Special Topic: Hour Proration

Summary

Hour Proration is a process that automatically adjusts entered hours to standard hours. A rare form of total time accounting, this feature allows salaried employees to enter compensated and non-compensated hours worked. When they sign their timesheets, the system adjusts the hours to the employees' standard hours. Before going into examples, let's discuss the configuration.

Configuration

You can enable hour proration by selecting the Prorate Hours at Signature checkbox in the Timesheet Classes screen.

Which hours are prorated depends on two additional configurations. First, you can select the Prorate checkbox in the UDT1 Types screen to prorate UDT1s assigned to this type. Examples of non-prorated UDT1s (Accounts) are vacation or holiday. Second, you can select the Prorate checkbox in the UDT10 screen to prorate UDT10s. An example of a non-prorated pay type is a compensated OT UDT10 for salaried employees.

The final configuration setting is the Hours Proration drop-down box in the Time Configuration screen, with the following options:

• Disabled - This option disables hour proration.

• Enabled (Hours) - This option enables hour proration, and the prorated hours are rounded to the Hours Increment for the employee's timesheet class (in the Timesheet Classes screen). The following illustrates the rounding using the hours increment:

• Whole - 0 decimal

• Tenth - 1 decimal

• Quarters - 2 decimals

• Half - 1 decimal

• Hundredths - 2 decimals

• Enabled (2 Decimals) - This option enables hour proration, and all prorated hours are rounded to two decimals, regardless of employee's Hour Increment.

How Prorated Hours are Calculated

To determine prorated hours, the system calculates a proration percentage and applies it to the hours. The formula for calculating the proration percentage is:

Prorate-able Hours is the sum of all hours on the timesheet where the UDT1 Type and UDT10 screens have the Prorate checkbox selected.

Adjusted Standard Hours is the sum of all the standard hours for each day on the timesheet less any hours charged to timesheet lines where the UDT1 Types screen does not have the Prorate checkbox selected.

After calculating the proration percentage, the system applies the percentage to each timesheet cell and rounds the hours appropriately. The timesheet line with the most hours is "plugged" with any residual so that hours add up to standard.

Examples

For the following examples, the system is configured as follows:

• Leave UDT1 Types are NOT prorated, whereas all other UDT1 Types are prorated.

• Salaried Employees can use pay types of "R" and "OS1," where "R" is prorated and "OS" is not.

• Salaried Employees have eight standard hours each day of the week, Monday through Friday, and zero standard hours for Saturday and Sunday (based on their work schedules).

• Salaried Employees have an Hours Increment of tenths.

Example 1

The employee's standard hours are as follows:

The Adjusted Standard Hours are 32.  40 (Standard Hours) - 8 (hours charged to timesheet lines where the UDT1 Type screen did NOT have the Prorate checkbox selected).

The Prorate-able Hours are 40 (10 + 10 + 9 +11) (sum of hours where UDT1 Type and UDT10 screens have the Prorate checkbox selected).

The Prorate Percentage is 32/40 or 80%.

The results are as follows:

Example 2

The employee's standard hours are as follows:

The Adjusted Standard Hours are 32.  40 (Standard Hours) - 8 (hours charged to timesheet lines where the UDT1 Type screen did NOT have the Prorate checkbox selected).

The Prorate-able Hours are 40 (10 + 10 + 9 +11) (sum of hours where UDT1 Type and UDT10 screens have the Prorate checkbox selected).

The Prorate Percentage is 32/40 or 80%.

The results are:

Miscellaneous

As you can see, you can have the hour proration computed on any timesheet schedule, even if an employee is hired in the middle of a timesheet period. Before outlining the steps to configure hour proration, let's discuss some of the effects of proration on the system.

Timesheet Screen

• Proration will occur when the timesheet is signed if proration applies to the employee's timesheet class.

• For timesheets that have been signed and prorated, a pushbutton will be displayed in the heading of the timesheet that enables you to toggle between "Entered Hours" and "Prorated Hours." The system saves the hours entered by the employee and hours prorated by the system in separate "buckets."

• To correct prorated timesheets after they have been processed, you must use the Reverse Timesheet feature. See Special Topic: Timesheet Corrections for further information.

Employee Activity and Charge Activity screens

These screens will report prorated hours instead of entered hours.

Export Timesheets screen

This screen will export prorated hours instead of entered hours.

How to Initialize Hour Proration

1. Rounding Options - On the Miscellaneous tab in the Time Configuration screen, select the appropriate rounding option in the Hour Proration drop-down box.

2. Also on the Miscellaneous tab in the Time Configuration screen, select the Prorate Hours Upward check box if you want Time & Expense with ESS to prorate hours up when an employee works fewer than the adjusted standard number of hours.

For example, if this box is selected and an employee enters only 20 hours, all of which are proratable, for a timesheet for which the adjusted standard number of hours is 40, the proration percentage is 200. As a result, the proration process increases the hours to 40 for the timesheet.

If you only want hours prorated when employees work more than standard hours, do not select Prorate Hours Upward.

3. UDT1 Type - In the UDT1 Type screen, select the Prorate checkbox, as appropriate, for each UDT1 Type.

4. UDT10 - In the UDT10 screen, select the Prorate checkbox, as appropriate, for each UDT10.

5. Timesheet Classes - In the Timesheet Classes screen, select the Prorate Hours at Signature checkbox, as appropriate, for each Timesheet Class.