Understanding Item Piece Rate Setup

After you set up items in F07916, you must enter rates for those items so that employees who are processed through payroll using piece rates are paid correctly. Use the Item Piece Rate Revisions program (P06918) to set up multiple rates for each item that is stored in the Piecework Item Master table. Item piece rates are stored in F06918. You can create multiple piece rate records in F06918 for each unique combination of:

• Business unit

• Union code

• Job type

• Job step

• Effective date

• Item number

• Unit of measure

For example, you might pay employees who belong to different unions different rates for completing the same piece. The system uses the information on employee timecards to determine which rates to retrieve from F07918.