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OHATW_AV_1 - Basics of Valuating Averages

OHATW_AV_1 - Basics of Valuating Averages

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Collective bargaining agreements envisage various situations whereby employees receive remuneration based on averages from previous periods - for example, in the case of absence or because of lost production time. In the following steps, you define the rules for calculating the averages on which the remuneration is based.

The time unit for the payroll periods must not be the same as the time unit for the average calculation periods. Even if you normally run payroll weekly, you can create your average values based over months.

You adjust the system settings as follows:

  • You create average bases from wage types that are to be included in the average payment. These subsequently serve as a basis for the calculation of averages.
  • You define the calculation rules for averages. These are made up of the following stipulations:
  • You define the furthest point in the past which may be used to calculate averages.

  • Relevancy rule

The calculation of averages is based on an employee's relevant payroll results. You define under what conditions a payroll result or an average period are valid.
  • Adjustment rule

You specify how average bases that are to be included in the calculation of averages are to be adjusted retroactively - this procedure usually applies to a pay increase.
  • Cumulation rule

You define how average bases are to be cumulated.
  • Final processing

You define the formula from which cumulated average bases and the relevant previous periods are to be calculated.
  • Comparison rule

You compare the calculated average value with the value of a comparative wage type and define which value should be processed.
  • You assign wage types to average calculation rules. These wage types appear in payroll either after they have been generated from attendances and Absences, or after you have entered them online, for example in the infotypes 0015 or 2010.

Adjust the system settings in the order outlined above.

When you create or copy rules, you have to enter in the namespace four characters beginning with the letter Z or a number between 0 and 9.






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