Generate HCM Rates

Submit the Generate HCM Rates process to calculate and store most types of rate definitions.

You can use the stored rate values for reporting payroll calculations. Run this batch process frequently to ensure the stored rate values are accurate. After you run this process, you can report on the rates using extracts. The user entity includes the database items that you can use in reports.

Use this flow to calculate and store most types of rate definitions in these scenarios.

Rates that are associated with an element. For example, a salary rate definition is associated with a salary element. The process calculates a salary rate value for all workers with a salary element entry.
Rates values for factor based element rates. Use the Generate HCM Rates process to calculate and store rate values for factor based element rates. You can retrieve this value in the payroll run.
Rates that are associated with a value definition. Certain types of elements, such as time elements, use payroll calculation information rules and definitions. For example, a value definition is generated for an overtime element and this is associated with an overtime rate definition. The process calculates an overtime rate value for all workers with an overtime element entry.
Rates that are based on a value-by-criteria defined for an assignment level criteria, such as a worker's grade or location.
Rates that are based on a formula. However, such rates are calculated in a payroll run.
Rates that are derived. For example, a rate that's derived based on the sum of car and housing allowance rates. In this case, the Generate HCM Rates process calculates the car allowance rate, the housing allowance rate, and the derived rate.

The stored rate values can be used for reporting or retrieving for payroll calculation purposes.

The application provides database items to support the rate batch process. These array database items return all rates associated with a payroll relationship record as of a specific date.

Note:

The REPORTING_RATE_VALUES and REPORTING_RATE_PERIODICITIES database items return values based on the return rate details defined on the rate definition. The other periodicity database items, such as REPORTING_RATE_QUARTERLY, return a rate that's converted to the specified periodicity.

The Generate HCM Rates process supports the database items listed in this table.

Database Items	Description
REPORTING_RATE_NAMES	Name of the rate
REPORTING_RATE_VALUES	Value of the rate
REPORTING_RATE_PERIODICITIES	Periodicity of the rate
REPORTING_RATE_FTE_FLAGS	Full-time status of the rate
REPORTING_RATE_TERM_NUMBERS	Term number associated to the rate values
REPORTING_RATE_ASG_NUMBERS	Assignment number associated to the rate values
REPORTING_RATE_WEEKLY	Weekly rate value
REPORTING_RATE_MONTHLY	Monthly rate value
REPORTING_RATE_QUARTERLY	Quarterly rate value.
REPORTING_RATE_YEARLY	Annual rate value
REPORTING_RATE_PT_WEEKLY	Part-time weekly rate value
REPORTING_RATE_PT_MONTHLY	Part-time monthly rate value
REPORTING_RATE_PT_QUARTERLY	Part-time quarterly rate value
REPORTING_RATE_PT_YEARLY	Part-time annual rate value
REPORTING_RATE_FT_WEEKLY	Full-time weekly rate value
REPORTING_RATE_FT_MONTHLY	Full-time monthly rate value
REPORTING_RATE_FT_QUARTERLY	Full-time quarterly rate value
REPORTING_RATE_FT_YEARLY	Full-time annual rate value
PER_ASG_ESTABLISHMENT_ID	Establishment
PER_ASG_UNION_ID	Worker Union ID
PER_ASG_UNION_NAME	Worker Union Name
PER_ASG_JOB_MANAGER_LEVEL	Job Manager Level
PER_ASG_JOB_MANAGER_LEVEL_NAME	Job Manager Level Name
CMP_ASSIGNMENT_SALARY_BASIS_NAME	Salary Basis
PER_ASG_COLLECTIVE_AGREEMENT_ID	Collective Agreement
PER_ASG_BARGAINING_UNIT_CODE_NAME	Bargaining Unit Name
PER_ASG_BARGAINING_UNIT_CODE	Bargaining Unit Code
PER_ASG_ACTION_CODE	Action Code
PER_ASG_ACTION_REASON_CODE	Action Reason

Run the process if these conditions apply.

Changes to the data referenced by the rate, which may include element entries, grade rates, and values defined by criteria. This process only reports the rate values. It doesn't update, delete, create, or have any impact on the underlying objects.
Updates to rate definitions, such as when a new rate contributor is added or removed, or the rate is made inactive.
Changes to employee records that impact their salary rates, such as changes to job or grade.

Note:

You should run the process before any operation that depends on the values that are stored in the table. For example, if you have a rate based on seniority, values could change simply by the passage of time.

Let's look at the steps to run the process.

On the Home page, click the Submit a Flow quick action under the My Clients group.
Select your legislative data group.
Select the Generate HCM Rates flow pattern.

Enter these values for the Process Mode field:

Note:

Review how your company uses the information generated by the Generate HCM Rates process and ensure that you're selecting the appropriate process mode parameter. The mode controls the frequency of rate calculations performed for each employee. The higher the frequency and number of rate calculations, the more accurate the rates, but this will be reflected in the overall performance of the Generate HCM Rates process. For more information, see "Control the Start and End Date of the Rate Calculation Period".

Mode	Description	Accuracy
Fast	Uses the start and end date specified to calculate the rate value. If the rate value is the same for both dates, it determines that the rate value is the same over the entire period. If the start and end values are different, this method then determines a value in the middle, and compares it with the start and finish values to see where the change occurred. This process repeats until the date of the change is found. This is known as a binary chop algorithm.	This is the quickest but least accurate method to calculate rate values. It misses any changes if a rate value goes up and then back down to the same value that's calculated at the start and end dates. Select this option when you need detailed rate details for reporting purposes, but you don't require 100% accuracy. As the name suggests, this option will deliver the best performance for the Generate HCM Rates process.
Full	Performs separate rate calculations for every day within the rate calculation period.	Slowest but most accurate method. This mode ensures that rates are 100% accurate, but the volume of calculations per employee is very high. It's recommended you only select this option if you are using the rates stored by the Generate HCM Rates process for payroll calculation purposes.
Periodic	This method works the same as Fast, except that you can specify the number of days the process calculates rates between the start and end dates.	The accuracy of this method is half-way between the Fast and Full modes. Select this option when you need more precise rate details for reporting purposes. The number of days you enter will control the accuracy and performance of the Generate HCM Rates process. For example, when you select a 7-day period, the process will calculate the rate for an employee at the start and end of each 7-day period. If these rates are the same, the process will assume that the employee rate did not change. and will move on to the next 7-day period. If the rates are different, the process will calculate daily rates within the 7-day period to identify the date on which the rate changed. When you select a 14-day period, the process will work in the same manner, but the rates will be calculated at the start and end of each 14-day period. In this example, the 7-day option is more accurate, but the Generate HCM Rates process will take longer because it's performing more calculations than the 14-day option. So, the lower the number you enter in the Number of Days parameter, the more accurate is the rate calculation of the Generate HCM Rates process.

Mode

Description

Accuracy

Fast

Uses the start and end date specified to calculate the rate value. If the rate value is the same for both dates, it determines that the rate value is the same over the entire period. If the start and end values are different, this method then determines a value in the middle, and compares it with the start and finish values to see where the change occurred. This process repeats until the date of the change is found. This is known as a binary chop algorithm.

This is the quickest but least accurate method to calculate rate values. It misses any changes if a rate value goes up and then back down to the same value that's calculated at the start and end dates.

Select this option when you need detailed rate details for reporting purposes, but you don't require 100% accuracy. As the name suggests, this option will deliver the best performance for the Generate HCM Rates process.

Full

Performs separate rate calculations for every day within the rate calculation period.

Slowest but most accurate method.

This mode ensures that rates are 100% accurate, but the volume of calculations per employee is very high. It's recommended you only select this option if you are using the rates stored by the Generate HCM Rates process for payroll calculation purposes.

Periodic

This method works the same as Fast, except that you can specify the number of days the process calculates rates between the start and end dates.

The accuracy of this method is half-way between the Fast and Full modes.

Select this option when you need more precise rate details for reporting purposes. The number of days you enter will control the accuracy and performance of the Generate HCM Rates process.

For example, when you select a 7-day period, the process will calculate the rate for an employee at the start and end of each 7-day period. If these rates are the same, the process will assume that the employee rate did not change. and will move on to the next 7-day period. If the rates are different, the process will calculate daily rates within the 7-day period to identify the date on which the rate changed.

When you select a 14-day period, the process will work in the same manner, but the rates will be calculated at the start and end of each 14-day period. In this example, the 7-day option is more accurate, but the Generate HCM Rates process will take longer because it's performing more calculations than the 14-day option.

So, the lower the number you enter in the Number of Days parameter, the more accurate is the rate calculation of the Generate HCM Rates process.

Click Next.
Select a flow submission.

Note:
If you select Using a schedule, you must also select a frequency, such as once, weekly or daily.
Note:
Use the Payroll Relationship Group parameter to reduce the number of employees included in the Generate HCM rates process. The Payroll Relationship Group parameter supports these relationship groups:
1. Static and dynamic payroll relationship groups.
2. Groups that include assignment or payroll relationship records.
Click Next and then Submit.

Control the Start and End Date of the Rate Calculation Period

It's essential that you understand the HCM rates configuration for your organization in detail, so that you know what type of updates can result in a rate change, and who makes those changes. You can then define the start and end date of rate calculations to meet the business requirements of your company. The shorter the time span, the fewer rate calculations will be performed, and this is reflected in the performance of the Generate HCM Rates process.

Use the Generate HCM Rates Start Date parameter to set an earliest start date for rate calculations. For example, set this parameter to 2020-01-01 (YYYY-MM-DD), and the Generate HCM Rates process will only recalculate rates from this date.

Note:

This parameter applies only when you're using the Full or Periodic modes.

The rates process automatically calculates the rate changes that occur up to 2 years in the future. If this rate information is not required, use the "Set the default end date limit for the rate" batch process to stop the calculation of future dated rates. This parameter captures the number of years in advance the rates are calculated. Set to 0 to ensure that the rates are only calculated up to the process end date you entered while submitting the Generate HCM Rates process.