Overview of Single-Rate Allowances

Follow the steps described here to create an allowance that is payable to eligible employees in the organization at the same rate.

This is applicable where there is no variation in rate at employee level, but the rate is based on the employee’s salary.

The following table summarizes the tasks and setup decisions.

Single-Rate Allowance Setup Summary:

TASK	ATTRIBUTE	VALUE
Create Allowance Element	Calculation rule	Flat amount
N/A	Periodicity	Annual
Create Rate Definition – Salary Basis	Category	Element
N/A	Storage Type	Amount
N/A	Element Name	User-defined salary basis element
Create Rate Definition – Derived Rate	Category	Derived Rate
N/A	Factor Rule	Value
N/A	Contributor Type	Rate Definition
N/A	Contributor Name	User-defined salary basis rate definition
Create Calculation Value Definition	Calculation Type	Rate Definition
N/A	Calculation Values - Rate Definition	User-defined rate definition created for derived rate
Create Calculation Factor for Allowance Element	Calculation Step	Rate Amount
N/A	Calculation Value Definition	User-defined calculation rate definition
Edit Earnings Formula	Formula Name	User-defined flat amount allowance element
Create Element Entries	N/A	N/A
Run Generate HCM Rates Process	Process Mode	Full