Understanding Hours Calculations

PeopleSoft calculates different hours for a segment, such as hours paid and hours worked.

You must first indicate the base hour for the payee in PeopleSoft HR. You must populate the Paid Hours and the Paid FTE fields. If you don't populate these fields, the process errors when the system needs this information.

Note: The only frequencies that Global Payroll accepts for the Paid Worked Period field are A (annual), M (monthly), and W (weekly).

When you enter paid hours, the process converts these hours to hours per month. If the paid hours are defined as monthly, the variable GEN VR HOR SAL MO retrieves the input value directly. If the paid hours are defined as weekly, the variable GEN VR HOR SAL MO retrieves the result of the weekly hours input multiplied by 52 and divided by 12. If the paid hours are defined as annual, the variable GEN VR HOR SAL MO retrieves the annual input divided by 12.

The different hours are calculated as follows:

  • GEN VR HOR CONV retrieves the monthly standard hour of the company (and is equal to Paid Hours Fra divided by the paid FTE).

  • GEN VR HOR SAL MO retrieves the monthly theoretical hour of the payee.

  • GEN VR HOR LEG MO retrieves the monthly legal hour applied to the company. This hour comes from the GEN VR HR LEG variable where users can enter the weekly legal hour. If this variable is not populated, this hour is considered equal to the monthly standard hour of the payee GEN VR HOR CONV.

  • GEN VR HRS TRAV retrieves the hours effectively worked during the segment. This is calculated as the theoretical hour + additional and overtime hours − absence hours.

  • GEN VR HRS PAYE retrieves the paid hours of the segment.

  • GEN VR HRS PAYE CO retrieves the paid hours of the segment except for the overtime hours that are not added to this variable result.

  • GEN AC HRS SMIC SG retrieves the paid hours of the segment, surcharge for additional hours included, and decrease for absence hours included. For example, 1 overtime hour paid at 125 percent counts as 1,25 paid hour. One absence hour paid at only 66 percent counts as 0,66 paid hour.

  • GEN VR HRS TRAV-HS retrieves the worked hours limited to the additional hours. This means that the system does not count the overtime hours.

Regarding the calculation of GEN VR HRS PAYE, GEN VR HRS PAYE CO, and GEN AC HRS SMIC SG, these elements are equal to the standard hours of the segment plus the hours over the standard hours (additional and overtime hours) minus the absence hours. The system calculates these hours as follows:

  • Standard Hours are calculated through the formula GEN FM PROR HRS. You maintain this formula and can modify it according to your needs.

  • Overtime hours are retrieved by three segment accumulators. GEN AC HRS PLUS SG is used to calculate GEN VR HRS PAYE, GEN AC HRS COMP SG is used to calculate GEN VR HRS PAYE CO, and GEN AC HR CP+SP SG is used to calculate GEN AC HRS SMIC SG.

  • Absence hours are calculated using the accumulators EGN AC HRS NPAY MO (to calculate GEN VR HRS PAYE and GEN VR HRS PAYE CO) and GEN AC HNPA VAL MO (to calculate GEN AC HRS SMIC SG). These accumulator values are prorated using the Customer Maintained formula GEN FM PROR ABS.

Note: Some of the elements that retrieve hours are rounded to two decimal places, while some are not rounded. Be sure to use the correct rounding rule.