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AX 2012 Payroll Processing
AX 2012 Payroll Processing
R2
Payroll:
Payroll Processing
(Public Sector)
December 2012
Version 1.0
Contents
Demo Overview ....................................................................................................................................................................................3
INTRODUCTION .............................................................................................................................................................................3
AUDIENCE .......................................................................................................................................................................................3
SCENARIO OVERVIEW ...................................................................................................................................................................4
PROBLEMS THIS DEMO ADDRESSES ...........................................................................................................................................5
KEY PAINS OR BUSINESS IMPERATIVES ......................................................................................................................................5
PURPOSE OF DEMO (SOLUTIONS TO PAINS, BENEFITS, VALUE PROPOSITIONS)................................................................5
KEY BENEFITS AND SOLUTIONS ..................................................................................................................................................5
DEMO PRESET CONFIGURATION.................................................................................................................................................6
DEMO: PAYROLL PROCESSING ....................................................................................................................................................6
INTRODUCTION .............................................................................................................................................................................6
GENERATE EARNINGS ...............................................................................................................................................................7
REVIEW AND EDIT PAY STATEMENTS ...................................................................................................................................12
ISSUE PAYMENTS .....................................................................................................................................................................14
GENERATE AN ADDITIONAL PAY STATEMENT ....................................................................................................................19
POST PAY STATEMENTS ..........................................................................................................................................................25
GENERATE VENDOR INVOICES ..............................................................................................................................................27
CLOSE THE PAY PERIOD ..........................................................................................................................................................29
EMPLOYEE SELF-SERVICE ........................................................................................................................................................31
CONCLUSION ...............................................................................................................................................................................32
GLOSSARY AND ADDITIONAL BACKGROUND CONTENT......................................................................................................32
Disclaimer ...........................................................................................................................................................................................33
When you complete this document and demo script, you will be able to:
Describe how Microsoft Dynamics AX 2012 R2 provides a timely way to pay and manage an organization’s payroll needs.
Discuss how payroll provides the flexibility needed during the payroll processing.
Manage the payroll process end to end.
AUDIENCE
The included script should be used to demonstrate the value of Microsoft Dynamics AX 2012 R2 to a business decision maker
(BDM). The executives that you are presenting to will find value in this script if they are challenged with:
Payroll administrator who is challenged by the difficulties of the day-to-day payroll processes.
The following role examples represent key decisions makers, selection process personnel, and influencers and/or evaluators:
Payroll Manager – The Payroll Manager is responsible for ensuring the oversight of all payroll personnel. The person in
this role is responsible for ensuring that all business process and safeguards are enforced and reporting data is accurate
and timely.
Payroll Administrator (Mia) – The Payroll Administrator is responsible for the overall data entry and processing of
payroll. The person in this role is also responsible for accurate and timely payroll data for reporting. Employees’
earnings, tax, and deductions must be accurate and issued in a timely recurring fashion in order to meet numerous
federal, state, and local payroll and tax laws.
Human Resources Manager (Claire) – The Human Resources Manager manages the needs of a company's employees.
The person in this role develops and manages areas such as employment programs, salary compensation, job
evaluations, benefits, and training programs. The Human Resources Manager struggles with obtaining information to
make decisions, managing change, and maintaining employee data using a manual process.
Compensation and Benefits Manager (Jodi) – The Compensation and Benefits Manager conducts compensation and
benefit analysis. The person in this role maintains fairness in pay structures and ensures job analysis is tied to
compensation planning; this person also handles preferred HR vendor relationships.
Accounting Manager (Phyllis) – The Accounting Manager manages the accounting department by processing general
ledger transactions, reviewing and approving transactions, and reviewing aging reports. The person in this role also
ensures that the accounting team accurately completes financial procedures on time.
IT Manager (Tim) – Tim is responsible for the systems used within the company. Tim struggles with a complicated
security setup and manual processes.
Every pay period, Mia, the Payroll Administrator, faces a daunting task of paying all the employees at the City of Maple. With the
large workforce at the city, Mia must accurately maintain all employee payroll records and the information needed to properly
process the payroll each pay period. Employees are continually submitting changes to their tax setup information and several
other payroll related factors. Mia must update this information in a timely fashion. Part of these responsibilities also fall on the
HR Assistant and the Compensation and Benefits Manager at the city. Mia must coordinate with Brooke (HR Assistant) and Jodi
(Compensation and Benefits Manger) each pay period to make sure all updates are in place and ready for payroll. After all
updates are in, Mia starts the task of running the pay period process of paying the employees. The preceding chart highlights
this complex and critical process of managing the payroll process.
This script focuses on the payroll process and some of the various exceptions and configurations that occur at City of Maple. The
script will highlight the following:
Earnings generation:
o Entering and validating exceptions on earnings such as vacation usage (both schedule based and salary based)
o Employee on extended leave
o Employee holding multiple positions
o Employee works in an alternate location for tax purposes
o Recurring earnings (car allowance)
Pay statement generation:
o Multiple tax regions in a single pay statement
o Manual benefit adjustments
o Position specific benefit calculations
o Gross up bonus calculation
Issuing payments and posting payroll to the general ledger
o Printing checks
INTRODUCTION
Microsoft Dynamics AX 2012 R2 is introducing new processes for managing the payroll process. This section provides an
overview of how users can be made productive with the payroll process in Microsoft Dynamics AX 2012 R2.
Notice that the FactBoxes include information on the earnings statements. Mia can see the Position assignment
information of the worker that the earnings statement belongs to. Mia can also see summary and reference
information regarding the earnings statement, such as Worker Earnings totals, which summarize the earnings
statement by earning code; Worker earnings totals, which summarize hours and amounts; and lastly, the Pay
statements, which links to all pay statements which payout earnings for the selected earnings statement.
4. Create a new earnings statement to record
vacation time as an exception entry.
5. Click OK.
Note that 44 pay statements were created or
updated.
Notice that the FactBoxes include information on the pay statements. In the Pay statement totals, Mia can
quickly see a summary of the pay statement, including gross pay, deductions, net pay, and contributions. In the
Position assignment FactBox, the workers positions are listed for easy reference and access. The Payments
FactBox gives reference and access to the payment journal and related information, such as check number and
direct deposit disbursement information. Lastly, if the pay statement had arrears generated from it, those newly
5. Click OK.
Note that a payment journal with 52
vouchers was created along with a single
invoice. Keep track of the journal number for
later use.
The following is a list of all the postings that will occur as a result of running this process:
Earnings:
o Earning cost is debited to the main account specified on the earning code.
o Earning costs are credited to the Salary clearing account defined in the Payroll parameters form.
Benefit deductions:
o Deduction amount debits the Salary clearing account defined in the Payroll parameters form.
o Deduction amount credits the deduction main account specified on the benefit plan.
Benefit contributions:
o Contribution amount debits the contribution main account specified on the benefit plan.
o Contribution amount credits the main account, as defined in the Posting definitions in the general
ledger setup based on the main account used for the debit.
Employee taxes:
o Tax amount debits the Salary clearing account defined in the Payroll parameters form.
o Tax amount credits the main account specified on the tax code.
Employer taxes:
o Tax amount debits the main account specified on the tax code.
o Tax amount credits the main account as defined in the Posting definitions in the general ledger setup
based on the main account used for the debit.
If you want to show the full ledger entry for a specific pay statement, you can go to the pay statement list page or
open the detail of a specific pay statement (Payroll > Common > Pay statements > All pay statements) and click the
Financials tab on the Action Pane. From there, you can click the Subledger journal entries button to see the full entry
for the selected pay statement. This can be done before or after posting has been run. If you do this before posting is
run, it shows how it will appear in the ledger. If it is viewed after the posting is run, it shows the actual posted entry.
1. Log on as BradPSUS.
2. On the taskbar, click the Internet Explorer
icon.
3. Navigate to the Employee services portal at
http://dynamicsax.contoso.com/sites/Dynami
csAx/EmployeeServices/.
4. In the Personal information group, click the
Pay statements link.
The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of
the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be
interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information
provided after the date of this presentation.
Sample code included in this presentation is made available AS IS. THE ENTIRE RISK OF THE USE OR THE RESULTS FROM
THE USE OF THIS CODE REMAINS WITH THE USER.
Microsoft Dynamics is a line of integrated, adaptable business management solutions that enables you and your people to
make business decisions with greater confidence. Microsoft Dynamics works like and with familiar Microsoft software,
automating and streamlining financial, customer relationship and supply chain processes in a way that helps you drive
business success.
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www.microsoft.com/dynamics