PeopleSoft Enterprise Global Payroll for Brazil 9.1 PeopleBook

Defining Average Salary Rules

This chapter provides an overview of the Average Salary calculations business process and discusses how to:

Define rules for calculating an employee's average salary.
Generate the Averages report.

Understanding Average Salary Calculations

Employees who receive variable compensation, such as overtime or a differential for a night shift, may be entitled to have their vacation, termination, 13th salary, and maternity pay based on their average variable pay. Eligibility for the average salary allowance depends on union rules and the Consolidated Labor Laws (CLT).

To define your organization's rules for calculating the average salary:

Use the Average Version BRA page to identify which earning and deduction elements the system considers for the average salary version.

Also define the average salary calculation parameters for these elements.
Use the Averages page of the Union Parameters BRA component to associate, for a given union, the average salary version (identified in Step 1) that the system is to consider when calculating the average salary for members of that union.

You can select different earning and deduction elements for each run type.

When you run the payroll process, the system looks at the information you defined on the Averages page to determine which earnings and deductions to consider when calculating the employee's average salary. It then looks at the Average Version BRA page for the specific calculation rules.

The Averages Report

After you run the payroll process, you can generate the Averages report (GPBRME01) to view the detailed calculations the system performed to compute employees' average salary. You can produce the report for selected establishments, departments, employees, or groups.

To produce the Averages report, the payroll process must store detailed results in two writable arrays: MD WA MEDIAS ENC stores header information for the report and MD WA MEDIAS stores details. As delivered, both writable arrays are configured to store payroll results. If you do not want to produce the Averages report, you should set the value of variable MD VR DETALHE MED to false (0) to prevent the system from populating the writable arrays. The variable is set to true (1) by default. Storing results can affect system performance. To generate the Average report, MD VR DETALHE MED must be set to 1 when the payroll process is run.

Prerequisites

The earnings and deductions that you use to pay average salary must have a calculation rule of Amount, where the amount is calculated by the average salary resolution formula, MD FM VALOR MEDIA.

To define that an Average to be resolved belongs to the 13th salary calculation, use the Supporting Element Overrides page of the Earnings or Deductions component to set variable MD VR MEDIA 13 to 1 (one). This setting enables the system to prorate the amount according to the number of months worked.

Viewing Delivered Elements

The PeopleSoft system delivers a query that you can run to view the names of all delivered elements designed for Brazil. Instructions for running the query are provided in the PeopleSoft Enterprise Global Payroll PeopleBook.

Defining Average Salary Rules

To define average salary rules, use the Average Versions BRA (GPBR_AVG_VERSION) component and the Union Parameters BRA (GPBR_UNION_PARMS) component.

This section discusses how to:

Define the average salary calculation parameters for earning and deduction elements.
Define which earnings and deductions are subject to average salary calculations for each union.

Pages Used to Define Average Salary Rules

Page Name	Definition Name	Navigation	Usage
Average Version	GPBR_AVG_VERSION	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Average Versions BRA, Average Version	Identify the earning and deduction elements that are used within the average salary calculations. Also, define the average calculation parameters for these elements.
Averages	GPBR_AVERAGES	Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Union Parameters BRA, Averages	For a given union, define the earning and deduction elements the system is to consider for average salary calculations.

Defining the Average Salary Parameters

Access the Average Version BRA page (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Average Versions BRA, Average Version BRA).

Entry Type

Select the type of element to include in the averages, for example, Earnings or Deductions.

Element Name

Select the earning or deduction element that is to be considered in the average salary calculations.

Average Calculation Period

Identify the period of time to consider for this earning or deduction element when calculating the average salary. The fields that appear in this group box vary depending on your selection in the Period Type field.

Period Type	Select the type of period on which to base the average salary calculations. Options are: Acquisitive Period: Select to consider amounts that were earned or deducted during the employee's current entitlement period. (The current entitlement period is often based on the employee's service date.) The entitlement period is built during the Vacation process (GPBR_VACN_AP), which includes GP rules and an Application Engine process that updates the entitlement period. The record GPBR_VACN_AP stores entitlement period information and can be viewed on the Vacation Acquisition Prd-Sched page. Defined Period: Select to consider amounts that were earned or deducted during the period defined by the From Date and To Date fields. Year: Select to consider amounts earned during the current year only. Use the To Date and End Date fields to define what portion of the current year to consider.
From Date	This field appears when you select Defined Period in the Period Type field. Select one of the following options: Before: Use values only from the very day before the current period starts (based on the date in the Begin Date field). Current: Use values from the current period being processed. Defined: Enter a date in the Begin Date field to indicate the start date.
Begin Date	This field appears when you select Defined Period in the Period Type field and Defined or Before in the From Date field. Enter the first date to take into account when selecting the amounts to include in the average calculation. A begin date functions like historical rule. The begin date is the first date the system takes into account; the process considers information from this date until the end date.
To Date	Define the last date to be considered. Select one of the following options: Defined. Months. Complete the # of Months field.
End Date	This field appears when you select Defined Period in the Period Type field and Defined in the To Date field. Enter the last date to take into account when selecting the amounts to include in the average calculation. An end date functions like historical rule. The end date is the last date the system takes into account; the process considers information from the begin date until this date.
# of Months (number of months)	This field appears when you select Months in the To Date field. Enter the number of months from the begin date that the system is to consider when performing the average salary calculations.

Average Type

Specify whether the amounts that are eligible for the average salary calculations should be adjusted. The system makes these adjustments when it reads the values for each month. For example, if the system reads the January results and needs to adjust those values, the new value for that month is the original value times the adjustment factor for the month.

Average Type

Identify which component(s) of the earning or deduction element to adjust, if any. Options are Units, Amount, Percentage, and Units * Percentage.

Correct

Indicate whether amounts should be adjusted for inflation:

Correct Amount: Select to have the system adjust the amounts.

Don't Correct: Select if you do not want the system to adjust for inflation.

Index by Hourly Salary If you select this option, the system will read the hourly rate as of the payment date of the earning or deduction to consider any changes not taken for the hourly rate.

Correct ID

This field appears if you select Correct Amount in the Correct field. Enter the code for the monthly inflation adjustment.

Note. A bracket stores correct IDs and their associated adjustment factors. You must enter the exact correct ID in this field to have the system find and use the correct adjustment factor.

Averages Calculation

Divider	To calculate the average, the system can divide by a fixed number or by the number of periods that you specify. Options are Fix and Period. Fix: Select to have the system divide the total earning or deduction amount that is eligible for the average salary calculation by the number that you enter in the By field. Per/Wrk M: Select to have the system divide the total earning or deduction amount only by the number of months in the average period. For example, if the average period is from 12/31 to 01/01 but the employee was hired or terminated during this period of time, then, instead of dividing the result by 12, the system divides by the proportion of months between the hire or termination date.
By	If you selected Fix in the Divide field, enter the number you want the system to divide by.
Min # Occurrences (minimum number of occurrences)	Specify the number of times during the defined period that this earning or deduction must occur in order for it to be used in the average salary calculation. For example, if you enter 3 in this field and an employee receives a particular earning twice during the period, that earning will not be considered in the average salary calculations. Enter 0 in this field to have the system always consider the earnings and deductions.
Take n Greater	Enter the number of occurrences of the earning or deduction in the defined period that are to be used in the average salary calculations. The system selects the amounts with the highest values (after adjusting for inflation, if you selected Correct Amount in the Correct field . For example, if you enter 5 in this field for an earning element, the system averages the five highest earning amounts that were calculated for this element during the defined period. Enter 0 (zero) in this field if you want the system to consider all earning and deduction amounts for the defined period.

Defining Average Calculation Rules by Union

Access the Averages page for a particular union (Set Up HRMS, Product Related, Global Payroll & Absence Mgmt, Framework, Organizational, Union Parameters BRA, Averages).

Earnings/Deductions

Run Type	Select the type of payroll process for which you want to define the average version of the pay component. For each run type, you can select a different set of earning and deduction elements to calculate using the average salary calculation. Note. You are not required to enter the same information for different run types. You can override the run type at the calendar level, or any other level, according to your requirements. To enter override instructions, set the value of variable FP VR RUN TYPE to the desired run type.
Entry Type	Select the type of element to consider in the average salary calculations: earnings or deductions.
Element For Target Value Name	Select the name of the earning or deduction element.
Average Version	Select the name of the set of parameters you defined on the Average Version BRA page.

Generating the Averages Report

This section discusses how to run the Averages report.

Page Used to Generate the Averages Report

Page Name	Definition Name	Navigation	Usage
Averages Report BRA	GPBR_RC_AVG	Global Payroll & Absence Mgmt, Absence and Payroll Processing, Reports, Averages Report BRA, Averages Report BRA	Reports the detailed calculations the system performed to compute the average salary for employees in selected establishments, departments, or groups. You can also generate the report for selected employees.

Running the Averages Report

Access the Averages Report BRA page (Global Payroll & Absence Mgmt, Absence and Payroll Processing, Reports, Averages Report BRA, Averages Report BRA).

Run Type Name

Select the payroll run type.

Element List

You can have the report include information for elements that are used in the averages calculation. Use the Element List BRA component to create an element list.

Sort ID

Select a sort ID to specify the order in which information should print on the report. Define sort IDs using the Sort IDs BRA component.

Print Element List Description

If you are using an element list, selecting this option causes the system to print the description of the element list on the report.

Begin Date and End Date

For all calendars that fall within the dates you enter here, the system will print the elements in the selected element list.

Selection Criteria

Choose a method of selecting employees for whom to generate the report.

Exclude Data

Select this check box to exclude data that matches the criteria you enter in the Establishment Data, Department Data, or Employee Data group boxes (the group box that appears depends on the selection you make in the Selection Criteria field).

Entry Type	Select the type of element to include in the averages, for example, Earnings or Deductions.
Element Name	Select the earning or deduction element that is to be considered in the average salary calculations.

Run Type Name	Select the payroll run type.
Element List	You can have the report include information for elements that are used in the averages calculation. Use the Element List BRA component to create an element list.
Sort ID	Select a sort ID to specify the order in which information should print on the report. Define sort IDs using the Sort IDs BRA component.
Print Element List Description	If you are using an element list, selecting this option causes the system to print the description of the element list on the report.
Begin Date and End Date	For all calendars that fall within the dates you enter here, the system will print the elements in the selected element list.
Selection Criteria	Choose a method of selecting employees for whom to generate the report.
Exclude Data	Select this check box to exclude data that matches the criteria you enter in the Establishment Data, Department Data, or Employee Data group boxes (the group box that appears depends on the selection you make in the Selection Criteria field).