Salary Type Calculation Formula Management : Netvisor

CONTENT

Salary models
Salary type formulas tab
Holiday calculation method formulas
Salary type formulas
Checking formulas in payroll
Formula elements
Calculation
Salary type
Fixed number
Arithmetic function
Salary type value over time period
Pay period calendar information
Conditional statement
Table data
Frequently asked questions

Salary models

In payroll, salary type formulas are specific to each salary model meaning each salary model can have its own formulas for different salary types. Salary models can contain the same salary types, but a salary model can have different calculation formulas for the same salary type.

You can view and edit salary model-specific formulas from the menu
Pay > Payroll > Salary model management > Formulas > Salary type formulas tab > Select the Edit icon (pencil/notepad button) next to the desired salary type.

Salary type formulas tab

Attach salary type to salary model -function allows you to select a salary type from Company-specific salary types to attach to the salary model from the dropdown menu. If the source of the attached salary type is "User's formula" a calculation formula must be created for the attached salary type to bind it to the salary model.

If a calculation formula cannot be created for the attached salary type, the salary type must be included in the calculation formula of another salary type in the salary model. During the attachment phase, select from the menu the salary type to which the added salary type is to be attached, and by clicking the "Add" button, you can add this salary type to the calculation formula of the selected salary type.
Add new salary type and attach to salary model -link takes you to Company-specific salary types, where you start creating a new salary type.
Salary type management -link also takes you to the Company-specific salary types page.
Edit (pencil/notepad) icon allows you to access the salary type settings and calculation formula.
Delete (red cross) function allows you to delete the salary type, but if the salary type has been used in payroll or is attached to another salary type's calculation formula, the program will not allow deletion and will give an error message.

Holiday calculation method formulas

Separate instructions are available for holiday calculation method formulas: Holiday calculation method content and formulas

Holiday calculation method formulas are managed from Holiday entitlement management in

Pay > Settings > Holiday calculation settings > Holiday entitlement management > Holiday calculation methods

Salary type formulas

In payroll, salary types with the source "User's formula" can contain a calculation formula. Typically, the formula consists of several formula elements that form a mathematical expression.

For example, the formula for the salary type Commission could be as follows: Commission = Monthly salary * Commission percentage / 100. In the formula shown the formula elements are:

Monthly salary (Salary type)
Commission percentage (Salary type)
multiplication sign (*) (Calculation)
division sign (/) (Calculation)
fixed number (100) (Fixed number)

When the formula value is calculated for the payslip, the values of the salary types (in this case Monthly salary and Commission percentage) are converted into numbers, and then mathematical operations are performed.

If the Monthly salary is €1500 and the Commission percentage is given as 10%, then the formula in the example changes as follows:

Commission = 1500 * 10 % / 100

In this case, the final value of the salary type Commission is 150.

The Monthly salary can be given, for example, in the employee's salary basis, from which the value of the salary type is obtained for the formula.

Pay > Personnel > Salary basis management

The salary type "Commission percentage" can contain its own formula, which is calculated first, and the resulting sum is brought into the formula, or it can have its own source, for example, in payroll settings.

Pay > Settings > Payroll settings

Checking formulas in payroll

The formula element is normally managed in the salary type formula management. Additionally, it is possible to drill down into the salary type formula from the payslip by hovering the mouse pointer over the salary type name, where you can see the values of the formula elements.

The salary type formula can also be checked from the "Payroll accountant view" tab.

If a time period-based formula element is used in the salary type formula, for example, "Start -- end of the holiday accrual year being processed", a separate icon appears next to the salary type in the payslip edit, where you can view the used formula elements and additionally drill down into the calculation formula information.

Formula elements

Ready-made formula elements can be displayed from the green plus and dropdown menu.

Calculation: You can select a mathematical sign
Salary type: You can select a salary type from company-specific salary types
Fixed number: You can manually enter a value
Arithmetic function: Lower or upper value
Salary type value over time period: Average or cumulative sum of salary type
Pay period calendar information: Information retrieved from working time entry or pay period
Conditional statement: Comparison

Calculation

Calculation refers to a mathematical sign, such as a plus or minus sign.

In payroll formulas, the following operations can be used: addition (+), subtraction (-), division (/) and multiplication (*) as well as parentheses. Parentheses and other operations are used in formulas just like in regular calculation formulas.

For example, the mathematical expression (10 + 5 -2) * 3 / 2 = 19.5

Salary type

For the salary type, the first salary type in the list from Company-specific salary types is always offered. When the "Salary type" element is selected for the formula, you must choose the salary type whose value you want in the formula. The menu contains all the salary types in Company-specific salary types.

Pay > Payroll > Salary model management > Company-specific salary types

The name of the selected salary type appears in the formula, and when the formula is calculated, the value of the selected salary type is calculated at the time of calculation.

If the selected salary type has its own formula, it is calculated first, and the final sum is brought into the original formula.

If the source of the salary type in the calculation formula is "Employee's salary basis" or "Payroll settings", the value given to the employee in the salary basis or payroll settings is brought as the value. For example, Monthly salary:

Fixed number

A fixed number is entered for this element, which can be used in calculations. For example, in the Commission formula, the Monthly salary is multiplied by 10%, which is divided by 100. In this case, the number 100 is added to the Fixed number field.

In this case, in the Commission formula, 10% is divided by 100 to obtain the decimal number 0.10, which is used to multiply the Monthly salary.

Arithmetic function

This element allows you to perform a fixed function.

Currently, two different functions are available:

Lower limit: This function receives a salary type and a manually entered sum as parameters. When calculating the formula, a value is calculated for the salary type, and then the largest of the salary type value and the manually entered value is selected.

Upper limit: This function works almost the same way as the lower limit, but the smallest of the calculated values is selected.

Salary type value over time period

This element allows you to calculate the cumulative sum or average of a selected salary type over a desired time period.

The element is defined by which calculation method is used (cumulative sum, average) and whether the value is calculated from the row sum or unit quantities. Additionally, you must choose which date is used as the calculation basis (payslip due date or pay period start and end dates). This is used, for example, in quarterly KTA calculation formulas.

Select Aggregate function (SUM or AVG), which determines the calculation method. The SUM function calculates the cumulative sum of the values over the time period, and the AVG function provides the average.

The AVG function adds up the values of the salary types and divides the result by the number of pay periods, resulting in the average per pay period.

Salary type

Determines from which salary type the sums are calculated.

Source of values

Determines which information is selected for the salary type value. Options are row sum (€) and unit quantity (pcs/h).

Period start and end

Determines the start and end dates of the calculation period. For the start of the period, the following options are available:

Start of the current pay period (Pay period from which the payslip is calculated)
Start of the current holiday accrual year (Current 1.4.)
Start of the previous holiday accrual year (Previous 1.4.)
Start of the current year (1.1.)
Start of the previous year (1.1.)
From the beginning of time
Start of the current quarter
Start of the previous quarter
Start of the previous 1st quarter (1.1.)
Start of the previous 2nd quarter (1.4.)
Start of the previous 3rd quarter (1.7.)
Start of the previous 4th quarter (1.10.)
Start of the previous pay period
Start of the current month
Start of the previous month

For the end of the period, the following options are available:

End of the current pay period (Pay period from which the payslip is calculated)
End of the current holiday accrual year (Current 31.3.)
End of the previous holiday accrual year (Previous 31.3.)
End of the current year (31.12.)
End of the previous year (31.12.)
End of the current quarter
End of the previous quarter
End of the previous 1st quarter (31.3.)
End of the previous 2nd quarter (30.6.)
End of the previous 3rd quarter (30.9.)
End of the previous 4th quarter (31.12.)
End of the previous pay period
End of the current month
End of the previous month

Quarter period start and end are used, for example, in calculating the average hourly wage. Below is an example of this.

Calculation date

Determines which date is used to include payslips in the calculation. With the Due date option, those payslips whose dates fall within the selected time period are included. With the Pay period option, those payslips whose pay periods fall within the defined time period are included. Options are pay period, entry date (voucher entry date) or payment date (salary payment date).

Pay period calendar information

The following options are available:

Accrued holiday days in a month
Retrieves accrued holiday days per month (2/2.5) from holiday calculation settings
Holiday days paid as compensation
Used in Holiday calculation method formulas
Holiday bonus days paid as compensation
Used in Holiday calculation method formulas
Holiday percentage
Retrieves the specified holiday percentage from holiday calculation settings
Holiday bonus percentage
Retrieves the specified holiday bonus percentage from holiday calculation settings
Hours recorded in pay period
Retrieves the hours for the pay period in question from working time entry
Weekdays in pay period
Retrieves the number of weekdays (excluding weekends) in the pay period (Mon-Fri)
Calendar days in pay period
Retrieves all days in the pay period (1-31)
Unused holiday days at the start of pay period
Retrieves the cumulative unused holiday days at the start of the pay period
Workdays in pay period
Retrieves the workdays in the pay period, i.e., days with time entries from working time entry
Holiday days paid on payslip
Retrieves the holiday days recorded for payment on the payslip
Taken holidays on payslip
Retrieves the holiday days recorded as taken on the payslip

Conditional statement

In a conditional statement, two salary types are selected for comparison in the following way. The conditional statement is used, for example, to build the formula for the upper limit of Trade union dues.

Instructions: Setting the upper limit for Trade union dues

First, a salary type is selected for the conditional statement to compare whether it is less than another comparable salary type. Finally, the salary type values are given, which are selected based on whether the condition is met or not: If salary type 1 < salary type 2

In this case, the formula value becomes the value of the salary type if condition true
Otherwise, the formula value becomes the value of the salary type if condition false

Table data

In company-specific salary types "Table data" group, a comparison value range can be set for the salary type.

In the example image, where the source salary type is Accrued holiday days from the holiday year, this salary type retrieves the accrued holiday days for the person from the calculation from the salary type Accrued holiday days in a month (pay period calendar information).

If, for example, the accrued holiday days are 7 days in the holiday year, then the value of the table data salary type becomes 51.1.

If the value of the source salary type is 30, then the value of the table data salary type becomes 222.4.

Frequently asked questions

Where can I edit salary type formulas?

Pay > Payroll > Salary model management > Select from salary model > Formulas > Salary type formulas tab

How can I edit the order of formula rows?

By moving the mouse pointer to the left edge over the "vertical rows" so that "four arrows" appear, and by holding down the left mouse button, you can drag the formula row to the desired position.

Where do I add a new formula row?

From the green plus under the "Salary type formulas" heading.

Can calculated salary types like Gross pay, Salary in money or Net wage or salary be used in salary type formulas?

As a rule, we do not recommend using calculated salary types in calculation formulas, as these salary types have a lot of automatic calculations in the background that affect, for example, the formation of the payslip and the basis for obligation calculations.

What does the error message mean when saving a formula "Error in formula."

Saving the salary type formula is not possible if it is not mathematically correct, meaning some calculation is, for example, in the wrong place. Edit the formula and try saving again.

What does the error message mean "Error in formula. Check that there are no missing calculations between salary types."

Check that the formula does not have, for example, two salary types in succession without a calculation. This prevents the formula from being saved. Ensure that the formula is in the correct mathematical form, that calculations (parentheses, pluses, minuses) are in the correct place in the formula.

How do I create a new salary type and formula?

Here is the support page's own guide for creating a new salary type, with a few examples.

Instructions: Create a new salary 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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