Summary: This help describes how to implement, enable and build the average hourly earnings (KTA) calculation in Netvisor. The help goes through the calculation options for KTA, creating the calculation formula and setting comparison conditions, and guides in using KTA in payroll and updating it for record types.

CONTENT

Check the salary types and their formulas included in the average hourly earnings calculation from the salary model's salary type formulas. Freely edit the salary type formulas if the content of the calculation formula is not as desired.

Calculation options for average hourly earnings

The average hourly earnings calculation can be implemented for the following periods:

  • quarter
  • half-year (=two quarters)
  • calendar year / previous calendar year
  • holiday credit year / previous holiday credit year
  • continuously always from the pay period preceding the calculation

The quarterly average hourly earnings calculation can be directly copied, for example, from the "Technology Industry, Hourly pay" salary model template. The ready-made salary model template can be directly copied onto an existing salary model with certain restrictions.

  1. Ensure that the salary information needed for the average hourly earnings calculation is available to the program if payroll has already been started before the salary model with average hourly earnings calculation is brought on top of it.
  2. Provide salary information to support the calculation using salary history data if all the information needed for the calculation is not available to the program.

Implementing average hourly earnings calculation

Apply this help to any period by changing the period selection at different stages of the help. In this example, the implementation of average hourly earnings calculation is carried out continuously, i.e., always from the pay period preceding the calculation.
  1. Create a new salary type that performs the average hourly earnings calculation.
  2. You can open the view or perform the function by selecting Payroll > Payroll > Salary model management > select the formulas button on the right side of the desired salary model row.

  1. Select the link Add a new salary type and attach to the salary model in the upper right corner of the view.

  1. Enter the information shown in the image in the company-specific basic information for the salary type.

  1. Remove the setting "Add this salary type to the Salary in money formula" from the salary type before saving.

Building the calculation formula for average hourly earnings

Build the desired average hourly earnings calculation formula under the Salary type formula heading. When building the formula, note the use of parentheses and the order of operations.

NOTE! Include in the formula all salary types that affect the average hourly earnings calculation according to the collective agreement on a case-by-case basis. In this example, the average hourly earnings are obtained by dividing the row sums of the "Time work earnings" salary type, "Evening allowance" salary type and "Sunday allowance" salary type from the previous pay period by the hours worked in the previous pay period.
  1. First, build the calculation formula inside parentheses from the euro amounts of the desired salary types, i.e., the row sums. You can add a new formula row from the green plus sign at the bottom of the page.

  1. Define the fields of the calculation formula as follows:
    • Select the mathematical operation sign in the "Calculation operation" field.
    • Select in the "Value of the salary type in the time period" field the time period from which the values of the selected salary type are used.
    • Select in the "Salary type" field the salary type whose earnings you want to include in the calculation.
NOTE! When you want to calculate earnings from hourly pay, the salary type named "Time work earnings" must be attached to the formula, NOT the "Hourly pay" salary type. Hourly pay means the unit price of the current hourly pay, not the actual time work earnings paid during the pay period.
  1. Select "row sum" as the "Source of values", which refers to the euro amount of the salary type ("quantity" would refer to the number of hours).
  2. Define "Period start and period end"; these determine the period from which the calculation is performed (in this example, a continuous average hourly earnings always from the previous pay period).
  3. Define the "Calculation day"; this indicates according to which time measure the calculation follows the given start-end date range.

  1. Close the calculation formula with a parenthesis and save the formula when all the necessary salary types are listed. If necessary, edit the rows from the pencil/notepad icon on the right side of the rows.
  2. Add a "calculation operation" and a division sign (/) after the euro-denominated salary types.
  3. List inside parentheses the calculation formula for the hour amounts of the salary types that act as divisors in the average hourly earnings calculation.
  4. Select "quantity" as the source of values.

  1. Close the parenthesis and save the formula when all the necessary salary types are listed.
    In this example, the finished average hourly earnings formula looks like this (image below):

Comparison condition in average hourly earnings calculation

The unit price produced by the average hourly earnings calculation can be automatically compared to another valid unit price (e.g., hourly pay or table pay) and the higher value of them can be used in payroll without separate manual actions. A separate salary type is created for this comparison function.

  1. You can open the view or perform the function by selecting Payroll > Payroll > Salary model management > select the formulas button on the right side of the desired salary model row.

  1. Select the link Add a new salary type and attach to the salary model in the upper right corner of the view.

  1. Enter the company-specific basic information for the salary type as shown in the image.

  1. Build the desired conditional statement under the Salary type formula heading. When creating the conditional statement, give the values to be compared, the action if the statement is true, and the action if the statement is false.
  2. Add a new row from the green plus sign and select conditional statement from the dropdown menu.
  3. Give the row comparison values. In the first box, select the desired unit price to be compared (for example, hourly pay) and in the second box, the average hourly earnings calculation salary type.
  4. Enter in the Value if condition true/false boxes the salary types you want to be used based on the fulfillment of the conditional statement.

Use two salary types related to average hourly earnings calculation in the salary model if the comparison condition is in use. (In the example, "Average hourly earnings (prev. pay period)" performs the calculation and "Average hourly earnings Condition" performs the comparison and directs the program to use the higher value).

  1. When the record type formula is added with the unit price as average hourly earnings, the selection is made based on whether the comparison condition is in use or not. If there are two separate salary types for average hourly earnings calculation, calculating and comparing, the record type formula must use the comparison condition salary type, i.e., in our example, the Average hourly earnings Condition salary type.

Using average hourly earnings in payroll

The calculation formula calculates the average hourly earnings automatically in the background of payroll. Separate calculation runs do not need to be performed. Check the average hourly earnings by person using the separate help: Keskituntiansion raportointi ja tarkastaminen henkilöittäin.

  1. Add a reference to the average hourly earnings calculation salary type in the calculation formula of the record type using average hourly earnings.
NOTE! If the comparison condition for average hourly earnings is in use, the record type formula must use the average hourly earnings conditional statement salary type, not the salary type calculating average hourly earnings, to ensure the comparison condition is valid when using the record type. 
  1. You can open the view or perform the function by selecting Payroll > Payroll > Salary model management > select the formulas button on the right side of the desired salary model row.
  2. At the bottom of the view, examine the record types in use for the salary model.

  1. You can edit the record types and their formulas from the Edit button on the right side of the row.
  2. Select the edit icon (pencil and notepad) on the right side of the correct salary model row in the opened view.
  3. Select from the dropdown menu in the "salary type coefficient" column the salary type to be used as the unit price for the hour.

  1. Save the change.

Currently valid average hourly earnings

If continuous average hourly earnings calculation is used, i.e., average hourly earnings are always calculated from the earnings of the previous pay period, then the average hourly earnings information does not need to be updated for the record type. If average hourly earnings change at certain intervals (e.g., quarterly), then whenever a new average hourly earnings comes into effect, the currently valid average hourly earnings salary type must be updated for the record types.

NOTE! Perform the update before creating payroll calculations.
  1. You can open the view or perform the function by selecting Payroll > Payroll > Salary model management > select the formulas button on the right side of the correct salary model row.
  2. At the bottom of the page, examine the record types in use for the salary model.

  1. Select the edit icon (pencil and notepad) on the right side of the record type.
  2. Select the edit icon (pencil and notepad) on the right side of the correct salary model row in the opened view.
  3. Select the correct average hourly earnings salary type from the dropdown menu in the "salary type coefficient" column.
NOTE! If the comparison condition is used in average hourly earnings calculation, the record type must use the "Average hourly earnings Condition" salary type in the calculation formula. The Average hourly earnings calculation salary type calculates average hourly earnings for each quarter; attaching it to the calculation formula skips the comparison condition.

  1. Save the changes.

Valid average hourly earnings

Certain salary model templates in Netvisor (e.g., Technology Industry, Hourly pay) have a ready-made salary type "Valid average hourly earnings", to which the average hourly earnings salary type can be updated at once. When the record type formulas have "Valid average hourly earnings" selected as the salary type coefficient, it is not necessary to update all record types separately, but it is sufficient to update the formula in the salary type formulas.

Check the salary type coefficient in use for the record types from the record type formulas at the end of the salary model formula list.


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Frequently asked questions

  • For which periods can the average hourly earnings calculation be implemented? The average hourly earnings calculation can be implemented for a quarter, half-year, calendar year, holiday credit year or continuously from the preceding pay period.
  • Where can I find the salary types and formulas included in the average hourly earnings calculation? You can check them from the salary model's salary type formulas.
  • How do I start using the average hourly earnings calculation? Start the calculation by creating a new salary type that performs the average hourly earnings calculation and define a mathematical calculation formula for it.
  • Can I compare the calculated average hourly earnings to another unit price? Yes, you can create a separate comparison condition salary type that automatically compares the average hourly earnings, for example, to hourly pay and selects the higher of them.
  • What should I do if I use average hourly earnings that change quarterly? Update the currently valid average hourly earnings salary type for the record types always before creating new payroll calculations.

Keywords: average hourly earnings, KTA, payroll, salary model, salary type, conditional statement, comparison condition, Netvisor, record type

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.


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