Segmentation

In Global Payroll, you can segment elements based on different events or changes. Two types of segmentation exist:

  • Period segmentation:

    The system calculates each element more than once and keeps the results of these calculations separate.

  • Element segmentation (also known as slice segmentation):

    The system segments only the element selected. Only one gross-to-net result set exists.

PeopleSoft Global Payroll for Spain uses element segmentation in most cases. A slice can occur for many reasons:

  • Changes in rate codes.

    This can occur due to manual changes or automatic changes due to a salary plan, category, or multiple components change.

  • Changes in an employee's annual salary (target compensation)

  • Changes to risk code.

  • Changes in the social security work center code (SSN).

    This normally happens when an employee changes establishments.

PeopleSoft Global Payroll for Spain uses period segmentation for these changes:

  • Changes in company (when an employee transfers to a different company).

  • Changes in pay group.

  • Changes in employees' payroll system.

    PeopleSoft Global Payroll for Spain uses the Payroll System field to determine employees' payroll system.

Note:

PeopleSoft Global Payroll for Spain delivers segmentation setup and triggers as sample data. You must decide which changes should trigger segmentation for your company. View the delivered segmentation rules and triggers using pages in Global Payroll in your demo installation.

Retroactivity Segment Mismatching

When the system recalulates a segmented period for retro and the segmentation dates of the original calculation don't coincide with those of the recalculation, this is called a segment mismatch, and it affects how the system calculates retro deltas.

When segment dates match and payment keys are the same, the system recalculates the original segments to determine the new values for each segment. It then subtracts the old value from the new value for each pay element to determine the retro deltas. It writes the new results to the output tables.

When segment dates don't match, the system treats the old and new values as if they belong to separate segments. It creates reversal segments for each segment that existed in the prior calculation and creates new recalculated segments. A reversal segment has no results because it does not go through gross-to-net processing. The only results that they system writes to the output result tables are for deltas and balance accumulators. For calculating deltas, the system uses zero for the new values.

The new recalculated segments go through gross-to-net processing and generate new values. While processing recalculated segments, the system cannot use the Use Previously Calculated Value check box functionality to get deltas as it normally does during retro processing because the previously calculated values for every element are resolved to zero. In this case, the system retrieves the previous value through arrays.

See PeopleSoft Global Payroll: Element Attributes Page.

When reading previously calculated values, the system sums the results for all slices and segments previously calculated for the calendar group and stores those values in container elements (RTR AC xxxxx). Then when the system subtracts the previous values from the recalculated values to determine retro deltas, it uses the proportional part of the total previous value, prorated with respect to the current segment days. The proration rule being used is: Active days in the current slice ÷ Active days in the period

Active days in the period is normally defined as the days between the period begin date and period end date, but in the event that an employee changes pay groups in the month, the system uses the period until the effective date of the pay group change. For cases in which contributions are linked to vacations, the system applies the total previous value to the segment in which there is now a termination.

Active days in the period normally means days between Period begin date, and Period End date, but in case employee changes of pay group in the month, then we will consider the period till the effective date of the paygroup change. In case of contributions linked to Vacations we are applying the total previous value to the segment in which there is now the termination

Note:

For banking purposes, PeopleSoft Global Payroll manages reversal segments by inserting rows in GP_PAYMENT for the reversal segments as negative amounts. Then, the new calculation inserts the new values. This means that you must select the "Combine Payment" functionality whenever you process reversals.

Whenever you need to generate retro deltas or read previously calculated values, you need to analyze whether you want to use container elements (RTR AC xxxxx). To use container elements you must:

  1. Create the container element (RTR AC xxxxx).

  2. Update the formula RTR FM MAPPING to map the source element—the element for which you want to retrieve previous values—to the target container element.

  3. Update the formulas that make use of the Use Previously Calculated Value check box functionality to use the container element in the case of segmentation mismatching.

  4. Update the accumulators that determine the behavior of the container elements in the case of element segmentation: RTR AC SEG TAX and RTR AC SEG SS.

    RTR AC SEG TAX (Tax Elements slicing) includes all container elements that should be sliced when the system processes segmentation trigger events that affect taxes.

    RTR AC SEG SS (SS Elements to slice) includes all container elements that should be sliced when the system processes segmentation trigger events that affect social security.

The following is an example of how the system calculates the retro delta for the element SS AC BS CCNRM126S:

SS AC BS CCNRM126S - ([SS AC BS CCNRM126S] * RTR VR FLAG + RTR AC BS CCNRM126 * RTR VR REV SS) >> SS VR TC MONTO

The individual components of this calculation are:

  • SS AC BS CCNRM126S: The recalculated value.

  • [SS AC BS CCNRM126S]: The previously calculated value. It gets the value only for normal retro (without reversal).

  • RTR VR FLAG: The system gives this variable a value of 1 in cases of retro without reversal.

  • RTR AC BS CCNRM 126: This is the container element that receives the previous value when segment mismatching occurs.

  • RTR VR REV SS: The system gives this variable a value of 1 in cases of segment mismatch.

Element Segmentation Mismatching

Element segmentation mismatching is a situation in which retroactive processing results in element segmentation that differs from the segmentation of the previous calculation. This means that for a group of elements no previous value exists for the current executing dates (current calculation slices). The slices that exist for those elements are different than the ones originally calculated. For example, assume that as part of a retro calculation the system inserts a new segmentation trigger on the 20th day of the month (element segmentation affecting Social Security, such as RISK_CODE). The system recalculates elements such as the Common Contingencies base for two slices (1st - 19th and 20th - 31st), but the original calculation was for just one slice (1st - 31st). This represents an instance of element segmentation mismatching.

When element segmentation mismatching occurs, it is necessary to perform a special calculation to obtain the previously calculated value of the affected elements. The system uses the same calculation that it uses to obtain the previously calculated value for retroactivity segment mismatching. The system detects when an element segmentation mismatch occurs and applies “Spanish” functionality to retrieve the previously calculated value using arrays. This enables Global Payroll for Spain to generate Social Security and Tax deltas correctly.

Note:

The system also uses previously calculated values to process certain deductions such as loans and garnishments.

The formula RTR FM COMPR SEG checks for element segmentation mismatching associated with the following trigger events (trigger event IDs):

  • Compensation (COMPRATE)

  • Social Security calculation (RISK_CODE and CATEGORZN)

Note:

Trigger event IDs are hard coded. Therefore, if you have defined your own element segmentation trigger events that affect compensation, Social Security, or taxes, you should update formula RTR FM COMPR SEG accordingly.

Forwarding Retro Deltas to Inactive Segments

PeopleSoft Global Payroll creates inactive segments to process retro deltas that are forwarded when the pay entity of the source month does not match the pay entity of the current month. This usually occurs whenever payment keys don't match. PeopleSoft Global Payroll also creates inactive segments when there are pending retro changes for inactive employees. The system requires a target calendar to which it can forward deltas (late terminations process through retro).

The system skips gross-to-net calculation during inactive segment processing. You need to ensure, however, that you manage the retro deltas that get forwarded using the setup variable CLI VR CAL DD SG I (Calc IRPF DD in Inac. Segment). This variable indicates to the system whether you want to process tax deductions during inactive segment calculation. Valid values are:

  • A (anular): Select if you do not want the system to calculate retro tax deductions with negative net values.

  • C (calcular): Select if you want the system to calculate retro tax deductions with negative net values.

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