Examples of Manage Values Defined by Criteria

Use the Values Defined by Criteria task to calculate or retrieve values based on one or more conditions.

You use the values defined by this criteria in:

Rate definitions
Any formula used for validation

If you use a third-party payroll product and have a requirement to extract the salary rate details, use the Generate HCM Rates process to calculate rate values. This process:

Calculates derived rate values, such as those which sum multiple salary components
Processes primary rates, as you may define rate definitions that calculate values that are different from those stored on an element entry

Note: The values calculated by the Generate HCM Rates process are stored on a rates table. You can extract this info using the HCM Extract tool to send to your third-party payroll providers.

The following examples show how you can calculate values defined by criteria for these elements of payroll.

Annual Salaries

You can calculate annual salaries for employees based on their position. For example:

If the employee is a Consultant, pay $45,000.
If the employee is a Senior Consultant, pay $55,000.
If the employee is a Principal Consultant, pay $65,000.

Bonus Payments

You can chose to calculate bonus payments for employees that are weighted by their location. A more complicated scenario would be to pay bonuses based on an employee's department, years of service, and annual salary.

If you want to	Set up criteria like this
Weight a bonus payment by location	For employees working in New York, pay a 15% bonus. For employees working in San Jose, pay a 13% bonus. For employees working in Chicago, pay a 9% bonus. For all other employees, pay a 5% bonus.
To pay a bonus based on department, years of service, and annual salary	If an employee working in sales has less than or equal to 5 years of service and an annual salary over $45,000, pay a $2,000 bonus. If an employee working in sales has less than or equal to 10 years of service and an annual salary over $45,000, pay a $5,000 bonus. If an employee working in sales has greater than 10 years of service and an annual salary over $45,000, pay a $9,000 bonus. For all other employees working in sales, pay a 7% bonus based on their annual salary.

If you want to

Set up criteria like this

Weight a bonus payment by location

For employees working in New York, pay a 15% bonus.
For employees working in San Jose, pay a 13% bonus.
For employees working in Chicago, pay a 9% bonus.
For all other employees, pay a 5% bonus.

To pay a bonus based on department, years of service, and annual salary

If an employee working in sales has less than or equal to 5 years of service and an annual salary over $45,000, pay a $2,000 bonus.
If an employee working in sales has less than or equal to 10 years of service and an annual salary over $45,000, pay a $5,000 bonus.
If an employee working in sales has greater than 10 years of service and an annual salary over $45,000, pay a $9,000 bonus.
For all other employees working in sales, pay a 7% bonus based on their annual salary.

Time Rates

You can calculate a time rate based a set of conditions held in values defined by criteria.

Note: This doesn't cover the payroll calculation. However, it does support configuration to calculate a rate based on a set of conditions for a time element in the payroll run.

There's a couple ways you can do this.

If you want to	Here's how you do it
Create values defined by criteria	You can choose to calculate shift payments that are weighted by the worker's location. Use the Values Defined by Criteria task to define the shift conditions. You could set up criteria like this. Pay $10 to employees working in New York. Pay $15 to all other employees.
Create a rate definition	Use the Rate Definitions task to create a rate definition and associate it to the values defined by criteria, Select Value by criteria in Category. Select Shift value by criteria in Value by Criteria Name.
Create a time element	Use the Elements task to create a shift element. Select Standard earnings as the primary classification. Select Time card as the category. Identify the element as having a default rate definition. Select the shift rate definition in Rate Name. Note: Use the Calculation Factors task from the Element Overview page to view the shift calculation steps and value definitions created by the element template.

If you want to

Here's how you do it

Create values defined by criteria

You can choose to calculate shift payments that are weighted by the worker's location. Use the Values Defined by Criteria task to define the shift conditions. You could set up criteria like this.

Pay $10 to employees working in New York.
Pay $15 to all other employees.

Create a rate definition

Use the Rate Definitions task to create a rate definition and associate it to the values defined by criteria,

Select Value by criteria in Category.
Select Shift value by criteria in Value by Criteria Name.

Create a time element

Use the Elements task to create a shift element.

Select Standard earnings as the primary classification.
Select Time card as the category.
Identify the element as having a default rate definition.
Select the shift rate definition in Rate Name.

Note: Use the Calculation Factors task from the Element Overview page to view the shift calculation steps and value definitions created by the element template.