Dynamics 365 for Finance and Operations – Benefit Accruals Made Fun

Yes!  Benefit Accruals, for such things as Vacation and Personal time, can be FUN and not just when they are taken!  In Dynamics 365 for Finance and Operations, the functionality has been expanded from prior AX versions to include additional functionality like:

  • Earning Codes for Plan Accrual
  • Earning Code Group
  • Compensatory Time
  • Accrual at a Fixed Amount

The basic functionality of Benefit Accruals is the same, but with the addition of these capabilities, users will find Benefit Accruals much more user-friendly and applicable.

Before proceeding to set up Benefit Accrual Plans, it is vital that all of necessary plan details have been compiled, the number of Plans required is known and the Earning Codes, Groups, and Pay frequencies have been established.  Each set of Plan Rules and Earning types will equate to a Benefit Accrual Plan.  Even the smallest nuances may result in requiring a separate plan.  Understanding the additional functionality mentioned here will make that determination easier.

If the accrual is an hourly accrual rate, conversion of the years of employment that dictate the amount to be accrued to months, and the number of PTO days to accrue per hour is required before beginning (which will be a decimal).

Benefit Plan Accrual Set Up

Navigate to Payroll > Setup > Benefits > Benefit Accrual Plans
Benefit Accrual Plans Dynamics 365 for Operations

Open the Benefit Accrual Plans form:

To create a new Plan, Click New.

Enter the Required information:

  • Enter a plan code, up to 15 characters.
  • Enter a plan description, up to 60 characters.
  • Enter the Annual Plan Start Date – the Plan is reset on the anniversary each year.
  • Choose Yes or No, if Carryforward is allowed. Unused balances at the end of a Plan year will be carried forward to the new plan year.
  • Enter the Accrual rate basis:
    • Select if the accrual rate is based on
      • an Hourly rate (hourly accrual rate – how many hours to credit based on an hour worked, usually a decimal),
      • a Fixed Amount by payroll frequency, (Frequency field will appear and default to All)
      • a Fixed amount by date, (Accrual date field will appear)
      • or Hours of Compensatory time
  • Enter the Plan Rules:
    • Months of Service – this number represents the entry point for this level. This level will be in effect until the employee reaches the next rule entry point.  In other words, consider the number of months entered here to be the “from” amount, and the number for the next rule defines the “to” amount.
      • The Months of Service are determined based on the option specified in the Payroll Parameters – Benefit Accruals Default Service date basis. That value can be changed on the specific worker record during Benefit Accrual set up and maintenance.
    • Amount or rate
      • Be sure to enter this number based on the Accrual Rate basis entered above. If it is a rate, enter the decimal equivalent for the percentage (.02 = 2%)
    • Maximum Accrual, if there is a limit to the amount that can be accrued in the plan year.
    • Minimum balance, if there is a minimum amount required before the accrued time can be used.
  • Enter the Earning Codes for Plan Usage
    • Enter the earning codes that count as usage in the plan. For example, there may be a business need to have multiple Vacation Earning codes in place that count toward one Benefit Accrual Plan.
  • Enter the Earning Codes for Plan Accrual
    • Enter the earning code(s) or earning code group(s) to be included in the accrual. When these earning codes appear on the earnings statement, the accrual will be calculated.  This is especially valuable when not all earning codes used by the business should be included in the accrual calculation.

In addition to setting up the plan, employees must be enrolled in the plan to begin accruing benefits.  Navigate to the Employee record.  On the Profile tab, locate the Personal Details, More Information, and finally, Benefit Accruals.

Have other Microsoft Dynamics AX/365 Inquires or needs? Visit our Help Desk for Support page to see how our experts can help!

For more information please contact Ellipse Solutions at info@ellipsesolutions.com or by calling our corporate office at (937) 312-1547.

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