Microsoft Dynamics AX 2012 R2 and R3 Overtime Calculation with Holidays

In Microsoft Dynamics AX 2012 R2 and R3 Time and Attendance functionality can be used to apply rules for overtime calculations based on actual hours worked and can include or exclude holiday hours based on configuration. With the Labor Day holiday coming up next week let’s review how to account for Holiday pay and overtime rules in the same week. In this example we will include the following rules:

  • Any worked hours over 40 is considered overtime
  • Any work hours during the Holiday are paid at a special rate
  • Only actual hours worked during the Holiday are include in the overtime calculations

Rules for Overtime pay

Normally, the rules for overtime are configured so that a worker must have actual worked hours exceeding 40 hours in a pay period (i.e. a week) before the worker will receive overtime pay. However, a payment adjustment can be setup so the worker can receive overtime consideration for any hours worked over the expected hours for the pay period with one or more holiday days.

In the first example, the pay agreement has been setup to pay the worker overtime for any worked hours over 32 hours and overtime for any hours worked on the holiday itself. In our second example, the pay period has 2 holidays so the worker will be paid overtime for any worked hours over 24 hours and any actual hours worked on the holiday days.

Please note to complete the setup shown the reader should be familiar with AX 2012 pay agreements and pay adjustments.

For example, a week has one holiday, the overtime calculation is setup as follows:

  • Includes any hours actually worked on the holiday.
  • Excludes the 8 holiday hours that the worker gets paid for but is not actual worked hours.

Time Profile with one Holiday

A regular time profile with a link to a special pay agreement is utilized for such complicated overtime calculation. It is applied to any working day during the week that has a holiday. In case of the open day schedule (24 hours with ½ hour break), the following open profile is set:

The corresponding Pay agreement is set with:

  • Standard line for 8 hours a day

  • Overtime line for more than 8 and less than 24 hours a day

In combination with other days of the week, the overtime calculation for the whole week is based on the Open with 1 holiday pay agreement.

  • The agreement is set with a Pay adjustment that makes overtime calculated based on the total of regular time and time worked on the holiday

  • With the adjustment pay type to offset overtime to the regular pay type

Time Profile with two Holidays

The Open with 2 holidays profile is applied to any working day on the week with 2 holidays: like the week with Christmas Eve (December 24) and Christmas day (December 25). The difference from the settings for the Open with 1 holiday profile is only in the Pay adjustment settings for the Pay agreement.

  • The agreement is set with a Pay adjustment that makes overtime calculated based on the total of regular time and time worked on the holiday

  • With the adjustment pay type to offset overtime to the regular pay type

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