Set Up Element Proration

Use proration to calculate proportionate amounts for recurring elements when payroll-relevant data changes during a payroll period.

Examples of such scenarios include a person joining the enterprise or a mid-period pay increase. Proration creates two payroll run results. The first run result is for the payroll period up to the day before the event. The second one is from the date of the event to the end of the period. When you create an element, you specify its proration event group and the calculation method.

Use proration rate conversion rules to specify a different rule than that used for periodicity. For example, you prorate based on calendar days when using work units for conversion.

To set up element proration, you do these tasks:

• Review the predefined proration event group to ensure that it includes changes you want to track. You can optionally update the event group or create a new group.

• Create an element and enable proration processing for an element.

Review the Predefined Event Group

When you create or update a recurring element, you can make it subject to proration.

1. On the Home page, click the Event Groups task under the My Client Groups tab.

2. Search for the predefined event group: Entry Changes for Proration.

3. Review the types of changes that automatically trigger proration for the elements associated with this event group.

   You can edit this group or create a new event group for the element, if required. For example, you might want to add changes to calculation cards or assignments.

Enable Proration Processing for an Element

To enable proration, do these steps:

1. On the Home page, click the Elements task under the My Client Groups tab, and click Create.

2. On the Create Element: Additional Details page, select Yes for the following question: Is this element subject to proration?

3. Select the predefined event group (Entry Changes for Proration) or a new group that you created.

4. Select a Proration Units and Proration Rate Conversion Rule.

5. Select a Proration Conversion Rule formula.

Note: If the predefined conversion rules don't meet your requirements, you can create a user-defined formula.