Calculate Standard Earnings Rate

Let's look at an example that shows how to calculate a standard earnings rate based on a set of conditions held in values defined by criteria.

This example doesn't cover the payroll calculation. But it does support the configuration to calculate a rate based on a set of conditions for a standard element in the payroll run.

• Create Values Defined by Criteria: You can choose to calculate bonus payments based on a condition such as a worker's grade. Here's some criteria you could use:

  • For workers on grade A, pay 5,000

  • For workers in grade B, pay 5,500

  • For workers in grade C, pay 6,250

  • For workers in all other grades, pay 7,650

• Create Rate Definition: Use the Rate Definitions task to create a bonus rate definition and associate this with the values defined by criteria:

  1. In the Category field, select value by criteria.

  2. In the Value by the Criteria Name field, select the bonus value by criteria.

• Create Element: Use the Elements task to create a flat amount bonus element.

  1. In the Primary Classification field, select Standard Earnings.

  2. In the Category field, select Standard.

• Create Value Definition: Use the Calculation Value Definitions task to create a bonus value definition. This is required to associate the rate definition with the bonus element.

  1. Click Create for a new value definition group and provide a name such as standard earnings.

  2. In the Calculation Type field, select Rate Definition.

  3. In the Calculation Values region:

     1. Enter values from 0 to 99999.9.

     2. Select the bonus rate definition.

• Create Calculation Step: Use the Payroll Calculation Information task to create a bonus calculation step.

  1. Search for time cards in the component group field and navigate to the Calculation overview page.

  2. Navigate to all calculation steps tasks.

  3. Create a calculation step and provide a unique name such as a bonus.

• Create Calculation Factor on Element: Use the Elements task to create a calculation factor.

  1. Search and select the bonus element.

  2. Select the calculation factor page.

  3. In the calculation step field, select the bonus calculation step.

  4. In the value definition, select the bonus value definition field.

• Edit Formula on Bonus Element: Use the Elements task to edit the element formula.

  1. Edit the bonus element formula to calculate a bonus rate using the CALL_CALC_VALUES formula.

     Note: You can refer to the element status processing rules page to identify which formula to edit.