AX2009_ENUS_PR_12 by Ali Ihsan Agca

Chapter 12: Set Up Additional Features

CHAPTER 12: SET UP ADDITIONAL FEATURES Objectives The objectives are •

Introduce procedures for setting up occupations in the Payroll module

•

Introduce procedures for setting up entitlements in the Payroll module.

•

Introduce the processes for setting up additional employee and organization-related features in the Payroll module.

Introduction This course provides setup instructions for three types of Payroll module features: •

Occupation-related features

•

Entitlements-related features

•

Employee- and organization-related features

Occupation-related procedures are provided for setting up: •

Occupations

•

Occupation benefit/deduction rules

•

Occupation group

•

Organization occupation

•

Occupation time rules

•

Occupation shifts

•

Occupation earning rules

Entitlements-related procedures are provided for: •

Planning entitlements

•

Creating an entitlement

•

Setting up entitlement rule groups

•

Setting up occupation entitlement rules

•

Setting up entitlement earnings

•

Setting up accruing and taking periods

•

Setting up entitlement rule group calculations

•

Setting up entitlement reasons and groups

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Microsoft Dynamics® AX Payroll Employee- and organization-related procedures are provided for setting up: •

Location codes

•

Tasks

•

Employee events

•

Employee accomplishments

Set Up Occupations This section introduces procedures for setting up occupations. Part of any implementation will be determining how many occupations best suit a client's needs, and planning how to set up those occupations to reduce future data entry workloads. To be able to do this effectively, you must be able to: •

Differentiate between three interrelated concepts - occupations, jobs, and positions.

•

Understand how you can use occupations to reduce data entry workloads.

Occupations Occupations are employment-related categories that may include multiple jobs and positions. For example, in a company, the "accountant" occupation may involve several different jobs (management accountant, sales accountant, VP of accounting, and so on). Companies may have more than one position for each job (for example, they have several management accountants) being based on each job. You can use the Occupations form to specify the rule groups, eligibilities, union affiliation, and salary grid for a position (if that information is not already entered at either the position or the employee level - see below).

Jobs Jobs are budgeted roles in the organization. You can maintain and assign jobs to employees in the Microsoft Dynamics AX 2009 Basic or HRM module. Consider a job as a template for a newly created position. The position inherits the characteristics of the job it is associated with. You subsequently can change the position's characteristics without any impact on the job. If you subsequently change the job, the positions currently associated with that job are not updated to match the job's new characteristics. A very small company might have just one job that it associates all positions with. Companies with many positions typically use an extensive list of jobs, so that newly created positions are automatically populated with correct data.

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Chapter 12: Set Up Additional Features Positions Employees can have multiple positions, and employees must have at least one position to be paid. A position is a job that has been assigned to a specific employee, and can be seen as what that employee does for work. For an employee to be paid against a position, the position assigned to that employee must include the following information: •

Pay group

•

Organization

•

Occupation

•

Job type

•

Job assignment type

•

Salary

Using Occupations to Reduce Data Entry Workload You can use the Occupations form to help reduce data entry tasks. Recall from course 3, "Payroll Administration Data Tasks", that payroll implementers and administrators can adopt strategies to help minimize setup and maintenance workloads. These strategies involve planning how to define common values at the right level, so that you can apply any changes to those common value definitions all at once and across as wide as possible a range of employees. You can define these common values at three levels by using three corresponding Payroll module forms. The Payroll module always looks at these forms in the following order, and it always takes the first information it finds: 1. Position form - values that are defined here apply to a specific position; although an employee can be assigned more than one position, any one position cannot be assigned to more than one employee. 2. Employee form - values that are defined here apply to a specific employee. 3. Occupation form - values that are defined here apply to all positions that have that occupation selected in the Position form's Occupation field. Implementers must understand that, when choosing strategies to minimize workload, the most important criterion is consistency. For example, if you previously defined rules groups, dimensions, and salary grids at the position level, and then modify those values at the employee or occupation level, then the changes you desire will not take effect because the Payroll module will always look at the position level first, and will always use the first information it finds.

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Microsoft Dynamics速 AX Payroll Procedure: Set Up an Occupation Follow these steps to set up an occupation. 1. In the Setup area in the Payroll area page, click Occupations, and then click Occupations. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. 3. In the Occupation field, enter the code that represents the occupation. 4. Alter the Short code if desired. 5. In the Occupation description field, enter a brief description of the occupation. 6. In the Union affiliation field, select the union affiliation for this occupation from the Union affiliations table. Union affiliations define the standard work hours for earnings, benefit/deduction, and leave entitlement calculations. 7. In the Salary field, enter the salary code for the occupation from the Salaries table. Salary codes identify the salary structure for the occupation. If this occupation has a salary unique to the employee rather than based on a wage step structure, do not enter salary information for the occupation. 8. In the Salary grade number field, enter the salary grade number for the occupation. Use salary grades to calculate relief premiums when employees work in higher-rated or lower-rated positions. 9. In the Projects field, enter the project for the position, if any, from the Projects table. Use projects to charge the salary expense for this occupation to a different general ledger account than that for the occupation's department. 10. Ignore the workers compensation category field unless the organization uses workers compensation categories and this occupation is restricted to a single category (for example, an occupation restricted to staff on light duties). In this case, select the desired category. 11. Verify that the Active date and Expiry date are correct for the occupation. NOTE: Additional fields on this form will vary with national jurisdictions.

Procedure: Set Up Occupation Benefit/Deduction Rules You can use occupation benefit/deduction rules to associate employee occupations, organization units, position types, position assignment types, and position filters with specific benefit/deduction rule groups. These benefit/deduction rule groups in turn link to benefit/deduction calculations.

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Chapter 12: Set Up Additional Features If you enter a value in the organization, position type, and position assignment type fields, the benefit/deduction rule will be valid only for employees whose job attributes match those values you entered. If you leave a field blank (for example, position type), the rule will apply to all employees regardless of the position type for the positions assigned to them. If organization, occupation, position type, and position assignment type are all blank, the rule will apply to everyone in the organization. Examples are shown in the following table: Benefit/deduction rule group

Occupations

Exec

President, Vice President

Managers

HR Manager, Payroll Manager

Staff

Clerk, Receptionist

Follow these steps to set up a single occupation benefit/deduction combination: 1. In the Setup area in the Payroll area page, click Occupations, and then click Occupation Benefit/Deduction Rules. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. 3. In the Organization unit field, select the organization unit that this occupation benefit/deduction rule applies to. 4. In Occupation field, select the occupation that this occupation benefit/deduction rule applies to. 5. In the Position type field, select the position type that this occupation benefit/deduction rule applies to. 6. In the Position assignment type field, select the position type that this occupation benefit/deduction rule applies to. 7. In the Position filter field, select the position filter that this occupation benefit/deduction rule applies to. 8. In the Benefit/deduction rule group field, select a benefit/deduction rule group from the Benefit/deduction rule groups table. 9. Verify that the Active date and Expiry date are correct for this occupation benefit/deduction combination. Follow these steps to set up multiple occupation benefit/deduction combinations. 1. In the Setup area in the Payroll area page, click Occupations, and then click Occupation Benefit/Deduction Rules. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the Fast Entry tab. 3. In the Organization unit field, select one, many, or all of the organization units in the table.

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Microsoft Dynamics速 AX Payroll 4. In the Occupations field, select one, many, or all entries from the Occupations table. 5. In the Position types field, select one, many, or all entries from the Position types table. 6. In the Position assignment types field, select one, many, or all entries from the Position assignment types table. 7. In the Position filters field, select one, many, or all entries from the Position filters table. 8. In the Benefit/deduction rule groups field, select the applicable rule group from the Benefit/deduction rule groups table. 9. Click Insert to create the new calculation combinations in the table. To delete specific calculation combinations from the table, select them and click Delete.

Procedure: Set Up an Occupation Group Use occupation groups to group occupations for reporting purposes. Follow these steps to set up an occupation group. 1. In the Setup area in the Payroll area page, click Occupations, and then click Occupation Groups. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. 3. In the Occupation group field, enter the code that represents the occupation group. 4. Alter the Short code if desired. 5. In the Occupation group description field, enter a brief description of the occupation group. 6. Verify that the Active date and Expiry date are correct for the occupation group. 7. Select the Occupation group occupations tab and add the correct occupation codes for the occupation group by adding them to the Occupations selected list. Available occupations display in the Occupations remaining list.

Procedure: Set Up an Organization Occupation Use organization occupations to limit the organization units within a company where specific occupations can be used. If no department occupations are set up, all occupations can work in all departments. Follow these steps to set up an organization occupation. 1. In the Setup area in the Payroll area page, click Occupations, and then click Organization Occupations. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab.

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Chapter 12: Set Up Additional Features 3. In the Organization unit field, select the unit code from the Organization levels table. 4. In the Active date field, enter the date when this department occupation combination takes effect. 5. In the Occupation group field, select the occupation group from the Occupation groups table.

Procedure: Set Up Occupation Time Rules Set up occupation time rules to associate employee occupations, departments, position types, and position assignment types with specific time rule groups. This automatically generate time premium earnings based on the shifts employees work. Examples are shown in the following table. Time rule group

Allowed types

Category

Night Shifts

Assembly worker, Production line worker

Occupations

Day Shifts

Full-time, Part time, Casual

Position types

Evening Shifts

Clerk, Assembly worker, Production line worker

Occupations

Overtime

Shipping, Security

Organizations

If a value is entered in the organization, position type, or position assignment type fields, the rule is valid only for employees whose position attributes match those values. If a field is left blank, for example position type, the rule applies to all employees regardless of the position type on their positions. If organization, occupation, position type, and position assignment type are all blank, the rule applies to everyone in the organization. Follow these steps to set up a single occupation shift rule. 1. In the Payroll area page, click Occupations in the Setup area and then click Occupation Shifts. 2. Press CTRL+N to create a new occupation shift rule, then select the General tab. 3. In the Shift group field, select a shift group code from the Shift groups table. 4. In the Active date field, select the active date of the shift group from the Shift groups table. Click the calendar button to view the active/expiry dates of all versions of this shift group. 5. In the Organization field, select the organization that this occupation shift rule applies to, from the Organization levels table. 6. In the Occupation field, select the occupation that this occupation shift rule applies to, from the Occupations table. 7. In the Position type field, select the position type that this occupation shift rule applies to, from the Position types table. 8. In the Position assignment type field, select the position assignment type that this occupation shift rule applies to, from the Position assignment types table. 9. In the Position filter field, select the position filter code that this occupation shift rule applies to, from the Position filter table.

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Microsoft Dynamics速 AX Payroll Follow these steps to set up multiple occupation shift rules. 1. In the Payroll area page, click Occupations in the Setup area and then click Occupation Shifts. 2. Press CTRL+N to create a new occupation shift rule, then select the Fast Entry tab. 3. In the Shift groups field, select one, many, or all entries from the Shift groups table. 4. In the Organization unit field, select one, many, or all entries from the Organization levels table. 5. In the Occupations field, select one, many, or all entries from the Occupations table. 6. In the Union affiliation field, select the appropriate union affiliation to select all occupations in the union automatically. 7. In the Position types field, select one, many, or all entries from the Position types table. 8. In the Position assignment types field, select one, many, or all entries from the Position assignment types table. 9. In the Position filters field, select one, many, or all entries from the Position filters table. 10. Click Insert to create the new occupation shift rule combinations in the table. To delete specific occupation shift rule combinations from the table, select them and click Delete.

Procedure: Set Up Occupation Earning Rules Occupation earning rule groups are optional and you can use them to associate employee occupations, organizations, position types, and position assignment types to specific earning rule groups. Earning rule groups link in turn to earning calculations. If you enter a value in the organization, position type, or position assignment type fields, the rule is valid only for employees whose position attributes match those values. If you leave a field blank, such as the field for position type, the rule applies to all employees regardless of the position type on their positions. If organization, occupation, position type, and position assignment type are all blank, the rule applies to everyone in the organization. Follow these steps to set up a single occupation earning combination. 1. In the Payroll area page, click Occupations in the Setup area and then click Occupation Earning Rules. 2. Press CTRL+N to create a new occupation earning rule, then select the General tab. 3. In the Organization unit field, select the organization that this occupation earning rule applies to.

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Chapter 12: Set Up Additional Features 4. In the Occupation field, select the occupation that this occupation earning rule applies to. 5. In the Position type field, select the position type that this occupation earning rule applies to. 6. In the Position assignment type field, select the position type that this occupation earning rule applies to. 7. In the Position filter field, select the position filter that this occupation earning rule applies to. 8. In the Earning rule group field, select an earning rule group from the Earning rule groups table. 9. Verify that the Active date and Expiry date are correct for this occupation earning combination. Follow these steps to set up multiple occupation earning combinations. 1. In the Payroll area page, click Occupations in the Setup area and then click Occupation Earning Rules. 2. Press CTRL+N to create a new occupation earning rule, then select the Fast Entry tab. 3. In the Organization unit field, select one, many, or all entries from the Organization levels table. 4. In the Occupations field, select one, many, or all entries from the Occupations table. 5. In the Position types field, select one, many, or all entries from the Position types table. 6. In the Position assignment types field, select one, many, or all entries from the Position assignment types table. 7. In the Position filters field, select one, many, or all entries from the Position filters table. 8. In the Union affiliation field, select the appropriate union affiliation to select all occupations in the union automatically. 9. In the Earning rule groups field, select the applicable rule group from the Earning rule groups table. 10. Click Insert to create the new occupation earning calculation combinations in the table. To delete specific occupation earning calculation combinations from the table, select them and click Delete.

Set Up Entitlements Setting up entitlements requires you to use the following concepts, processes, and procedures: •

Plan entitlements

•

Create an entitlement

•

Set up entitlement rule groups

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Microsoft Dynamics® AX Payroll •

Set up occupation entitlement rules

•

Set up entitlement earnings

•

Set up accruing and taking periods

•

Set up entitlements calculations, reasons, and groups

Planning Entitlements Recall that employee entitlements are banks of time or earnings, such as vacation, banked overtime, or sick leave, that employees can accumulate and deplete. They must be planned because each entitlement accumulates and decreases according to specific rules. An entitlement bank can grow as a result of time worked or periodic increments, and can decrease as a result of time or earnings taken, expired, or being paid out. You can have multiple entitlement banks that accumulate and deplete according to different policies. Careful planning and testing is required so that the entitlements you set up meet the client's needs. After an entitlement is planned, you follow these setup procedures, which are part of the following process: 1. 2. 3. 4. 5.

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Define entitlements. Set up entitlement earnings. Set up accruing and taking periods. Set up entitlements calculations. Set up entitlement reasons and groups.

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Chapter 12: Set Up Additional Features When planning and setting up entitlements, you must be aware of the following key entitlement characteristics and features.

FIGURE 12.1 ENTITLEMENT SETUP OVERVIEW

Entitlement A bank of time or earnings that is tracked for individual employees. Time or earnings can accumulate, based on time worked, such as banked overtime, or periodic entitlement, such as a sick leave amount for the year.

Entitlement group Entitlement groups are used to identify multiple entitlements that you usually need to report on or manage together. Entitlement groups are optional, but very useful if you have a large number of entitlements.

Entitlement rule group You must set up at least one entitlement rule group. If entitlement rules are different for different groups of employees, create one entitlement rule group for each of those groups of employees.

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Microsoft Dynamics速 AX Payroll Entitlement rule group calculation You must set up at least one entitlement rule group calculation for each entitlement. An entitlement rule group calculation indicates that a particular entitlement applies to a particular entitlement rule group, and it specifies how that entitlement is calculated and managed for that group of employees.

Entitlement earnings Entitlement earnings indicate which earning codes increase or decrease an entitlement bank. You will usually have at least one entitlement earning that decreases each entitlement bank.

Occupation entitlement rule If an employee's entitlement rule group is determined by his or her occupation, perhaps in combination with an organization unit, position type, position assignment type, or position filter, then you can define occupation entitlement rules to associate employees with the appropriate entitlement rule group, instead of selecting the entitlement rule group individually for each employee or position. Occupation entitlement rules are used only when no entitlement rule group is specified for the employee or the employee's position.

Entitlement reasons You can associate explanations of entitlements with manual adjustments to entitlement amounts, which are important when auditing changes to entitlement banks. Provide as many specific reasons as you need to account for manual increases and decreases to employee entitlement amounts.

Calculations and accumulators You can use the standard Payroll calculation and accumulator features to create calculations that calculate entitlement accruals.

Pay period entitlements If you use a calculation to increase an entitlement, you must set up pay period entitlements to schedule when that calculation occurs. You can schedule it to occur every pay period, or in just the last pay period of the year.

Date periods You can track entitlements for recurring date periods, such as years or months, or as on-going running totals. When planning your date periods for entitlements, consider whether you need to pay out or clear unused entitlements or whether there is a waiting period between earning and being eligible to use an entitlement.

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Chapter 12: Set Up Additional Features Create an Entitlement Follow these steps to create an entitlement. 1. In the Setup area in the Payroll area page, click Entitlements, and then click Entitlements. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. 3. Enter an entitlement name. 4. To print this entitlement in the bank section of pay stubs, select Yes in the Print on statements field, and enter a statement description and sequence.

Set Up Entitlement Rule Groups You can set up entitlement rule groups to individual employees and employee jobs. You can use entitlement rule groups to specify a unique combination of occupations, organization units, position types, position assignment types, or position filters. Create one entitlement rule group for each group of employees with: •

a unique configuration of entitlement banks; and

•

unique rules governing how the entitlements are increased and depleted.

Follow these steps to set up entitlement rule groups. 1. In the Setup area in the Payroll area page, click Entitlements, and then click Entitlement rule groups. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. 3. Enter an entitlement rule group name, short code, and description. 4. Verify that the active and expiry dates are correct.

Set Up Occupation Entitlement Rules Occupation entitlement rules allow you to minimize how many individual employees or position you must set up entitlement rule groups for. Recall that entitlement rule groups specify a unique combination of occupations, organization units, position types, position assignment types, or position filters. You can set up occupation entitlement rules so that you do not have to enter entitlement rule groups for employees or their position - unless they are an exception to the occupation entitlement rules. If no entitlement rule group is specified on either the position or the employee record, and if only one occupation entitlement rule applies to an employee, then the entitlement rule group specified in that occupation entitlement rule is used.

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Microsoft Dynamics® AX Payroll An occupation entitlement rule applies to an employee if the selections in the occupations, organization units, position types, position assignment types, or position filters columns all match the employee's selections. If an occupation entitlement rule column is empty (for example, position type), then any employee position type will match. If no entitlement rule group is associated with an employee, then you cannot accrue or pay out entitlements for that employee. If you specify a position type, position assignment type, or position filter, then the resulting entitlement rule group will be managed at the employee position level, rather than the employee level. When the entitlement rule group is managed at the position level, entitlement banks are managed for each position independently. For example, vacation or sick time accrued while an employee is working in position 1 cannot be taken as entitlements accrued for position 2. When an employee transfers from one position to another, if entitlement balances should transfer to the new entitlement, you must transfer those balances manually. Follow these steps to set up occupation entitlement rules. 1. In the Setup area in the Payroll area page, click Occupations, and then click Occupation entitlement rules. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the Fast entry tab, and select the entitlement rule group. Also select all eligible: • organization units •

occupations

•

job types

•

job assignment types

•

job filters

3. Click Insert. 4. Repeat step 2 for each entitlement rule group whose membership can be determined by these attributes. NOTE: If an entire list of organization units, occupations, position types, position assignment types, or position filters is eligible, then do not select any individual entries in that list.

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Chapter 12: Set Up Additional Features Set Up Entitlement Earnings For each entitlement bank you manage, you will need one or more earning codes. If an entitlement has more than one earning code, then each of these earning codes serve a different purpose: Earning Code Purpose

Example

Earning codes for depleting entitlement balance.

A vacation earning code depletes a vacation bank. Every time an employee takes vacation earnings, the employee's remaining vacation entitlement is reduced.

Earning codes that increase an entitlement bank.

A banked overtime earning code increases an overtime bank. Every time an employee has banked overtime earnings, that employee's overtime bank grows.

Earning codes for use when paying out entitlements (either when stopping pay or when paying out unused banked amounts).

You can have separate earning codes for different entitlement payouts, or you can have one code that is used for all entitlement payouts.

Earning codes for "unpaid" entitlements - used when earnings exceed entitlements.

An employee claims eight hours of vacation, but is entitled to only five hours. The employee will receive five hours of vacation pay and three hours of unpaid earnings.

Follow these steps to create a new entitlement earning code. 1. If a suitable earning type does not yet exist for the entitlement earning(s) you want to create, then use the procedure in course 9, "Set Up Time and Earnings", for setting up an earning type. 2. If a suitable earning group does not yet exist for the entitlement earning(s) you want to create, then use the procedure in course 9, "Set Up Time and Earnings", for setting up an earning group. 3. To create the new entitlement earning: a. In the Setup area in the Payroll area page, click Entitlements, and then click Entitlement Earnings. b. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. c. Name the entitlement earning, and select the correct earning, entitlement rule group, and the entitlement active date.

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Microsoft Dynamics® AX Payroll d. Specify whether the earning will increment or decrement the entitlement bank: • If the earning decreases the entitlement bank (for example, vacation earnings decrease an employee's vacation bank), select Yes from the Decrement menu. •

If the earning increases the entitlement bank (for example, banked overtime earnings increase an employee's overtime bank), select No from the Decrement menu.

e. Verify the factor amount is correct. For example: if one hour of earnings taken adjusts the bank by one hour, the factor amount should be 1.00; however, if one hour of earnings taken adds one and a half times those hours to the overtime bank, enter 1.5 as the factor amount. 4. Open the Earnings group form. For each earning group that the new entitlement earning belongs in, ensure that the new earning is selected in the Earnings group earnings tab. 5. Open the Earning rule group calculations form. Review the rows for each earning rule group that is eligible for your new earning. If there is a row that has an earning group that your new earning is in, and it associates the earning rule group with the appropriate calculation for your earning, proceed to the next step. Otherwise, press CTRL+N to create a new row, and select the earning rule group, earning, and appropriate calculation.

Set Up Accruing and Taking Periods Entitlement banks can be simple running totals that accrue and are depleted continuously, or they can have restrictions. You might have a rule that unless unused banked amounts are used by a particular deadline, then they will be paid out. For example, in one company, each year's annual vacation must be taken by March 31 of the following year. Also, a company may require a waiting period between employee accrual and taking of banked amounts. For example, in such a company an employee must wait three months after accruing vacation before they can take it.

Accruing Period An entitlement accruing period is a date period when entitlements can be accrued. An accruing period could be an existing date period, such as an ongoing period, a calendar year, or a calendar month. If your accruing period or its dates do not align with an existing accruing period, you can create a new date period and assign date period dates to it.

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Chapter 12: Set Up Additional Features Taking Period An entitlement taking period is the date period in which employees become eligible to use amounts accrued in the corresponding accruing period and earlier periods. The following table provides examples of entitlement date periods. Scenario

Date periods needed

A simple ongoing running total. Time or money goes into the bank, and employees can draw on those amounts immediately. There are no rules for clearing or paying out the bank at a particular time.

Accruing period: Ongoing

Each year's vacation must be taken by March 31 of the following year.

Accruing period: Calendar year

Taking period: Ongoing

Taking period: Calendar year Vacation earned in January cannot be taken until three months later, in April. Each year's vacation must be taken by March 31 of the following year.

Accruing period: Calendar month Taking period: Vacation taking When the taking period is different than the accruing period.

The entitlement bank for each period is shown in: •

Lists in Payroll module forms

•

Printed paychecks

•

Printed pay statements

For example, if your vacation entitlement accrues by year, then an employee's list of entitlements might include both Vacation 2007 and Vacation 2008.

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Microsoft Dynamics速 AX Payroll The following example shows the scenario where vacation earned cannot be taken until three months later. Date period year

Date period number

Accruing period = Calendar month

Taking period = custom

Vacation Balance (Hours)

2007

December 1 - 31, 2007

March 1 - 31, 2008

0.0

2008

January 1 - 31, 2008

April 1 - 30, 2008

7.0

2009

February 1 - 29, 2008

May 1 - 31, 2008

9.5

2010

March 1 - 31, 2008

June 1 - 30, 2008

9.5

2011

April 1 - 30, 2008

July 1 - 31, 2008

9.5

2012

May 1 - 31, 2008

August 1 - 31, 2008

4.5

In the above example, on May 16, 2008, any vacation time that an employee accrues will be added to the employee's vacation bank for date period 5 of 2008, increasing the 4.5 value. Determine the amount of vacation time that the employee is eligible to take as of May 16, 2008 , by finding the taking period date period that includes May 16, 2008, then using its date period year and date period number (period 2 of 2008) to find the corresponding accruing period (February 1-29, 2008). The employee is eligible to take all banked amounts for that accruing period and earlier (9.5 hours + 7.0 hours = 16.5 hours). When the employee takes vacation, the earliest bank is depleted first, and then more recent banks are depleted, if necessary. For example, if the employee takes eight hours of vacation on May 16, 2008, then the vacation balance for taking period 1 of 2008 is reduced to 0.0, and the balance for taking period 2 of 2008 is reduced to 8.5. Follow these steps to set up a custom date period. 1. In the Setup area in the Payroll area page, click Dates, and then click Date periods. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. 3. Enter a name, short code, and description. Do not enter a version number. 4. In the Setup area in the Payroll area page, click Dates, and then click Date period dates. Click the Fast entry tab. 5. To set up the date period date ranges for the new date period, select a pay group and the new date period. Enter the year, starting date period number, and starting date of that starting date period.

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Chapter 12: Set Up Additional Features NOTE: When you set up a delayed taking period, the date period years and numbers must match the values for the accruing period. 6. Select the increment cycle and enter the cycle length. In the Cycle number field, enter the number of date period date ranges to create. 7. Click Generate.

Set Up Entitlement Rule Group Calculations An entitlement rule group is a unique configuration of entitlement banks, and the rules that control how these banks are increased and depleted. Each entitlement rule group applies to a specific group of employees. You can create the calculations that increase or decrease the entitlement banks in the rule group. For example, one entitlement bank in an entitlement rule group could concern vacation time accrual, where employees accrue vacation time as a percentage of hours worked. In this case, you will need an accumulator that tracks hours worked, and a calculation that multiplies the number of hours worked by one of: •

A fixed percentage amount, if all employees accrue entitlement at the same rate.

•

A calculation rate, if there is a limited number of accrual rates.

•

A calculation variable, if the percentage rate varies by employee.

Follow these steps to set up entitlement rule group calculations: 1. In the Setup area in the Payroll area page, click Entitlements, and then click Entitlement rule group calculations. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. 3. Select an entitlement and an entitlement rule group. For this group of employees, define the rules for managing this entitlement. 4. If the entitlement should be increased by a calculation automatically, select that calculation. 5. If the bank has a maximum amount that can be accrued, enter the entitlement limit amount. This limit will be a total number of hours or the total currency amount, depending on which you select as the entitlement unit, which is accrued across all date periods for the entitlement bank. 6. If the calculation result and entitlement limit should be scaled down for part-time employees, and you use the Factor field on employee positions, select Yes in the FTE field. For example, if you select Yes, a person whose factor is 0.50 would accrue half as much vacation time as a person whose factor is 1.00.

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Microsoft Dynamics® AX Payroll 7. From the Entitlement unit menu, select whether the bank is tracking hours or amounts. 8. Select the accruing and taking periods. Usually these are the same, but if there is a delay between when entitlements are accrued and when they can be taken, the periods might differ. 9. To estimate the entitlement bank balance at the end of the current accrual period based on each employee's past accrual rate, select Yes in the Projection menu, and enter the number of past accruing periods to include in the projection. If the calculations should exclude accrual periods in which an employee had, for example, an unusually low accrual because they were on leave, select a projection qualifier such as Greater than and enter a projection qualifier value, such as 1.00. If you do not have to calculate projected bank amounts, select No in the Projection menu. 10. If you allow employees to be overdrawn on this entitlement bank, select Yes in the Negative balance menu and enter a negative balance limit. Otherwise, select No. 11. If your organization's employee termination policy is to pay out unused bank amounts, or to generate a payout earning for this entitlement bank, then select the Earning code to use for that payout amount. 12. When an entitlement is depleted for an employee (it reaches either zero or the negative balance limit, if you allow negative balances), any further decrements against this entitlement "overflows" to another entitlement bank or to an "unpaid earning code": • To start depleting a different entitlement bank, select the other entitlement as the overflow entitlement. For example, you might want your sick time entitlement bank to overflow to your vacation bank, so that an employee who uses all his or her sick time would start using vacation time. •

If this entitlement does not have an overflow entitlement, select an unpaid earning code as the overflow earning. You must select either an overflow earning or an overflow entitlement.

Scheduling Accrual Calculations If you have a calculation that increases an entitlement bank, but is not driven by employee earnings, then you must schedule in which pay periods that calculation updates employee entitlement banks. You can schedule it to occur in every pay period, or in just one pay period per year.

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Chapter 12: Set Up Additional Features Follow these steps to schedule entitlement accrual calculations. 1. In the Setup area in the Payroll area page, click Schedule, and then click Pay period entitlements. 2. Click the Overview tab and press CTRL+N to create a new row. Click the Fast entry tab, and select: a. a pay group b. one or more entitlement rule groups c. one or more entitlements or entitlement groups whose calculations should be run in the same pay periods d. the pay periods in which those entitlements should calculate 3. Click Insert.

Set Up Entitlement Reasons and Groups You can set up entitlement reasons and entitlement groups in the Payroll module. They are both entitlement-related, optional features: •

Entitlement reasons. You must use these for manual adjustment of employee entitlements. You can create a list of reasons to list situations where payroll administrators have to manually adjust employee entitlements. You must have at least one entitlement reason.

•

Entitlement Groups. If you have multiple entitlements, you can create entitlement groups if they will be useful in custom reporting.

Follow these steps to create entitlement reasons 1. In the Setup area in the Payroll area page, click Entitlements, and then click Entitlement reasons. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. 3. Enter the entitlement reason name, description, and code. 4. Verify that the active and expiry dates are correct. Follow these steps to create entitlement groups. 1. In the Setup area in the Payroll area page, click Entitlements, and then click Entitlement groups. 2. Click the Overview tab, and press CTRL+N to create a new row. Click the General tab. 3. Enter the entitlement group name, description, and code. 4. Verify that the active and expiry dates are correct. 5. Click the Entitlement group selections tab, select the entitlements that belong in that group, and add them to the Entitlements selected list.

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Microsoft Dynamics® AX Payroll

Set Up Employee and Organization-Related Additional Features You also can set up the following employee and organization-related additional features for a client: •

Location codes (for organizations)

•

Tasks (for organizations)

•

Employee events

•

Employee accomplishments

The features described in this section are optional, and setting them up is straightforward.

Setting Up Location Codes Location codes are used in the Position form for reporting purposes. In Microsoft Dynamics® AX2009 Payroll, "locations" (as distinct from addresses and divisions) refer to physical locations within an organization. A location can be associated with an organization unit and/or a job filter, and locations can have sub-locations. In the example 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 have to track location information - for example, an organization with only one physical location. If locations are used, a company must set up (in order) any locations together with the addresses, persons, electronic contacts, and notes associated with them before setting up more advanced parts of the payroll module. Create locations using the Locations form (Payroll area page > Setup area > Organization > Locations). After you create a location, use the Setup button in the Locations form to set up addresses, electronic contacts, notes, and persons (see course 11, "Set Up Payments and Posting", for instructions on setting up address, persons, contacts, and notes).

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Chapter 12: Set Up Additional Features Setting Up Tasks Use tasks to charge salary costs to different general ledger cost centers than you would normally use for an employee. For example, if your organization has 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. Use the Tasks form to set up the tasks that your organization is working on (Payroll area page > Setup area > Organization > Tasks).

Setting Up Employee Events Use employee events to track and report employee-related information. Examples include: •

Annual performance review date

•

Casual employee performance review hours

Setting up employee events requires you to set up: •

Employee event types

•

Employee event values

•

The employee event

Use event types for reporting categories of events associated with employees. Examples include: •

Health-related events

•

Performance-related events

•

Security-related events

NOTE: If you use events, you must set up at least one event type. Use event values for reporting the outcome of specific employee events. Examples include: •

Excellent, Good, Fair

•

Complete, Incomplete

You can set up employee events, event types, and event values using the forms accessed by clicking Payroll area page > Setup area > Employees.

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Microsoft Dynamics® AX Payroll Setting Up Employee Accomplishments Use employee accomplishments to record specific achievements, skills, or other employee qualifications for reporting purposes. Examples include: •

Microsoft Dynamics AX 4.0 certification

•

Bachelor of Science degree

•

Driver's license

If using employee accomplishments, then you also must set up employee accomplishment types. Accomplishment types are used for categories of achievements, skills, or other employee qualifications for reporting purposes. Examples include: •

Certifications

•

Courses

•

Degrees

•

Trade tickets

Set up employee accomplishments and accomplishment types using the forms accessed by clicking Payroll area page > Setup area > Employees.

Summary This course introduced procedures for setting up additional features in the Payroll module. The additional features were divided into three functional groups: •

Occupation - related features

•

Entitlement - related features

•

Employee and Organization-related features

While many of the procedures in this course not mandatory, all were designed to meet actual client needs. Effective information and requirement gathering is very important in the early stages of the implementation, so that the implementation team can plan which of these additional features are required, and devise the best strategies for their use.

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Chapter 12: Set Up Additional Features

Test Your Knowledge 1. Write a brief one-paragraph description of occupation earning rule groups.

2. Briefly describe what entitlement earnings do with respect to an entitlement bank.

3. Which of the following is a true statement? ( ) If events are used, they must be set; however, event types are always optional. ( ) Location codes are used in the Position form for payment purposes. ( ) At least one entitlement rule group calculation must be set up for each entitlement. ( ) Tasks are optional because they are used only to track salary costs to the same general ledger cost centers as would normally be used for an employee.

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Microsoft Dynamics速 AX Payroll 4. Before planning how to set up occupations in a Payroll module implementation, which two of the following must you be able to do? ( ) Understand how you can use occupations can be used to reduce data entry workloads. ( ) Differentiate between how data is defined at the organization level, the employee level, and the position level. ( ) Differentiate between three interrelated concepts - occupations, jobs, and positions. ( ) Understand how you can use occupations to eliminate the need for organization shifts. 5. Entitlement groups are: (Select all that apply) ( ) Used to identify multiple entitlements that you usually need to report on or manage together. ( ) Mandatory for every implementation. ( ) Optional. ( ) Very useful if you have a large number of entitlements. 6. Write a brief explanation of what entitlement rule groups do, and why they are important.

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Chapter 12: Set Up Additional Features

Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.

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Solutions Test Your Knowledge 1. Write a brief one-paragraph description of occupation earning rule groups. MODEL ANSWER: Occupation earning rule groups are optional and can be used to associate employee occupations, organizations, position types, and position assignment types to specific earning rule groups. Earning rule groups link in turn to earning calculations. 2. Briefly describe what entitlement earnings do with respect to an entitlement bank. MODEL ANSWER: Entitlement earnings indicate which earning codes increase or decrease an entitlement bank. You will usually have at least one entitlement earning that decreases each entitlement bank. 3. Which of the following is a true statement? ( ) If events are used, they must be set; however, event types are always optional. ( ) Location codes are used in the Position form for payment purposes. (•) At least one entitlement rule group calculation must be set up for each entitlement. ( ) Tasks are optional because they are used only to track salary costs to the same general ledger cost centers as would normally be used for an employee. 4. Before planning how to set up occupations in a Payroll module implementation, which two of the following must you be able to do? (√) Understand how you can use occupations can be used to reduce data entry workloads. ( ) Differentiate between how data is defined at the organization level, the employee level, and the position level. (√) Differentiate between three interrelated concepts - occupations, jobs, and positions. ( ) Understand how you can use occupations to eliminate the need for organization shifts.

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Chapter 12: Set Up Additional Features 5. Entitlement groups are: (Select all that apply) (√) Used to identify multiple entitlements that you usually need to report on or manage together. ( ) Mandatory for every implementation. (√) Optional. (√) Very useful if you have a large number of entitlements. 6. Write a brief explanation of what entitlement rule groups do, and why they are important. MODEL ANSWER: You must set up at least one entitlement rule group calculation for each entitlement. An entitlement rule group calculation indicates that a particular entitlement applies to a particular entitlement rule group, and it specifies how that entitlement is calculated and managed for that group of employees.

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