Chapter 2: Introduction to the Dynamics AX 2009 Payroll Module
CHAPTER 2: INTRODUCTION TO THE DYNAMICS AX 2009 PAYROLL MODULE Objectives The objectives are •
Introduce the Microsoft Dynamics® AX 2009 Payroll UI, its conventions, and the organization of features.
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Identify and describe some concepts that are central to being able to set up, implement, and use Microsoft Dynamics AX 2009 Payroll.
Introduction The Payroll module user interface (UI) is designed to: •
Follow general Microsoft Dynamics AX 2009 UI conventions.
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Group and locate Payroll functionality to help users perform their tasks.
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Minimize the work that users have to perform to achieve their tasks.
The Payroll module UI meets these objectives by: •
Grouping features according to function, data type, and primary user
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Combining key concepts with powerful tools to simplify user tasks
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Microsoft Dynamics® AX Payroll
Payroll User Interface (UI) The Microsoft Dynamics AX 2009 Payroll UI uses the same structure as other Microsoft Dynamics AX modules. It uses this structure to organize Payroll features according to the functional categories and user types discussed in the last chapter. To simplify user tasks, the system uses common characteristics and conventions throughout the Payroll module. NOTE: Some clients may require Role Centers, which are customizable home pages that display specific data, reports, alerts, and common tasks associated with a user's role in the organization. Users are assigned User Profiles, which are sets of default information for a specific role in an organization. The user profile determines which role center the user sees when the Microsoft Dynamics AX 2009 Payroll client is opened. Developers can create new role centers by using the Homepage property.
UI Organization Course 1, "Introduction to the Payroll Process", explains the Payroll module and its users in terms of end-use in a Payroll department. It discusses how implementers and super users set up AX 2009 Payroll to provide the tools that payroll administrators need during each pay period. Payroll administrators use the software to perform three kinds of tasks, that correspond to the three functional categories: data preparation, payroll processing, and reporting and record keeping. The following four categories provide one level at which the features are organized in the Payroll Navigation and Content Panes: •
Setup
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Data preparation (employee and organization data)
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Payroll processing
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Reporting and record keeping
The system also uses other levels to organize the available information in the Navigation Pane and Content Pane. These involve additional grouping according to the type of task being performed, or the type of data that you are setting up, preparing, processing, reporting, or recording.
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Chapter 2: Introduction to the Dynamics AX 2009 Payroll Module For example, when you select the Payroll Area page in the Navigation Pane (Navigation Pane > Payroll > Places > Payroll Area), you can see that in the Content Pane, all the setup features are organized in the area called Setup. You also can see how they are further divided into sub-folders such as Earnings, Entitlements, Benefits/deductions, and Time. The functionality related to time is further divided according to the kind of task being performed, and the kind of data being set up (for example, shifts, rotations, time premiums, and so on).
FIGURE 2.1 SETUP AREA IN THE PAYROLL AREA PAGE
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Microsoft Dynamics® AX Payroll Another example is the way Payroll organizes features that payroll administrators use on a regular, periodic basis. The Periodic area first divides features according to their periodicity - whether you use them during every pay period, on a quarterly basis, at the end of the year, and so on. Within the Pay Period node, features are grouped according to the task you have to perform - such as creating time from a rotation, approving time records, turning time into earnings, and generating payments.
FIGURE 2.2 PAY PERIOD NODE IN THE PERIODIC AREA, IN THE PAYROLL AREA PAGE
Functional Groupings The functional groupings section describes where you can find Payroll's functionally organized features in the UI. To see how the system divides Payroll features by functional area, navigate to the Places area in the Navigation Pane and then click Payroll Area. In the Payroll Area, the Content Pane is divided into seven pages. These pages list Payroll's features:
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Journals - functions that are used to enter transactions
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Inquiries
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Reports
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Periodic - functions that are used for regular pay period and yearend processing
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Chapter 2: Introduction to the Dynamics AX 2009 Payroll Module •
Setup - tables that are used to set up Payroll
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System Update Utilities - ad hoc utilities
From the perspective of the four functional areas identified in the "UI Organization" section of this course, the following list explains where you can find Payroll module features: Data Preparation - Maintaining Employee and Organization Data The Microsoft Dynamics AX 2009 Payroll module UI lets you maintain payrollrelated employee and organization data. To maintain payroll-related employee information, click Employees in the Places area (in either the Navigation Pane or Content Pane). A list page of employees is displayed in a table, which is shared by different Dynamics AX 2009 modules. You can change information related to this table: •
Click the Payroll Transactions tab to perform payroll journal functions (in other words, to maintain payroll employee data).
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Click the Payroll Profile tab to perform payroll-related employee setup activities (sometimes required for data management purposes).
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Click the other tabs as required to maintain employee data that resides outside Payroll (such as the employees, positions, and jobs defined in the Basic or HR modules).
To maintain organization data: •
Click Organization in the Places area (in either the Navigation Pane or Content Pane).
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Use the appropriate folders in the Setup page.
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Click the appropriate folders in the Forms page in the Navigation Pane.
Payroll Processing Payroll processing features are located primarily within sub-folders in the Periodic and Journals pages. You also can access them through the Places areas found in both the Navigation and Content Panes. For example, to perform payroll processing tasks, you can go directly to the folders that you want in the Periodic and Journals list pages, or you can navigate to the Places area and then click Pay Groups. A list page opens, where you can click: •
the pay group - for which to process pay
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the Pay Period tab - to run pay period processes
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the Transaction tab - to perform data entry functions
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the General tab - to use inquiry and reporting functions
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Microsoft Dynamics® AX Payroll Reporting and Record Keeping Reporting and record keeping features are in the Reports and Periodic folders, which you can access through Pay Groups in the Places area.
Setup The Setup folder groups the setup features. Access this folder through the Forms area in the Navigation Pane, or in the Content Pane when you select Payroll area in the Places area.
About the Places Area The Places area provides convenient access to the major data components of the Microsoft Dynamics AX 2009 Payroll module: •
Payroll Area - Displays the Content Pane with area pages on the right side of the screen
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Employees item - Displays a list of employees in the Microsoft Dynamics AX 2009 Basic or HRM module
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Employee Jobs item - Displays a list of all jobs in the Microsoft Dynamics AX 2009 Basic or HRM module
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Active Employee Jobs sub-item - Displays all active jobs on the current system date
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Organizations item - Displays a list of organizational units in the Microsoft Dynamics AX 2009 Basic or HRM module
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Pay Groups item - Lets you select a pay group to use
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Positions item - Displays a list of all employee positions in the Microsoft Dynamics AX 2009 Basic or HRM module
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Active Positions sub-item - Displays all active positions on the current system date
NOTE: Items in every area page sort alphabetically except for the Periodic Pay Period area. In this area, the functions sort in the order they are used in regular pay period processing.
Conventions and Characteristics Throughout the Microsoft Dynamics AX 2009 Payroll module, there are several common UI conventions and characteristics:
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Search, Overview, and General tabs
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Mandatory fields identification
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Buttons
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Data entry methods
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Chapter 2: Introduction to the Dynamics AX 2009 Payroll Module Search, Overview, and General Tabs Many forms contain at least three tabs: •
Search lets you search fields associated with the currently open function
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Overview displays a list all fields for the function
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General displays the all the fields for one record selected on the Overview screen
Buttons Buttons usually display in the upper right corner of windows. •
Search finds information related to the window
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Reset resets the the previous search selections made on the form
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Setup displays a list of properties or values related to the window
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Functions displays a list of functions you can perform from the window
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Inquiries displays a list of inquiries available from the window
Data Entry In any data entry screen, press Ctrl+N to create a new row and create a new record. Some windows display Fast Entry tabs for rapid data entry. These screens typically let you add multiple codes to a group in one operation. Some windows display a Split View feature. In the Split View pane you can select an effective dated record, then create another effective dated record to replace the first one. When you create the new record, the old one automatically expires the day before the new record.
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Microsoft Dynamics® AX Payroll
Important Concepts Successful Payroll module setup and implementation depend on implementers and users both understanding some fundamental design concepts.
Effective Dating Microsoft Dynamics AX 2009 Payroll is an "effective dated" system, which means that records include the date they take effect and the date they end. Effective dating is the term used for making a change to a property that takes effect at some other time, either in the past or in the future. For example, if you learn that an employee wage rate must increase two weeks from now, you can make that change today - but set it up to become effective in two weeks. Effective dating is key to the capabilities of Microsoft Dynamics AX Payroll, and it is available for every table within the system. You can make changes to any table to be effective at any time: retroactively, for the current period, or in the future. Effective dating provides several benefits: •
You can date records in the past, present, or future.
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You can enter future-dated changes in the system as soon as you know them, and apply the change on the correct date.
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The system maintains a complete history of all changes automatically.
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Daily time and earning records provide accurate, timely retroactive pay calculations.
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You can access accurate historical, current, and projected reporting.
When you create a new record in the Microsoft Dynamics AX 2009 Payroll module:
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The Active Date defaults to the system date.
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The Expiry Date defaults to December 31, 2154.
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Chapter 2: Introduction to the Dynamics AX 2009 Payroll Module
NOTE: During implementation, use the same active date (such as January 1 of the previous year) for all table entries. Consistent dating minimizes the chance of creating data mismatches in the system. In the Dynamics AX 2009 Payroll module: • •
Active Date is the date when a record takes effect. Expiry Date is the last day when the record is in effect.
In the Dynamics AX 2009 Basic and Human Resources (HRM) modules: • •
Valid From Date is the date when a record takes effect. Valid To Date is the first day the record is no longer in effect.
You can create employee records in the Dynamics AX 2009 Basic or the HRM module. Note that the Payroll module Expiry Date is the day before the Basic and HRM To Date.
Employees, Jobs, and Positions Employees Set up and maintain employees in the Microsoft Dynamics AX 2009 Basic module, or the Microsoft Dynamics AX 2009 HRM module, if it is licensed. After you set up an employee, you can assign payroll attributes in the Microsoft Dynamics AX 2009 Payroll module so that the employee can receive pay.
Jobs Jobs are budgeted roles in the organization. You can create and maintain jobs in the Microsoft Dynamics AX 2009 Basic or HRM modules. Each job has a unique identifier. Jobs cannot be assigned directly to employees, but are used as templates for positions. For example, a company may create a job called "Sales Manager", and then create five Sales Manager positions to be assigned to employees. Positions inherit the characteristics of a job.
Positions Employees can have multiple positions, and employees must have at least one position to be paid. A position is assigned to a specific employee, and can be seen as what that employee does for work. To be paid, the position must include the following characteristics: •
Pay group
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Organization
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Microsoft Dynamics® AX Payroll •
Occupation
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Job type
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Job assignment type
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Salary
NOTE: Although salary can be specified at the employee level, when you use the Payroll module we recommend that salary be specified at the Position level. This avoids confusion related to having salary information entered at different levels because the salary data that is entered in the position form will override any other salary settings.
NOTE: It is important to differentiate between Occupations, Jobs, and Positions. Occupations are categories that may include multiple jobs and positions. For example, the “Accountant” occupation may involve several different jobs, with multiple positions being based on each job.
Pay Cycles and Pay Groups Pay Cycles For each pay cycle, payroll departments must collect data, calculate earnings, produce payments, oversee all applicable taxes, and complete required reporting tasks. In this manner the pay cycle defines the length of a pay period. You must set up at least one pay cycle for each pay period: •
Set up a separate pay cycle for each different pay period length
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Assign one pay cycle to each pay group
Pay Groups Payroll departments can simplify and reduce their pay cycle workload by grouping together employees whose pay data is largely the same. You can run Payroll processing by group. Therefore, at least one pay group must exist in the Dynamics AX 2009 Payroll module. Use pay groups to separate employees into groups if:
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You use more than one currency to pay employees
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You use more than one company bank account from which to pay employees
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You use more than one check format to pay employees
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You process a group of employees separately, such as a confidential group of employees
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Chapter 2: Introduction to the Dynamics AX 2009 Payroll Module •
Different payroll users administer different groups of employees
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Different pay period lengths exist
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Pay periods of the same length exist but have different pay days
Because the system assigns pay groups to employee positions, employees with multiple positions can have a different pay group for each position. NOTE: Because the complete payroll process runs for each pay group during every pay period, encourage the client to keep the number of pay group cycles and pay groups to the minimum needed.
Introduction to Accumulators Remember that "accumulated data" is data that is accumulated or decremented (or both) over periods of time; for example, entitlement banks, and annual gross pay records. Accumulated data is any data that the company, government, or employee requires a company to accumulate for record keeping, reporting, calculation, or taxation purposes. Accumulated data is usually a running total that reflects an increase or decrease over time. Examples include the following: •
Gross pay
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Tax deductions
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Vacation hours or days
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Banked overtime
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Sick leave hours or days
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Garnishments
Accumulators are used to keep track of how this accumulated data accumulates or decrements over time. An accumulator is a storage device for keeping track of the current numeric value of a single record, as that value increases or decreases over a period of time. Accumulators can be set to work over any time period that is defined in the Payroll module, and collect data at one of four levels: •
Company level
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Pay group level
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Employee level
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Employee/position level
More information on how to set up Accumulators is available in course 7 of this collection. Later courses will include instructions for setting up accumulators for specific purposes.
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Microsoft Dynamics® AX Payroll Introduction to Calculations Calculations During implementation, set up calculations to process: •
Earnings, such as regular earnings, overtime at 1.5, overtime at 2.0
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Benefits and deductions, such as federal tax, medical plan, pension plan
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Leave entitlements, such as vacation and sick entitlements
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Time premiums, such as night shift premium
Calculations range in complexity as required to meet client needs - from flat amounts to pay or withhold, to complex multi-variable and highly interdependent tax calculations. The Calculations table stores calculations, whereas related tables contain the required rates and variables. If a calculation amount is unique to an employee, such as a charitable donation, the amount is stored on the employee's Calculation Variables record. The following examples show the wide range of complexity possible in Payroll module calculations: Simple arithmetic calculations: •
A fixed amount each pay period, such as a charitable donation
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A fixed rate, such as a garnishment for 30 percent of an employee's gross pay each pay period
Calculations with additional steps: •
A calculation based on net pay with a minimum or maximum amount. For example, a union dues deduction of 1.3 percent of eligible earnings, with a maximum amount of $50 each pay period
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A calculation that must round up or down. For example, a life insurance deduction, based on four times an employee's annual salary, rounded up to the nearest thousand
Complex calculations:
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Calculations within calculations. For example, a life insurance deduction based on a variable rate, with the rate varying according to the employee's age. Another example is a federal tax calculation for gross taxable income, which uses tax rates based on income levels
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Conditional calculations, such as a deduction that calculates only when an employee works more than a specified number of hours in a week
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Chapter 2: Introduction to the Dynamics AX 2009 Payroll Module
Summary The Microsoft Dynamics AX 2009 Payroll UI uses the same structure as other Microsoft Dynamics AX modules. The systems organizes features according to function. The four categories (setup, data preparation, payroll processing, and recording and record keeping) identified in course 1, "Introduction to the Payroll Process", provide one level at which the system organizes features. However, the system also uses other levels, such as task type and data type. You can group selected features in the Action Pane according to function. When you click Payroll Area in the Navigation Pane, the Content Pane displays seven pages in which all Payroll features are grouped: •
Places
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Journals
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Inquiries
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Reports
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Periodic
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Setup
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System Update Utilities
Throughout the UI, Payroll uses common characteristics and conventions throughout the module. In addition, several fundamental design concepts are important to understand in order to ensure successful setup and implementation: •
Effective Dating
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Organization Levels
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Employees, Jobs, and Positions
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Pay Cycles and Pay Groups
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Calculations
The next two chapters will focus on how to use the Payroll module UI to complete Payroll Administrator tasks.
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Microsoft Dynamics速 AX Payroll
Test Your Knowledge Test your knowledge with the following questions. 1. Which modules can you use to create employees?
2. What is the difference between a job and a position?
3. You can assign a job can be assigned to more than one employee. ( ) True ( ) False 4. An employee can have more than one position. ( ) True ( ) False
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Chapter 2: Introduction to the Dynamics AX 2009 Payroll Module
5. What are the effective date fields in Microsoft Dynamics AX 2009 Payroll called?
6. How are the effective date fields in Microsoft Dynamics AX 2009 Payroll and Basic/HRM different?
7. Can a customer have more than one pay period length in Microsoft Dynamics AX 2009 Payroll? ( ) Yes ( ) No
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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.
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3.
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Chapter 2: Introduction to the Dynamics AX 2009 Payroll Module
Solutions Test Your Knowledge 1. Which modules can you use to create employees? MODEL ANSWER: Create Employees are created in the Basic module or the HRM module, if it is licensed. 2. What is the difference between a job and a position? MODEL ANSWER: A job is a budgeted role in an organization. Jobs cannot be assigned directly to employees, but are used as templates for positions. A position is assigned to a specific employee, and can be seen as what that employee does for work. Employees can have multiple positions, and employees must have at least one position to be paid. 3. You can assign a job can be assigned to more than one employee. (•) True ( ) False 4. An employee can have more than one position. (•) True ( ) False 5. What are the effective date fields in Microsoft Dynamics AX 2009 Payroll called? MODEL ANSWER: Active Date and Expiry Date.
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Microsoft Dynamics® AX Payroll
6. How are the effective date fields in Microsoft Dynamics AX 2009 Payroll and Basic/HRM different? MODEL ANSWER: The Expiry Date in Microsoft Dynamics AX 2009 is the last day the record is in effect. The To Date in Microsoft Dynamics AX 2009 Basic and HRM is the first day the record is no longer in effect. 7. Can a customer have more than one pay period length in Microsoft Dynamics AX 2009 Payroll? (•) Yes ( ) No
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