Set up and apply piecework in production

  • Article

Important

This content is archived and is not being updated. For the latest documentation, see Microsoft Dynamics 365 product documentation. For the latest release plans, see Dynamics 365 and Microsoft Power Platform release plans.

Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012

Time and attendance contains functionality for applying piecework to production jobs. The piecework setup enables workers to make registrations on piecework production jobs in the Job registration form for manufacturing execution.

Note

You can use the piecework functionality only if your organization also uses time and attendance payroll.

Set up piecework groups

  1. Click Human resources > Setup > Time and attendance > Payroll > Piecework groups.

  2. Press CTRL+N to create a group.

  3. Enter a unique identification and a description.

  4. Click the Members button.

  5. In the Piecework form, select a worker in the Worker field. The name of the worker is displayed in the Name field.

  6. Press CTRL+N to create a line.

  7. Repeat steps 5 and 6 until you have added all the relevant workers to the group.

Set up piecework

  1. Click Human resources > Setup > Time and attendance > Payroll > Piecework.

  2. Press CTRL+N to create a piecework setup.

  3. In the upper pane, in the Piecework field, enter a unique identification.

  4. In the Description field, enter a description.

  5. On the General tab, specify the piecework setup:

    1. In the Piecework code field, select if one worker, a group, or all workers are included in this piecework:

      • Table – Apply the code to a specific worker.

      • Group – Apply the code to a group of workers.

      • All – Apply the code to all workers.

    2. In the Piecework relation field, select the relevant group or worker.

    3. In the Rate field, enter the rate to be paid if the estimated number of items is produced in the estimated time. If items are produced faster than estimated, the rate will increase, and pay will be calculated proportionally.

      Note

      The increase in pay if items are produced faster than planned is determined by the Basic version selection in the Piecework rate formula field in the General area of the Production parameters form. Click Production control > Setup > Manufacturing execution > Production parameters.

    4. In the Pay type field, select the pay type that will be paid as a minimum. The calculated rate will also be paid based on this pay type when payroll transactions are generated.

  6. In the lower pane, select specific production jobs or operations to be included in the piecework.

Note

If you use piecework only for some production jobs, select the Specify production order check box in the General area of the Production parameters form. Click Production control > Setup > Manufacturing execution > Production parameters.

Set up the production order for piecework

Piecework pay is calculated only if production processes are set up for piecework. Before you start setting up piecework, you first have to apply the piecework rate calculation to the production orders or operations that you want to include in the piecework setup.

Apply piecework to an operation on a production order

  1. Click Production control > Common > Production orders > All production orders.

  2. Select the production order.

  3. On the Action Pane, on the Production order tab, click Production details > Route.

  4. Select the operation and then click the General tab.

  5. Select Piecework rate in the Hourly rate / piecework rate field.

    Important

    This field must be set before you perform scheduling on the production order.

Apply piecework to a route

If piecework should be applied to the same operation every time, you must update the route setup.

  1. Click Production control > Common > Routes > All routes.

  2. Select the Route number.

  3. On the Action Pane, click the Route button.

  4. Select the appropriate operation, and then select Piecework rate in the Hourly rate / piecework rate field.

Stop piecework

Follow these steps to stop using the piecework setup for the selected production jobs or operations.

  1. Click Human resources > Setup > Time and attendance > Payroll > Piecework.

  2. In the upper pane, select the piecework setup to stop.

  3. Select the Closed check box and then click Close.

Pay agreements and piecework

Piecework pay does not require a special piecework pay agreement, but you might have to correct existing pay agreement lines for hourly pay if the piecework pay replaces the hourly pay.

Click Human resources > Setup > Time and attendance > Payroll > Pay agreements. Click Pay agreement lines. The Hourly rate / piecework rate field determines how piecework pay is applied:

  • All – Piecework pay is added to the hourly pay as a bonus.

  • Hourly rate – Only hourly pay is generated.

  • Piecework rate – Only piecework pay is generated.

Note

The default selection for new pay agreement lines is All.

Piecework transactions

The payroll transactions that are generated from piecework are posted with Piecework as the wage type.

See also

About payroll in Time and attendance

About working with routes in production

Key tasks: Work with production jobs in Manufacturing execution