Calculating Rolling Average Earnings
This section provides an overview of rolling average earnings and discusses how to:
Use accumulators in the rolling average calculation.
Use variables in the rolling average calculation.
Use formulas in the rolling average calculation.
Work with rolling average (example).
The earning rolling average is used to calculate compensation when there is a termination or accident at work. You can set up an earning element for which the rate is determined by the average of another earning element during a rolling period, such as the preceding 12 months.
The following earnings contribute to average earnings:
Cash wages.
The value of any privilege or benefit that can be estimated in cash (such as food, fuel, or quarters supplied to the employee).
Overtime or other special remuneration through bonus, allowance, or otherwise.
Customary tips.
The rolling average calculation uses the OE AC ROLLAVG (amounts) accumulator. The accumulator accumulates the earnings listed in the following table for rolling average calculation. It is a monthly accumulator with an accumulated date of the payment date. The system uses the amount values of the members of accumulator OE AC ROLLAVG in its averaging calculation. PeopleSoft delivers this accumulator with the following earnings as its members:
|
Name of Earning |
Description |
|---|---|
|
BASSAL |
Basic salary |
|
BASHLY |
Basic hourly salary |
|
OT1.5 |
Overtime 1.5× |
|
OTFIX |
Overtime fix |
|
SHNT1.3 |
SHIFT1.3× |
|
SHNTFIX |
Shift fix |
|
MEAL |
Meal allowance |
|
HSING |
Housing allowance |
|
GRAT |
Gratuity |
|
13MTHPAY |
13th month pay |
|
HOLIDAY PAY |
Holiday Allowance |
|
ANN LVE PAY |
Annual Leave Pay |
|
SCK LVE PAY |
Sick Leave Pay |
|
MLV LVE PAY |
Maternity Leave Allowance |
|
HOL PAY NEG |
Negative Holiday Pay |
|
SICK PAY NEG |
Negative Sickness Allowance |
|
MAT PAY NEG |
Negative Maternity Pay |
|
ANN PAY NEG |
Negative Annual Lve Pay |
The rolling average calculation uses the OE VR ROLLAVG AMT (amounts) variable. The system adds the amounts retrieved from the OE AC ROLLAVG accumulator to variable OE VR ROLLAVG AMT. The variable OE VR ROLL UNIT holds the rolling number of months for calculating the rolling average. You can set the variable OE VR ROLL UNIT to the number of months that you want the system to use to retrieve period data for use in the calculation.
The rolling average calculation uses the OE FM ROLL AVG (amounts) formula. The rolling unit indicates how far back to calculate the rolling average. The formula OE FM ROLL AVG, attached to an earning element, calls a historical rule to retrieve the accumulator value at the time of the calculated period. The period is calculated by the last period end date minus the number of months specified. The formula then calculates the average from the amount retrieved.
Following is an example of the accumulated value of the earning element for the last five periods. Assume that:
In period 2, these earnings did not contribute to the accumulator.
You are running the pay run in period 5.
|
Value |
Period 1 |
Period 2 |
Period 3 |
Period 4 |
Period 5 |
|---|---|---|---|---|---|
|
Earnings value |
10,000 |
Not paid |
10,000 |
10,000 |
10,000 |
|
Accumulator Value |
10,000 |
10,000 |
20,000 |
30,000 |
40,000 |
Assume that you want to calculate the average earnings for the last four periods from period 5 (hence, you retrieve from period 1). Therefore, the accumulator holds 10000 for period 1 and the rule retrieves 1,000. The formula retrieves the current period accumulator value of 40000 in period 5.
The rolling average calculation is as follows:
((Accumulator, current period) − (Accumulator, previous period)) / (Months)
Hence, the calculation resolves to:
(40,000 − 10,000) / 4 = 7500