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Wage component journalising

For each wage component you specify how Profit journalises it.

Description

In the wage component you specify how Profit should journalise it. You can journalise a wage component as follows:

  • Do not journalise

    Profit does not include the wage component in the journalising.

  • Fixed distribution

    You specify a distribution for the employee. Profit distributes the value of the wage component in accordance with the distribution specified.

  • No distribution

    This option is no longer applied in Profit CLAs because forFixed distribution, the system already looks at the organisational unit, cost centre or cost unit if the employee does not have a fixed distribution.

  • Hour distribution

    In the case of an hour distribution, Profit distributes the value of the wage component in accordance with the wage components that are included in the ‘Hour distribution' calculation basis. You use this method for wage components that do not have their own calculation basis.

  • Distribution calculation basis

    With a calculation basis distribution, the amount of a wage component is distributed based on the calculation basis of this wage component. Profit takes the wage components that are included in the calculation basis and determines the distribution based on the relationship between the included values concerned.

  • No journalising, but distribute calculation basis

    If a wage component that you do not want to journalise is included in the calculation basis for another wage component with calculation basis distribution, Profit does not distribute the value of this wage component correctly. That is because in the configuration you select not to journalise the wage component, but you do want to distribute the value for the calculation basis distribution. This is a contradiction. To prevent this, select the No journalising, but distribute calculation basis method for the wage component that you do not want to journalise.

Fixed distribution of the costs

You specify the fixed distribution by specifying a position allocation for the employee.

Profit distributes the value of the wage component in accordance with the distribution specified. Profit journalises the values for the allocation axes in the columns of the journal entry intended for that purpose.

You can use Fixed distribution for a distribution of wage costs across different organisational units. This way you can charge half of the costs of a manager to a management team and the other half to the department of the manager.

If the employee does not have a fixed distribution, Profit distributes the value based on organisational unit, cost centre and cost unit.

Cost allocation based on hours

In the case of a distribution based on hours, Profit distributes the value of the wage component in accordance with the wage components that are included in the 'Urenverdeling' calculation basis. You use this method for wage components that do not have their own calculation basis.

If you set up a wage component in such a way that the distribution is based on hours while the employee is not paid by the hour but has a fixed salary, the distribution is based on the fixed distribution (position allocation).

Wage components of an (extra-)contractual nature are included in the 'Urenverdeling' calculation basis. These are the wage components for the pay out of salary and over- and iunderworked hours. These components are included in the calculation basis to ensure the appropriate distribution of pension calculations based on period 1 and the holiday allowance. For part-timers this also determines the yearly part-time percentage. This only applies to pension calculations based on period 1 and holiday allowance.

Example:

You enter the hours as follows:

Component

Description

Result

OU

100

Normale uren

200.00

Research & Development

100

Normale uren

200.00

Product Management

115

Overwerk 115

115.00

Research & Development

115

Overwerk 115

345.00

Product Management

Total

 

860.00

 

The Result column shows the value of the wage component. In this case that is: Number of hours * Hourly wage * Percentage.

The 'VUT premie' wage component then distributes hours and has the value 40.00. When you journalise, the wage component is entered on the Bruto loon (4000) account and the Te betalen netto loon (2000) contra account.

Profit splits the journal entry for salary across the two organisational units and enters the amounts on the account and contra account. The journal entry looks as follows:

  • 1000; 'Salaris'; 14.65; 4000; Bruto loon; 2000: Te betalen netto loon;R&D
  • 1000; 'Salaris'; 25.35; 4000; Bruto loon; 2000: Te betalen netto loon;PM

    In calculating the value 14.65 for the journal entry, Profit calculates a ratio. Of the posted hour components, Profit sums the values for one OU, in this case R&D, and divides that value by the total value of the hour components: (200 + 115) / 860.

    Then Profit multiplies this by the value of the component distributed based on hours (40). The formula then is (200 + 115) / 860 * 40 = 14.65

    The value 25.35 is calculated in the same way: (200 + 345) / 860 * 40.

    The total (14.65 + 25.35) of the two calculations is equal to the value of the 'VUT premie' wage component.

    Note:

    Profit distributes the journal entries based on the ratio of the values of the wage component and not according to the number of hours entered. This makes the distribution fairer because Profit takes into account the percentage factor of the wage component.

Calculation basis distribution

With a calculation basis distribution, the amount of a wage component is distributed according to the calculation basis of this wage component. Profit takes the wage components that are included in the calculation basis and determines the distribution based on the relationship between the included values concerned.

Example: 

The 'WW Premie (1400)' wage component has the value 160.00 and is distributed according to the calculation basis. Profit journalises the wage component to the Te betalen netto loon (2000) account and the Af te dragen UWV (1850) contra account.

The following components are part of the calculation basis:

Component

Description

Journ. type

Result

OU

1000

Salaris

none

4,000.00

Research & Development

1005

Overwerk 125%

none

   120.00

Product Management

1400

Pensioen

none

   240.00

Research & Development

1100

Reiskosten

none

    51.08

Product Management

Total

 

 

4,411.08

 

You do not journalise these components as such. The journal entry for WW Premie is now distributed as follows:

  • 1400; 'WW Premie'; 153.79; 2000; Te betalen netto loon; 1850; Af te dragen UWV;R&D
  • 1400; 'WW Premie'; 6.21; 2000; Te betalen netto loon; 1850; Af te dragen UWV;PM

    In calculating the value 153.79 in the journal entry, Profit calculates a ratio. For the components in the calculation basis, Profit sums the values for one OU, in this case R&D, and divides this by the total value of the calculation basis: 4,411.08

    Then Profit multiplies this by the value of the component distributed according to the calculation basis (160). The formula then is (4,000 + 240) / 4,411.08 * 160 = 153.79.

    The value 6.21 is calculated in the same way: (120 + 51.08) / 4,411.08 * 160

If the wage components within the calculation basis are also distributed in turn, this is taken into account in the Distribution calculation basis.

Example:

The underlying wage components in the above example are being distributed:

Component

Description

Journ. type

Result

OU

1000

Salaris

hours

1,465.12

Research & Development

1000

Salaris

hours

2,534.88

Product Management

1005

Overwerk 125%

fixed

    80.00

Product Management

1005

Overwerk 125%

fixed

    40.00

Research & Development

1400

Pensioen

calculation basis

    60.00

Product Management

1400

Pensioen

calculation basis

    20.00

Research & Development

1100

Reiskosten

none

    51.08

Product Management

Total

 

 

4,251.08

 

The wage components are distributed over the organisational units in different ways. This journal entry now is:

  • 1400; 'WW Premie'; 57.40; 2000; Te betalen netto loon; 1850; Af te dragen UWV;R&D
  • 1400; 'WW Premie'; 102.60; 2000; Te betalen netto loon; 1850; Af te dragen UWV;R&D

    In calculating the value 57.40 in the journal entry, Profit calculates a ratio. Of the components in the calculation basis, Profit sums the values for one OU, in this case R&D, and divides that value by the total value of the hour components: (1,465.12 + 40 + 20) / 4,251.08.

    Then Profit multiplies this by the value of the component distributed according to the calculation basis (160). The formula then is (1,465.12 + 40 + 20) /4,251.08 * 160 = 57.40.

    The value 102.60 is calculated in the same way: (2,534.88 + 80 + 60 + 51.08) / 4,251.08 * 160

Cost centre or cost unit

Profit journalises a wage component by a cost centre or cost unit, if you have configured this for the ledger account in the chart of accounts.

Procedure
Also see

Process

Journalising