Balance Exceptions
Balance exceptions define the criteria you use to identify overpayments, underpayments, and trends. The variance may also be a result of incorrect setup or adjustment.
Create a balance exception and the Balance Exception Report, and then run the Balance Exception Report. Run the report to generate a report output that displays payroll balance results as per the defined exception criteria. This information helps you detect the balance adjustments needed to correct payments or correct the balance setup.
Use the Balance Exceptions task to create a balance exception and consider these components when you create a balance exception.
Comparison Types
When you're creating balance exceptions, select a comparison type. Comparison types define the period that you use to determine whether an exception has occurred. For example, select Average in months as the comparison type and enter 3 in the Comparison Value field. In this scenario, the current month value is compared to the average of the previous three months.
Some comparison values are preset and you can't change them:
-
Current month, Current period, Current quarter, and Current year always have a comparison value of 0.
-
Previous period and Previous month have a comparison value of 1.
This table lists each comparison type that you can select and explains how it operates as a basis of comparison.
|
Comparison Type |
How it Operates as a Basis of Comparison |
|---|---|
|
Average in months |
Compares the current month to date balance with the average of previous months to date. Only available if you have a Month to Date balance dimension for assignment or payroll relationship. |
|
Current month |
Compares values to the total for the current month to date balance. Doesn't use any previous month as a basis for comparison. Only available if you have a Month to Date balance dimension for assignment or payroll relationship. |
|
Current period |
Compares values to the total for the current period to date. Doesn't use any previous period as a basis for comparison. Only available if you have a Period to Date balance dimension for assignment or payroll relationship. |
|
Current quarter |
Compares values to the total for the current quarter to date. Doesn't use any previous period as a basis for comparison. Only available if you have a Quarter to Date balance dimension for assignment or payroll relationship. |
|
Current year |
Compares values to the total for the current year to date. Doesn't use any previous period as a basis for comparison. Only available if you have a Year to Date balance dimension for assignment or payroll relationship. |
|
Previous month |
Uses the previous month as a basis of comparison. Only available if you have a Month to Date balance dimension for assignment or payroll relationship. |
|
Previous period |
Uses the previous period as a basis of comparison. Only available if you have a Period to Date balance dimension for assignment or payroll relationship. |
Comparison Value field is shown for Average in Months. It is hidden for other comparison types.
If you select a Comparison Type of Average in months, you must enter a Comparison Value to determine the number of months that are averaged for the comparison.
Variance Operators
Variance operators enable you to specify the precise range of variance that you want to report on.
For example, you want to determine the monthly car allowance paid to employees in excess of 600 more than the previous month for the same payroll relationship. You can setup a balance exception for this example using these values:
-
Comparison type is previous month
-
Balance name is monthly car allowance
-
Dimension name is relationship month to date
-
Previous month amount is 500
-
Variance value is 100
This table describes the effect of using each of the variance operators for balance exception reporting. The Results column indicates the effect of selecting each variance operator.
|
Variance Operator |
Balance Exception Report Output |
Results (based on sample data) |
|---|---|---|
|
Variance, plus or minus Note:
This operator applies only for comparison types of 'Previous', like Previous Months or Previous Period, as well as 'Average in Months'. |
All relationships whose balance value either exceeds or are less than the previous month amount by the amount or percentage stated in the variance value. |
Returns all relationships with a value less than or equal to 400 and greater than or equal to 600. |
|
Less than |
All relationships that are less than the previous month amount by the amount or percentage stated in the variance value. |
Returns all relationships with a value of less than 400. |
|
Less than or equal |
All relationships with a current value either equal to or less than the previous month amount by the amount or percentage stated in the variance value. |
Returns all relationships with a value of 400 or less. |
|
Equal |
All values that are exactly equal to the higher limit or the lower limit of the variance value. |
Returns all relationships with a current value equal to 400 or 600. |
|
Greater than |
All relationships that are greater than the previous month amount by the amount or percentage stated in the variance value. |
Returns all relationships with a value of more than 600. |
|
Greater than or equal |
All relationships with a current value either equal to or greater than the previous month amount by the amount or percentage stated in the variance value. |
Returns all relationships with a value of 600 or more. |
|
Does not equal |
All relationships with a current value not equal to the previous month amount. |
Returns all relationships with a value other than 500. |
Select a Balance Type and Balance Dimension that specifies the balance value that's evaluated for the exception. You can only select balance dimensions that are compatible with the Comparison Type you specified. For example, if the Comparison Type is Current Period, you can only select balance dimensions of type 'Period to Date'.
Severity Level
Severity Level controls the order in which the exceptions are displayed in the balance exception report. Balance exceptions with the higher severity are displayed first (1 being the highest).
Using Formula Variance Type
You can write a fast formula using the Balance Exception formula type to return a variance value that you can use for identifying exceptions for a balance. To use this feature, select the Formula variance type on the Create Balance Exception page and then select the formula that you created from the Formula Name field.
Using Balance Variance Type
To reference two balances in the balance exception equation, select the Balance variance type on the Create Balance Exception page and then select the Target Balance Name and Target Dimension Name. This is applicable only when the Comparison Type is of type Current Month, Period, Quarter, or Year. The context values for Target Dimension Name are inherited from the Dimension Name you select on the left-hand side of the Create Balance Exception page as the first dimension. No additional contexts are set for Target Dimension Name.
Run Dimension Support
- Comparison Type: Current Run
- Dimension: Relationship Tax Unit Run
Define the following to support this exception rule:
- Balance Name: e.g. Salary
- Variance Type: Amount
- Variance Operator: Greater Than
- Variance Value: 2,000
- Severity: 1
When you run the Balance Exception Report, the generated report shows employees having salaries greater than $2000 for the current run only.
Flow Connector Rule Support
The Balance Exception Report supports flow connector rules to view the consolidated run balances for connected flows. For example, during a payroll period, you run several off-cycle QuickPay runs to accommodate adhoc late payments or bonus payments to your employees or payment settlements for terminated employees. You also run the usual on-cycle payroll runs for the same payroll period.
Use flow connectors to consolidate the flows. When you run the enhanced Balance Exception Report, the generated report honors the defined flow connector rules and displays run balances for all the connected flows.