Over Time Calculation Scenario

[musrooraahmed]

Dear Gurus,

I am in a bit of a fix; I have a scenario at hand, Client wants to get employees paid for the over time performed on the following basis:

For Supervisors and senior associates:

Overtime Performed on Normal day / Saturday

OT Factor : (Months/(Working days in a year * working hours in a day)) *2

OT Factor: (12/(261*8))*2 = 0.01107

OT Calculation: Gross * OT Factor * OT Hours

i.e., 10,000 * 0.01107 * 8 = 885.60 Rupees

Overtime Performed on Sunday / Govt. Holiday / Gazetted Holiday

OT Factor : (Months/(Working days in a year * working hours in a day)) *2

OT Factor: (12/(261*8))*2 = 0.01107

OT Calculation: Gross * OT Factor * OT Hours * 1.5

i.e., 10,000 * 0.01107 * (8 * 1.5) = 1328.40 Rupees

Now payment for half an hour will be deducted from that day and instead of 12 hours (i.e., 8*1.5) payment of 11.5 hours will be made in this case which amounts to 1273.05 PKR

For Executive cadres:

OT Payment = 125 * Number of hours

For Assistant Managers:

OT Payment = 175 * Number of hours

For Deputy Managers:

Payment for 8 hours = 1400 PKR

Payment for 4 hours = 700 PKR

Now he can either avail a compensatory leave or the OT payment.

I would appreciate if someone can look into the scenario and tell me how to deal with it

[Sanky · Accepted solution]

Hi Masroor,

As per your scenario, i am sure that you are running postive time management. To design the scenario i have the following questions which to be answered.

1. Working days in a year- Is it constant? If it's not then what would be the factors to calculate the Working days. (Factors- e.g. you don't want to take paid absences, paid holidays etc)

2. For the case of Sunday/Govt Holiday/ Gazetted holiday- How you will be bifercating these?

3. Please clarify this "Now payment for half an hour will be deducted from that day and instead of 12 hours (i.e., 8*1.5) payment of 11.5 hours will be made in this case which amounts to 1273.05 PKR".

If employee works for an half an hour in holiday's would be considering his OT calculation. I think this kind of OT, he has to work minimum hours (like 4hrs) on that day.

Check and reply.

Regards,

Sankarsan

[musrooraahmed · Accepted solution]

Hi Sankarsan,

Thank you for taking the time out to look into the scenario;

1. Working days in a year are constant for the last 8 years; they calculate the OT rate on the basis of 261 days in a year regardless of the fact that how many actual working days are there in a year.

2. I am planning to use DWS classes for the bifurcation of day offs. Furthermore, the behaviour of sunday / gazatted / govt. holiday is same in their case

3. It's more like a mandatory half an hour unpaid lunch break, which will be deducted regardless of the fact that employee took the break or not.

Regards

[Sanky · Accepted solution]

Hi Masroor,

I am replying as per your answer.

1. That mean's your OT factor amount is Constant and it's place in XXXX as 0.01107.Keep this value in T511K table and also standard working hours in a day like 8 hrs in another constant i.e. TDTM.

After that calculate your OT hours and cumulate in day's time type and as well as in ZL table.

Sample OT PCR of Time management and insert in last inProvide time data blog.

*

****

     VARSTHOLCL

     *

     HRS=PEND

     HRS-PBEG

     HRS?CTDTM

        *

         LEAVE

        >

         HRS=PEND

         HRS-CTDTM

         ADDDB1000

         ADDZL 4000

      1

       VARSTDPRCL

        1

         VARSTPRSNT

             Y

              N

         (Insert logic same which is mentioned above only change WT for holiday's OT payment)

        *

         VARSTPRSNT

             Y

             N

         (Insert logic same which is mentioned above only change WT for holiday's OT payment)

In Payroll after in XT00 subschema after PRINT NP  ZL place the below PCR.

3

4000

      OUTWPPERSG

       AA (supervisor or senior associates)

       NUM=  4000

       AMT=KXXXX

       MULTI  ANA

      ADDWT 4000

For diiferent ESG do the same way only maintain constant 125 or 175 in T511k and call it accordingly.

2. For this, in 1st PCR i had already given a logic. Please see this one.

3. Let me clear about this with Example.

If your break is unpaid then in your break schedule you can define it's an unpaid.

Regards,

Sankarsan

[musrooraahmed · Accepted solution]

Hi Sankarsan,

Thanks for the input! I will check it and probably bug you later.

Regards

[musrooraahmed · Accepted solution]

Hi Sankarsan,

I have another question related to the above query, the client requirement is to give either CPL or OT depending on what employee ask, now the ratio of the employees asking for OT is around 60% and the employees who asks for the Compensatory leave is around 40%, I have been banging my head around this but havent been able to figure out a solution as of yet to automize it.

What can be the best possible solution in your view.

Their exact requirement is as follows:

Employee worked overtime on rest day / Off day;

OT with specific rate to be given to the employees and in case employee wants to avail the CPL instead of OT, payment should be replaced by CPL.

Regards

[musrooraahmed · Accepted solution]

Furthermore, for the third point!

3. Let me clear about this with Example.

If your break is unpaid then in your break schedule you can define it's an unpaid.

Sunday is the off day so there won't be any break schedule it all overtime, but while making the payment they deduct half an hour of payment in lieu of lunch.So, how to deduct that amount

[Sanky · Accepted solution]

Hi Masroor,

I think it's little tricky!!!

In SAP process are from Time Manmagement to Payroll. So i think we have to decide on Time Management side at the time of COFF quota generation that employee will go for COFF or OT or both as Percentage.

Now it's depend upon employee's choice which one they will take. Am i correct?

Then i will suggest you below solution. Check it would be possible in your system or not.

1.Generate your Com Off based on check point through IT2002 entry. ( Why this check point because once you will generate quota automatic and after then when employee ask to 50% quota and 50% OT then would be difficult and you have to delete IT2006 entry that times because it's already updated).

2. Now in this IT2002 you will create an attendance type and enter hours based on the percentile employee is looking for Com Off .

Then in your time evaluation it will evaluate with IT2011 entry and TIMTP table entry will split with time entry. Now in that time entry you will write PCR against Time type and generate Quota for that daya and OT for that day.

Hope so you got the solution.

Regards,

Sankarsan

[Sanky · Accepted solution]

Hi Massor,

This reply is on your 3rd point.

If employee is work on sunday so on that time you are defining different dws class so based on that you will minusing half hours from the total OT hours. Keep this half an hours in T511K and in the PCR use this constant as CXXXX.

So then in ZL table you will get the OT hours exclusivd of unpaid break hours for sunday's.

Regards,

Sankarsan

[Former Member · Accepted solution]

Hi Guys,

your correct Sankarsan,

But we can not deduct  0.50 hrs from his/her total working hours on sunday. assume if an employee comes at 8.00 AM and he left around 11.30. So on this case employee doest have lunch so we can not deduct 0.50 hour. (this is just my assumption )

what my sugestion is check P20 (end time ) whether it passed the lunch break time (12.30 to 13.00) then decise to deduct 0.50 hour.

Regards,

Dinesh

[Sanky · Accepted solution]

yes dinesh.

You are correct and we should consider this lunch break for consider in PCR for further calculation.

Mr. Massor please take Mr. Dinesh point in your structure to make system more accurate.

Regards,

Sankarsan

[Former Member]

Hi Masroor,

1.For different grades you to go for different Employee Subgroups. On that Emp. subgroup basis U've to call them in Payroll Pcr for the different kind of calculation.

2. You can store the OT factor value in T511k table as a constant and call that in PCR for the calculation.

3. You can segregate the Normal working day and Public holiday by calling operation VARSTHOCL, return value=1 is your public holiday, if u've any custom public holiday then call it as per yr requirement.

4. You can seggregate the weekly off by calling the Daily Work Schedule.

5. You ve to wrote two pcr, one is for time and another is for payroll.

6. In time pcr you can get the ot hrs from the time evaluation. The OT hrs is going to updated in ZL table. If you maintain IT2011 and the extra hrs will be reflect in zl table through the PCR.

7. Once u got the ot hrs frm time evaluation then u've to write the payroll pcr for emp subgrp level for the amount calculation to show the ot amt in RT.

Thanks,

Santosh