Procedure without weighted period calculation

You can change the CLA settings to indicate that Profit may not use the weighted period calculation. In that case Profit will always base its calculations on the data available on the last day of the period to be processed. Changes that you specify to become effective during a period (for example, a salary increase) in that case always apply to the entire period. A period can contain multiple salary or timetable lines, however, Profit always uses the values of the last line.

Example:

An employee has a salary of 2,000. Employees are paid on a monthly basis.

You increase the salary to 2,500 on 26 January 2009.

Because you are not applying the weighted period calculation, Profit uses a salary of 2,500 for the period January 2009 in the salary calculation.

If the wage entry is to go into effect during the period, you must convert the amount of the initial period. The full period amount applies to the subsequent period.

Manually convert a period value

If you do not apply the weighted period calculation, you sometimes have to convert a value manually. In the example below, the period value is converted and posted as a one-time wage entry.

Example:

A monthly paid employee earns 2,200 per period. Effective April 16 his wage is increased to 2,400 per period.

You add a salary line with the new salary for this employee with May 1 as the start date. As a result, the employee will receive the full salary starting in May.

However, the salary increase went into effect on April 16 and the employee is therefore entitled to receive additional salary over the month of April. The employee should really be paid as follows:

• 15 days at the old salary: 15/30 * 2,200 = 1,100.00
• 15 days at the new salary: 15/30 * 2,400 = 1,200.00

  The employee is therefore entitled to receive 2,300.00. Based on his old base salary he receives only 2,200.00. You therefore add a one-time wage entry in the amount of 100.00 with April 16 as the date.

A second alternative is that in the period in which the new salary is to go into effect you add a salary line in which you specify the average salary for the entire period. You also create a salary line for the new salary in the next period after that.

Example:

Using the same example as described above, this now becomes:

• Up to and including 31 March a salary line with 2,200.00.
• From April 1 to April 30 inclusive, a salary line with 2,300.00.
• From May 1 onwards a salary line with 2,400.00.