you can use it for reporting purposes.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
8-11
Microsoft Dynamics速 AX Payroll If dates for the date group are already set up for a year, follow these steps to use the Copy function to create new date entries for subsequent years. 1. In the Date group field, select a date group to copy the current date group information to. 2. Verify that the Active date information for the copied information is correct. 3. In the Source year and Destination year fields, enter the source year that the date group date information will copy from and the destination year that the date group date information will copy to. 4. Click Copy to copy the date group date information from the source year to the destination year.
Procedure: Set Up a Pay Cycle Pay cycles reflect the length of the pay period. You must set up at least one pay cycle in the Payroll module. If the organization has pay periods of different lengths, you must set up a pay cycle for each. Follow these steps to set up a new pay cycle. 1. In the Payroll area page, click Payroll in the Setup area, and then click Pay Cycles. 2. To add a new pay cycle, click the Overview tab and press CTRL+N. 3. To define the new record, use either the Overview or General tab and name the new pay cycle. 4. Alter the Short code if you want (such as for clarity or avoiding repetition). 5. Enter a Pay period cycle description for the new cycle. 6. Select the Date period to use in the pay cycle. 7. Select the Start date for the new pay cycle. 8. In the Pay period cycle type field, select the type of pay period cycle to create (weekly, monthly, semi-monthly). 9. In the Pay period increment field, enter the number of pay cycle type periods there will be in the new pay period cycle. For example, to define a biweekly pay period, specify a pay period increment of 2 and select Weekly for the pay cycle type. 10. Set the Active date and Expiry dates for the new pay period cycle.
8-12
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment About Pay Groups Remember that payroll departments can simplify and reduce their pay cycle workload by organizing employees (whose pay data is largely the same) into "pay groups," and that at least one pay group must exist for each company. Some of the things that companies use pay groups to help manage are: •
Currencies used to pay employees
•
Which company bank accounts are used to pay employees
•
Check formats that are used to pay different groups of employees
•
Pay processing pay for different groups of employees
•
Different pay period lengths
•
Pay periods with equal length but different pay days
A pay group is defined by a name and a short code, and includes information about the pay cycle, check form, company bank account used to pay from, currency of pay, and effective dates. NOTE: Because the entire payroll process runs for each pay group during every pay period, encourage the client to keep the number of pay cycles and pay groups to the minimum needed.
Procedure: Set Up a Pay Group Use pay groups to process payroll for different currencies and to process payroll for different groups of employees (for example, a confidential payroll). At least one pay group must be set up. A pay cycle can associate with a pay group, and employees with multiple jobs can have different pay groups assigned to each job. Follow these steps to set up a new pay group. 1. In the Payroll area page, click Payroll in the Setup area, and then click Pay Groups. 2. To add a new pay group, click the Overview tab and press CTRL+N. 3. To define the new record, use either the Overview or General tab and name the new pay group. 4. Alter the Short code if you want (such as for clarity or avoiding repetition). 5. Enter a Pay Group description for the new cycle. 6. Select the Pay period cycle to use for the pay group. 7. Select the Check form type to specify the check format to use for this pay group. 8. Select the Company bank account to use for the new pay group (the options in the drop-down list are determined in the Banks module).
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
8-13
Microsoft Dynamics速 AX Payroll 9. Select the Currency to use for the new pay group (the options in the drop-down list are determined in the General Ledger module). 10. In the Prior entry periods field, enter the number of past pay periods that adjustments can be entered for. 11. In the Future entry periods field, enter the number of future pay periods that adjustments can be entered for. 12. Set the Active date and Expiry dates for the new pay group.
Set Up Pay Group Accumulators Remember that you can set up accumulators to collect data at the employee, company, and pay group levels. This section discusses how to associate pay groups with accumulators that have been set up to collect at the pay group level. Pay groups typically require particular accumulators to be associated with selected date periods, for specific date period dates within a limited number of date period years. You can do this from the Pay Groups form when you set up your pay groups, but note that because you are associating accumulators for a limited time after implementation, payroll administrators will periodically have to repeat this process. For example, a particular pay group may use calendar quarter as a date period, and each quarter you have to be able to track federal taxes collected to date from that group. You would need to associate the appropriate accumulator with each date period number for the quarterly date period, and repeat this for as many date period years as required. Follow these steps to set up pay group accumulators. 1. In the Payroll area page, click Payroll in the Setup area, and then click Pay Groups. 2. Click the Overview tab and select the pay group. 3. Click the General tab, click the Setup button and select Pay group accumulators. 4. Press CTRL+N to create a new entry. 5. Select the Accumulator to associate with the pay group. 6. Select the Date period (such as calendar quarter) to use for accumulating data. 7. Select the Date period year to use. 8. Select the Date period number to use. 9. Repeat steps 6 through 8 for as many date periods, date period years, and date period numbers you need. 10. Repeat steps 5 through 9 for as many accumulators you have to associate with the pay group.
8-14
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment
Set Up Organizations These procedures explain how to set up company accumulators and organization addresses. Remember that as of Microsoft Dynamics AX 2009, the Organization table is a basic shared table. Detailed discussions about setting up the organization structure are available in other Microsoft Dynamics AX 2009 courses, and are not included in the Payroll collection.
Procedure: Set Up Company Accumulators Recall that you can set up accumulators to collect data at the employee, company, and pay group levels. Accumulators that have been set up to collect data at the company level must be either: •
populated with initial values during payroll implementation (procedure provided below); or
•
initialized from benefit/deduction or earnings transactions that have been loaded into the system during the implementation.
For a more detailed discussion on loading transaction information into the system, and on initializing accumulator values from those values, see the "Custom Setup Tasks" course located elsewhere in this collection. For a detailed discussion on setting up accumulators, see the following courses: •
"Set Up Time and Earnings" (about earning type accumulators)
•
"Set Up Benefit/Deductions" (about benefit/deduction type accumulators)
Populating With Initial Values During Implementation Follow these steps to populate the initial go-live values of company-level accumulators. 1. In the Payroll area page, click Payroll in the Setup area, and then click Organizations and select Company accumulators. 2. To add a new accumulator, click the Overview tab and press CTRL+N. 3. Select the Accumulator to associate with the pay group. 4. Select the Date period (such as calendar quarter) to use for accumulating data. 5. Select the Date period year to use. 6. Select the Date period number to use.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
8-15
Microsoft Dynamics速 AX Payroll 7. Select the Accumulator to initialize. The accumulator you select must be set up as a company type accumulator, or an error message will display. The Date period field will populate based on the accumulator setup. 8. Select the Date period year for the record that you are creating. 9. Select the date period number that represents the date period of the record that you are populating. 10. Enter the go-live amount to specify for the company accumulator in the Accumulated amount field. 11. Repeat steps 2-6 for all company accumulators that require population.
Procedure: Set Up Organization Address An organization address should be set up for the highest level in your organization. If a country extension is available for your jurisdiction, you can use the organization address to accommodate federal reporting needs. Because of this possible requirement, populate the highest level of the organization with the address during the implementation. 1. In the Payroll area page, click Organizations in the Places page. 2. Select the highest level of the organization. The highest level will be the level that does not have a value in the Parent Organization unit field. 3. In the Setup area located at the top of the screen, select Address. 4. Press CNTL+N to create a new row. 5. Enter the address for the organization. 6. Verify that the Valid from and Valid to dates are correct for the organization address.
Procedure: Set Up a Location This topic describes how to set up a location code, which is used on position records for reporting purposes. In Microsoft Dynamics AX 2009 Payroll, locations (as distinct from addresses and divisions) are used to refer to physical locations within an organization. A location can be associated with a department organization and/or a position filter, and locations can have sub-locations. In the case of a sub-location, you must create the parent location before the sub-location. NOTE: Depending on the size and complexity of an organization, it may not need to track location information - for example, an organization with only one physical location.
8-16
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment Follow these steps to set up a Location: 1. In the Payroll area page, click Organization in the Setup page, and then click Locations. 2. Press CTRL+N to create a new Location code, and select the General tab. 3. In the Location field, enter the code that represents the location type. 4. Alter the Short code if you want. 5. In the Location description field, enter a brief description of the location code. In the Parent location field, select the location's parent location, if any. 6. In the Organization Unit field, enter the organization unit associated with this location, if any. 7. In the Position filter field, enter the job filter code associated with this location, if any. 8. Verify that the Active date and Expiry date are correct for the location code. 9. Set up addresses, electronic contacts, notes and persons for the location code, if necessary, by using the setup button on the right side of the screen.
Procedure: Set Up a Task Use tasks specifically to charge salary costs to different general ledger accounts and dimensions for a specific earning when they associate with the position and task than would typically be used for the earning. For example, if your organization employs researchers who work on a variety of research tasks at the same time, you can use tasks to track the time and costs for each research task. You can use tasks to create account overrides using the Earning account exceptions and Benefit/deduction account exceptions forms. For a more detailed discussion on ledger accounts and postings, see Course 11, "Set Up Payments and Postings". To set up a task: 1. In the Payroll area page, click Organization in the Setup page, and then click Tasks. 2. Press CTRL+N to create a new task, and select the General tab. 3. In the Task field, enter the code that represents the task. 4. Alter the Short code if you want. 5. In the Task description field, enter a brief description of the task. 6. In the Organization Unit field, enter the organization unit associated with this task, if any. 7. Verify that the Active date and Expiry date are correct for the task.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
8-17
Microsoft Dynamics® AX Payroll
Person Setup Microsoft Dynamics AX 2009 Payroll can track a variety of personal and contact information. The most important of the person-related features is Stop Pay. Payroll administrators can use the Stop Pay feature to stop paying an employee for one or more positions. They also can use it to record related information, such as the employment starting date, employment ending date, and the reason why pay is being stopped. The two person-related procedures covered in this section are: •
Set Up Stop Pay
•
Set Up Stop Pay Reason
Other procedures related to tracking personal information are covered in a white paper available on Partner Source, and include the following: •
Set Up a Person Contact
•
Set Up a Person Group
•
Set Up a Person Type
•
Set Up an Employee Type
•
Set Up an Employment Type
•
Set Up a Note Type
•
Set Up a Veteran Status, Visa Type, Workers Compensation Category
Procedure: Set Up Stop Pay Type Follow these steps to set up a stop pay type. 1. In the Payroll area page, click Types in the Setup page, and then click Stop Pay Types. 2. To add a new type, click the Overview tab and press CTRL+N to create a new record. 3. To define the new record, use either the Overview or General tab and enter a Stop pay type name. 4. Alter the Short code if you want (such as for clarity or avoiding repetition). 5. Enter a Stop pay type description. 6. Enter the Active date and Expiry dates.
8-18
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment Follow these steps to modify an existing stop pay type. 1. In the Payroll area page, click Types in the Setup page, and then click Stop Pay Types. 2. Click the Overview tab, select the record to change, and click the Split View button. 3. In the split view, press CTRL+N to create a new record. The values that appear in the new record's fields are the same as the record that you previously selected. 4. Make changes to the fields in the new record as required. 5. Click the Save icon at the top of the form.
Procedure: Set Up a Stop Pay Reason Follow these steps to set up a stop pay reason. 1. In the Payroll area page, click Reasons in the Setup page, and then click Stop Pay Reasons. 2. Click the Overview tab and press CTRL+N to create a new record. 3. To define the new record, use either the Overview or General tab and enter a Stop pay reason name. 4. Alter the Short code if you want (such as for clarity or avoiding repetition). 5. Enter a Stop pay reason description. 6. Enter the Active date and Expiry dates. Follow these steps to modify an existing stop pay reason. 1. In the Payroll area page, click Types in the Setup page, and then click Stop Pay Reasons. 2. Click the Overview tab, select the record to change and click the Split View button. 3. In the split view, press CTRL+N to create a new record. The values that appear in the new record's fields are the same as the record that you previously selected. 4. Make changes to the fields in the new record as required. 5. Click the Save icon at the top of the form.
Procedure: Set Up the Employee Home Electronic Contact and address Address Type Parameters Follow these steps to set up the employee home address type and employee home electronic contact type parameters. 1. In the Payroll area page, click Parameters in the Setup page. 2. In the Overview tab, select the line with the general definition code "Employee home electronic contact."
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
8-19
Microsoft Dynamics® AX Payroll 3. In the String value, open the selection menu and select the electronic contact that represents the home telephone number of the employee. 4. Verify the Active date and Expiry dates are correct for the parameter. 5. Repeat steps 1-4 for the general definition code "Employee home address type" parameter.
Position Setup Positions are crucial to managing payroll with the Payroll module. Remember that employees can have multiple positions and employees must have at least one position to be paid. In the Payroll module, a position is assigned to a specific employee, and can be seen as what that employee does for work. You can use the Payroll module to manage which positions are assigned to employees, but the position table is actually part of the Basic module; for this reason, only limited position setup procedures are available within the Payroll module. This section provides the procedure for setting up position type. Position type defines the overall type of employment - whether the employment is full-time, part-time, or casual. Procedures are provided in a white paper available at Partner Source for setting up: •
Position assignment type (overall employment status - permanent, layoff, temporary, and so on)
•
Position filters (used to filter positions according to statutory deduction reporting requirements)
•
Position filter-related parameters
Procedure: Set Up a Position Type Position types are user defined; you can use them in association with accumulator eligibilities to define: •
What position types can populate accumulators.
•
Shift eligibilities to control who is eligible to work certain shifts, based on their position type.
•
Piece eligibilities to control what pieces can be manufactured based on position type.
You can define position types for an employee on their Position form. For more detailed discussions on using position types with eligibilities, see the specific forms on shift eligibilities and piece eligibilities in Course 9.
8-20
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment Follow these steps to set up a position type: 1. In the Payroll area page, click Positions in the Setup page, and then click Position types. 2. Click the Overview tab and press CTRL+N to create a new record. 3. To define the new record, use either the Overview or General tab and enter a Position type name. 4. Alter the Short code if you want (such as for clarity or avoiding repetition). 5. Enter a Position type description. 6. Enter the Active date and Expiry dates. Follow these steps to modify an existing position type: 1. In the Payroll area page, click Positions in the Setup page, and then click Position types. 2. Click the Overview tab, select the record to change and click the Split View button. 3. In the split view, press CTRL+N to create a new record. The values that appear in the new record's fields are the same as the record that you previously selected. 4. Make changes to the fields in the new record as required. 5. Click the Save icon at the top of the form.
Procedure: Set Up a Position Assignment Type Much like position types, you can use position assignment types in conjunction with accumulators for defining accumulator eligibilities. Assign position assignment types to an employee's position on their Position form. Follow these steps to set up a position assignment type. 1. In the Payroll area page, click Positions in the Setup page, and then click Position assignment types. 2. Click the Overview tab and press CTRL+N to create a new record. 3. To define the new record, use either the Overview or General tab and enter a Position assignment type name. 4. Alter the Short code if you want (such as for clarity or avoiding repetition). 5. Enter a Position assignment type description. 6. Verify the Active and Expiry dates are correct.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
8-21
Microsoft Dynamics® AX Payroll Procedure: Set Up a Position Filter Use position filters to associate positions with specific jurisdictions (such as states, provinces, and countries) to control different accumulator eligibility and other reporting requirements. This is important for employees who have positions in more than one jurisdiction, such as a technician who works in two different states with different tax rates. 1. In the Payroll area page, click Positions in the Setup page, and then click Position Filters. 2. To add a new position filter, click the Overview tab and press CTRL+N. To define the new record, use either the Overview or General tab. 3. Enter the Position Filter name that represents the jurisdiction you are setting it up for. 4. Alter the Short Code if you want. 5. Enter the Position Filter description. 6. Verify that the active date and Expiry date for this position filter are correct.
Procedure: Set Up Position Filter-Related Parameters This topic describes how to set up two parameters that are required if position filters are used: •
Locations mandatory on positions indicates if the position filter is mandatory when payroll attributes are added to the position form.
•
Multiple jurisdiction employees indicates if employees work or reside in multiple jurisdictions.
If the organization has employees working in more than one jurisdiction, after setting up the position filters table, you must set both parameters to Yes. 1. In the Payroll area page, click Parameters in the Setup page. 2. Select the Search tab, enter the General definition code "Locations mandatory on positions", and click Search. 3. In the String value field, select Yes. 4. Verify that the Active date and Expiry date are correct for the parameter. 5. Select the Search tab, enter the General definition code "Multiple jurisdiction employees", and click Search. 6. In the String value field, select Yes. 7. Verify that the Active date and Expiry dates are correct for the parameter.
8-22
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment
Set Up Salaries Setting up salaries involves setting up one of two methods for managing structured pay increase systems: •
Salary grids
•
Compa ratio
If an organization defines unique salaries for each individual employee, then no structured pay increase system is required - payroll administrators can define a salary period and amount for each employee. However, companies typically choose to use structured systems, for reasons such as large number of employees or salary scales determined by union contracts. Salary grids and compa ratios provide payroll administrators with the ability to easily administer standard pay increases, differences between pay scales established with different unions, and changes to any particular pay scales being used by the organization. You cannot assign both a salary grid and a compa ratio to the same employee.
About Salaries, Salary Grids, and Compa Ratios Recall that you can define salaries and wages in Microsoft Dynamics AX 2009 Payroll in three ways: •
If a salary period and amount or hourly rate are defined on the position, you can manage the salary on the Position form for that individual employee.
•
If a salary grid is being used, you can select the grid and step to use to determine the employee's salary.
•
If a compa ratio is being used, you can set the minimum, median, and maximum amounts and assign each employee a compa ratio.
About Salary Grids Salary grids are schemes that use pre-set salary increases, or steps, so that pay raises occur according to a predictable scale. This capability is useful in companies with a large number of employees and/or a structured pay increase system - for example, a unionized workforce. In Microsoft Dynamics AX Payroll, you can set up salary grids for both hourly wage earners (steps in hourly rates) and salary earners (steps in the amount received for each pay period). You can assign salary grids and step numbers to individual employee positions to define that employee's salary.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
8-23
Microsoft Dynamics® AX Payroll When the amount for each salary step needs to increase, a payroll administrator can create a new effective dated record with the new step amounts easily, thereby applying the new salary amounts to all employee/positions using that salary grid. Salary grids can define annual salary, monthly salary, weekly salary, pay period salary, or hourly rates.
About Compa Ratios Compa ratios involve assigning a ratio for each individual employee, and then determining the employee's salary by multiplying that ratio with a median salary amount. The median amount represents the industry standard for employment of similar type. Minimum and maximum amounts are defined to establish boundaries for the salary. Payroll administrators assign the compa ratio for an employee is assigned to the employee's position.
Where to Define Salaries You can define salaries for an employee in three separate levels: •
Position level
•
Employee level
•
Occupation level
These levels are not considered equal: position has the highest priority and occupation the lowest. The Payroll module looks at these levels for salary information, but only uses the information found at the highest level. For example, if administrators defined salary information in all three levels, only information found at the position level would be used. While both the position and employee levels can define all aspects of an employee's salary, the occupation level can define only the salary when you add a new employee's position - the payroll administrator must then either identify the associated step or compa ratio in the Position form or Employee form. This can be useful if the organization can organize salaries predictably by occupation. With the salary associated with occupation, payroll administrators can select the occupation for each position, and then either fill in the step or compa ratio for the employee. This process results in less data selections for the payroll administrator.
8-24
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment NOTE: As much as possible, set up and manage salaries using a common methodology. This will help eliminate problems related to managing salary definition at multiple levels. For example, if you make a salary change for an employee at the employee level, and you forget or overlook that the existing salary is defined at the position level, then the desired change will not take effect when earnings calculate.
Procedure: Setting up Salary Grids Follow these steps to set up a salary grid. 1. In the Payroll area page, click Salary in the Setup page, and then click Salary grids. 2. Click the Overview tab, and press CNTL+N to create a new salary grid. 3. Click the General tab and enter a name for the Salary Grid. 4. Alter the Short code if you want (such as for clarity or avoiding repetition). 5. Enter a Salary grid description. 6. Unless the salary grid uses hourly rates, select the Salary period that will define the periodicity for the salary (monthly, weekly, pay period, and so on). Leave this field blank if hourly rates will be used. 7. In the Wage type field, select Hourly or Salary. 8. Verify that the Active date and Expiry dates are correct for the salary grid. 9. Click the Salary Steps tab, and see the instructions below for creating salary steps. Salary steps can be created manually or automatically, and also can be copied from an existing set of salary steps. The following procedures assume that you have the Salary grids form open, and that you have clicked the Salary steps tab. Follow these steps to manually create salary steps. 1. In the Steps frame, press CNTL+N to create a new step. 2. Select a Step number and enter the salary amount for that step (even if the amount is an hourly rate, use this "Salary amount" field). 3. Repeat steps 1 and 2 for as many salary steps as required for your salary grid.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
8-25
Microsoft Dynamics速 AX Payroll Follow these steps to calculate salary steps automatically. 1. Enter a value for the Starting salary step number, which is the first step number to create for this salary grid. 2. Enter a value for the Increment for the salary step number, which is the number of steps to increment in calculating the next step. For example, if your starting step number was 1 and the step increment you specify is also 1, then Payroll will create steps 1, 2, 3 and so on. A step increment of 3 would have created steps 1, 4, 7 and so on. 3. In the Starting salary field, enter the salary or hourly amount for the first step. 4. In the Salary increment field, enter the salary or hourly increment amount to add for each new step. 5. Click Create Step as many times as necessary to create the required new steps. Follow these steps to have Payroll automatically copy salary step amounts from an existing salary grid, and then apply an adjustment factor. 1. Select the Salary grid to copy from. 2. In the Active date field, enter the date when the new salary grid should take effect. Use the MM/DD/YYYY date format or, if you want: a. Type T to enter the machine date b. Type D to enter the system date c. Select a date using the calendar function 3. If you want, enter an Adjustment factor to use in calculating the new salary grid. For example, a factor of 1.05 will add 5% to the salary grid step amounts being copied from. 4. Click the Copy button. The final step in setting up salaries is always to test that the salaries, salary grids, and compa ratios that you set up are functioning properly. Follow these steps to test. 1. Assign the salary to an employee at the level you will use for all your employees (position, employee, or occupation). 2. Process a pay period in a test environment up to the point of either running time to earnings, or creating earnings from time. 3. Click Payroll > Inquiries > Earnings, and ensure the salaried earnings are created as expected.
8-26
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment
Set Up Unions The purpose of Union affiliation/certification is to define standard work hours, even in a non-unionized environment; therefore in Microsoft Dynamics AX 2009 Payroll you must assign every employee a Union affiliation. For example, some employees in a non-unionized environment might have their standard work hours defined by the "Junior Management" union affiliation. Union certification is available for defining another level of standard work hours. If the job is unionized, then these fields can be used to track union-related information. In this case union affiliation refers to the union to which employees belong, while union certification is often referred to as a union local. Union locals each represent a separate bargaining instance of a union affiliation within an organization. For example, a company may have three physical sites, all with employees who share the same union affiliation; however, each site may have different rules governing work hours. In this example, the union affiliation code would be the same, but three different 3 certification codes would be needed to represent the standard work hours used at the three different sites. Procedures are provided in this section for setting up union affiliations and certifications; further procedures exist in white papers on Partner Source for setting up: •
Union affiliations/certifications
•
Union affiliation/certification hours
NOTE: Union functionality does not have to be used if standard work hours are entered on each position or job record, and the organization has no salaried employees who are not assigned to rotations. If the Hours of Work element is used, then the hours specified there will override the hours specified in the Union affiliation/certifcation element. If unions are used, a company must set up the following (in order) before setting up other employment details: •
Union affiliations
•
Union certifications
•
Union affiliations/certification combinations
•
Union affiliations/certification combination hours (if necessary)
Procedure: Set Up a Union Affiliation Union affiliations control the standard work hours for different groups of employees. You can use these standardized daily hours, pay period hours, and annual hours in earnings, benefit/deduction, and leave entitlement calculations.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
8-27
Microsoft Dynamics速 AX Payroll Groups of employees with different standard work hours can belong to different union affiliations, or they can belong to the same union but use different union certifications. Union affiliations are not necessary if the organization chooses instead to enter standard work hours in each position or employee record. If the organization has salaried employees who are not assigned to rotations, then at least one union affiliation is required. This is because the hours values from the union affiliation table are used by the Time to earnings function to generate earnings records. Follow these steps to set up a union affiliation code. 1. In the Payroll area page, click Unions in the Setup page, and then click Union Affiliations. 2. Click the Overview tab, and press CTRL+N to create a new record. 3. To define the new record, use either the Overview or General tab and enter a Union affiliation name. 4. Alter the Short code if you want (such as for clarity or avoiding repetition). 5. Enter a Union affiliation description. 6. In the Daily hours field, enter the standard daily hours for employees in this union affiliation, if any. 7. In the Pay period hours field, enter the standard pay period hours for employees in this union affiliation, if any. 8. In the Annual hours field, enter the standard annual hours for employees in this union affiliation. 9. Verify that the Active date and Expiry dates are correct for the union affiliation.
Procedure: Set Up a Union Certification Use union certifications either for tracking union certifications for employees, or for when employees within one union affiliation have different standard daily hours, pay period hours, and annual hours. To use union certifications in conjunction with union affiliations to derive a different set of hours, follow these steps to set up the union affiliations/certification table after you set up the union certifications. 1. In the Payroll area page, click Unions in the Setup page, and then click Union certifications. 2. Click the Overview tab and press CTRL+N to create a new record. 3. To define the new record, use either the Overview or General tab and enter a Union certification name. 4. Alter the Short code if you want (such as for clarity or avoiding repetition).
8-28
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment 5. Enter a Union certification description. 6. Verify that the Active date and Expiry dates are correct for the union certification.
Procedure: Set Up Union Affiliations/Certifications This topic describes how to set up a valid combination of a union affiliation and a union certification to override standard work hours defined at the union affiliation level. NOTE: If employees in a union affiliation/certification combination belong to different pay cycles, you must set up the union affiliation/certification combinations in the Union affiliations/certifications hours table. 1. In the Payroll area page, click Unions in the Setup page, and then click Union affiliations/certifications. 2. Press CTRL+N to create a new union affiliation/certification combination, and click the General tab. 3. In the Union affiliation field, select the union affiliation or group from the Union affiliations table. 4. In the Union certification field, select the union affiliation or nonunion group from the Union affiliations table. 5. In the Daily hours field, enter the standard daily hours for employees in this union affiliation/certification combination. 6. In the Pay period hours field, enter the standard pay period hours for employees in this affiliation/certification combination. 7. In the Annual hours field, enter the standard annual hours for employees in this affiliation/certification combination. 8. Verify that the Active date and Expiry dates are correct for the union affiliation/certification combination.
Procedure: Set Up Union Affiliation/Certification Hours This topic describes how to set up the standard work hour values for a union affiliation/certification combination when the employees in the combination belong to different pay cycles. You can use daily hours, pay period hours, and annual hours in earnings, benefit/deduction, and leave entitlement calculations. NOTE: If all employees in a union affiliation/certification combination belong to the same pay cycle, do not create an entry in this table. 1. In the Payroll area page, click Unions in the Setup page, and then click Union affiliation/certification hours. 2. Press CTRL+N to create a new union affiliation/certification hours combination, and click the General tab. 3. In the Union affiliation field, select the union affiliation or group from the Union affiliations table.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
8-29
Microsoft Dynamics® AX Payroll 4. In the Union certification field, select the union affiliation or nonunion group from the Union affiliations table. 5. In the Pay Period cycle field, select the pay period that this combination of union affiliation/certification hours should apply to. 6. In the Daily hours field, enter the standard daily hours for employees in this union affiliation/certification/pay cycle combination. 7. In the Pay period hours field, enter the standard pay period hours for employees in this affiliation/certification/pay cycle combination. 8. In the Annual hours field, enter the standard annual hours for employees in this affiliation/certification/pay cycle combination. 9. Verify that the Active date and Expiry date are correct for the affiliation/certification/pay cycle combination.
Summary The initial environment for the Payroll module consists of company-specific periods, cycles, groups, types, definitions, and parameters. Setting up the initial Microsoft Dynamics AX 2009 Payroll environment for a client involves planning and creating important data and parameters at several levels: Date information and pay groups: •
Organization
•
Person
•
Position
•
Salaries
•
Unions
You must set these up properly to be able to continue setting up the major components of a functioning payroll system: •
earnings
•
shifts
•
rotations
•
rule groups
•
benefits deductions
•
payments
•
postings
•
entitlements
Key procedures were provided in this course. Supporting procedures were identified for self-study, for which white papers are available on Partner Source.
8-30
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment
Test Your Knowledge 1. What is the hierarchy for defining salary for an employee? ( ) Employee form, Position form, and Occupation. ( ) Occupation, Employee form, and Position form. ( ) Position form, Employee form, Occupation 2. Before setting up any financial institution and payment information, in what order must the implementer set up the following: ( ) Date period dates, Date periods, Pay cycles, Pay groups. ( ) Date periods, Date period dates, Pay cycles, Pay groups. ( ) Date period dates, Date periods, Pay groups, Pay cycles. ( ) Pay groups, Date period dates, Date periods, Pay cycles. 3. Which one of the following do date period dates control: date period dates, which control (Select all that apply). ( ) When calculations become effective. ( ) When date periods become active. ( ) When date periods become effective. ( ) When calculations are performed. 4. A date group is a common set of dates required for calculating time rule premiums, such as statutory holidays. You also can use Date groups can also be used in association with Earning earning thresholds. Which one of the following correctly states the conditions under which no entries need to be created in this table? ( ) If both time rule premiums or earning thresholds are used. ( ) If earning thresholds are not used. ( ) If time rule premiums or earning thresholds are not used. ( ) If time rule premiums are not used. 5. Which one of the following statements about pay cycles is correct? ( ) In the Payroll module, pay cycles and pay periods are separate concepts. At least one pay cycle and one pay period must be set up. ( ) In the Payroll module, pay cycles reflect the length of the pay period. At least one pay period must be set up. ( ) In the Payroll module, pay groups and pay cycles are related. ( ) In the Payroll module, pay cycles reflect the length of the pay period. At least one pay cycle must be set up.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
8-31
Microsoft Dynamics速 AX Payroll 6. Which of the following correctly finishes this statement? Accumulators for collecting data at the company level are either: ( ) Pre-defined with initial values upon installation, or initialized from a spreadsheet provided on Partner Source. ( ) Populated with initial values during implementation, or initialized from benefit/deduction or earnings transactions loaded during implementation. 7. For what purposes would payroll administrators use the Stop Pay feature?
8. For what purpose would you use position filters?
8-32
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment 9. Salary grids and compa ratios provide payroll administrators with the ability to easily administer standard pay increases, differences between pay scales established with different unions, and changes to any particular pay scales being used by the organization. Which of the following statements about salary grids and compa ratios is true? ( ) You cannot assign Salary grids and compa ratios cannot be assigned to individual employee positions. ( ) The three levels at which you can define salaries and compa ratios can be defined are considered as having equal priorities. ( ) You cannot assign both a salary grid and a compa ratio to the same employee. 10. Which of the following statements about union affiliations is true: (Select all that apply) ( ) The purpose of Union affiliation/certification is to define standard work hours, even in a non-unionized environment, that you must assign one to every employee. ( ) The purpose of Union affiliation/certification is to define standard work hours only for a unionized environment. Only unionized employees are assigned affiliations. ( ) The purpose of Union affiliation/certification is to define non-standard work hours, even in a non-unionized environment.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
8-33
Microsoft Dynamics速 AX Payroll
Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.
2.
3.
8-34
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment
Solutions Test Your Knowledge 1. What is the hierarchy for defining salary for an employee? ( ) Employee form, Position form, and Occupation. ( ) Occupation, Employee form, and Position form. (•) Position form, Employee form, Occupation 2. Before setting up any financial institution and payment information, in what order must the implementer set up the following: ( ) Date period dates, Date periods, Pay cycles, Pay groups. (•) Date periods, Date period dates, Pay cycles, Pay groups. ( ) Date period dates, Date periods, Pay groups, Pay cycles. ( ) Pay groups, Date period dates, Date periods, Pay cycles. 3. Which one of the following do date period dates control: date period dates, which control (Select all that apply) ( ) When calculations become effective. ( ) When date periods become active. ( ) When date periods become effective. (√) When calculations are performed. 4. A date group is a common set of dates required for calculating time rule premiums, such as statutory holidays. You also can use Date groups can also be used in association with Earning earning thresholds. Which one of the following correctly states the conditions under which no entries need to be created in this table? ( ) If both time rule premiums or earning thresholds are used. ( ) If earning thresholds are not used. (√) If time rule premiums or earning thresholds are not used. ( ) If time rule premiums are not used. 5. Which one of the following statements about pay cycles is correct? ( ) In the Payroll module, pay cycles and pay periods are separate concepts. At least one pay cycle and one pay period must be set up. ( ) In the Payroll module, pay cycles reflect the length of the pay period. At least one pay period must be set up. ( ) In the Payroll module, pay groups and pay cycles are related. (•) In the Payroll module, pay cycles reflect the length of the pay period. At least one pay cycle must be set up.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
8-35
Microsoft Dynamics® AX Payroll 6. Which of the following correctly finishes this statement? Accumulators for collecting data at the company level are either: ( ) Pre-defined with initial values upon installation, or initialized from a spreadsheet provided on Partner Source. (•) Populated with initial values during implementation, or initialized from benefit/deduction or earnings transactions loaded during implementation. 7. For what purposes would payroll administrators use the Stop Pay feature? MODEL ANSWER: Payroll administrators use the Stop Pay feature to stop paying an employee for one or more positions. They also can also use it to record related information, such as the employment starting date, employment ending date, and the reason why pay is being stopped. 8. For what purpose would you use position filters? MODEL ANSWER: Use position filters to associate positions with specific jurisdictions (such as states, provinces, and countries) in order to control different accumulator eligibility and other reporting requirements. This is important for employees who have positions in more than one jurisdiction, such as a technician who works in two different states with different tax rates. 9. Salary grids and compa ratios provide payroll administrators with the ability to easily administer standard pay increases, differences between pay scales established with different unions, and changes to any particular pay scales being used by the organization. Which of the following statements about salary grids and compa ratios is true? ( ) You cannot assign Salary grids and compa ratios can not be assigned to individual employee positions. ( ) The three levels at which you can define salaries and compa ratios can be defined are considered as having equal priorities. (•) You cannot assign both a salary grid and a compa ratio to the same employee.
8-36
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 8: Set Up Initial Payroll Environment 10. Which of the following statements about union affiliations is true: (Select all that apply) (√) The purpose of Union affiliation/certification is to define standard work hours, even in a non-unionized environment, that you must assign one to every employee. ( ) The purpose of Union affiliation/certification is to define standard work hours only for a unionized environment. Only unionized employees are assigned affiliations. ( ) The purpose of Union affiliation/certification is to define non-standard work hours, even in a non-unionized environment.
Microsoft Official Training Materials for Microsoft Dynamics ÂŽ Your use of this content is subject to your current services agreement
8-37
Microsoft Dynamics速 AX Payroll
8-38
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement