Dynamics 365 Field Service : Configure pay types and rates

In Dynamics 365 Field Service, “Pay Types and Rates” are used to define how resources (typically field technicians) are compensated for the work they perform. These settings help organizations track labor costs accurately and ensure appropriate payroll or subcontractor payment processing. 

What Are Pay Types?

Pay Types define the category or method of payment for a resource’s work. Examples include:

• Regular: Standard working hours with normal pay.
• Overtime: Work beyond regular hours, often paid at a higher rate.
• Holiday: Work done on holidays, potentially at a premium rate.
• Travel: Time spent traveling that may be billable or payable.
• Break: Non-billable or unpaid time during shifts.

Pay Types are associated with Bookable Resource Time Entries and help determine the classification of time worked.

What Are Pay Rates?

Pay Rates define how much a technician or resource earns for each pay type. These are typically set per hour and are tied to specific combinations of:

• Bookable Resource (e.g., a specific technician)
• Pay Type (e.g., Regular, Overtime)
• Date Range (to support changes over time)
• Currency (if dealing with multiple regions)

For example, a technician might have:

Regular pay: \$25/hour

Overtime pay: \$37.50/hour

Holiday pay: \$50/hour

Purpose and Benefits

• Accurate Cost Tracking: Enables the organization to capture actual labor costs for work orders.
• Payroll Support: Helps in exporting time data for payment processing.
• Subcontractor Billing: Useful for external resources whose compensation needs to be tracked separately.
• Profitability Analysis: Assists in understanding margins and cost-to-serve for different work order types.
• Automation: Once configured, pay types and rates are automatically applied based on time entries and scheduling data.

Configuration

You can configure pay types and pay rates from the Field Service app under:

• Resource Scheduling > Pay Types
• Resource Scheduling > Pay Rates

Pay rates are set per resource, allowing flexible compensation management across the workforce.

Use with Time Entries and Work Orders

When a technician completes work and logs time (either manually or via mobile), the system automatically assigns the correct Pay Type based on the booking's time and context. The Pay Rate is then used to calculate labor cost, which is associated with the work order.

In summary, configuring pay types and rates in Dynamics 365 Field Service provides financial clarity, operational efficiency, and accurate labor cost tracking essential for both internal management and client billing.