Understanding Piece Rate Processing

Use piece rate processing to pay employees in the organization by the number of units that they produce or complete, by the number of hours that they work, or on a salaried basis.

You can enter timecards into the system for piece rate employees by using any of the JD Edwards EnterpriseOne time entry programs. Depending on how you set the processing options for the Time Entry MBF Processing Options program, the system derives the piece rate from either the F060116 or F06918 table.

To set up piece rate processing, you must complete these tasks:

• Set up employee piece rates if the system derives rates from F060116.

• Create item master records for each piece that you want to track using piece rate processing.

• Set up rates for each item that you want to track using piece rate processing.

• Enter current federal and state minimum wage rates.

• Create timecard automation rule sets to calculate minimum wage information and the hourly rate for overtime calculations.

• Create employee groups that include all employees who you pay using piece rate processing.