Overview of Flat Amount Allowance
Follow the steps described here to create an allowance that is payable to eligible employees in the organization as a flat amount, where there is no dependency on salary, although proration is possible.
For example, all employees receive a uniform allowance of £50 each month.
It is a prerequisite that you create the retro and allowance proration groups as
described in the Common Setup section of this document.
| TASK | ATTRIBUTE | VALUE |
|---|---|---|
| Create Allowance Element | Calculation rule | Flat amount |
| Periodicity | Annual | |
| Create Rate Definition – Element | Category | Element |
| Storage Type | Amount | |
| Contributor Type | Input Value | |
| Contributor Name | Amount | |
| Create Calculation Value Definition | Calculation Type | Rate Definition |
| Calculation Values - Rate Definition | User-defined rate definition created for element | |
| Create Calculation Factor for Allowance Element | Calculation Step | Rate Amount |
| Calculation Value Definition | User-defined calculation value definition | |
| Create Element Entries | N/A | N/A |
| Run Generate HCM Rates Process | Process Mode | Full |