Calculation Methods

This window allows for calculation formulas to be included in the calculation of pays. They are useful for calculating shifts, overtime and leave loading.

Prerequisites

Rules and Guidelines

  • Each calculation method is identified by a unique combination of a classification, corresponding to the Calculation Method to an Hours Type.
  • The value associated with the corresponding Hours Type is used in the calculation formula. Hours or the pay rate can be used.
  • The result from a calculation method must be in hours or a fixed dollar amount.
  • The result from a calculation method must be allocated to an Hours Type or an Allowance/Deduction. A combination of both can be used.
  • A limit of 200 calculation methods can be setup.
  • Each calculation method can have up to ten levels of calculations; the result of each level is carried forward to the next level until the end result is achieved at the final level.
  • Read more about Calculation Methods.

Field Information

This field must contain a valid Hours Type Classification code. The Hours Classification has a number of purposes:

  • It is part of the key that identifies the Calculation Method.
  • It identifies the hours rate that the calculation is based. In most cases the hours rate comes from the Salary window.
  • It controls the type of hours that the Calculation Method can be used. Both the Calculation Method and the relevant Hours Type must have the same Hours Classification.
  • Only Classifications L, O, S, and V accept Average Pay Rates 7, 8, or 9 (i.e. not Hourly) when Prevar *PP_LEAVE_UNITS Position 1 is set to Y and Program Control PEP39 Position 15 is set to A.
    CodeDescripion
    ALeave Loading
    LLong Service Leave
    N Normal Pay Hours
    OOther Leave
    PPublic Holiday
    RR.D.O.
    SSick Leave
    TOvertime
    VAnnual Leave
    WWorkers Compensation

 

Each calculation method within a Classification must be identified by a unique code.

Each calculation method can have up to 10 levels in the formula. Each level must be identified in sequence, and there must be no gaps.

  • Example:

    If a six level calculation was in place, level one is performed first then level two etc. However, because level three is omitted only level one and two are performed.

The rate or amount to be used in the calculation is specified and related to the Method field.

Several Pay Rate Codes can be attached to a calculation method.

  • User Defined Pay Rate codes C to G can be setup by using the Pay Rate Code Descriptions window.
  • This field could be left blank only if A is entered in the Method field.
  • If entered in a level one calculation, and an override pay rate is in the Time Card details, then the calculation uses the override pay rate. If an override pay rate is not entered, then the employee's base pay rate is used.
  • When this field is set to Average Pay Rate 7, 8, or 9 (i.e. when Prevar *PP_LEAVE_UNITS Position 1 is set to Y and Program Control PEP39 Position 15 is set to A), the Classification field should only be populated with L, O, S, or V.

 

The Method relates to both the Rate field and the Pay Rate to be Used in Calculations field. One of the following must be selected:

Code Description
A (Add) The value of the Rate field is a dollar rate which is added to the rate identified in the Pay Rate to be Used in Calculations field.
M (Multiply) The value of the rate identified in the Pay Rate to be Used in Calculations field is multiplied by the Rate in the Rate field.

 

The Code Type is only relevant if an entry is to be made in the Hours Code for Loading field.

Code Description
A Allowance/Deduction Codes
H Hours Type Codes

 

This is relevant only for calculation levels (record numbers) 01 to 05.

The result of each calculation level may be recorded under different Hours Types or as Allowances.

This relates to how the calculation is performed and how the result is shown on the pay envelope. It does not affect the end result of the calculation.

Option Description
Ticked

Modify the Hours to reflect in the calculation.

For a calculation of 4 hours x 1.5 loading x $5.00 per Hours

If the calculation is to be reflected in the Hours shown on the pay envelope, the calculation would be :

(4 x 1.5) = 6 hours x $5.00 = $30.00

The pay envelope would show that 6 hours were paid at $5.00 per hours.
Not Ticked

Modify the Pay Rate to reflect in the calculation.

For a calculation of 4 hours x 1.5 loading x $5.00 per Hours

If the calculation to be reflected in the Pay Rate shown on the pay envelope, the calculation would be:

4 x (1.5 x $5.00 = $7.50) = $30.00

The pay envelope would show that 4 hours were paid at $7.50 per hours.

 

This field is only relevant if the Classification is 'V' (Annual Leave). It is used to indicate if the result of the calculation is to be included in the tax calculation for leave loading.

Code Description
Y

Leave Loading Component

  • Include in leave loading tax calculation. Tax is only applied to the leave loading amount that exceeds the non-taxable Ceiling amount allowed.
N

Not Leave Loading

  • Do not include with leave loading for tax calculation.

 

Two calculation methods can be requested to be performed but use one of the two results.  

  • The two Calculation Methods must be of the same Hours Classification

    Example: Calculation Method V1 can only be compared with Calculation Method V2, V3 etc.

  • There is no need to specify the Hours Classification as it is assumed that it is the same as for the current Calculation Method. Only the Code needs to be specified.
  • The result used is depended on the value in the Use Greater/Lesser of the value in the Use Greater/Lesser of field.

 

Relevant only if a calculation method has been identified for comparison in the Calculation Method for the Compare field. It enables you to specify which of the results between the two calculation methods are to be used.

Code Description
G Use the greater of the two results
L User the lesser of the two results

 

Provide a description of the Calculation Method.