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OHAKR_SP500 - Define Cumulation Method

OHAKR_SP500 - Define Cumulation Method

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In this step, you determine the cumulation method depending on off-cycle reason group, wage type group and the employee grouping.

You choose from the following cumulation methods used in average pay calculation when the evaluation period is out of accordance with the payroll period.

  • Factoring based on calendar days
Amount * calendar days of evaluation period / calendar days of payroll period
  • Factoring based on WPBP splits
Amount * calendar days of evaluation period / calendar days of WPBP period
  • Factoring based on ZL
Amount * working hours during evaluation period / working hours during WPBP period
  • Whole amount
Amount without factoring

When you cumulate the overtime allowance to calculate the average pay, you get the basic data for separation payment as below:

  • Evaluation period: Apr.16 ~ Jun.15 (separation date)
  • Payroll period: Apr.01 ~ Apr.30
  • WPBP split 1: Apr.01 ~ Apr.20
  • WPBP split 2: Apr.21 ~ Apr.30 (basic pay change)
  • ZL(Time wage type):
  • Date Hours Rate Amount

  • Apr.10 5 10,000 50,000

  • Apr.20 5 10,000 50,000

  • Apr.25 5 20,000 100,000

As a result, the cumulation amount varies according to different cumulation method.

  1. Factoring based on calendar days
(50,000 + 50,000 + 100,000) * 15 / 30 = 125,000
  1. Factoring based on WPBP splits
(50,000 * 5 / 15) + 50,000 + 100,000 = 166,667
  1. Factoring based on ZL
0 + 50,000 + 100,000 = 150,000
  1. Whole amount
500,00 + 100,000 + 100,000 = 200,000

You have set up off-cycle reason grouping, wage type grouping and the employee grouping.

You can refer to the sample entries contained in the standard system.

To calculate the exact average pay, you need to group your wage types and assign cumulation method, then assign the employee grouping as the following:

  • Group employee grouping
  • Group Cumulation method
  • Non factored wage types: Factoring based on calendar days
  • Factored wage types: Factoring based on WPBP splits
  • Time relevant wage types: Factoring based on ZL
  • Bonus wage types: Whole amount
  1. Determine employee grouping.
  2. Determine cumulation method for each grouping.
  3. Define cumulation method for each grouping.






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