Element Proration

When an employee has a mid period change such as changing the basic salary during a month, a set of elements need to be prorated,

When you create an element using the template, you need to consider whether the element needs to be prorated for mid period events. You can control the behavior of the elements when you provide your response to the proration question in the questionnaire.

• If the answer is No, mid period changes won;t affect the calculated value of the element.
• If the answer is Yes, the template prompts you to enter the Proration Group. The mid period changes now potentially affect the calculated value of the element.

The template associates the global standard proration formula by default if the element is enabled for proration.

The proration formula GLB_EARN_PRORATION uses natural days proration. For example, in case of hire or termination in the course of the month, it uses the Employment days in the period or Calendar days in the period proration factor.

To meet your business requirements, you can create your own specific proration formula and link it to the elements that you need.

Note: Events that trigger the proration calculation are identified through the selected proration group.

Review Proration Triggers

1. Sign in to the application with a Payroll Manager role.
2. Navigate to the Event Groups task, in the Payroll work area.
3. Select Entry Changes for Proration
4. View the changes that trigger proration