What are Methods of Calculation
Description

Methods of Calculation are valuable time-saving tools on the System. They enable the program to calculate amounts, e.g. Pension Fund Deductions automatically, thereby avoiding manual calculations and much tedious input by the user.

Cause
Resolution

Methods of Calculation can be specified for Earnings, Deductions, Calculation Fields or RFI (Retirement Funding Income) and you can specify up to 35 different methods for each of these fields.

A formula, fixed amount or a table may be defined for each Method of Calculation. A formula consisting of up to eight steps can be set up in a Method of Calculation. When a formula is more complicated, and requires more than eight steps, methods can be linked to each other.

NOTE: The support desk can only provide basic guidance with Methods of Calculation. If you require assistance to setup a complicated method, we will request you to book a consultation. Methods of Calculation require testing to ensure they are working correctly.

 

Earning Definition screen (ED)

A Method of Calculation can be added for any Earning line that has been defined under the 'Earning Type' column as any of the following:

 

Deduction Definition Screen (DD):

A Method of Calculation can be added for any deduction line that has been defined under the ‘Type of Deduction’ column as any of the following:

 

Calculation Fields Definition Screen (XD):

A Method of Calculation can be added to Calculation Screen (XS Screen) that has been defined under the ‘Type of Calc’ column as any of the following:

  • Calculate
  • Unit Input
  • Hourly Input

If an earning, deduction or calculation line has been defined as Not Calculated, it is not possible to create a method for that earning or deduction unless the ‘Earning/Deduction Type’ is changed to one of the options specified above.

There are 3 different types of Methods of Calculation that can be defined: Click on each type for more information

Type of MOC When do I use this type of Method
Fixed Amounts Where a fixed amount is applicable to all or a selected number of employees, e.g. Union fee of R20.00 per month
Calculations When a formula must be used in the calculation, e.g. a percentage calculation (6 % of Salary).
Tables When tables for the calculation are supplied and the values are based on the employee’s age, Taxable Earnings, Monthly/Weekly Basic Salary, Total Earnings or Medical Aid dependants, e.g. Medical Aid tables.

 

 

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