Checking the Maximum Quarterly Earnings Limit

You can set an upper limit on an earning so that no more than that amount is paid in a particular accumulation period. The PRDBON (product bonus) earning element is set up with this control. It is set up to have a quarterly limit. You set the limit in LIM VR QTD LIMIT.

After the system calculates the PRDBON amount for the pay period, the post-process formula LIM FM PRDBON adds the value to the quarter-to-date accumulator and compares the total to the limit that you have set. If paying the earnings would exceed the limit for the quarter, the system pays only up to the limit.

The PRDBON calculation rule is Amount, where:

Amount = 40

Here is an example. Suppose that a product bonus is payable each month up to a quarterly limit of 110.

Earnings Element or Accumulator	Month 1	Month 2	Month 3
PRDBON	40	40	(40) 30
AC QTDA	40	80	(120) 110

When processing PRDBON in month 3, the formula makes the following calculation:

PRDBON_FQTDA + CURR AMT VAL > LIM VR QTD LIMIT

80 + 40 > 110

It then calculates the amount by which the current amount would exceed the limit:

PRDBON_FQTDA + CURR AMT VAL − LIM VR QTD LIMIT = LIM VR OVER LIMIT

80 + 40 − 110 = 10

It then subtracts the excess amount from the current amount and pays that amount.

CURR AMT VALUE − LIM VR OVER LIMIT = PRDBON

40 − 10 = 30

PRDBON has a generation control, ERN GC PRDBON, the formula of which, LIM FM CHK PRDBON, determines if the quarter-to-date amount accumulator is equal to or greater than the limit. If it is, the system does not process the earnings. The quarter-to-date amount can be greater than the limit, despite the controls, because positive input does not use the generation control.