Average hourly value can now be calculated for employees whose working hours are given on a salary type, such as employees with an hourly salary. For employees whose working hours are not given on a salary type, such as employees with a monthly salary, value of the average hourly can be entered manually.
The salary slips to be included in the calculation can be searched by the payday or by the payment period. The salary slips according to the search criteria are displayed in a list from which the user can select the salary slips to be included in the calculation.
The calculated or manually entered average hourly value can be used in the employee’s salary slip for specified salary types.
The average hourly value can be displayed to the employee in a PDF salary slip.
In this article we'll describe how to start using average hourly in Procountor. To calculate average hourly, check article Average hourly calculation.
Start using average hourly
Quick guide
- Enable average hourly in Management > Company info > Usage settings – Use average hourly.
- Create average hourly settings Management > Salary info > Average hourly settings.
- select the salary types to be included in the calculation
- select the salary types that use average hourly
- Select the average hourly setting for employees in the Payroll > Employee register > Working time info tab.
- Calculate the average hourly with Payroll > Working time calculations > Average hourly function, or add employee’s average hourly manually in the Payroll > Employee register > Working time info tab.
- The salary type uses average hourly on the salary base and salary slip if the salary type has been set to use average hourly in the Average hourly settings.
Usage settings
The Average hourly feature is enabled in the Management > Company Info > Usage Settings view by selecting Use Average Hourly.
In the Usage settings, the Show average hourly on salary slip (PDF) -field specifies whether to display the average hourly value to the employee on the PDF salary slip.
Average hourly settings
To calculate and use average hourly, average hourly settings need to be saved first. It is possible to save several separate settings.
Average hourly settings specify:
- whether the base salary is used if the average hourly value is lower than the base salary
- whether the minimum working hours threshold is used in the average hourly calculation
- salary types from where the hours and money will be included into the calculation
- salary types which use average hourly value
Average hourly settings are located in Management > Salary info > Average hourly settings. This selection is only visible if average hourly has been enabled in the usage settings.
To start creating a setting, click Create a new setting and give a descriptive name for the setting in the Name field. The name can be up to 80 characters long and must be unique. Procountor automatically removes extra white spaces from between words and additional spaces from the beginning and the end of the name.
Base salary is used instead of average hourly is the average hourly value is lower than the base salary
With option “Base salary is used instead of average hourly if the average hourly value is lower than the base salary” salary types that are defined in section “Salary types that use average hourly” are using hourly salary if the average hourly value is lower than the hourly salary on the Salary info tab of the employee register. If this option is omitted, the average hourly value will used for the salary types selected in the “Salary types that use average hourly” section, even if it is lower than the hourly salary.
The Hourly salary or Personal hourly salary on the Salary info page can be defined as a base salary.
The Personal hourly salary field is only visible if average hourly is enabled in the usage settings. And the field is completed only when it is specified in average hourly settings that Personal hourly salary will be used as a replacement salary for the average hourly value.
Use threshold of the lowest working hours
With the “Use threshold of the lowest working hours” selection, it is possibility to define a minimum working hours threshold for the average hourly calculation. If the hours affecting the average hourly calculation fall below the working hour threshold during the calculation period, the calculated average hourly value is not used for the employee.
In the Threshold of the lowest working hours field, enter the number of hours that must be met during the calculation period so that the calculated average hourly value can be used.
In addition to the "Use threshold of the lowest working hours" selection, it is defined which salary is used instead of the average hourly value, if the working hours have fallen below the working hours threshold in the calculation.
The Hourly salary or Personal hourly salary on the Salary info page or Previous average hourly value on the Working time info page can be defined as a base salary. If more than one salary is selected, the salary will be paid according to the highest of them.
Salary types for cumulative earnings
After Average hourly settings have been created, next step is to define which salary types' hours and earnings will be included into the average hourly calculation and salary types that use Average hourly value. In the Salary types for cumulative earnings section, click Add salary type to add the salary types for which the accrued hours and / or accrued earnings are included into the average hourly calculation and to select whether the salary type affects hours and/or earnings in the average hourly calculation.
To include a salary type in the average hourly calculation, select the Affects cumulative working hours checkbox. In this case, the amount of the Qty field of the salary type on the payslip will be included into the average hourly calculation in the total number of working hours.
If the unit of the salary type is pieces, the pieces are always considered hours in the calculation. For example, 1.9pcs is 1.9 hours (1 hour 54 minutes) in the average hourly calculation.
To include the earnings of a certain salary type in the calculation, select the Affects cumulative earnings checkbox. When selected, the sum of the Total field of the salary type in the payslip will be included into the average hourly calculation in the total sum of the salaries.
By default, neither Affects cumulative working hours or Affects Cumulative Earnings is selected. If the salary type does not have either selection, the row will be highlighted in red, and the average hourly setting cannot be saved.
Salary types for paying with salary types that use average hourly
In the Salary types that use average hourly section, Add salary type button can be used to add the salary types which use average hourly value.
If the salary type is set to use average hourly value, the employee's average hourly value becomes the unit price of the salary type or the basis for calculating the unit price. The average hourly value valid on the payment date is added to salary slip at the time when the salary slip is created.
If the option “Base salary is used instead of average hourly if the average hourly value is lower than base salary” is selected, however, the base salary is used for salary types if the average hourly value is lower than the base salary.
Hourly salary or Personal hourly salary on the Salary info page of the Employee register can be defined as a base salary.
Basic salary types that will be automatically added to the salary base cannot be added to use the average hourly value. These salary types are:
- 1001 Monthly salary
- 1002 Weekly salary
- 1003 Daily salary
- 1004 Hourly salary
- 1020 Pay per job
- 2900 Compensation for work, no insurances
- 2901 Compensation for work, all insurances (2021-)
- 2902 Compensation for work, only health care ins (2021-)
Adding and deleting salary types
Add salary type button opens the Salary type register, from which salary types can be selected. To narrow down the search results and make it easier to select the wanted salary types, use the search criteria . Add salary type button adds all selected salary types and exits the salary type register. Salary type register can also be exited without adding salary types by clicking the X in the top right corner.
The added salary type can be deleted with Delete Row button. This button removes all selected salary types
The effect of selected salary types in the average hourly calculation
In the average hourly calculating, the average hourly value is calculated by dividing the earnings collected from the salary types for a certain period by the number of working hours collected from the salary types. The earnings and hours that affect the average hourly calculation are collected from the salary types selected in Average hourly settings.
Go to calculation
The Go to calculation button allows you to go directly to the average hourly calculation. The average hourly calculation can also be accessed by selecting Payroll > Working time calculations > Average hourly.
Employee's working time info tab
Working time info tab has been added to the employee register. Working Time info tab is displayed if average hourly has been enabled in the usage settings.
In the Average hourly section of the Working time info tab, select the average hourly setting for an employee. This determines how the employee's average hourly value is calculated and how the employee's average hourly value is used in salary types.
The tab also shows the current, previous, and future average hourly values, and also allows you to manually enter employee's average hourly values and the starting dates.
Setting
The average hourly setting is selected for the employee, according to which the average hourly value of the employee is calculated and according to which the employee’s average hourly value is used in salary types.
The selection list shows all the average hourly settings added under Management > Salary info > Average hourly settings.
Option “Average hourly not in use” is selected if the employee does not use average hourly, or when the employee has previously used average hourly, but average hourly is no longer in use. The current average hourly value is not shown in the employee's record, and average hourly value won't be used, even if the employee has average hourly values.
Current average hourly
Current average hourly shows the currently selected employee’s average hourly.
A notification is displayed to the user if the current average hourly value is lower than the base salary, and in the setting selected for the employee, it is specified that the average hourly value is replaced by the base salary if the average hourly value is lower, or if the minimum working hours threshold was not met in the calculation.
Average hourly values
This table shows all average hourly values calculated for the employee with Payroll > Working time calculations > Average hourly function. Five rows are displayed at a time. Scroll bar on the right can be used to scroll through other rows.
- New button allows you to manually enter employee's average hourly values and their start on dates. For example, for monthly-paid employees for whom the software cannot calculate average hourly value, the average hourly value can be entered manually. This manually entered average hourly value can be used with the salary types specified in the settings. The manually entered average hourly values are also shown in the table.
- Delete button. Employee's average hourly value can be deleted with Delete button if that average hourly value has not been used in any salary slips. Delete button deletes all the selected average hourly values.
- Show calculation information. With the Show calculation information button, you can view the settings that affected the calculation of the selected average hourly value, as well as the salary slips that were included in the calculation. The calculation information is only visible for those average hourly values with the Calculation type 'Automatic', i.e. the average hourly value has been obtained by performing the average hourly calculation.
- Average hourly. Amount of average hourly value with two decimals. A dash (-) is displayed instead of the average hourly value, if the hours affecting the average hourly calculation have fallen below the working hours threshold during the calculation period. This calculated average hourly value won’t be used for the employee.
- Valid from. The date from which the average hourly value is valid.
- Calculation type indicates whether the value was added by performing an average hourly calculation (Automatic) or whether the value was added by entering it manually (Manual). Info button in the title displays additional information.
- Created. The date when the average hourly value was created.
- Creator. Name of the user who calculated or entered the average hourly value.
Exporting table data
Right-clicking on a table displays a menu with Open Excel, Open PDF, and Open HTML. Open Excel exports the data in the table to an Excel spreadsheet and Open PDF and Open HTML open the data in the table in PDF or HTML format in a new browser window.