SYMPTOM:

For the purpose of Income Tax deductions, we need the ‘Entered’ or ‘Entitled’ value of a Head of Pay (HOP) and find the taxable amount. For this purpose, we make use of a function called ‘ORGNALVAL(HOP)’ being available in the Formula Builder. We define an HOP of the form ‘ORGNALVAL(BASIC)’. Here, ‘BASIC’ is the Short Name of the Head of Pay, whose ‘Entitled’ value is being desired. Upon specifying mandatory details like ‘Short name’, ‘Formula’, and everything else, (which must be indicated to save the definition) I chose Save, keeping other details as default. While performing a ‘Payroll View’, We observe that the new HOP is not returning the value, which was originally entered for the Head of Pay. Instead, a prorated value is returned.

The function ‘ORGNALVAL()’ is expected to return the entitled value of an HOP. Its sole use is to get the entitled value of an HOP since the generated (or payable) value may differ from the entitled value of an HOP on account of several reasons like unpaid leave, mid month joining, suspension etc.

CAUSE:

The value of a Head of Pay originally entered or calculated for, may get affected by factors that can either raise it or diminish it. These factors include unpaid absence, suspension, arrears, etc. The originally entered value through the Payroll entry modules, or the value, thus calculated originally, (before it gets affected by other factors, as mentioned above) is what we call the ‘Original Value’ of the Head of Pay.

There can be various reasons due to which the generated value of a Head of Pay might differ from its original value. Here are the primary ways:

• Employee joins, resigns or goes under suspension (or say, resumes work after Suspension Period gets over) in the middle of the month – so the ‘entered’ value for HOP may get pro-rated

• Employee is issued unpaid leaves, or previously issued leaves are being reviewed – so HOP may get affected

• Employee receives increment with effect from an earlier date – so arrears are generated.

However, in order to process payroll data smoothly, sometimes we find it that it would be convenient, if we could know the ‘Original Value’ of an HOP as well in addition to the ‘generated’ (i.e., ‘net’) value that is presented to us after considering all possible effects. To address this issue, PERKS provides a Mathematical function named ‘ORGNALVAL()’. It is available in the Formula Builders of Pay Structure and Report Writer. It takes the (Short) name of the Head of Pay as its parameter (or argument), for which we want to know the original value.

While defining such a Head of Pay, thus, we should make sure that those factors that render the generated value of an HOP to differ from the value originally entered or calculated do not come into play at the time of calculating the ‘original’ value of some HOP.

Somehow we need to ‘shield’ our Head of Pay, which is calculating the original value of some HOP, from the aforementioned effects. The following section describes how we can go about these issues.

Mark the HOP that fetches the original value of another HOP as

Prorata Calculation: No / Auto (but never, ‘Yes’)

Affected by Unpaid: No Affected by Halfpaid: No Affected by Qtr. Paid: No Effect on Arrear: No Split Calculation: Default Round Off: No Currency: If multiple currencies are being used, then make sure that both the HOP that fetches the original value as well as the HOP being set as its parameter, are expressed in the same currency.

Once you save your HOP definition taking care of these Settings, the System would generate the values as desired by you. The default Settings of all the attributes may not be sufficient to meet the requirements for every scenario, as we have observed above.