A requirement to have Productivity Accrual (PIPA) based on daily Rate for a specific contract.
NOTE:
This is in place of creating journals in finance but rather completing transactions via payroll.
Configuration
Pay Item
Requirement to have Pay Items created for:
PIP paid out
PIP on Term
PIP accrual to store the calculation against
PIP oncost inflated accrual
Don’t want to clear year end as PIP may go across financial year
The additional inflated amount is not shown on Payslip but the Daily rate accrual is
Costing
Additional postings
2. Item Sequence
Add to PAY sequence
Add to ONCOST sequence
3. Earning Category
4. Pay Calculation
The daily rate can be left blank and set on the contract
5. Contract Calculation
Here you can define the daily rate
Valid skill this is applied to
Timesheet
The timesheet must come through with tce_day value defined
That is the number of days worked
Once Calculated
On the contract calculations it will display the oncost as daily rate on contract x days worked
$15 * 5 = 75
$2.7 * 5 = 13.50
Earning and Deductions Report
Will display the contract Number and the contract calculation number
2.Employee Pay Components Report
This report must be open in excel
(this screen shot is prior to adding additional PIPX)
3. Costing workbench
PIP on Resignation – Refunded to Contract
When an employee resigns PIP is not paid out, but full amount is to be refunded back to the contract and the balance sheet to be debited.
Requirements:
Job Credit for $ amount.
Debit the PIP clearing account for the $ amount.
1. Pay Item
Pay Cal to Debit the PIP GL
2. Item Sequence
The Pay Calc Pay Item will be allocated to ONCOST item sequence.
3. Pay Calculation
New Pay Calculation required as Fringe not included in Pay to Debit the GL for PIP accrual.
4. Processing Timecard
Create a Manual timesheet with pay method cheque. The employee is not getting paid so must be a manual timesheet this is basically movement of amounts via costing. Once CALC and ACCEPTED will have status of PAID as nothing further will need to be processed.
On the manual timesheet create a zero gross timecard costed to the contract. This is important as the contract will be Credited with the PIP amount. The total burden is driven from the timecard entry.
On the deductions Tax add the Pay Calc for the PIP Refund with the -$ amount as employer Burden as it is a fringe not included in pay.
Calculate the pay.
5. Costing workbench
The negative credit transaction will Debit the PIP GL account.
The negative debit transaction will Credit the contract.
The Analysis summary report will look like: