v7 FreeBalance Help

The CALCULATE Cost Items step is comprised of the following functions:

• Generate an employee net pay number, after verification that the pay has not already been finalized.
• Find the cost items previously calculated to determine if the pay was already calculated. If so, reverse the summary of accumulated benefits, reverse the cumulate hours, change status of the cost items per period to Not Processed, reduce the arrears and payments amounts, before the pay is re-calculated.
• Check for retroactive transactions, and create the cost items and deductions per period, for these retroactive transactions.
• Copy the automatic cost items in cost items per period. Most of the time, one (1) automatic cost item will create one (1) cost item per period. However if there is a new salary transition, certain cost items need to be split to reflect the new salary. Also, if a cost item has a new cost item effective date, this would mean that part of the month, the cost item is one amount and the other part it is another amount, so again the system will need to create multiple cost items per period to reflect this.
• Calculation of Statutory Holidays. The system must verify if there were any statutory holidays during the pay period being calculated or any statutory holiday for the retroactive transactions, based on the Shift Schedule Definition of the employee assignment.
• Check if manual or retroactive cost items per period need to be split.  For every record found in Cost Items Per Period with Frequency set to One time or Pay Period, and IsProRated set to True, the application will verify if any Salary Transition occurs between the Cost Item Start Date and End Date. If a Salary Transition occurs, the cost item per period will be split at the Salary Transition effective date.
• Verify and assign Accumulated Benefit entitlements.  The application will verify the global variables associated to the Accumulated Benefits and verify if the employee for which the pay is calculated, is entitled to accumulated benefits as per Accumulated Benefit Entitlement.  If Entitlement credits have already been generated, under Cost Items Per Period (Cost Item Transaction Type is set to Entitlement and State is set to Approved), the Number of Hours/Day/Unit is set based on the number of days under Accumulated Benefit Entitlement Detail.
• Find the Accumulated Benefit transfers balance, from Accumulated Benefits Summary .  If the Accumulated Benefit Type is Daily of Hourly, the Number of Hours/Day/Unit of Cost Item Per Period is set to Balance, otherwise if Accumulated Benefit Type is Paid, Amount for Frequency is set to Balance.
• Calculate the value of the cost items per period. In cost items per period, there will be records coming from automatic cost items or cost items per period that were entered through the time and attendance module or cost items per period that were added manually through the cost items per period screen.  The application will scan these cost items per period in order of sequence Cost Items.  Only Cost Items Per Period that have a status not set to Cancelled nor Finalized, and a State set to Approved are calculated.  Calculated Amount and Amount Limiting Regular Cost Item, from Period are determined at this step, based on a detailed algorithm.
• Apply the maximums.  At this step, the Maximum by Pay, Monthly Maximum and Annual Maximum, from Cost Items Per Period are applied, if any.
• Apply penalties. At this step, the Employee Assignment Penalties are applied, if any.
• Update Accumulated Benefits. Summary of Accumulated Benefits fields, including Accumulated, Credit, Debit, Taken, Paid and Balance are updated, based on the Effect on Accumulated Benefit, from Cost Item Per Period.
• Set other attributes in cost items per period. If no error was generated during the previous steps, the fields Employee net Payment, Sequence Calculated, from Cost Items Per Period are set to the values determined, and the status is set to 'Calculated'.
• Update the cumulated hours, based on the Number of Hours/Day/Unit, from Cost Item Per Period.
• Check for remaining balances in accumulated benefits. If the global parameter Accumulated Benefit = TRUE and the global parameter Gregorian Calendar = TRUE, the application will verify if the pay period is the last pay period before the new year and if so, will verify that every Summary of Accumulated Benefit has a balance of zero.  If the balance is not zero, the following error will be generated: "The year end procedure for the Accumulated Benefits has not been done.  This employee cannot be calculated.  Please execute the year end procedure and recalculate".  The application also verified if any assignments ended and there are remaining balances. If so, the following error will be generated:"The employee's assignment has ended and has remaining balances.  Accumulated Benefit transfers need to be generated before pay can be calculated."