Creating earnings and deductions

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To create an earning or deduction:

1. Go to Payroll.
2. Under Catalogs, click Earnings and deductions.
3. In the Earnings and deductions catalog, do one of the following:
   • To create an earning or deduction from scratch, click Create.
   • To save time on the input of an earning or deduction details, copy the details of the existing earning or deduction. To do this, select an earning or deduction and click .
4. In the Earning or deduction (create) window, enter or edit the following:

   Field	Description
   Type	The type of the created item. Select one of the following: Earning. An employee's earning. Deduction. An employee's deduction. Tax. A tax deducted from an employee's pay. The Tax type is available if payroll taxes are applied (the Use personal income tax calculation checkbox is selected in Settings > Payroll).
   Description	A name or short description of an earning, deduction, or tax.
   Group	A group that an earning, deduction, or tax is included in. The group list includes the groups available in the Earning and deductions catalog. For details on groups, see Creating groups of earnings or deductions.
   Tax type	A tax type. The list of tax types is based on the Tax types catalog. The Tax type field is available if an item Type is Tax.
   Income and expense item	An income and expense item for recording an earning, deduction, or tax. This income and expense item is populated to the documents where the earning, deduction, or tax is selected. The list of values is based on the Income and expense items catalog.
   Formula	A formula for calculating an earning or deduction. It is an expression that can contain numbers and calculation parameters connected by arithmetic or logical operators. To specify a formula, see Specifying calculation formula. The Formula field is available only if the item Type is Earning or Deduction.

5. Click Save and close.

Specifying calculation formula

As you create an earning or deduction, do the following to specify its calculation formula:

1. In the Earning or deduction (create) window, next to the Formula field, click . The Formula editing dialog is displayed.
2. In the Calculation parameters section, double-click the identifiers of the calculation parameters that you want to include in the formula.
   They are added to the Formula editing section. The calculation parameters list is based on the Calculation parameters catalog. If a calculation parameter is missing, click Create and specify the calculation parameter settings. For details, see Creating calculation parameters.
   Note. In a formula, you can include either of the following:
   • Up to three predefined calculation parameters: Tariff Rate, Days worked, Hours worked.
   • Up to three calculation parameters other than Tariff Rate, Days worked, and Hours worked.
3. In the Operators section, specify operators to combine the calculation parameters into a formula. Use any of the following operators:
   • Arithmetic operators.
   • Logical operators.
   • Functions.
   • Templates.
4. Optional: Click Check formula to make sure that your formula is correct.
   If the formula contains any errors, you will get an error message. Change the formula accordingly and try again.
5. Click OK.

For example, consider the following salary calculation formula with three calculation parameters:

[TariffRate] * [HoursWorked] / [NormHours]

This formula states that an employee's salary is calculated by multiplying the employee's pay rate by their hours worked. Then the result is divided by the total number of working hours within the pay period according to the company's work schedule.

Consider another example of using a dynamic calculation parameter:

Calculating payroll for sales representative based on sales turnover

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