Chapter 3: Payroll Administration Data Tasks
CHAPTER 3: PAYROLL ADMINISTRATION DATA TASKS Objectives The objectives are: •
Manage employee positions.
•
Work with employee payroll information, concepts and definitions.
•
Introduce concepts, process, and procedures involved in managing employee pay-related information.
•
Manage employee demographic information.
•
Stop paying an employee.
Introduction Payroll Administrators are the day-to-day prime users of the Microsoft Dynamics® AX 2009 Payroll module. They are responsible for all routine tasks associated with administering a typical pay period. The tasks that administrator(s) are responsible for fall into three functional groups: •
Employee data management
•
Payroll processing
•
Payroll reporting
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-1
Microsoft Dynamics® AX Payroll This course concerns employee data management tasks. Employee data is grouped into these three general categories: •
Employee position data
•
Employee payroll data
•
Employee demographic data
FIGURE 3.1 EMPLOYEE DATA
Payroll Administration Scenarios In this course, scenarios show how and why payroll administrators perform their tasks. These scenarios use Payroll Administrator personas defined in the Contoso Entertainment Systems (CEU) company. This company is included as part of the Microsoft Dynamics AX 2009 demo data set. Mia is the Payroll Administrator in the Finance department at CEU. She manages the company's payroll cycle throughout the year. Each pay period, she collects data, calculates earnings, produces payments, oversees all applicable taxes, and performs required reporting tasks. Additional payroll staff sometimes assists her. NOTE: Throughout the collection of Microsoft Dynamics AX 2009 Payroll courses, scenarios involve Mia working extensively with employee data. This might reflect the situation in a client's company, especially if they are not using the Human Resources (HR) module. However, be aware that many clients do use the HR module, and have internal HR organizations that manage employee data. In these companies, HR staff usually create employee data and share maintenance responsibilities with payroll administrators like Mia.
3-2
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks Scenario Mia has become aware of several employee data management tasks that she must perform before she begins processing payroll for the current pay period. These tasks result from some employee-related changes within Contoso. Mia must make sure that these changes are accounted for from a payroll standpoint. The changes include the following: •
New employees are hired, for whom new positions must be created.
•
An employee takes on multiple positions.
•
An employee requires changes to her existing position.
•
An employee leaves the company.
•
An employee transfers from one position to another.
•
New employees require that payroll-related information (bank accounts, benefits and deductions, accumulator values, entitlements, and so on ) be recorded, while other employees require changes to existing information.
•
An employee moves, therefore the address change must be recorded.
Manage Employee Positions Most information controlling how individual employees are paid is recorded on their positions. Positions are required to matching the correct job, salary, benefits, deductions, entitlements, and earnings information to specific employees. Payroll administrators assign positions to employees, modify and transfer those positions when it is necessary, and end positions. They can do most of this work within the Positions form. If the new position is being created for a newly hired employee, the administrator begins by creating the new employee in Microsoft Dynamics AX 2009. Scenario Mia performs these tasks when positions are created, filled, or changed: •
Create new employee records for new hires.
•
Create new positions for new hires.
•
Assign the new positions to the new employees.
•
Assign an additional position to an existing employee.
•
Modify an existing employee's position.
•
Transfer an employee to another position and end that employee's current position.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-3
Microsoft Dynamics® AX Payroll About Positions A position describes what a particular employee does for work. Employees can have more than one position, and these positions can be in different locations. Usually, an employee has only one position at a time. If you give an employee more than one active position at a time, it adds complexity, because time and earnings must be associated with the correct position for the employee. Mia gives an employee multiple active positions in only the following circumstances: •
The employee receives different wages for work in different positions.
•
The employee earns and takes entitlements such as vacation or banked overtime independently for each position.
•
The company posts payroll expenses for the employee's positions to different ledger accounts or dimensions, and wants those postings to be based on actual earnings, rather than the static estimated division of effort that can be recorded by using organization splits.
To describe an employee's work from a payroll perspective, each position includes important employment, job, and salary information that is specific to that employee. This information includes the following: •
Employee identification
•
Employment information
•
Job information
•
Location
•
Salary
•
Organization
•
Occupation
•
Hours of work
When you open a position in the Position form, all this payroll-related information is collected in one place: the Payroll Module tab. The following descriptions explain some key areas and fields in the Position form. See the Payroll help for more information about specific fields.
About Time and Positions For Payroll purposes, there are four ways to input time data into the time journal:
3-4
•
manual entry
•
import from a spreadsheet
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks •
import through customized code that uses the Payroll application programming interface (API)
•
set up Payroll module to calculate employee hours
FIGURE 3.2 FOUR SOURCES OF TIME DATA
When you enter information manually or import, you do not need to specify employee time parameters in the Payroll module. However, you must specify them if the company manages: •
hourly paid employee time by using the Payroll module
•
salaried employee pay by using the Payroll module
This topic discusses how the data elements in the Positions form affect how the Payroll module treats employee time.
Hourly Workers For each pay period, you must define the pay period cycle, rotation, and shifts for hourly workers whose time is not imported or manually entered: •
In the Position form, the Pay Group you select determines the pay cycle to use for the employee assigned a particular position.
•
If you use rotations and shifts, you must set up both in the Hours of Work element in the Positions form.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-5
Microsoft Dynamics® AX Payroll The purpose of Union affiliation/certification fields in the Positions form is to define standard work hours (daily hours, pay period hours, annual hours), even if the job is not unionized. However, the standard hours defined in a Union affiliation are overridden by settings you enter in the Hours of Work element.
Salaried Workers Salaried employees (whose time information is neither imported nor manually entered) do not have rotations and shifts defined for them; however, the Payroll module requires that some time information be defined before you can pay these workers. In the Payroll module, salaries are paid in segments according to the salary period (for example: pay period, monthly, annual, daily, and so on). You can set a salary period automatically when you select a salary grid, or you can set an override in the Hours of Work element in the Positions form. To track pay to work performed, the Payroll module divides the salary for the pay period by the pay period hours (the number of hours the employee must work in a pay period). In order to be paid, an employee's pay period hours must be defined; if they are not defined, then the Payroll module will not produce payment. You can define pay period hours on the position itself or you can derive them by using the Union affiliation or a combination of Union affiliation and Union certification. If you define pay period hours as part of a union affiliation/certification, they can be inherited from the union affiliation selected in the Positions form. You can override inherited values by values you specify in the Hours of Work element of the Positions form. For accounting flexibility, companies can specify daily hours and days of week. This allows the Payroll module to divide the salary payment for a pay period into daily amounts, which can be helpful when payroll changes are out of sequence with pay periods. For example, when a pay raise takes effect on a date that falls in the middle of a pay period - if days and daily hours are defined, then the Payroll module can increase the daily pay of an employee on the day the pay increase takes effect. If days and daily hours are not defined, then the increase must be applied to all the pay period hours in an entire pay period. You can define daily hours as part of the union affiliation/certification or you can override them in the Hours of Work element in the Positions form. You can specify days of the week only in the Position form.
Summary of Hours of Work Overrides For both hourly and salaried employees, the Hours of Work element in the Position form enables you to over-ride any other settings made to:
3-6
•
Start week
•
Start date
•
Default shift code
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks •
Daily hours
•
Pay period hours
•
Annual hours
•
Days of the week eligible to work
You can use any number of fields to override - if all you want to override are the days of the week that an employee is eligible to work, you must to change only these fields values. Any changes you make in this element will override those inherited from the Occupation and Union affiliation/certification elements.
About Strategies for Reducing Data Entry Payroll Implementers and Administrators can use strategies to help minimize setup and maintenance workloads. These strategies involve planning how to define common values within particular forms or elements, assigning that set of values a name, and making that name selectable in several different Payroll forms. For example, you can define daily, annual, and pay period hours in a union affiliation/certification, and you can then select that union affiliation for a particular position, by using a field in the Positions form. The values set for the union affiliation are now inherited by the position. You can make and inherit such settings from any of these forms: •
Occupations
•
Salary grids
•
Rule groups for time (to govern which employees receive premiums), earnings (to determine how much employees are paid), benefit/deductions (to determine which employees can receive which benefits), and entitlements (to determine which employees are eligible for which entitlements)
•
Position types and position assignment types
•
Position filters to associate positions with specific tax jurisdictions
•
Union affiliation and certification, to provide default standard hours
•
Benefit/deductions
When you choose strategies to minimize workload, the most important criteria is consistency. This is because several options may exist for achieving the same effect. For example, you can define rules groups, dimensions, and salary grids in the Positions, Occupations, or Employee tables. However, even if you define this data in more than one location, Payroll will use only the first one it finds. Payroll always looks for these definitions in the following three forms - and always in this order: 1. Position form 2. Employee form 3. Occupation form
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-7
Microsoft Dynamics® AX Payroll Position Form Elements
FIGURE 3.3 EXAMPLE - PAYROLL MODULE TAB IN POSITION FORM
This section provides descriptions for the elements found in the Position form.
Employee A position that is filled is associated with a specific employee. You define employees in the Employee list. For an employee to receive pay, he or she must be assigned at least one position. A position can be assigned to only one employee at a time.
Pay group Employees are grouped into Pay Groups, which are set up during implementation. Pay groups help payroll administrators to organize employees who share similar pay processing characteristics, such as: •
Pay cycle
•
Pay dates
•
Currency of payment Every pay period, the payroll process must be run for each individual pay group; to minimize payroll administration workload, implementers will set up only as many pay groups as are necessary to meet company needs. You can assign an employee multiple positions, and these positions can be in different pay groups
3-8
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks Jobs Jobs define the functions, roles, and work that company employees can perform. A job contains template information for a new position. A single job definition can be a template for multiple positions, each held by a different employee. When a new position is created, it starts with settings defined for the job. Those position settings can be changed on the position, so that they no longer match the job. Also, when the settings on a job change, the positions associated with that job do not update to match the job. Every position must have a job. A very small company might have just one job that all positions are associated with. Companies that have many positions set up an extensive list of jobs to automatically provide the correct data for payroll administrators creating new positions. Jobs do not relate to individual employees directly; jobs relate to employees indirectly, through positions.
Occupations Occupations are categories that can encompass multiple jobs and positions. For example, an Accountant occupation might involve several different jobs, on which you could base many specific positions. You can use occupations to select rule groups, eligibilities, union affiliation, and the salary grid for a position if that information is not entered on either the position or the employee. Select an occupation in the Position form's Payroll Moduletab, and this occupation-related information is inherited by the position. NOTE: If rule groups, hours of work, or salary grids are specified in the Payroll module tab of the Positions form or on the Employee form, then these values will override the related values defined for the occupation.
Position Types Your organization will determine whether and how you use position types. For example, Contoso uses position types to differentiate full-time, part-time, and casual positions. This information can be used to control whether time, earnings, benefit/deductions, or payments associated with this position contribute to an accumulator and to determine eligibility to work certain shifts.
Position Assignment Types Your organization will determine whether and how you use position assignment types. For example, Contoso uses position assignment types to differentiate how employees are assigned to positions - permanently, temporarily, temporary layoff, and so on. This information can be used to control whether time, earnings, benefit/deductions, or payments associated with this position contribute to an accumulator.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-9
Microsoft Dynamics速 AX Payroll Union Affiliation/Certification The purpose of Union affiliation and certification is to define standard work hours, even if the position is non-unionized. In Microsoft Dynamics AX Payroll, you must assign every employee a union affiliation. For example, you might assign an employee working as a manager the "Junior Management" union affiliation. Unlike Union affiliation, however, Union certification is optional. Your company may use it as second component of defining standard work hours. If the position is unionized, then you can use these fields to track union-related information. Union affiliation refers to the union to which the employee belongs. Union certification might also be referred to as a union local, which represents 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 certification codes would be needed to represent the three different sites. NOTE: If the position's Daily hours, Pay period hours or Annual hours are not zero, then the position's hours override the hours defined for the Union affiliation and certification.
Employment Factor If you have part-time positions and want to indicate what fraction of a full-time position the employee actually works, you can enter that amount. For an employee who works half time in a position, the factor would be 0.5. The sum of factors for all active positions for an employee must not exceed 1.0. If you do not include factors in features like entitlement calculations, you can set the employment factor on all positions to zero.
Primary Position Priority The Primary Position Priority field is important if an employee has more than one position. Lower numbers indicate higher priority, so that a position with priority 1 has higher priority than a position with priority 2. An example of when primary position numbers are important is when you import time or earnings for employees who have more than one position. If the positions are specified in the import data, then data will import for the appropriate position an employee has. If, however, the position is not in the imported data, the Payroll module will associate all imported data with the position with the lowest primary position priority number. If no primary position number is assigned, then it will associate with the position ID closest to the beginning of the alphabet.
3-10
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks Time Rule Groups A time rule group defines a set of time-related rules for a group of employees (for example, how overtime is paid). Time rule groups determine which employees receive time premiums and when those time premiums apply. For example, if two different groups of employees have to work different amounts of time before they can receive overtime pay time premiums, then each group would need its own time rule group to define how those time premiums are applied. NOTE: As important expressions of company policy, Time rule groups are an example of where supers users can make significant contributions to a successful implementation.
Earning Rule Groups An Earning rule group defines the set of rules that determine how to calculate earnings for a group of employees. Rules for one group of employees in a company may define weekday overtime pay to be 1.5 times regular pay, Although rules for a different group of employees within the same company may define weekday overtime pay to be 2.0 times regular pay. Some companies may use only one Earning rule group, in which all employees are paid by using the same rules.
Entitlement Rule Group An earning rule group defines the set of rules that determine how to calculate earnings for a group of employees. Rules for one group of employees in a company may define weekday overtime pay to be 1.5 times regular pay, Although rules for a different group of employees within the same company may define weekday overtime pay to be 2.0 times regular pay. Some companies may use only one earning rule group, in which all employees are paid by using the same rules.
Entitlement Rule Group Entitlement banks, such as vacation and sick days, are incremented and decremented according to rules. You can use different rules for different groups of employees. Employees may receive different amounts of annual vacation depending on the work they do, or on the number of years they have worked at the company.
Position Filter Your organization will determine whether and how you use position filters. Position filters usually are used to identify the tax jurisdiction that applies to this position. You can use this information to control whether time, earnings, benefit/deductions or payments associated with this position contribute to an accumulator.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-11
Microsoft Dynamics速 AX Payroll Salaried and Hourly Positions You can base employee wages for a position on hourly rates, piece rates, or a salary. A salary is a fixed amount that is paid in a defined time period, such as annually, monthly, or in each pay period. Hourly wages are paid based on time records. A time record is associated with an employee and a position. It has a date and a number of hours. It also has a shift such as "Regular," "Overtime," and "Vacation." Your company's time rules define how the number of hours for a particular shift translates into an amount of earnings. The more hours of paid time that an hourly employee has, the more money that employee earns. To pay hourly wages, you must have time records. You can import time records from another system or you can customize your Dynamics AX to import time from another module automatically by using the Payroll application programming interface (API). Alternatively, your Payroll module might be set up to use rotations to generate hourly employees' usual time records, which you will manually modify in the case of exceptions such as vacation, overtime, paid sick leave, or unpaid absence. If you are using rotations, you select them on the position form. If you select some, but not all, weekdays, then the rotation will not generate time for the weekdays that you did not select. Similarly, piece-based earnings are based on time journal entries that record a number of units, rather than hours of shifts. You can record the units that an employee produced manually in the Time journal or import it as time records that have unit values. Salaried employees, on the other hand, do not require time records. Their regular earnings are created automatically as part of regular pay period processing. Earning records have dates, too. A salaried employee's earnings for the pay period are divided among the work days in the pay period. Those work days are based on the weekday selections for the position or the employee. If an employee's salary changes during a pay period, the employee is paid at the old salary for some days of the pay period, and at the new salary for the days when the new rate takes effect. Each day's salaried earnings have a number of hours, based on the hours for each day defined for the position or the employee or the union affiliation/certification. You can enter exceptions to regular pay such as vacation and unpaid leave manually as either time or earnings records. Usually, if you have hourly employees, you would enter exceptions for salaried employees as time records so that you can manage those exceptions in the same place for both hourly and salaried employees. If you have no hourly employees, then you would enter exceptions as earning records and not use time records and shifts at all. If you enter exceptions before creating regular pay, then the regular pay will be created around those exceptions. For example, if you record three hours of sick leave on Friday for an employee who works eight hours each day Monday through Friday, then Payroll will create eight hours of regular pay each day for Monday through Thursday, and then only five hours of regular pay to go with the three hours of paid sick leave on Friday. The amount of earnings on each day will be consistent every pay period, unless that pay period includes earnings, such as unpaid leave, that have been set up to increase or decrease a salaried employee's regular wages.
3-12
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks Hours of Work The fields in the Hours of Work element in the Position form are optional. How you use them depends on whether the employee is paid on an hourly basis or by salary, what information is inherited from union certification/affiliation settings, and what company accounting preferences are. The rotation and its start week and start date usually are used only for hourly employees. The start week usually should be week 1, unless you have selected a rotation that spans multiple weeks, in which case you must enter the number for which week in the rotation applies to the start date that you enter. Use the default shift code when you enter time records manually for either hourly or salaried employees. Select the shift you will be recording manually most frequently. The daily, pay period, and annual hours are important for converting wages between hourly rates and annual rates. These rates are used in calculations for both hourly and salaried employees. They are also important for generating salary-based earnings. If you enter non-zero values in any of these fields on the position, those values will be used. If you leave them set at zero, then non-zero values on the employee will be used. If the values on the employee record are zero, too, then the values associated with the union affiliation/certification will be used. If the employee is salaried or has a rotation, select the days of the week that the employee works in this position. You can specify days of the week only on the Position form.
Salary and Salary Grids Salary The fields in the Salary element in the Position form's Payroll Module tab define how an employee is paid - even employees who receive pay on an hourly basis. If all the salary fields on a Position form are empty or zero, the salary fields on the associated employee's Employee form are used.
Salary Grids In some companies, wage rates are determined independently for each employee. In other companies, including unionized companies, policies define specific wage rates for some positions. Use salary grids wherever multiple positions share a wage as a matter of policy, whether those wages are hourly or salaried. When your wage policy changes, you can make one change to your salary grid, and that wage change automatically affects all the positions using that grid. When a specific employee moves from one step in the salary grid to another, you change the salary grid or step for that one employee's position, and none of the other employees are affected.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-13
Microsoft Dynamics® AX Payroll In Microsoft Dynamics AX 2009 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 a fixed period of time such as pay period, month, or year). You will also use salary grids if wages are determined by compa ratio (the salary grid defines the median, minimum, and maximum wage).
Using the Salary Element Fields in the Pay Module Tab Although several options for how to record an employee's wages exist, you can use only one for each position. If the employee's wages are determined individually, rather than as part of a salary grid: •
If the employee's wages are hourly, enter the hourly rate, and leave the other salary fields set to zero or empty.
•
If the employee's wages are salaried, select the Salary period and enter the Salary amount, and leave the other salary fields set to zero or empty.
•
When you click or tab out of those fields, the salary type displays "Hourly" and the salary step amount displays the hourly wage. Leave the other salary fields set to zero or empty.
If the employee's wages are determined by company policies that are reflected in salary grids: 1. Select the Salary and Salary step. When you click or tab out of those fields, the Salary type displays either: • "Hourly", and the salary step amount displays the hourly wage; or •
A salary period (such as "Annual salary" or "Monthly salary") and the salary step amount displays the wage.
2. Leave the other salary fields set to zero or empty. If the employee's wages are determined by compa ratio: Select a Salary, and enter a Compa ratio. Enter 1.0 if the employee should have the median wage, or a number to multiply that wage by to adjust it higher or lower, within the range of the minimum and maximum for that salary. For example, enter .90 to give the employee only 90 percent of the median wage, or enter 1.1 to give the employee 10 percent more than the median wage.
3-14
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks If the employee's wages are based on piece work: •
If the employee will be paid for piece work, plus a basic salary, set up the salary as described earlier.
•
If the employee will be paid for piece work plus an hourly wage, set up the employee for hourly pay, as described earlier.
•
If the employee does not receive pay other than piece work, leave all the salary fields set to zero or empty. In the time journal, record or import units, rather than shifts, for the employee.
Create a New Employee Before you can assign new employees to positions, you must create new employees. Users can do this from the Payroll, Basic, or Human Resources modules. All three modules access the same employee functionality. Create the new employee by using the New Employees function. Follow these steps to create an employee in Microsoft Dynamics AX 2009. 1. Click Payroll, then Employees; next, click either the Employee icon in the New section of the Action pane, or press CTRL+N to create a new row. 2. On the Overview or General tab, enter the employee number and the employee name. 3. Click the Employee dates tab and verify the Valid from and Valid to dates. From a Payroll perspective, this is all the information needed to create an employee record; however you might also want to enter other employee demographic information such as national ID, address, and telephone numbers at this time. 4. Close the Employees form.
Create a Position for an Employee You can assign existing positions to employees. If you must create a new position, you can do so from the Payroll, Basic, or Human Resources module, if it is licensed. Create positions for employees by using the New Position function. Follow these steps to create a new position. 1. Click Payroll, click Employees, and then select an employee name. 2. Click the Position icon at the top of the form. 3. On the Overview or General tab: a. Enter a new Position identifier. b. Enter a Position description. c. Select the Organization. The dimension values associated with this organization will be used when you post earning and benefit expenses to the General ledger.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-15
Microsoft Dynamics速 AX Payroll d. Select a Title. e. Select the Job identifier. 4. In the Payroll Module tab (not the Payroll module button on the right side of the form): a. Select Position type. A message displays asking if you want to set the employee position fields based on the information associated with the selected job. Usually, you will click Yes because you set up the job with correct attributes that the position also needs to inherit. b. Select a Position assignment type. c. If the employee works in multiple positions in different countries, and this position is in a country that has a different national ID than what has been recorded on the Employee form, then enter the National ID. d. Enter or select the appropriate salary information and move the pointer off the salary fields to display complete salary information. Enter data as required in the remaining fields.
Assign Positions to an Employee If a position already exists, you can assign it to an employee. You can assign more than one position to an employee. New effective dated records are automatically made for each position that is assigned to an employee. Remember that if the position is new, then it must be created by using the procedure provided earlier. Follow these steps as many times as required to assign the appropriate positions to an employee. 1. Click Payroll, click Employees, and then select an employee name. 2. Click the Position icon at the top of the form. 3. An unassigned row will be highlighted in the Overview tab; here, or in the General tab: a. Select an existing Position identifier. b. Enter a Position description. c. Select the Organization unit. d. Select a Title. e. Select the Job identifier.
3-16
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks 4. In the Payroll Module tab (not the Payroll module button on the right side of the form): a. Select Position type. A message displays asking if you want to set the employee position fields based on the information associated with the selected job. Usually, you will click Yes because the job will have been set up with correct attributes that the position also needs to inherit. b. Select a Position assignment type. c. Enter the National ID. d. Unless defined elsewhere and inherited, select the various rule groups in the fields provided (Time rule group, Earning rule group, Entitlement rule group, Benefit/deduction rule group). e. Enter or select the appropriate salary information and move the pointer off the salary fields to display complete salary information. f. Make selections in the remaining fields as required.
Modify a Position for an Employee Use the Positions form to modify a position for an employee. NOTE: When you modify or delete positions, you also may want to work with features provided through the Payroll Module button in the top right of the Positions form. Features you can access here include Payroll setup, Accumulators, Dates, Events, and so on.
Modify a Position Follow these steps to modify a position for an employee. 1. Click Payroll, and then click Employees in the Places page. 2. Select the employee, and then click the Position icon at the top of the form. 3. Select a position from the list of those assigned to the employee. 4. Click the Functions button and select Date effective records. A table appears, containing the position you selected in the Positions form. 5. Click the Overview tab, then press CTRL + N. A new row appears with information duplicated from the record that already existed in the form. You can take this opportunity to change the effective dating for the existing record - so that it will not overlap with the changes you are about to make. If you do not change the existing record's effective dating, then when the form is closed you will be requested to approve changing the Valid to date to the day before the Valid from date of the new record.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-17
Microsoft Dynamics速 AX Payroll 6. Click the Payroll module tab, make the changes to the position as required, and assign effective dates. 7. Close the form. NOTE: To review the changes to positions for a particular employee, then use the Functions button in the Positions form to return to the Date effective record form. All changes to the positions assigned to the employee will be listed in the Overview tab.
End (Expire) a Position for an Employee If an employee has more than one position, you can use the Positions form to end (or "expire") one of them. The Payroll module retains historical information, but you will not be able to associate additional time or earnings with the position if the time or earnings are dated on or after the position's Valid to date. If the employee has only one position and will no longer receive pay from your organization, use the Stop pay form. If the employee is transferring to a different position in your organization, use the "Transfer an employee to another position" procedure.
Expire a Position Follow these steps to ensure a position is expired and no longer active: 1. Click Payroll, Basic or Human Resources, then click Employees, and then select an employee name. 2. Click the Position icon at the top of the form. 3. Select the position to expire, then click the Functions button on the right of the form, and select Date effective records. 4. In either the Overview or Payroll Module tab, change the Valid to date of the entry to the first day that the position is no longer active.
Delete a Position for an Employee NOTE: Deleting a position will delete payroll attributes for an employee, so only use it in special instances in which losing this information is not a risk; for example, to correct an error when you first add a new position to an employee. Follow these steps to delete a position for an employee: 1. Click Payroll, Basic, or Human Resources, then click Employees, and then select an employee name. 2. Click the Position icon at the top of the form. 3. Select the position to delete, then click the Delete record button at the top left of the form.
3-18
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks Transfer an Employee to Another Position Transferring an employee from one position to another involves combining two or three other procedures: create or select a new position, and end an existing position. Follow these steps to transfer an employee from the employee's current position to a new position. 1. Assign the new position to the employee by using either: • The "Create a Position for an Employee" procedure •
The "Assign Positions to an Employee" procedure
2. End the old position by using the "End a Position for an Employee" procedure.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-19
Microsoft Dynamics速 AX Payroll
Lab 3.1 - Create New Employees In this lab, create two new employees. Scenario Mia needs to create two new employees who both started working at Contoso today.
Challenge Yourself! To create a new employee, use the Basic module to do the following: create the employee, create a position for the employee, and enter payroll-related information. You also can enter the payroll-related information in the Payroll module, but you must create the employee in Basic (or HRM, if it is licensed). Employee Information:
3-20
Employee Name
Adam Barr
Aik Chen
Employee ID
1010
1020
Position ID
0105
0115
Job Description/Title
Marketing Manager
Marketing Staffer
Job ID
01027
01028
Organization Unit
100
100
National ID
899005555
897004444
Salary
Salary: Managers, Salary step: 1
Salary: Marketing, Salary step: 2
Marital Status
Single
Married
Bank Account
Woodgrove Bank Checking account # 123456789
Woodgrove Bank Checking account # 987654321
W4 Allowances
1
2
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks Need a Little Help? To create a new employee, click the Basic module and select the New Employees function. To create a new position for the employee, use the New Position function. When you have created the new position for the employee, set up payroll-related information by using the Payroll Module button on the right side of the form to access Payroll setup. This displays several forms containing HR-related information, as well as the forms that specifically relate to payroll, such as benefit/deduction enrollments, bank account information, calculation variables for W4 information, and generated earning enrollments for allowances.
Step by Step Follow these steps to create a new employee.
1. Click Basic, click Employees, then click the Employee icon at the top of the form, or press CTRL+N to create a new row. 2. On the Overview or General tab, enter the employee identifier and the employee name. 3. Click the Employee dates tab and verify the Valid from and Valid to dates. 4. This is all the information the system requires to create an employee record. Close the Employees form. Next, follow these steps to create a new position for the employee. 1. Click Basic, click Employees, click the employee name, and then click the Position icon at the top of the form. 2. On the Overview or General tab, enter the Position identifier, enter a Job Description, select the Organization unit, select the Title, and select the Job identifier. 3. Click the Payroll Module tab (not the button on the right side of the form). 4. Select the Position type Full Time. A message displays asking if you want to set the employee position fields based on the information associated to the selected job. Because you set up the job with the correct attributes and the position needs to inherit them, click Yes. 5. Click the Position assignment type field to display the information associated to the job, and then select Permanent. 6. Enter the National ID. 7. Enter the appropriate salary information and move the pointer off of the salary fields to display complete salary information.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-21
Microsoft Dynamics速 AX Payroll Now that you have assigned the employee to a position, the final step is to set up payroll information. You also can complete this step in the Payroll module. Follow these steps to set up payroll information. 1. Click the Payroll Module button on the right side of the form and select Payroll setup. 2. The Persons form displays the employee name. Click Next. 3. The Addresses form is displayed. If desired, you could create an address record by pressing CTRL+N. Click Next. 4. The Person electronic contacts form is displayed. You could create an electronic contact record by pressing CTRL+N. Click Next. 5. The Employee form is displayed. Click Next. 6. The Positions form displays information from the employee's job. Click Next. 7. The Benefit/deductions form displays default enrollments for the employee. These enrollments are based on the benefit/deduction group on the employee's job. You can change or delete the enrollments, and you can add new enrollments. 8. For Adam Barr, click the Benefit/deduction enrollment select list and change CA SIT, Dental Plan, Health Plan, and USA FIT to Single. Click Next. 9. The Accounts form is displayed. If no account information is added, the employee will be paid by check. To pay the employee by direct deposit, click CTRL+N to create a new row. Select the Financial institution and Account type, and enter the Account number. Click Next. 10. The Calculation variables form is displayed. This form enables you to enter rates and amounts that are unique to employees, such as federal tax exemptions or allowances. Click CTRL+N to create a new row. Select the Calculation variable W4 Allowance and the Item W4 allowances. In the Rate field, enter 1 for a single employee and 2 for a married employee. 11. Click CTRL+N to create a new row. Select the Calculation variable CA W4 Allowance and the Item CA W4 Allowance. In the Rate field, enter 1 for a single employee and 2 for a married employee. Click Next. 12. The Generated earning enrollments form is displayed. This form enables you to enter allowances for the employee. 13. Close the Payroll Module form.
3-22
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks
About Employee Payroll Information After you have assigned an employee at least one position, you must set up certain information so that the Payroll module can pay that employee. The tool that is used to set up this information is the Payroll setup feature, which you can access through the Payroll Module button (located on the right side of the Positions form).
About Payroll Setup The Payroll setup feature sequentially displays a series of forms, some of which contain Basic or HR-related information, and some of which contain specific Payroll information. The Payroll information includes the followings: •
Benefit/deduction enrollments
•
Bank account information
•
Calculation variables for employee-specific components of calculations
•
Generated earning enrollments for allowances.
•
Payroll-specific addresses and electronic contacts. This list can include addresses and contacts from the Dynamics AX Global Address Book, but you must modify those entries in the Global Address book, and not in this list.
Many of the forms already are populated with data derived from information you specified when you defined the Employee, Job, and Position.
About Payroll Management After you create an employee, assign a position, and set up payroll information, then you must manage this information. This section of the course describes some of the concepts and definitions that you must know to manage employee payroll information. The next section contains the procedures to use when you manage that information.
Concepts and Definitions You should know the following terms and definitions to set up and manage employee payroll information.
Employee accounts Use this form to enter an employee's bank or financial institution account information, if the employee uses direct deposit.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-23
Microsoft Dynamics速 AX Payroll You can enter direct deposits into a single account, or you can split them into two or more bank accounts. The Payroll module enables you to spilt the deposits by flat amounts or by percentage of the total payment. When splitting into two or more accounts, you will specify how you want the split to occur by making entries for each bank account in the Employee accounts form. For example, an employee who is paid $1000.00 wants $800.00 deposited into a checking account and the remaining $200.00 deposited into a savings account. You could use flat amounts (800 and 200) to set this up in the Employee accounts form, or you could specify percentages (80 and 20). In addition, you also can use the Apply to remainder check box, which tells the Payroll module to send all remaining pay to that account. This is useful when the net payment for an employee varies from what was planned for flat amounts. Here are four ways that you can achieve the split discussed earlier: Flat Amount 1
For checking account, set "800" For savings account, set "200"
2
For checking account, set "800"
Percentage
Apply to Remainder
For savings account, check Apply to remainder check box
3
For checking account, set 80.00 percent For savings account, set 20.00 percent
4
For checking account, set 80.00 percent
For savings account, check Apply to remainder check box
In the following example, the employee has chosen to deposit 95 percent of the salary into a checking account, and 5 percent into a savings account.
FIGURE 3.4 PERCENTAGE-BASED EARNINGS SPLIT BETWEEN CHECKING AND SAVINGS ACCOUNTS.
3-24
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks Benefit/Deduction Evaluation The Payroll setup feature references the Employee benefit deductions form, which contains an Evaluate button. Clicking this button causes Microsoft Dynamics 2009 AX Payroll to evaluate the origin of the benefit deductions assigned to the selected employee. Benefit deductions marked with green highlighting have been inserted into the table automatically because they belong in the employee's benefit/deduction rule group. Manually inserted benefit deductions display in yellow. For those marked in yellow, you must select the appropriate calculations or enter the appropriate amount and select the start/end dates to use.
FIGURE 3.5 EXAMPLE OF EMPLOYEE BENEFIT/DEDUCTIONS EVALUATION.
Scheduled Benefit/Deductions You can use scheduled benefit/deduction to create one-off benefit/deductions for an employee. NOTE: Make a distinction between benefit/deduction scheduling and Scheduled benefit/deductions. The latter term is used for employee-specific benefit/deductions set to come off an employee's pay during a specific period for example, an advance recovery.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-25
Microsoft Dynamics速 AX Payroll Calculation Variables Each Calculation variable set up in Payroll is automatically defined for use in one or more calculations. Calculation variables are assigned either a fixed amount specific to each employee, or a default amount. As necessary, payroll administrators can adjust the fixed amount assigned for each employee. For example, Mia may need to increase a retirement savings percentage that she already has assigned to an employee. The retirement savings rate she needs to adjust is defined as a variable in the retirement savings benefit's calculation, and is called Emp Pension Percent. Mia selects this variable from a list of calculation variables, and changes the override amount/rate from three to four percent.
FIGURE 3.6 CALCULATION VARIABLE OVERRIDE AMOUNT/RATE CHANGED FROM THREE TO FOUR PERCENT.
Generated Earning Enrollments Generated earnings automatically generate allowance-type earnings that are provided to eligible employees. A generated earning can be enrolled (given to only employees who have been explicitly identified as eligible to receive it) or non-enrolled (available to all employees in the selected earning rule groups and pay groups). Generated earnings can be pre-defined amounts, or they can be calculated from time worked. How a generated earning calculates is part of the definition of the generated earning, although if the generated earning is an enrolled generated earning, the generated earning definition can be overridden by information entered on a specific employee's enrollment for that earning. For example, you can set up a uniform allowance or car allowance to generate earning enrollment.
Employee Entitlements Employee entitlements exist in Payroll as banks of time or earnings, such as vacation, banked overtime, or sick leave, that employees can accumulate and deplete.
Organization Splits Organization splits permit postings of an employee's earnings and benefit/deductions to split automatically between two or more organizations according to the ratio you define.
Stop Pay Use the Stop Pay feature to stop paying an employee for one or more positions. You 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.
3-26
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks
Manage Employee Payroll Information Managing employee payroll information involves: •
Using the Payroll setup feature.
•
Using procedures to modify or delete payroll information as required.
Some information that users must manage is not set up by using the Payroll setup feature - for example, entitlements.
Scenario After a new employee has been created, and after a position has been either assigned or created for that employee, Mia must set up payroll-related information for that employee.
Add Payroll Information for a New Employee After you have created the new position for the employee, follow these steps to set up payroll-related information. 1. If you still have the Positions form open for the new employee, proceed to the next step. If the form is not still open, then: a. Open the Employee form and select the employee. b. Click the Position icon at the top of the form. 2. Click the Payroll Module button on the right side of the form and select Payroll setup. The Persons form displays the employee name. 3. Click Next. The Addresses form is displayed. 4. Create an address record by pressing CTRL+N and entering the appropriate information. Click Next. The Person electronic contacts form displays. 5. Create an electronic contact record by pressing CTRL+N and entering the appropriate information. 6. Click Next. The Employee form is displayed with the Employee dates tab selected. The Payroll module sub-tab also appears (not the Payroll tab, which refers to HR's internal "payroll" data). If necessary, change information in the Payroll module sub-tab. 7. Click Next. The Positions form is displayed. If necessary, change information in this form. 8. Click Next. The Benefit/deductions form displays default enrollments for the employee. These enrollments are based on the benefit/deduction group on the employee's position. You can change or delete the enrollments and add new enrollments.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-27
Microsoft Dynamics® AX Payroll 9. Click Next. The Accounts form is displayed. If you do not add account information, the employee will be paid by check. To pay the employee by direct deposit, click CTRL+N to create a new row. Select the Financial institution and Account type, and enter the Account number. 10. Click Next. The Calculation variables form is displayed. This form enables you to enter rates and amounts that are unique to employees, such as tax exemptions or allowance amounts. 11. Click CTRL+N to create a new row, and then select or enter the appropriate calculation variable, item, rate, and so on. 12. Click Next. The Generated earning enrollments form is displayed. If you need to set up allowances for the employee, press CTRL+N to create a new row for each allowance and enter the appropriate information. 13. Close the Payroll Module form.
Scenario As Mia, the Payroll Administrator, prepares for a pay cycle, she regularly makes routine changes to employee payroll information. For example, she may have to: •
Make changes to the employee accounts used for direct deposit.
•
Change an employee's benefits/deductions to reflect a new marital status.
•
Change which organizations an employee's wages and benefit costs are charged to.
•
Modify an accumulator value associated with an employee's entitlements.
•
Change generated earning enrollments for an employee, because of a promotion (an increase in car allowance amount, for example).
Modify Bank Account Information Use this procedure to add, modify, or expire bank account information for an employee. For example, use this procedure to change account information if an employee changes financial institutions, or if an employee wants to change the percentages of his or her wages that are deposited in multiple accounts. 1. In the Payroll module, click Employees in the Places page, then click the Payroll profile tab. Click the Setup icon, and then select Accounts. 2. To modify an employee's bank account information, select Maintain, select the field, and make the required effective-dated changes. Click Save.
3-28
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks 3. To add an account, highlight the record to be changed, and then click the Split view icon at the bottom of the screen. Press CNTL+N to create a new effective dated record, make the required changes and then click Save. 4. To expire a bank account, select an item from the displayed bank account rows, and then change the account's effective dating to expire it on the desired date.
Modify Employee Benefits and Deductions Follow these steps to add, modify, or expire benefit and deduction information for an employee. 1. In the Payroll module, click Employees in the Places page, click Payroll profile, and select the employee. 2. In the Update Earnings and Benefit/Deductions area of the action pane, click the Benefit/Deductions icon. 3. To modify, add, or expire: • To modify a benefit or deduction, select the benefit or deduction to be modified, open the split view area, and press CNTRL+N to create a new record. Make the required changes in the Overview tab. •
To add a benefit or deduction, select the Overview tab and press CTRL+N to create a new row. Select the General tab and enter data into the fields as required.
•
To expire a benefit or deduction, select the record from the displayed benefit/deduction rows in the Overview tab, and change the Expiry date as required.
Mass Update - Benefit/Deductions Follow these steps to modify benefit/deductions for multiple employees in a pay group. 1. In the Payroll module, click Employees in the Places page, click Payroll profile, and select an employee. 2. In the Update Earnings and Benefit/Deductions area of the action pane, click the Mass Update Benefit/Deductions icon. 3. Click the Fast Entry tab, and then select a benefit/deduction and, if relevant to that benefit/deduction, a benefit/deduction enrollment. 4. Select employees to receive that benefit/deduction. You can filter the list of employees by Pay group and deduction rule group. 5. Click Insert to add the benefit/deduction to each selected employee.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-29
Microsoft Dynamics® AX Payroll Modify Employee Benefit/Deduction Schedules Follow these steps to add, modify, or delete benefit/deductions scheduling information for employees. 1. In the Payroll module, click Employees in the Places page, click Payroll profile, and select the employee. 2. In the Update Earnings and Benefit/Deductions area of the action pane, click the Benefit/Deductions Schedule icon. 3. To modify or add a schedule: • To modify, select it in the Overview tab and change settings as needed. •
To add a schedule, click the Overview tab, press CTRL+N to create a new row, click the General tab, and enter the required information.
Modify Employee Organization Splits The organization associated with a position is one possible source of dimension values for the earnings and benefit costs posted to the General Ledger for this position. Organization splits over-ride the organization selection for the position and divide those expenses among one or more organizations specified in the split. Follow these steps to add, modify, or expire organization split information for an employee. 1. With the Payroll module selected, click Employees in the Places window, select an employee, and then click the Payroll profile tab. 2. Select the employee, then click the Organization splits icon. Current organization splits display on the Overview tab. 3. To create an organization split, click the Maintain tab and press CTRL+N to create a new organization split. Select the organization unit, the percentage of employee time charged to that organization unit, and the effective dates. Create one row for each organization sharing the employee's expenses. To alter the organizations or split percentages, click the Maintain tab and select the position from the drop-down list at the top of the form. Open the split view, press CTRL+N to create a new organization, and enter: •
Organization unit
•
Percentage of employee time charged to that organization unit
•
Effective dates.
NOTE: If the percentages do not total 100 percent, a warning message will appear. Close the warning message, adjust the percentages as necessary, and then click Save.
3-30
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks To expire an organization split, select an item from the displayed Organization split rows. Change the effective dates to expire the record as required. Click Save.
Modify Accumulator Value Follow these steps to add, modify, or expire accumulator values for an employee. 1. With the Payroll module selected, click Employees in the Places window and then click the Payroll profile tab. 2. Select an employee, then click Manage > Accumulators. 3. To add an accumulator, click the Overview tab and press CTRL+N. Click the General tab and enter/select data in the required fields (including an initial accumulator amount, if applicable). To modify an accumulator, click the Overview tab and select the accumulator. Click the Split view icon and press CTRL+N to create a new row. Ensure the new row is selected, and then click the General tab. Change the required fields. To expire an accumulator, click the Overview tab and select the accumulator. Change the effective dating to expire the record.
Modify Calculation Variables Calculation variables are amounts that are specific to the employee and are used in earnings and benefit/deduction calculations. They affect payment parameters such as tax exemption amounts. Follow these steps to add, modify, or expire a calculation variable parameter (for example, a federal tax exemption amount for an employee). 1. With the Payroll module selected, click Employees in the Places window and then click the Payroll profile tab. 2. Select an employee, then click Manage > Calculation variables. 3. To create a new calculation variable, click the Overview tab, press CTRL+N to create a new row, and select the General tab. Enter or select the required information for the new variable: a. In the Calculation variable field, select the appropriate calculation variable. b. In the Item field, select the appropriate item for the calculation variable. c. In the Rate Counter field, enter the number of times the item will be applied, as appropriate for the item. For example, if the calculated amount is $10.00 for each month, enter 12 in this field to produce a calculation of 120. d. Select Overwrite amount if the amount is unique to the employee.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-31
Microsoft Dynamics速 AX Payroll To modify a calculation variable, click the Overview tab and select the variable. Click the General tab and make adjustments to the fields as necessary. To expire a calculation variable, click the Overview tab and select the variable. Change the effective dates to expire the record.
Modify Generated Enrollments for an Employee Generated earnings are typically allowances. Follow these steps to add, modify, or expire a generated earnings enrollment for an employee. 1. With the Payroll module selected, click Employees in the Places window and then click the Payroll profile tab. 2. Select an employee, and then click the Generated Earning Enrollments icon in the Update Earnings and Benefit Deductions area of the Action pane. To create a new enrollment, press CTRL+N and select a Generated earning from the list. Select the General tab and enter the required information. To modify an enrollment, select it from the list and then click the General tab. Adjust fields as required. To expire an enrollment, click the Overview tab and select the enrollment. Change the effective dates to expire the record.
Modify Generated Earnings Enrollments for Multiple Employees Follow these steps to use this fast-entry function to add, modify, or expire a generated earnings enrollment for multiple employees. 1. With the Payroll module selected, click Employees in the Places window and then click the Payroll profile tab. 2. Select an employee, and then click the Generated Earning Enrollments icon in the Update Earnings and Benefit Deductions area of the Action pane. 3. Select the Fast Entry tab. 4. Select the appropriate generated earnings, employees, and earning rule groups. 5. Select/enter any applicable overrides. 6. Click Insert to add the enrollments to the employees or Delete to remove them. To expire a generated earnings enrollment for the selected employee, click the Overview tab and select the enrollment. Change the effective dates to expire the record.
3-32
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks Managing Employee Entitlements Employee entitlements exist in Payroll as banks of time or earnings that employees can accumulate and deplete. Examples include sick leave, vacation days, and overtime accrual. Payroll tracks entitlement banks for individual employees. Time or earnings can accumulate based on time worked (for example, banked overtime) or periodic entitlement (for example, a sick leave amount for the year). Employee entitlements must be: •
Managed to reflect changing employees and employment conditions.
•
Updated and processed for each pay period, and for payouts.
Managing entitlements involves procedures for: •
Managing entitlement rule groups
•
Reviewing entitlements
To manage entitlement banks, you need at least one entitlement.
Manage Entitlement Rule Groups To set up entitlements for an employee, you must assign an entitlement rule group to the employee. You also may need to establish a starting balance for a new entitlement. Entitlement banks increase and decrease based on the entitlement rule group that is associated with employees and their positions. Assign an entitlement group to: •
An employee, to create employee-level entitlement banks that are increased and decreased by the earnings/calculations associated with positions that have a blank entitlement rule group.
•
An employee job to create independent entitlement banks that are specific to a job by giving each a different entitlement rule group.
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-33
Microsoft Dynamics速 AX Payroll Assigning an Entitlement Rule Group Follow these steps to assign an Entitlement Rule Group: 1. If the employee's entitlement rule group should be determined by occupation entitlement rules, ensure that the individual's employee and position records have no entitlement rule group and skip to step 4. 2. If you must manage the employee's entitlements independently for each position (vacation accrued on position 1 cannot be taken from position 2), assign an entitlement rule group to an employee or job by clicking Payroll > Employees > Setup > Jobs and selecting a different entitlement rule group for each job. Then skip to step 4. 3. In all cases where you must assign an entitlement rule group for the employee (other than steps 1 and 2), click Payroll > Employees and select an entitlement rule group for the employee. The associated entitlements will apply to all that employee's jobs that do not have a different entitlement rule group. 4. If you do not need to enter starting balances for any entitlements, you are finished assigning an entitlement rule group. To set up starting balances, click either Payroll > Journals > Entitlements or Payroll > Employees > Setup > Entitlements. 5. If the new entitlement appears in the entitlements list, click Functions > Adjust entitlements. The Adjust entitlements form shows the current accrued and taken values, as well as the remaining amount. 6. If the new entitlement does not appear in the list, click Functions > Add entitlements. In the Add entitlements form, select the pay group, employee, entitlement to add, entitlement rule group, accrual entitlement period, and entitlement period year, and number in which the starting balances should appear. 7. Select a reason code and enter accrued and taken values. The entitlement bank balance appears in the Remaining field. Click OK. 8. Repeat steps 2 through 7 for each entitlement that needs a starting balance.
Changing an Entitlement Rule Group To move an employee from one entitlement rule group to another, you must change which entitlement rule group is assigned to the employee or position. You cannot change the entitlement rule group that is associated with an entitlement bank for an employee or position. When you change the entitlement rule group for an employee or position, a new entitlement bank for that employee or position is created automatically. You can, however, create a new effectivedated version of an existing position, assign it a new rule group, and manually change the associated entitlement banks.
3-34
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks For example, suppose the Vacation entitlement bank is associated with the Staff entitlement rule group for an employee. The employee is promoted, and you change the entitlement rule group to Management. The next time you update or generate entitlements and thereby impact the employee's vacation entitlement, a new Vacation entitlement bank is created automatically and is associated with the Management entitlement group. It will have no starting balance. The remaining amount balance in the Vacation entitlement bank associated with the Staff entitlement rule group is the previous balance. To transfer that balance to the new entitlement bank, you must adjust both entitlement banks.
Transferring Between Entitlement Banks Follow these steps to transfer a balance from on entitlement bank to another: 1. Click Payroll > Employees. 2. Select the employee and then click Setup > Entitlements. 3. Select an entitlement that is associated with the previous entitlement rule group and that has a balance. 4. Click Functions > Adjust entitlements. The Adjust entitlements form shows the current accrued and taken values, and the remaining amount. 5. Add the values in the remaining amount and current taken amount fields, and enter that total value in the taken amount field. 6. Select an adjustment reason and then click OK. The balance should be reduced to zero. 7. If the same entitlement that is associated with the new entitlement rule group appears in the list, click Functions > Adjust entitlements. The Adjust entitlements form shows the current accrual and taken values and the remaining amount. 8. If no copy of that entitlement is associated with the new entitlement rule group, click Functions > Add entitlements. In the Add entitlements form, select the pay group, employee, entitlement to add, new entitlement rule group, accrual entitlement period, and entitlement period year and number in which the starting balances should appear. 9. Select a reason code and enter the starting balance as the accrued value. The entitlement bank balance appears in the Remaining field. Click OK. 10. Repeat steps 2 through 9 for each entitlement that needs a starting balance.
Reviewing Entitlements Use the following procedures to review entitlements. You can review employee entitlements, including accrued, taken, and remaining values by clicking Payroll > Journals > Entitlements or by clicking Payroll > Inquiries > Entitlements.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-35
Microsoft Dynamics® AX Payroll You can review employee entitlement transactions, including accrued, taken, and remaining values, reason codes for manual adjustments, and source run types for automatic transactions. Follow these steps to review entitlement transactions: 1. Click Payroll > Journals > Entitlements, or click Payroll > Inquiries > Entitlements, or click Payroll > Employees. 2. Select an employee, and then click Setup > Entitlements. 3. Select an entitlement and then click Inquiries > Entitlement transactions.
Manage Employee Demographic Information Employee demographic information in Payroll includes employee: •
Dates
•
Events
•
Addresses
•
Electronic contacts
•
Person contacts
•
Notes
•
Accomplishments
You can consistently maintain and manage this information; to illustrate, this course reviews two types of demographic information: •
Employee dates
•
Employee events
Modify Employee Dates Follow these steps to modify dates, such as service or seniority start dates. 1. With the Payroll module selected, click Employees in the Places window and then click the Payroll profile tab. 2. Select an employee and then click Setup > Employee Dates. 3. To create a new employee date, click the Overview tab and press CTRL+N. Click the General tab, and select the information you require: • Position
3-36
•
Date type (such as entitlement date, hire date, or anniversary date)
•
Employee date
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks 4. To modify an employee date, click the Overview tab and select the date. Click the General tab and adjust the fields as necessary. 5. To expire an employee date, click the Overview tab and select the date. Click the Delete icon on the main toolbar or press ALT+F9.
Modify Employee Events Follow these steps to add, modify, or delete hours-based and date-based event information, such as performance reviews or re-certifications. 1. With the Payroll module selected, click Employees in the Places window and then click the Payroll profile tab. 2. Select an employee, and click Setup > Employee Events. 3. To create a new employee event, click the Overview tab and press CTRL+N. Click the General tab, and select the information you require. To modify an employee event, click the Overview tab and select the event. Click the General tab and adjust the fields as necessary. To expire an employee event, click the Overview tab and select the event. Change the effective dates to expire the record.
Stopping Pay for an Employee You can stop paying an employee for one or more positions. You also can record related information, such as the employment starting date, employment ending date, and the reason why pay is being stopped. When you stop payment for an employee who has been terminated or who is taking an extended leave of absence, use the stop payment type and stop payment reason codes to explain why the employee is no longer being paid for that position. For example, you might have stop pay types for employee termination, position termination (when an employee has multiple positions and is stopping one, but continues to hold another position), and leave of absence. Stop pay assigns a Valid to date on the position that is one day after what you enter as the stop pay date. It also assigns an end date to any employee dates defined for the employee. Follow these steps to use the Stop pay form to stop paying an employee for one or all that employee's positions. 1. With the Payroll module selected, click Employees in the Places window and then click the Payroll profile tab. 2. Select an employee, and then click the Stop Pay button. 3. For each position that you must stop pay for: a. Select the position. b. Enter the Stop pay reason code, Stop pay type, and Stop pay date (the last day the employee will be paid for the selected position). c. Click the Stop pay button.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-37
Microsoft Dynamics速 AX Payroll
Lab 3.2 - Maintain Employee Information This lab involves changing benefit/deduction enrollments to reflect a change in marital status for an employee. Scenario Employee 1407, Sean Chai, was married on January 14, 2008. Mia needs to update benefits and deductions whose calculations are affected by marital status.
Challenge Yourself! Change the Single benefit/deduction enrollments for employee 1407, Sean Chai, to Married, starting with an active date of January 14/14/, 2008.
Need a Little Help? To access an employee's benefits and deductions, click Payroll, then Employees, then the Payroll Properties tab. Select the employee and then click Benefits and deductions. To keep track of the date on which the employee's benefit/deduction enrollment changes, use the Split view, click the row to change in the lower view, and press CTRL+N to create a new copy of that row.
Step by Step Follow these steps to maintain employee information:
1. Click Payroll, then Employees, then the Payroll Profile tab. Select the employee and then click Benefit/deductions. 2. In the Benefit/deductions form, highlight the first benefit/deduction with a Single enrollment and, at the bottom of the form, click the + button to open the split view. 3. In the split view pane, click [b1] the benefit/deduction you are changing and press CTRL+N to create a new copy of that row in the split view pane. 4. Change the enrollment to an appropriate option [b2] and change the active date to 1/14/2008. For example, change the CA SIT enrollment to Married 1. 5. Click the Save icon at the top of the form. A dialog appears notifying you that the expiry date of the earlier version of that benefit/deduction will be changed to 1/13/2008. Click OK. 6. In the upper list, select the next benefit/deduction with a Single enrollment. Repeat steps 3 through 5 for that benefit/deduction. 7. Repeat step 6 until you have changed all benefit/deductions with a Single enrollment appropriately.
3-38
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks
Summary As the prime users of the Microsoft Dynamics AX 2009 Payroll module, Payroll Administrators are responsible for all routine tasks associated with administering a typical pay period. The tasks that the administrator(s) are responsible for fall into three functional groups: •
Employee data management
•
Payroll processing
•
Payroll reporting
This course concentrated on the first of these three - employee data management tasks. These tasks were grouped into five categories: •
Managing employee positions
•
Adding payroll information for employees
•
Managing employee pay-related information
•
Managing employee demographic information
•
Stopping pay for an employee
Knowing how to perform employee data management tasks will help you with the next course in this collection, "Payroll Administrator Processing Tasks."
Microsoft Official Training Materials for Microsoft Dynamics ® Your use of this content is subject to your current services agreement
3-39
Microsoft Dynamics速 AX Payroll
Test Your Knowledge 1. Where can you create a new employee, and what must you assign that new employee in order for him or her to be paid by using the Payroll module?
2. What is a position and what is the relationship of a position to a job?
3. Name four types of information that positions contain.
3-40
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks 4. What are the most important criteria when you think of strategies to reduce data input? Why are these criteria important?
5. What is a generated earning enrollment?
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-41
Microsoft Dynamics速 AX Payroll 6. What is an organization split?
7. What is an entitlement and what is the role of an entitlement rule group?
3-42
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks
Quick Interaction: Lessons Learned Take a moment and write down three key points you have learned from this chapter 1.
2.
3.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-43
Microsoft Dynamics速 AX Payroll
Solutions Test Your Knowledge 1. Where can you create a new employee, and what must you assign that new employee in order for him or her to be paid by using the Payroll module? MODEL ANSWER: You can create employees in the Payroll, Basic or, if installed, Human Resources modules. To be paid, an employee must be assigned at least one position. 2. What is a position and what is the relationship of a position to a job? MODEL ANSWER: A position can be seen as what a particular employee does for work. A job is a template for a position. Positions are required to matching the correct job, wage, benefits, deductions, entitlements, and earnings information to specific employees. 3. Name four types of information that positions contain. MODEL ANSWER: Employee identification Employment information Job information Rule groups Location Salary Organization and Dimensions Occupation Hours of work. 4. What are the most important criteria when you think of strategies to reduce data input? Why are these criteria important? MODEL ANSWER: When you choosinge strategies to minimize workload, the most important criteria is consistency - because there may be several options open to you to achieve the same effect. For example, you can define rules groups, dimensions, and salary grids in the Positions, Occupations, or Employee tables. However, even if you define this data in more than one location, Payroll will only use the first one it finds - and Payroll always looks for these definitions in the same order: it looks first in Positions, then in Employees, and then in Occupations.
3-44
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
Chapter 3: Payroll Administration Data Tasks 8. What is a generated earning enrollment? MODEL ANSWER: Generated earnings are automatically-generated, allowance-type earnings that are provided to eligible employees. They can be non-enrolled, and all employees in the specified pay group and earning rule group receive them. Alternatively, they can be enrolled, and only the employees who are individually enrolled for that generated earning receive it. 5. What is an organization split? MODEL ANSWER: Organization splits override postion organization in determining the dimensions used when posting earning and benefit costs to the General ledgerLedger. Organization splits also enable you to divide those costs amongt more than one organization and its dimensions. 6. What is an entitlement and what is the role of an entitlement rule group? MODEL ANSWER: Employee entitlements exist in AX 2009 Payroll as banks of time or earnings, such as vacation, banked overtime, or sick leave, that employees can accumulate and deplete. Examples include sick leave, vacation days, and overtime accrual. Entitlement banks are increased and decreased based on the entitlement rule group that is associated with employees and their positions.
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement
3-45
Microsoft Dynamics速 AX Payroll
3-46
Microsoft Official Training Materials for Microsoft Dynamics 速 Your use of this content is subject to your current services agreement