Human Resources – Automatic Benefits Eligibility Determination for Employees in Microsoft Dynamics AX 2012

Employees of every organization are often entitled for several benefits such as cell phone, Parking, Dental, Vision insurance etc.. All the required data for the employee benefits are managed inside the Human resources management module of AX 2012. There are some sequence of steps involved to configure and manage all the elements of benefits such as,

  • Configure Benefit Types.
  • Configure Benefit plans for each benefit types
  • Configure Benefit options for the employees for each of the plans.


I will not explain the setup and configuration of benefit elements in this post. In this post, we will focus on discussing how AX 2012 makes it extremely simple for human resource managers/executives to automatically determine the eligibility of employees who can be enrolled on a given benefit. AX 2012 allows to configure simple benefit eligibility rules and HR executives can simply create and process benefits eligibility events. AX will then automatically determine which employees are eligible to be enrolled for the benefits. Let us now discuss the step by step guidelines to create and run a benefit eligibility event.

Note: Before you run the benefits eligibility events in AX 2012, make sure you have setup all the benefit elements.

1. Define benefit eligibility policy and rules:

    • The first thing to setup is the eligibility policy parameters which will be used by all the benefits eligibility policies.
    • Navigate to HR > Setup > Policies > Benefits eligibility.
    • Click Setup > Parameters on the action pane.
    • Select the organization types which can be used with benefits eligibility policies. Notice that the only organization type which you will have for the benefits eligibility policy will be Companies.
    • image
    • The next step is to create the benefits eligibility policy. Click New > Policy
    • Select the Company accounts for which this policy will be used.
    • image
    • The next step is to configure the benefit policy rules. Note that you need to configure the policy rule types prior to setting this up.
    • Let us say the HR assistant wants to process an eligibility event where he/she wants to find all eligible employees for a benefit and the eligibility criteria is that the “everyone who joined the company after 12/31/2012.
    • Navigate to HR > Setup > Benefits > Benefits eligibility policy rule types.
    • Create a new record, give it a name (Batch 2013 in this case) and select the Query as “Benefit eligibility”.
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    • Now, go back to the benefits eligibility policy created above. You will notice that the policy rule type now appears on the policy.
    • Select the Batch2013 and click “Create policy rule”.
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    • Key in the effective date, expiration date and the condition for the policy as shown in screen below and click OK button.
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    • With this, we are done setting up the benefits eligibility policy rule.

2. Create Benefit(s):

    • The next step is to create a new benefit. Let us create a benefit for Company transportation such as Company car.
    • Navigate to HR > Common > Benefits > Benefits.
    • Click New > Benefit to create a new benefit and key in the details as shown in the screenshot below and click “Create Benefit button”.
    • image
    • Expand the Eligibility rules fast tab and setup Eligibility =  “Rule based” and Select the Rule type = Batch2013. Please note that AX 2012 allows you to configure the Eligibility to ‘All workers are eligible” and “By pass eligibility process”. The “By pass eligibility process” will cause the benefit to be ignored when eligibility event is run.
    • Optionally, you can also setup Eligibility overrides with a date range for specific workers. If you setup eligibility overrides, then you can enroll a worker even if they are not found as eligible for a benefit.
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3. Create and Process the Benefit eligibility event:

    • Let us now create a benefit eligibility event and process the same. Follow the below steps to process an eligibility event.
    • On the Benefit created above, click Personnel Actions > Create Eligibility Event and key in the required details as shown in screen below and click OK button.
    • image
    • On the Eligibility event form, expand the Workers fast tab.
    • You can add selected worker records or click Add all worker button to add all the workers for this event. Note that, the eligibility event will be ideally run from the HR > Periodic area.
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    • Click Process button on the Action pane and hit OK button.
    • Note that the processing may take a few seconds and wait until you get an info confirming the completion of the process.
    • Click Refresh button and then click Show results
    • Notice that system will show all the worker records and their individual eligibility for the benefit. System also shows description of the reason why a specific worker was not eligible for a benefit.
    • image

Once the eligibility event is run and all the employees are determined, the HR assistant can enroll employees on the required benefits from the Mass benefits enrollment screen as shown in screen below.

That’s it for today’s post. Keep reading…



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