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Finance | Project Operations, Human Resources, ...
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Difference between Compensation management & Earning Codes

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Posted on by

Hi,

I am doing setup of Fixed & Variable Compensation in D365 Human Resource and parallely there are setup for payroll in payroll earning codes.

I am bit confused between compensation setup and payroll earning setup. Can anyone help me in understanding what is the different between Fixed Compensation & Payroll earning codes. Is there any link between 2 and is it required to setup both if payroll has to be activated.

Regards

Gaurav Virdi

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  • qianwang Profile Picture
    7,168 on at

    Hi Gaurav,

    The earning code is created for each type of earning that your organization offers and can be used in leave type and benefit. It is used in the payroll calculation process and does not conflict with compensation.

    Here is a doc for ax, but the principle is similar enough to refer to. docs.microsoft.com/.../setting-up-payroll-basic-topics

  • Community Member Profile Picture
    on at

    Hi QianQW,

    Thankyou for your reply.

    I have 2 more doubts, if you could help me on that:

    1) Does payroll calculation process takes input from Fixed & Variable compensations?

    2) I could not find option of "Generating Pay Statements" which i can see in FnO, which is explained in the links you have shared.

    Regards

    Gaurav Virdi

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