Set Up Flat Amount Allowances

Follow these steps to set up flat amount allowances in MyCSP.

Create a new Regular Earnings Element

1. Using the Elements task, click Create to create a new Regular Earnings element. The Category is Standard.
2. Select Flat Amount as Calculation rule and Annually as Periodicity.
3. In the Special Rules section, select the user-defined allowance proration event group and the default Entry Changes for Retro event group.
4. Review the element details and enter further information in the UK Element Information region (MyCSP Information), including the element type (allowance), element code and code description. You must select Allowance in the Element Type field. Otherwise, the allowance is not identifiable as liable for reporting.

Create Rate Definition – Element

Create a new element rate definition that will be associated with the flat amount element:

1. Using the Rate Definitions task, click Create to create a new rate definition.
2. Enter the details as shown:

   FIELD	VALUE
   Category	Element
   Storage Type	Amount
   Element Name	Flat amount allowance element

3. Ensure that Reporting Required field is selected and deselect Calculate Live Rates.
4. You do not need to make changes to the Returned Rate Details and Calculation regions. The contributor type for the rate definition is created automatically as Input Value.

Create Calculation Value Definition

Create a calculation value definition for the element rate definition:

1. Using the Calculation Values Definition task, click Create to create a new calculation value definition. The calculation type is Rate Definition.
2. Select Date Earned in the Retrieval Date field.
3. Create a range of values and link the calculation value definition to the element rate definition created previously.

Create Calculation Factor

Create a calculation factor for the flat amount allowance element and link it to the calculation value definition created previously:

1. Using the Elements task, search for the flat amount allowance element.
2. Select Calculation Factors and click Create to create a new calculation factor.
3. Enter the details as shown:

   FIELD	VALUE
   Calculation Step	Rate Amount
   Calculation Value Definition	User-defined value definition created previously.

Create Element Entries

Once the above setup steps are completed, you can create element entries for employees who are in receipt of this type of allowance:

1. Using the Element Entries task, select the flat amount allowance element.
2. Record the pay value for the flat amount allowance in the Amount field.

Run Generate HCM Rates Process

Run the Generate HCM Rates process prior to a payroll to create entries in the Rates Values table. This process interprets the events such as salary increase, changes in allowance rates, etc., and calculates the new allowance amount for each of the proration periods. During the payroll run, amounts stored in the Rates Values table is used.

1. Using the Submit a Process or Report task, select Generate HCM Rates.
2. Enter the parameters as shown:

   PARAMETER	VALUE
   Process Mode	Full
   Process Start Date	The earliest date from when you want to recalculate the rates
   Process End Date	The latest date until when you want to recalculate the rates
   Payroll	Optional
   Payroll Statutory Unit	Optional

See the help topic Generating HCM Rates: Procedure for more information.