The Net-to-Gross Process Sequence

The net-to-gross process sequence is:

  1. You enter the bonus amount by positive input as the earnings PIRAMIDADO.

  2. The PIRAMIDADO earnings are resolved in the PIRAMID PERC/DED section and added to the accumulator PIRAMIDADOS.

  3. The PIRAMIDADO SEC subprocess section in the NOMINA process list contains the conditional formula PI FM EJECUTAR.

    If the formula finds that the PIRAMIDADOS accumulator is not zero and, therefore, a gross-up must be done on this accumulator, it invokes the PIRAMIDADO SEC subprocess section.

  4. The formula PI FM LIM INICIAL, the first element in the PIRAMIDADO SEC section, sets the variable PI VR NETO PIRAMID to the value of the current net plus the PIRAMIDADOS accumulator.

    This value remains constant during subsequent processing. The formula PI FM LIM INICIAL also sets the values of the upper and lower limits (upper and lower values for the earnings PIRAMIDADO + EXC PIRAMID).

  5. The earnings element EXC PIRAMID is the second element of the PIRAMIDADO SEC section.

    With this element, the PIRAMIDADO SEC section initiates the gross-to-net subprocess governed by the conditional formula PI FM CONTINUAR.

  6. The conditional formula PI FM CONTINUAR in the PIRAMIDADO SEC section compares the constant value of PI VR NETO PIRAMID (set in Step 4) with the value of the new net (which has the new calculated taxes subtracted from it).

  7. If the formula PI FM CONTINUAR returns FALSE (0), meaning that there is no difference is a minimum difference of -1 or +1 between PI VR NETO PIRAMID and the new calculated net, the process stops. The formula returns TRUE (1) if it runs and determines new upper or lower limit values depending on positive or negative differences. The value of PI VR EXC PIRAMID is the amount by which the net is increased to produce the taxable gross.

    Note: You can vary +1 or -1 range depending on the precision required on your gross to net calculation.

  8. The section element IMPUESTOS FED is the third element of the PIRAMIDADO SEC section.

    The tax deductions are calculated in the IMPUESTOS FED section to produce a new actual net.

  9. The conditional formula PI FM EXC PIRAM in the IMPUESTOS FED section compares the constant value of PI VR NETO PIRAMID (set in Step 4) with the value of the upper and the lower limits.

    This determines whether the target net is still between the limits. If the target net is not between these limits, the formula recalculates the limits.

  10. The tax deductions are calculated in the IMPUESTOS FED section to produce a new actual net.

  11. The loop process of calculating a new gross, deducting taxes to produce a new net balance, and comparing the balance to the constant PI VR NETO PIRAMID continues until the actual net is closer to the target net (−1≤ x ≤ 1).

  12. When the looping stops, the formula PI FM CONTINUAR checks to see that there is no difference between PI VR NETO PIRAMID and the new net.

    If there is no difference, the formula resolves to FALSE, indicating that the system has calculated the correct gross-up figure. The system goes through the loop a maximum of fifteen times. If it fails to calculate the gross amount correctly within that limit, you must remove the PIRAMIDADO earning amount, calculate the gross manually, and pay it using the earnings element of your choice.

Example: Calculating the PIRAMIDADO Earnings and Gross Pay

This example is based on a positive input entry of 500 to the PIRAMIDADO earnings. The value of the PIRAMIDADOS accumulator becomes 500.

The PIRAMIDADO SEC section is run because the PIRAMIDADOS accumulator is greater than zero.

Suppose that the net result before the PIRAMIDADO earning resolves to 5,000.00, so the new target net is 5,500.00 (net before PIRAMIDADO + 500.00 [PIRAMIDADO]).

New upper and lower limits must be set:

  • Lower Limit: PIRAMIDADOS = 500 MXN

  • Upper Limit: 160 percent PIRAMIDADOS = 500 × 1.6 = 800

These two earnings are used to calculate the new net:

  • PIRAMIDADO, which is entered through positive input or earnings and deduction assignment.

  • EXC PIRAMID, which is used to find the target net.

To ensure that you reach the target net, PIRAMIDADO should be between 500 and 800. Therefore, EXC PIRAMID has a value between 0 and 300.