Recalculate Allowances in the Compensation Journal
Before this release, if you loaded an allowance into the compensation journal, and then manually added a line for earnings, the allowance did not recalculate. Starting with this release, you can now have Sparkrock 365 recalculate allowances. To have Sparkrock 365 recalculate allowances, you must choose the new Recalculate Allowances action.
When you choose the Recalculate Allowances action, Sparkrock 365 recalculates all allowance lines in the compensation journal that have a Default Calculation Type of Percent of Earnings.
To recalculate allowances in the compensation journal
Choose
, enter compensation journal, and then choose the related link.The Compensation Journal page opens.
In Batch Name, specify the name of the batch that you want to use.
In Pay Cycle Period, specify the pay cycle that you want to view.
If required, load lines.
Add compensation journal lines as required.
On the action bar, choose Home > Recalculate Allowances.
Default Priority for a percent of earnings allowance recalculation
When recalculating allowances in the compensation journal, Sparkrock 365 considers the value of Default Priority.
The following scenarios describe how Sparkrock 365 calculates the Amount for the percent of earnings allowance based on the values of Default Priority.
Scenario 1: Flat Amount allowance Default Priority is greater than Percent of Earnings allowance Default Priority
On the Allowances page, there are the following records:
Code Default Pay Frequency Default Calculation Type Default Total Amount Default Percent Default Priority ALLOW1 Each Pay Flat Amount 50.00 0.00 1 ALLOW2 Each Pay Percent of Earnings <blank> 4.00 2 The compensation journal has the following lines:
- A line for earned salary of $1,000.00.
- A line for the flat amount allowance of $50.00.
- A line for the percent of earnings allowance at 4%.
In this scenario, Sparkrock 365 uses the following calculation to determine the Amount for the percent of earnings allowance:
Amount = ($1,000 + $50.00) x 4 / 100
Sparkrock 365 includes the $50 flat amount allowance in the calculation because the flat amount allowance has a higher priority than the percent of earnings allowance.
Scenario 2: Flat Amount allowance Default Priority is equal to Percent of Earnings allowance Default Priority
On the Allowances page, there are the following records:
Code Default Pay Frequency Default Calculation Type Default Total Amount Default Percent Default Priority ALLOW1 Each Pay Flat Amount 50.00 0.00 1 ALLOW2 Each Pay Percent of Earnings <blank> 4.00 1 The compensation journal has the following lines:
- A line for earned salary of $1,000.00.
- A line for the flat amount allowance of $50.00.
- A line for the percent of earnings allowance at 4%.
In this scenario, Sparkrock 365 uses the following calculation to determine the Amount for the percent of earnings allowance:
Amount = ($1,000 + $50.00) x 4 / 100
Sparkrock 365 includes the $50 flat amount allowance in the calculation because the flat amount allowance has the same priority as the percent of earnings allowance.
Scenario 3: Flat Amount allowance Default Priority is less than Percent of Earnings allowance Default Priority
On the Allowances page, there are the following records:
Code Default Pay Frequency Default Calculation Type Default Total Amount Default Percent Default Priority ALLOW1 Each Pay Flat Amount 50.00 0.00 2 ALLOW2 Each Pay Percent of Earnings <blank> 4.00 1 The compensation journal has the following lines:
- A line for earned salary of $1,000.00.
- A line for the flat amount allowance of $50.00.
- A line for the percent of earnings allowance at 4%.
In this scenario, Sparkrock 365 uses the following calculation to determine the amount for the percent of earnings allowance:
Amount = $1,000 x 4 / 100
Sparkrock 365 excludes the $50 flat amount allowance in the calculation because the flat amount allowance has a lower priority than the percent of earnings allowance.
See also
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