Set up custom calculations
Click on Company…Setup custom calculations.
The purpose of custom calculations is to set up calculations for specific definitions that are applicable to one or several employees. Employees are linked to these calculations and payslip values will be calculated accordingly. For more information on how to link employees to custom calculations, refer to the How to section Earnings, Deductions, Company Contributions and Fringe Benefits.
Custom calculations may be set up for any definition included in the payslip definition template of a cycle with the exception of:
- Salary or wage
- Savings and loans
- Unpaid and termination leave
Setting up calculations
Before you start
It will be of great value if you rewrite the calculation in a mathematical notation – this will help a lot when you enter the calculation in Payroll.
Things to keep in mind when setting up custom calculations:
- A custom calculation consists of multiple lines, each with a condition and related calculation.
- Each condition and calculation can have a maximum of 29 components.
- Available fields that may be used in the condition and calculation are displayed on the far right of the view under ‘Available items’.
- Note that normal mathematical principles with regards to brackets and operators are applied to the calculations.
- Brackets first, and within brackets in the order multiply and/or divide then plus and/or minus.
- Outside of the brackets – multiply and/or divide then plus and/or minus.
- This order is applied individually to each calculation row.
- The custom calculation is executed in the order in which it appears on the view. The order may be changed by using the up and down arrows on each line.
- When using the greater than (>) operator in your calculation, always start with the biggest condition.
- When using the less than (<) operator in your calculation, always start with the smallest condition.
- When using less than (<) or greater than (>) operators in a calculation, be sure to include the base amount in one of the conditions by using less than or equal to (<=) or greater than or equal to (>=). As an example, calculate an allowance of R 500 for employees earning less that R 5 000 and R 750 for employees earning More than R 5 000. What happens to an employee earning R 5 000? This will be determined by the operator you use.
- Be careful of using a payslip definition in your calculation that is dependent on the definition you are adding a calculation for, as this will cause a system error.
Adding a calculation
Click on Company…Setup custom calculations.
Expand the definition type and select the definition for which a calculation must be entered. The selected definition name will display to the right of the list of available definitions with an Add button further to the right.
Click on the Add button to move the definition onto the view where the calculation will be entered.
You will be prompted to enter a description for the calculation. This description will later be used when linking an employee to a calculation and must be entered in a way that makes the calculation easily recognisable. You may then proceed to enter the calculation.
A calculation may consist of one or multiple calculation lines. Each calculation line has a condition and a related calculation. Conditions are optional and may be left blank. Take note that a calculation with no condition should always just have one calculation line.
Once you have clicked on either the condition or the calculation to be entered, fields and/or operators in the ‘Available Items’ area that may be used at that point will be enabled and ready for use. Use this to guide you through the process of setting up the calculation.
Pay an allowance of R500 to all employees earning R5 000 or less. Pay 10% of Basic salary to employees who earn more than R5 000.
|1||Basic Salary <= 5000.00||500.00|
|2||Basic Salary > 5000.00||Basic Salary x 0.10|
Watch the video below by clicking on the play button to follow the steps to set up the calculation. You may stop the video at any point by clicking on the pause button or rewind it by dragging the blue dot back to the required slide.
This is the final result:
To change a field in a calculation, simply click on the field you want to change and then select the field you want to use instead. You may also use the (backspace button) to clear the entire condition or calculation and re-enter it.
Note that if the calculation is in use in the current period, a recalculation of all employee payslip values will be done.