Prorating Earnings for Bahrain

In scenarios where an employee has a mid-period change, for example, changing the basic salary during a month, a set of elements need to be prorated.

When creating an element through element template you should consider if the element must be prorated for mid-period events. The behavior of the element is managed in the first stage by the answering the question related to proration contained in the questionnaire:

• If the answer is No, mid-period changes will not affect the calculated value of the element.

• If the answer is Yes, the template prompts you to enter the Proration Group. The mid-period changes may now potentially affect the calculated value of the element.

For elements enabled for proration the template associates by default the global standard proration formula.

Proration formula GLB_EARN_PRORATION uses natural days proration. For example, in case of hire or termination in the course of the month, it uses as proration factor:

Employment days in the period or Calendar days in the period

To meet different business requirements, implementation teams can create their own specific proration formula and attach it to the elements that follow these business requirements.

Events that trigger the proration calculation are identified through the selected proration group.

1. Log in with a Payroll Manager role.
2. Navigate to the Event Groups task in the Payroll work area. Select Entry Changes for Proration.
3. View the changes that trigger proration.
   Note: No specific event group is predefined for the Bahrain localization. Additional event groups can be added in the implementation phase.