Frequency

HR has an effective-dated Frequency table, where you enter the annualization factor for each frequency. Defining the annualization factor is important for payroll processing in Global Payroll.

Global Payroll accesses the same Frequency table as HR and uses it throughout Global Payroll for annualization and deannualization. When you set up a frequency in HR, you associate a factor with it. For example, an annual factor can be equal to one, a monthly factor can be equal to 12, and a weekly factor can be equal to 52.

The frequency formulas used for annualization and deannualization are the same for both HR and Global Payroll:

• (Annualized Amount) = (Amount) × (Frequency Factor).

• (Deannualized Amount) = (Annualized Amount) / (Frequency Factor).

Important:

If you change the effective status, frequency type, or annualization factor of an existing frequency on the Frequency Table page in HR, you get a warning message saying that previous calculations using this frequency are out of sync with the new values of the frequency.

When defining earnings and deductions in Global Payroll, the system obtains the frequency factor from HR. The system annualizes the earning or deduction element, according to the specified frequency factor, and deannualizes the earning or deduction element, according to the specified calendar period frequency. The only exception to this rule is when you've specified a generation control frequency. Then, the system annualizes the earning or deduction value according to the specified frequency factor, but deannualizes it according to the generation control frequency.

In Global Payroll, frequency is used with:

• Element definition.

• Generation control.

• Calendar periods (when defining the frequency that's being processed).

• Rate code elements.

• System elements.

See Calculation Rules and Components, Frequency and Generation Control Calculations, Application Fundamentals: Understanding Frequency IDs.