Report Totalling Levels

The Report Totalling is broken into two basic types:

  1. Totalling levels of Level 1 - Company, Level 2 - State, etc.
  2. Totalling by individual components such as Hours Types of Normal Time, Overtime, etc.

 

Totalling Levels consist of three groups:

Five levels are used, each numbered from 1 to 5. They reflect the organisation, costing and/or reporting levels used. Level 1 is always used as the company level while Level 2 to 5 can be defined according to your requirements (e.g. State, Branch, Division, Pay Location).

  • If your organisation has branches in multiple states, Level 2 is assumed to be the State Level. This is particularly significant for Payment Summaries issued and Tax File Number declaration details.

The totalling levels used for processing and reporting purposes are established in the Level Code Descriptions window and Level 1, 2, 3, 4 and 5 windows. However, their use in various programs throughout Preceda is controlled through the Program Control options and the selection of parameters, particularly reporting parameters.

Totalling Level 1 is mandatory. All other levels can be set up according to your organisation's structure and requirements.

 

Once the payroll has been calculated and the reports produced, the calculated dollars and hours throughout the costing levels are distributed. A cost level is identified by the Level 1 (Company), Account Number and the Department (optional).

Department totals for each account and account totals for each company can be reported on by running the Labour Cost Analysis Report. This report provides a summary for each cost level and totals for each company.

  • If using the Preceda General Ledger interface, a combination of Payroll and Costing total levels for financial reporting can be used.

 

Totalling by individual components is broken into two types: hourly-based earnings and dollar-based allowances or deductions.

Six levels can be used, numbered 1 to 5 and department. Level 1 is always used as the Company Level. However, Lever 2 to 5 can be defined according to your requirements. Any Level apart from Company can be bypassed.

Hourly-based earnings are accumulated as year to date figures and allocated the relevant Hours Type codes, that identify different types of hours such as Normal hours, Overtime hours, Annual Leave hours, etc.

Hourly-based earnings are linked to employees through either of the following methods:

  • For Autopay employees, the standard Hours Type code is specified in the Auto Pay Hours field on the employees' Payment Details window.
  • For all employees, Hours Type codes used on the Time Entrywindow.

Hourly-based earnings are also used for calculating the company year to date totals and costing for this pay. Earnings for this pay and for the year to date are printed on employees' pay slips.

The calculation of hourly-based earnings is controlled through the use of a Classification on each Hours Type code created (e.g. Preceda knows that a V Classification is for Annual Leave and treats the associated hours accordingly). The Annual Leave entitlements is reduced by the relevant number of hours.

The Hours Type Classifications can be used to link to Calculation Methods, such as for Annual Leave Loading. The following is specified:

  • A Calculation Method code for Annual Leave in the employee's Payment Details window. The Calculation Method specified must have a Classification of V for Annual Leave.
  • An Annual Leave Hours Type code, that must have a Classification of V for Annual Leave along with the relevant number of hours, in the Time Entryrecord.

When Preceda calculates the pay, it checks the employee's Payment Details window for the Annual Leave Calculation Method code and performs the associated calculation on the Annual Leave hours specified. Once the calculation is complete, Preceda generates and Hours Type or Allowance/Deduction record that Leave Loading is allocated.

The example shown is one way of using Calculation Methods. There are three ways for using Calculation Methods codes:

  1. Specify a default Calculation Method code on the relevant Hours Type code. This can be overridden by a Calculation Method specified in an employee's Payment Details window or in a Time Entry record.
  2. If an employee has hours that always involve the same calculation, a Calculation Method code with the relevant classification, can be specified on the employee's Payment Details window. This can be overridden by a Calculation Method specified in a Time Entry record.
  3. A Calculation Method code may be specified on a Time Entry record as an override. This will override the above two methods of use.

 

Dollar-based components are accumulated as year to date figures and allocated the relevant Allowance/Deduction codes. There are five main types of allowance and deductions:

  1. Allowances before tax is calculated;
  2. Allowances after tax is calculated;
  3. Deductions before tax is calculated;
  4. Deductions after tax is calculated;
  5. Employer contributions for superannuation. These superannuation contributions are calculated based on the employee's pay. They are not deducted from the employee's pay as the employer pays the contributions to the Superannuation fund.

The Allowance/Deductions can be handled in two ways:

  1. By specifying a standard Allowance/Deduction in an employee's Salary window. This is useful for Allowance/Deductions that are to be calculated each pay and can be overridden by a Time Entry record.
  2. By specifying a Time Entry - Allowance/Deduction record for an employee. This is useful for ad hoc Allowance/Deductions.
  • An Allowance/Deduction amount can be a dollar value, rate, unit or a rate multiplied by units.