1. Implementing Compensation
  2. Conversion Rule Options for Configuring Additional Details of Payroll Elements

Conversion Rule Options for Configuring Additional Details of Payroll Elements

Use this information to help you select the correct conversion rule when you're configuring the additional details for payroll elements linked to compensation objects.

Conversion Rule Calculation Example
Standard Rate Annualized
  1. Convert the source amount and periodicity to an annual value using default values of 2080 hours, 260 working days.
  2. Convert the amount to the required periodicity and rate.
 NA
Standard Rate Daily
  1. Calculate a daily rate using default value 260 working days.
  2. Convert the amount to the required output periodicity and rate.
 NA
Standard Working Hours Rate Annualized

  1. Convert the source amount and working hours to an annual value. Use the person's standard working hours.

  2. Calculate the rate.

Scenario: The person works 40 hours a week with a monthly salary of 1000 US dollars.

Calculation: ((1000*12) / (40.00*52) = 5.77 an hour
Assignment Working Hours Rate Annualized
  1. Convert the source amount and working hours to an annual value. Use the person's working hours.
  2. Calculate the rate.

Scenario: The person works 40 hours a week, with a 37.5 standard working hours a week, and a monthly salary of 1000 US dollars.

Calculation: ((1000*12) / (37.50*52) = 6.15 an hour
Periodic Work Schedule Rate Annualized
  1. Convert the monetary value and work schedule to an annual value. Use the person's work schedule for the payroll period for daily and hourly conversions.
  2. Calculate the rate.

Scenario for a person assigned a monthly payroll:

  • The person has a monthly salary of 1000 US dollars.

  • The formula checks the work schedule details for the month.

Daily conversion calculation: 1000 a month / 20 days in the month = 50

For a person not assigned a payroll: The calculation uses the weekly rate and converts the result to an annual amount. The calculation then divides the annual amount by the number of days or hours in that week, according to the work schedule.