Average hourly calculation

Average hourly calculation

The average hourly calculation is done with the Payroll > Working time calculations > Average hourly function

Before average hourly calculation, average hourly settings must be created. To create settings, check article Implementation of average hourly.

 

 

Calculation parameters

The average hourly calculation will be started by entering the calculation parameters:

Calculation criteria

• Choose setting: select the average hourly setting according for the calculation.
• New average hourly starts on: select the starting date for the average hourly value calculation.

Included employees

Person

Person list includes all the employees with the same average hourly setting selected in the Working Time info tab.

All employees selected by checking the box are included in the average hourly calculation. By default, all employees on the list are selected. To unselect an employee, clear the checkbox.

Clicking the magnifying glass icon on the right side of the list opens a Select Person view, where employees can be searched by name and added or excluded from the calculation.

• Search tab allows you to search for employees by name. Add all button adds all searched employees to the calculation. Clear all button deletes all searched employees from the calculation.
• Selected tab displays all the employees selected for the calculation. You can exclude an employee from the trash can icon next to the employee's name. Delete all button deletes all selected employees from the calculation.
• OK button confirms the selections and exits the window.
• Cancel button exits the window without confirming the selections.

 

Slip search criteria

Salary slips to be included in the average hourly calculation are searched with Slip search criteria.

• Search by. The salary slips to be included in the calculation can be searched for the searched period either by the payday or by the payment period.
• Start date. The payment date from which the salary slips are included into the calculation.
• End date. The payment date until which the salary slips are included into the calculation.
• Salary slip status. Salary slip status searches the salary slips in the selected status into the average hourly calculation.

 

Function buttons

• Calculate button opens a window showing all salary slips according to the search criteria.
  If the search is based on the payment period, the salary slips whose payment period is only partially within the search period will also be displayed.

  From the list, select the salary slips that you want to include in the average hourly calculation. The salary slip is included in the calculation if there is a selection in the check box in front of the salary slip.

  If the search criteria is a payday, all salary slips in the list are selected by default.

  If the search criteria is a payment period, the selection is omitted by default from those salary slips where the payment period is only partially in the search period and the salary slip has been included in some previous calculation.
  
  

  The summary at the top shows the search criteria and the search period. The table shows the following information about salary slips:

  Name
  The field displays the employee's name. The name also serves as a link to salary slip for possible review. It is not possible to make changes to the opened salary slip.

  Slip number
  Number of the salary slip

  Payday
  Payday of the salary slip

  Payment period
  Payment period of the salary slip

  In search period
  This field is only visible if the search criteria is Payment period. The field shows whether the payment period in the salary slip is completely or only partially within the search period.

  If the payment period is only partially in the search period and the salary slip has been included in one of the previous calculations, the salary slip is not selected into the calculation by default.

  Used in a previous calculations
  The field shows whether the salary slip has already been included in any previous calculation that has been updated for the employee.

   

• Continue button calculates the average hourly values for the selected employees. The calculation does not yet update the new average hourly value for employees. In the average hourly calculation, the money, calculated from the selected salary slips affects the average hourly calculation are divided by the hours, calculated from the salary slips that matches the search criteria and affects the average hourly calculation. The calculated average hourly values are rounded to 2 decimals. The money and hours that affect the average hourly calculation are collected from the salary types defined in the Average hourly settings. See Salary types for cumulative earnings.
• PDF button opens the result of the calculation in PDF format in a new browser window, from which the data can be printed on paper.

Right-clicking on the 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 opens the data in the table in PDF or HTML format in a new browser window.

Go to setting. The Go to settings button can be used to go directly to the Average hourly settings. The Average hourly settings can also be accessed by selecting Management > Salary info > Average hourly settings.

 

 

Calculation result

The result of the calculation is displayed at the bottom of the window by employee.

• Name. Employee for whom the calculation was made.

• Hourly salary. Employee’s hourly salary.

• Current average hourly dd.mm.yyyy. Average hourly value valid on the start date of the calculated average hourly values, before the result of the calculation is updated for the employee.
• Cumulative earnings. Earnings used in the average hourly calculation.
• Cumulative hours. The number of hours used in the average hourly calculation. If the threshold of the lowest working hours is selected in the average hourly settings, a red arrow icon is displayed after the number of hours if the hours in the calculation period is below the minimum working hours threshold. 
  
• New average hourly. Calculated new average hourly value. If “Replace Average hourly when is lower than base salary” is selected in the Average hourly settings, the arrow icons will show after the new average hourly whether the new average hourly is higher or lower than the hourly salary.
• New average hourly starts on. Date on which the new calculated average hourly value starts on. The date is selected in the New average hourly starts on field in the Calculation criteria.

If “Base salary is used instead of the average hourly if the average hourly value is lower than the base salary” is selected in the Average hourly settings, the arrow icons will show after the new average hourly whether the new average hourly is higher or lower than the base salary. Even if the new calculated average hourly value is lower than the base salary, the result of the calculation can still be updated for the employee, because the program checks the values again with the salary slip and the salary base and uses the value which is higher.

 

Checking and updating average hourly value

When the result of the calculation has been verified, the new calculated average hourly value can be updated for employees with the Apply for employees button.

Select the employees for whom the now calculated average hourly values will be updated. The average hourly value and start on date are updated into the employee's Working Time info tab.

Employees can be selected individually by checking the box in front of an employee's name, and all employees can be selected at once by checking the box on top of the title column.

New calculated average hourly value cannot be updated to an employee

• if new value is 0,00 or less
• who already has an average hourly value on the same start on date

If an employee already has an average hourly value on the same starts on date, the employee cannot be selected and now calculated average hourly value cannot be updated for the employee. The average hourly value with the same start date must first be removed from the employee's Working time info tab and recalculated for the employee, before the new calculated average hourly value can be updated for the employee.

Even if the new calculated average hourly value is lower than the base salary, and "Base salary is used instead of average hourly if the average hourly value is lower than the base salary" is selected in the average hourly settings, the result of the calculation can still be updated for the employee, because the program checks the values of the average hourly and the base salary again with the salary slip and the salary base and uses the value which is higher.

Apply for employees button adds a new average hourly row to the Average working time info tab for the selected employees.

 

Average hourly value on the salary type

The average hourly value of an employee can be used as the unit price for the salary type and as the basis for calculating the unit price. The salary types for which average hourly value are used are defined in the Average hourly settings in the Salary types for paying with Average hourly list.

However, the salary types use the base salary if the employee's average hourly value is lower than base salary and “Base salary is used instead of average hourly if the average hourly value is lower than the base salary” is selected in the Average hourly settings. Hourly salary or Personal hourly salary on the Salary info page of the Employee register can be defined as a base salary.

Instead of average hourly value, hourly salary, personal hourly salary or previous average hourly value can also be used for salary types, if "Use threshold of the lowest working hours" is selected in the average hourly settings and the number of working hours in the calculation period has fallen below the threshold.

Average hourly value in salary base

If the salary base has salary types that use average hourly, the average hourly values are shown according to the average hourly value valid at the moment. When the salary base is transferred to the salary slip, the average hourly value valid on the payment date are fetched to the salary slip.

Average hourly value on salary list and salary slip

Salary list and salary slip uses the employee's average hourly value that is valid on the payment date of the salary slip at the time when salary slip is created. If the average hourly value on the payment date change after the salary slip is created, the value does not change for the salary slip. Rows added to the salary slip later also use the average hourly value at the time the payroll was created.

Copying a salary slip

When salary slip is copied, the value of the average hourly remains the same as in the original salary slip, even if the average hourly value wouldn't match on that date. Thus the credit salary slip has same information as the original salary slip.

Chancing of payday

If the payday in the salary slip is changed, the average hourly value according to the new payday will be updated for the salary types for which the average hourly value is used. However, changing the payday does not change the value of the average hourly if the salary slip has been created by copying.

PDF salary slip

The average hourly value can be displayed to the employee on the salary slip PDF by checking the Show average hourly on salary slip PDF -field in the Management - Company info - Usage Settings view.

The average hourly value is displayed at the top of the salary slip for those employees for whom the average hourly has been enabled by choosing the average hourly setting on the Working time info tab.

The average hourly value is shown in parentheses if the average hourly value in question is not used, but for example, due to a low average hourly, the base salary is used instead of the average hourly value.