Implementation Scenario - Implementing a  'Piece-Rated' based Payment System

Article No

Q0019

Version Applicability

PERKS 2.45 and later

Last Reviewed On

July 03, 2000

SYMPTOM:

This Article discusses an use of the 'Piece Rates' module. We will study it through an implementation scenario. For preliminary assistance on how this module works, please refer to the Online Help.

Here is our requirement.

The user is engaged in the business of 'Construction'. He wants Heads of Pay (HOPs) for each employee to be allocated to various Projects and Assignments (i.e., Jobs).

Considering that the Current Period lies between '1/3/2000 to 31/3/2000', examine the folowing specifications.

HOPs for Employee A

Basic

RM 2000

Allowance 

RM 500

HOPs for Employee B

Basic

RM 3000

Allowance

RM 500

During the Period of March 2000, both Employee A and Employee B are attached to more than one Project and Assignment, as follows.


Employee A

5 days attached to Project ABC - Job A
5 days attached to Project XYZ - Job X
4 days attached to Project ABC - Job C
9 days attached to Project XYZ - Job Y
3 days attached to Project XYZ - Job Z

Employee B

9 days attached to Project ABC - Job A
8 days attached to Project EFG - Job E
9 days attached to Project EFG - Job 

Cost allocation for Employee A

BASIC

Project ABC-Job A = (5/26)*2000

= 384.615

Project XYZ-Job X = (5/26)*2000

= 384.615

Project ABC-Job C = (4/26)*2000

= 307.692

Project XYZ-Job Y = (9/26)*2000

= 692.307

Project XYZ-Job Z = (3/26)*2000

= 230.769

   2000.00

ALLOWANCE

Project ABC-Job A = (5/26)*500

= 96.153

Project XYZ-Job X = (5/26)*500

= 96.153

Project ABC-Job C = (4/26)*500

= 76.923

Project XYZ-Job Y = (9/26)*500

= 173.076

Project XYZ-Job Z = (3/26)*500

= 57.692

  500.00

Cost allocation for Employee B

BASIC

Project ABC - Job A = (9/26)*3000

= 1038.461

Project EFG - Job E = (8/26)*3000

= 923.076

Project EFG - Job F = (9/26)*3000

= 1038.461

   3000.00

ALLOWANCE

Project ABC - Job A = (9/26)*500

= 173.076

Project EFG - Job E = (8/26)*500

= 153.846

Project EFG - Job F = (9/26)*500 

= 173.076

   500.00

Sample Monthly Report required

PROJECT

BASIC

ALLOWANCE

TOTAL

Project ABC-Job A

1423.076

269.229

1692.305

Project ABC-Job C

307.692

76.923

384.615

TOTAL PROJECT ABC

1730.768

346.152

2076.920

Project EFG-Job E

923.076

153.846

1076.922

Project EFG-Job F

1038.461

173.076

1211.537

TOTAL PROJECT EFG

1961.537

326.922

2288.459

Project XYZ-Job X

384.615

96.153

480.768

Project XYZ-Job Y

692.307

173.076

865.383

Project XYZ-Job Z

230.769

57.692

288.461

TOTAL PROJECT XYZ

1307.691

326.921

1634.612

GRAND TOTAL

4999.996

999.995

5999.991

RESOLUTION:

Please define one Piece Rate Table, and for each Project, add a Project. Define your 'Assignments' (i.e., Jobs) as 'Rates', and insert the value of Rate as '1.00' for all the Assignments (i.e., Jobs).

While performing data entry, make one entry for each date range. Insert the starting date in the 'date' field, and against 'quantity', put the number of days attached to the given Project.

For each of the HOPS that you would like to include in the Cost Ananlysis Report, create a parallel HOP, where you will save the Unit Rate. Thus, for 'BASIC', create 'BASICUNIT', and put the formula as 'BASIC/PERIODDAYS()'.

In Report design, select 'salary statement', and group the Report on

1. Piece rate project/product
2. Piece Rate

While selecting the HOP, select "Piece amt * Default value" as type of value.

MORE INFORMATION:

PieceAmt, (i.e. Piece Amount) refers to the quantity, i.e., no of pieces of Job (i.e., Assignment). For more information, please refer to the Online Help.


 
 

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