Defining Rate Code Elements

To define rate code elements, use the Rate Codes (GP_RATE_CODE) component.

Page Name

Definition Name

Usage

Rate Code Name Page

GP_PIN

Name the element and define its basic parameters.

Rate Codes - Definition Page

GP_RATE_CODE

Create a rate code element and map it to a rate code defined in HR. You can also use the page to view rate code elements and change the mapping.

You can use rate code elements to retrieve multiple components of pay that have been defined in HR—including base pay and non base-pay components.

To have the system retrieve the rate codes set up in HR, matching rate code elements must be defined in Global Payroll and mapped to the corresponding HR rate codes. A HR rate code can be associated with only one Global Payroll rate code element.

Note: Global Payroll cannot map to rate matrices. Global Payroll can only map to simple rate codes.

Rate code elements can be defined and mapped to HR rate codes in two ways:

  1. If you install Global Payroll after creating rate codes in HR, use the Rate Codes - Definition page to create rate code elements and map them to the corresponding rate codes in HR.

    Mapping an element to a HR rate code makes the element take on the values of the HR rate code.

  2. If Global Payroll is installed when you create rate codes in HR, the creation of the rate code element is dependant on if a row exists on the User Rules Profile page for the rate code creators user ID.

    1. If there is an entry on the User Rules Profile page for the User ID of the person who is creating the Rate Code in HR a matching rate code element is created automatically in Absence Management. This rate code will have the same Used By and Country values on the Rate Code Name page that are defined for the User ID of the person creating the rate code. If a different one is desired, a user will a user ID of All Countries will have to modify the rate code with the applicable change to the Used By and Country fields.

    2. If there is no entry on the User Rules Profile page for the User ID of the person creating the Rate Code in HR, the system does not create a rate code in Global Payroll. It handles it just as in the same manner as described in #1 above. A user with the appropriate User ID set up on the User Rules Profile page will have to go into the Rate Code element in Global Payroll to create the rate code element.

See Restricting User Access.

You can display the rate code elements through the Rate Codes - Definition page in Global Payroll. You can also use the page to map the element to a different rate code.

This table lists the values that appear on the Rate Codes - Definition page:

Field

Value

Name

Same as HR Rate Code Name

Element Type

Rate Code (RC)

Description

HR Rate Code description

Field Format

Decimal

Use Defn As Of

Calendar Period End Date

Always Recalculate

Off (No)

Owner

Customer Maintained

Class

Not Classified

Used By

Same as the Used By value defined on the User Rules Profile page for the person creating the Rate Code in HR.

Country

Same as the Country value defined on the User Rules Profile page for the person creating the Rate Code in HR.

Industry/Region

Blank

Category

Blank

Override Levels

All options set to Off (No)

Store

On (Yes)

Store if Zero

On (Yes)

Customer Fields

Blank

Comments

Blank

Rate code elements return the values of rate codes defined in HR. To use a rate code to calculate a payee's earnings, use the rate code in the earning element definition—either directly, as part of the earning calculation rule, or within a formula or other element used by the earning calculation rule.

Example

A certain payee's monthly pay has three components—a base amount, merit amount, and ten percent bonus that is based on the monthly total of base pay plus merit pay—and the following rate codes are defined in HR:

BASE = 1000 (monthly earning)

MERIT = 100 (monthly merit)

BONUS = 10 percent (monthly bonus)

For Global Payroll to retrieve this rate information from HR and use it in calculations, corresponding rate code elements must be defined in Global Payroll and mapped to the HR rate codes. This table shows the mapping:

HR Rate Code

Corresponding Global Payroll Rate Code Element

BASE

BASE

MERIT

MERIT

BONUS

BONUS

In Global Payroll, you've also defined an accumulator (SALARY TOTAL) to keep track of the total of base pay plus merit pay for each calculation (to facilitate monthly bonus calculations), and you want to use the rate code data defined in HR to calculate a payee's monthly pay. In this case, you need to create three earning elements in Global Payroll:

  • E1: Represents base pay.

    Give E1 a calculation rule of Amount and select the rate code element, BASE, as the element to retrieve the base amount.

  • E2: Represents merit pay.

    Give E2 a calculation rule of Amount and select the rate code element, MERIT, as the element to retrieve the merit amount.

  • E3: Represents the bonus.

    Give E3 a calculation rule of Base * Percent and select the accumulator element, SALARY TOTAL, as the base component and the rate code element, BONUS, as the Percent component.

Note: To have Global Payroll retrieve rate code information from HR, include the rate code element in the definition of the earning or deduction element.

You typically use rate code elements when defining an earning element on the Earnings Calculation page. This table shows how you might use a rate code element as a component of an earning calculation rule:

Rate Code Type

Earning Calculation Rule

Component Information

Flat Amount

Amount

Amount = rate code element

Percent

Base * Percent

Base = anything (usually an accumulator)

Percent = rate code element

Points

Unit * Rate

Rate = anything (typically a formula that calls an array to retrieve the appropriate point value from the Company table and applies FTE, if applicable)

Units = rate code element

Hourly

Unit * Rate

Rate = rate code element

Units = anything (typically positive input)

Hourly + Flat Amount

Unit * Rate

Rate = formula; can take flat amount rate code element and add to a calculated hourly amount

Units = anything (typically positive input)

Note: PeopleSoft recommends that when using a non base-pay rate code as a component of an earning element, you assign the earning element by payee on the Element Group Members page. Then, during processing, the system runs through the non base-pay hierarchy for only those payees who have non base-pay earning for the pay period.

Warning! The order of resolving rate code elements—including rate code elements in earning elements—is extremely important.

When the system encounters a rate code element during the payroll process, it calls the Rate Code PIN Resolution program, which first determines whether the element, effective on the calendar period end date, represents a base pay rate code or a non base-pay rate code. It then follows the hierarchy for base pay or non base-pay rate code elements, as appropriate, to resolve the rate code.

Criteria for Selecting the Job Row

For both base pay and non base-pay rate code elements, Global Payroll uses the RATE AS OF DATE system element to determine to which maximum effective-dated job row it refers for the rate code. The EmplID, EmplRcd#, and payment keys on the selected job row must match the current payment's corresponding values, or the payment is placed in error.

  • If RATE AS OF DATE is unpopulated, the system uses the end date of the current slice or segment to select the job row.

  • If RATE AS OF DATE is greater than the calendar period end date, the system uses the calendar period end date to select the job row.

  • If RATE AS OF DATE is before the first effective date on job, the rate code resolves to 0 and the payment is put in error.

  • In all other cases, RATE AS OF DATE is used.

The FTE factor that applies to some rate codes is retrieved from the maximum effective-dated job row that is less than or equal to the RATE AS OF DATE or slice end date where the payment keys match.

Currency Conversion

When the currency code for a flat amount, hourly, or hourly plus flat amount rate code, as defined in HR, doesn't match the processing currency, Global Payroll performs its standard currency conversion during processing. That is, it uses the payee's effective-dated exchange rate type to perform the conversion.

Note: Currency conversion is not required on percent or point rate codes, because returned values are non monetary.

Frequency Conversion

Global Payroll also performs frequency conversion on any flat amount or hourly plus flat amount rate code, where the corresponding frequency code in HR doesn't match the calendar period frequency. The system annualizes the rate code using the corresponding frequency factor from HR. It then deannualizes for the calendar period frequency (using the applicable frequency factor). Define all earning elements that use rate codes as Use Calendar Period Frequency.

Note: Frequency conversion is not required on percent or point rate codes, because returned values are non monetary.

Resolving Multiple Instances of the Same Rate Code Element

If the PS_COMPENSATION record contains multiple instances for the same rate code (base pay or non base-pay), the system evaluates each instance separately, sums the instances, and returns one value to the rate code element. Global Payroll references two system elements, RATE CODE GROUP and FTE INDICATOR, and applies the following rules:

  • If the Rate Code Group differs between the instances, the system element RATE CODE GROUP is resolved according to the last instance and an error message is generated.

  • If the FTE indicator differs between instances, the system resolves the system element named FTE INDICATOR according to the last instance and issues a warning message. The payee is not put into an error status. (Global Payroll uses the FTE INDICATOR only for rate codes types of flat amount and hourly plus flat amount.)

For example, if a flat amount rate code has one instance in which FTE applies, Global Payroll uses the FTE_COMPRATE for this instance. If a second instance indicates that FTE doesn't apply, the system uses the COMPRATE field value for the second instance and sums the two instances.

Hierarchy for Resolving Base Pay Rate Code Elements

When the system encounters a rate code element that's mapped to a HR base pay rate code, it finds the appropriate rows on the PS_COMPENSATION record, where the element matches the rate code. It then identifies the value to be returned, based on the rate code type, as shown in this table:

Rate Code Type

Fields Evaluated on PS_COMPENSATION

Value Returned for Rate Code

Percent

COMP_PCT

Percent

Points

COMP_RATE_POINTS

Points

Flat Amount

COMPRATE and

FTE_INDICATOR

If FTE_INDICATOR = Yes, return COMPRATE * FTE factor (stored on JOB) If FTE_INDICATOR = No, return COMPRATE

Hourly

COMPRATE

Hourly rate

Hierarchy for Resolving Non Base-Pay Rate Code Elements

When the system encounters a rate code element that's mapped to a HR non base-pay rate code, it derives the rate from the following hierarchy, stopping when it finds the rate:

  • Compensation table (PS_COMPENSATION).

  • Job Code table (PS_JOBCD_COMP_RATE).

    The system looks for the row where the SetID and Job code fields match the SETID_JOBCODE and JOBCODE system elements.

  • HR Comp Rate table (PS_COMP_RATECD_TBL).

The system identifies the value to be returned, based on the rate code type and FTE_INDICATOR, as shown in this table:

Rate Code Type

Fields Evaluated on PS_COMPENSATION

Value Returned for Rate Code

Percent

COMP_PCT

Percent

Points

COMP_RATE_POINTS

Points

Flat Amount, or Hourly + Flat Amount

COMP_RATE

FTE_INDICATOR

If FTE_INDICATOR = Yes, return COMPRATE * FTE factor (stored on JOB) If FTE_INDICATOR = No, return COMPRATE

Hourly

COMPRATE

Hourly rate

Field or Control

Definition
Base pay components

Components that contribute to a payee's base pay are called base pay components. All base pay components are stored in the PS_COMPENSATION record in HR, but they can be overridden through the Payee Element Assignment page or Positive Input page in Global Payroll. (Hourly plus flat amount is not valid for base pay components.)
Multiple components of pay

This functionality enables your organization to compensate a payee at more than one rate of pay, such as regular pay and merit pay. Components can represent a flat amount, hourly rate, hourly rate plus flat amount, percentage of the worker's compensation package, or salary points.
Non-base-pay components

Components that do not contribute to base pay are called non base-pay components and may or may not be stored in the PS_COMPENSATION record. When you run the payroll process, the system follows a hierarchy to determine the applicable rate.

Use the Rate Code Name page (GP_PIN) to name the element and define its basic parameters.

Navigation

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Elements > Supporting Elements > Rate Codes > Rate Code Name

Note: You name every element and define its basic parameters on an element name page with the object name of GP_PIN. The page title and general appearance of this page change based on the type of Global Payroll element that you are naming and defining. All of the fields on this page are documented in another topic in this product documentation.

Use the Rate Codes - Definition page (GP_RATE_CODE) to create a rate code element and map it to a rate code defined in HR.

You can also use the page to view rate code elements and change the mapping.

Navigation

Set Up HCM > Product Related > Global Payroll & Absence Mgmt > Elements > Supporting Elements > Rate Codes > Definition

Image: Rate Codes - Definition page

This example illustrates the fields and controls on the Rate Codes - Definition page.

Rate Codes - Definition page

Field or Control

Definition
Compensation Rate Code

Enter the HR rate code to which you want to map this element. When you select the rate code, the lower half of the page displays information that is defined for the rate code in HR. You cannot change this information in Global Payroll.
Frequency Conversion

This check box is selected by default to indicate that the system is to perform frequency conversion (annualization and deannualization) on the value returned by the rate code.

Deselect this check box if you want the system to return the value from the rate code definition without performing frequency conversion.
Generate Warning

This check box applies only to rate codes that represent a base pay component. It is selected automatically to indicate that the system generates a warning message during batch processing if it does not find the rate code on the payee's compensation record.

Deselect the check box if you do not want the system to generate a warning message in these situations.