Creating a Calculation Payroll Processing

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Creating a Calculation

You will encounter instances where you will need to create a new calculation for a Payroll

Definition. This document serves the purpose of explaining how a basic calculation is

setup.

Calculations may be defined to be linked to payroll definitions in the VIP People system.

Calculations may also be defined for all companies in the database and may be used for

more than one payroll definition.

A payroll definition may only have one linked default calculation, but can be linked to more

than one custom calculation.

Calculations are company specific, meaning they are created per Company.

Note: As a security measure please make a backup before making any changes.

In order to setup a new calculation please do the following:

Please access Utilities, from the Navigation pane:

Expand Utilities

Double-click on Calculation Management

Double-click on Custom Calculations

Click on New

Relevant buttons on the Custom Calculation Screen:

Button Description

Click on the New button to add a new calculation.

Click on the Delete button to delete an existing calculation. A calculation cannot be deleted while the ID of the calculation is linked to a payroll definition.

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Column Description

Code Enter a unique code for the calculation.

Description Enter a description for the calculation.

Company

Select a company from the drop-down list that the calculation must be available for. If the calculation must be available for all companies, leave this field blank to add the calculation as a general calculation.

Calculation Group

The calculation must be linked to a group For example, an earning group can be created to group all the calculations applicable to earnings together. Select the applicable group from the drop-down list. If there is no appropriate group available for the calculation, you will need to add a new group.

Tip: To add a new calculation group, click on the drop-

down list in the Calculation Group field. Right-click in the

blank space on the drop-down list and click on Edit.

Return Type

Select the type of answer that should be returned by the calculation.

The options are:

Integer: the calculation will return a whole value, no fraction or decimal will be returned.

Decimal: the calculation will return a decimal value, unless the answer is a whole number.

Date: the calculation will return a date value.

Boolean: this calculation will return the number 1 or the number 0. This option is not often used in a payroll environment.

Active Version

As a calculation may have more than one version, generated when changes to the calculation are applied, this column will display the current active version.

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In my example a new Pension Fund calculation will be setup. The calculation is as

follows:

7% of Period Salary.

Click on New

Populate All the Calculation Detail fields

Select Save

Select New

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The Expression Builder Screen will then display:

Sections on the Expression Builder Screen

Section Description

Variables tab

On the Variables tab the groups (containers), containing different fields or values applicable to employees, companies or the setup on the VIP People system, are listed. The items in these groups may be used in calculations, for example, the employee’s date engaged or fixed salary.

Calculations tab On the Calculations tab the groups, containing existing calculations, are listed. The existing calculations in these groups may be used in other calculations.

Operators

The Operators section lists operators used for statements or comparisons. The operators are grouped under the following three categories:

Math,

Logical, and

Relational.

Functions

The Functions section lists built-in functions used to manipulate or compare information, for example, the IF statement. The functions are grouped under the following categories:

Logical,

String,

Math,

Date, and

Lookup.

Expression New calculations are entered in this section and existing calculations can be viewed here.

Properties You may define certain behavioural properties that change the way the expression presents the result, for example if the answer is less than 10, display 1 instead.

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The property fields available is:

Round To: You can specify whether the result must be rounded up or down, as normal, or not rounded.

If Calculation Value: In this field you can select the applicable condition, for example, = or > or <, etc.

Check Value: Enter the value the condition must apply to.

Return: Enter the value that must display as the result when the logic is true.

The properties defined here, default to the Custom Calculation Detail Screen.

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As previously mentioned the calculation will consist of the Period Salary x 7%

The period salary field is under Employee > Employee Rule > Period Salary

Insert Period Salary * 0.07 (Period salary * 7/100)

Select Verify

Select Ok

Once you Verify the Status will change to Verified and you can then select OK.

Once you select Ok this screen will close and the following message will appear:

Set Calculation Definition as the active definition – Please select Yes.

This mean that this calculation will be the active calculation.

Then select Save

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When dealing with a new calculation you will then access the Payroll Definition and link

the calculation:

Select applicable calculation

Select Save

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In order for the change to apply you will need to do a Re Calc All on all the applicable

Company Rule.

In order to do a recalculation on Company Rule please follow these steps:

Expand Company Management

Double-click on the Company Rule in question

Then Re Calc All for the changes to apply to all the employees in the applicable Company

Rules.