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Balances




Managing Balances



A balance is helpful to store positive or negative accumulation of elements. This can be fed by the pay run results or by an Input value. Usually a balance is created when we need to track an aggregated value associated to one or more elements, for the purpose of reporting or validations. To Measure a balance, we have dimensions and levels.

Dimensions: These are the different axes through which the system can calculate the numbers. For an example, the gross earning in this month, in this Quarter, in this Year; are the different time dimensions.

Levels: These are the levels on which the dimensions will be applied. For an example, if we take Month as the time dimensions, the levels can be, Monthly Salary of an assignment, Monthly Salary of an employee, Monthly Salary of a department etc.

To summarize, balances are a way of keeping track of one or more elements with various dimensions and levels. Once the balance is created, the system needs to know the different elements that will be part of the balance calculations. The attachment of elements to balance, can be done in three ways:

  • Using Primary Classifications: The run result of all elements, under the classification will be gathered in the balance.
  • Using Secondary Classification: It’s as good as using Primary classification, however the classification changes to a more granular level.
  • Using Individual Elements: We can either choose a Run Result or an Input value for the same. However if we are using an Input value, we should always have the units same as balance's unit.

Let's seethe steps involved to create a balance.

Responsibility: HRMS Manager

Navigation: Total Compensation -> Basics -> Balance

Steps: Create a new record and start filing the details in the fields. See Figure 5.11 – Define Balance.

 

Figure 11 Define Balance


(Figure 5.11 – Define Balance)

 Name

 A name of the balance.

 Reporting Name

This is the name that appears on Reports and payslips

 Units

 The unit on which the balance is going to Operate. Like Money, Hours Worked etc.

Currency

 If the Unit is Money, It must have currency added to it

Use for Remuneration

This is used for remuneration Balances and only one balance can have this box checked

 Gross Up

 Once checked, the balance works as a gross up

 Feeds

This window can be used, to assign elements to the balance. The “Add / Subtract” column can be used to instruct the system whether to add / subtract the amount from the base value.

 Classification

One can select a Classification, in case the entire classification (including all elements in it) is to be included in balance calculations

 Dimension

These control the number of values to include in the balance. It could be based on time span (year to date, quarter), level (person, assignment) or restriction (by database item).

 Initial Feed

This stores the initial value of the balance. It’s not mandatory; however it helps in implementation cases.

Let’s say there is a requirement, where a balance for Car hire must be set as 30 at the start of every year. And each time an employee hires a car through the company, the amount must be subtracted from the base amount to store the remaining hires. For situations like this Initial feeds come handy.

 

Laws of Balance:

  • Either Feed or Classification has to be entered in a balance. We must not enter both.
  • In either screens, it populates only those elements that have an input value of the same unit as of Balances.

Balance Feeds

As we discussed earlier, there are three ways to assign elements to a balance. However we can broadly divide the ways into two, using Elements, and using Classifications (Including both primary and secondary). Let’s discuss both the ways in detail.

Using Elements:

Responsibility: HRMS Manager

Navigation: Total Compensation -> Basics -> Balance -> Feeds (Button)

Steps: Create new rows and start filling in the details. See Figure 5.12 – Balance Feeds.

 

Figure 12 Balance Feeds


(Figure 5.12 – Balance Feeds)

This screen helps us to seed the Input values of various Elements into the Balance. 

 Element Name

The Name of the element to be associated.

 Classification

It auto populates the Primary classification for the element selected

 Input Value Name

Select the Input value that will be used in the Balance. The Unit must match with the unit of the balance

 Add / Subtract

To be selected based on the logic of balance calculation

 

Horizontal Scroll:  NOTE The balance can also be fed from the elements description screen (Navigation: Total Compensation -> Basics -> Element -> Balance Feeds (Button)).

Using Classifications:

Before assigning Classifications to the Balances, there might be a need to create secondary classifications. Because in most cases, all the elements in a Primary classification are not meant to be included in a single balance; and the inclusion is needed just for a subset of it. So in cases like that, secondary classification is created first as a subset of the primary, with the required elements in list; and then the secondary classification is attached to the balance.

Responsibility: HRMS Manager

Navigation: Total Compensation -> Basics -> Balance -> Classifications (Button)

Steps: Create new rows and start filling in the details. See Figure 5.13 – Balance Classifications.

 

Figure 13 Balance Classifications


 (Figure 5.13 – Balance Classifications)

 

 Classification Name

 The Name of the element to be associated

 Add / Subtract

 To be selected based on the logic of balance calculation.

 

Horizontal Scroll:  NOTE The balance can also be fed with classifications from the elements description screen (Navigation: Total Compensation -> Basics -> Element -> Balance Feed Control (Button)).

 

Balance Dimensions

As discussed earlier, Dimensions are the axes of a balance that can provide data related to a specific area/ time. Most of the dimensions used in balances are related to time.

Responsibility: HRMS Manager

Navigation: Total Compensation -> Basics -> Balances -> Dimensions (Button)

Steps: Create new rows and start filling in the details. See Figure 5.14 – Balance Dimensions.

 

Figure 14 Balance Dimensions


 (Figure 5.14 – Balance Dimensions)

Dimension Name

Name of the dimension. Select one from the LOV.

Description

This is auto populated, and explains about the selected dimension.

Gross up Balance 

This is as good as a default check box. Only one of the dimensions can have this checked.

Status 

Shows up status. This is auto populated based on processing.

 

Initial Balance Feeds

An initial feed is used, to initialize a balance with a value to start with. One element and one of its input values must be selected to initialize the balance. And later, as the processing continues, the additions and subtractions are made to the initialized value, based on the definition.

Responsibility: HRMS Manager

Navigation: Total Compensation -> Basics -> Balances -> Initial Balance Feed (Button)

Steps: Create new rows and start filling in the details.

 

Element Name

 Choose the name of the element

Input Value Name

 The Input value of the selected element, to be used as the initial value.