Basic Rules of Element Resolution

This topic discusses the basic rules of element resolution for period and element segmentation.

Using Period Segmentation

When using period segmentation, all elements are resolved once in each segment.

Using Element Segmentation

When using element segmentation:

  • Primary elements are resolved once in each slice if they are set up to be sliced.

  • Supporting elements are resolved once in each slice if they are set up to be sliced.

    A supporting element is also resolved in each slice if it is a component of an element that's defined to be sliced. Suppose that an earning element E1 is sliced. If this element uses a duration element (a supporting element) that measures years of service, and the value of earning E1 is based on the years returned by the duration element, the duration element is resolved whenever E1 is resolved, because it's a component of E1.

Note:

To define the elements to be sliced, use the Segmentation Event Definition page.

Example of Period Segmentation

In period segmentation, all elements are calculated once for each segment and there are multiple gross-to-net result sets.

This table lists examples of elements, their calculation rules, and the associated period segmentation rules:

Element Calc Rule Base % Prorate

E1 (Base Pay)

Amount

N/A

N/A

Yes

E2

Base × Percent

E1

10%

No

D1 (Deduction)

Base × Percent

A1

10%

No

A1 (Accum)

E1 + E2

N/A

N/A

N/A

Assume that E1 represents base pay and that the value of E1 increases from 10,000 to 20,000 on September 16, triggering the segmentation of the September pay period into two equal parts. This scenario is represented in the following table:

Element Segment 1: September 1– September 15 Segment 2: September 16– September 30

E1 (Base Pay)

10,000 × ½ = 5,000

20,000× ½ = 10,000

E2

E1, Segment 1 × 10% = (5,000 × 10%) = 500

E1, Segment 2 × 10% = (10,000 × 10%) = 1,000

A1

Sum of E1 and E2 for Segment 1 = (5,000 + 500) = 5,500

Sum of E1 and E2 for Segment 2 = (10,000 + 1,000) = 11,000

D1 (Deduction)

A1 for Segment 1 × 10% = 550

A1 for Segment 2 × 10% = 1,100

Net Pay

Net Pay for Segment 1 = 4,950

Net Pay for Segment 2 = 9,900

In this example, all the elements on the process list are segmented and there are two separate gross-to-net calculations.

Example of Element Segmentation

When performing element segmentation, the system slices only those elements that are included in the Element List. The system produces only one gross-to-net result set and includes the sliced elements within a segment or period.

This table lists examples of elements, their calculation rules, and the associated element segmentation rules:

Element Calc Rule Base % On Element List for Segmentation? Prorate

E1 (Base Pay)

Amount

N/A

N/A

Yes

Yes

E2

Base × Percent

E1

10%

No

No

D1 (Deduction)

Base × Percent

A1

10%

No

No

A1 (Accum)

E1 + E2

N/A

N/A

No

N/A

Assume that E1 represents base pay and that the value of E1 increases from 10,000 to 20,000 on September 16, triggering the slicing of element E1 into two equal parts. (The only element defined to be sliced is E1.) This scenario is represented in the following table:

Element Slice 1: September 1 – September 15 Slice 2: September 16 – September 30

E1 (Base Pay)

10,000 × ½ = 5,000

20,000 × ½ = 10,000

E2

Sum of E1 × 10% = (5,000 + 10,000) × 10% = 1,500

 

A1 (Accumulator)

Sum of E1 and E2 = (15,000 + 1,500) = 16,500

 

D1 (Deduction)

A1 × 10% = (16,500 × 10%) = 1, 650

 

Net Pay

14,850

 

E1 is sliced once on September 16, resulting in two separate calculations for E1 — one for each slice. There is only one gross-to-net process, and the Net Pay element represents the sum of E1 in each slice and E2 in each slice minus D1 (deduction 1).