Understanding Formulas

When you need to perform simple, complex, or unusual calculations to determine the appropriate hourly rate or number of hours worked for a particular situation, you can create a formula. The formula can use the standard functions that are included with the system, or you can use custom functions that you have created. You can also use a combination of both types of functions.

When you create a formula, you create it within a specific timecard template, retroactive pay rule, or overtime rule set. Based on the program that you select, the system provides you with a list of appropriate functions that are available for use in the formula. You then create mathematical statements that include one or more of these functions.

For example, assume that you need to average two different union rates to pay warehouse employees retroactive pay. To calculate the correct rate, you enclose within parentheses the multiple of the two union rates and divide the result by two. The formula for the new rate is:

New Rate = (RHRF_UnionRateA × RHRF_UnionRateB) ÷ 2

You cannot use a formula outside of the initial timecard template, overtime rule set, or retroactive pay rule for which it was created. You cannot save and reuse formulas; however, if you need to use a formula often, you might consider asking the system administrator to create a custom function. You can save and reuse the timecard template, retroactive pay rule, or overtime rule set that contains the formula that you created.

You use the Build Formula form to create custom formulas. You cannot access this form from a menu; instead, you access it using the search button in the hours worked and hourly rate fields in the Timecard Templates, Retroactive Pay Rules, and Overtime Rule Sets programs.

This table shows the forms and fields from which you can access the Build Formula form:

Form Name	Field
Timecard Template form	Hours Worked field (Main tab) and Hourly Rate field (Rates tab)
Timecard Accumulator Rule form (within Overtime Rule Sets)	New Hourly Rate field

After you create the formula, but before you begin using it, test it to validate its mathematical logic and to ensure that it calculates the appropriate results.

Depending on government regulations, industry standards, union contracts, and company processes, different organizations calculate overtime rates using different methods. Review the examples of the formulas for these overtime hourly rate calculations. The functions that are used in these formulas are predefined in the system and are available for use in the overtime rule type specified in the formula description.