Overview

This topic explains the following steps in the AAR Calculation setup process:

• Create a rate
• Set up advanced rates
• Associate AAR Calc with contracts
• Associate Contract and award with employee
• Add rate overrides
• Test AAR calculation

Create a rate

You need to create a rate that is:

• Separate from the Standard and Derived Default rates.

  If you do not use a different rate for AAR Calculation, then PayGlobal will use the rate on the employee’s Awards | Rates tab, rather than those on the employee’s Awards | Advanced Rates tab.

• Non-calculated.

  Note: You can create several different advanced award rates to step through levels or grades, just as you can for standard rates.

1. Navigate to Organisation | Entitlements | Rates.
2. Create a Rates record with a blank Rate calculation field.

Set up Advanced Rates

Set up advanced rates after your standard rates. The Awards | Advanced Rates tab contains a makeup table that sets the rules for applying the advanced rates.

Before you begin, you need to decide what the rules will be for the advanced rates.

1. Open an award and click the Advanced Rates tab.
2. Click Edit, and then press Insert to add a record.
3. On the Award Advanced Rates | Rates tab, enter details of the rate.
4. Click the Award Advanced Rates | Rules tab and enter the age or service conditions that must be met for PayGlobal to apply this advanced rate.

   Important: You must set up the Rules parameters correctly for the AAR Calculation to run successfully.

5. Click the Award Advanced Rates | Reason tab, these optional tab page fields are used mainly for reporting purposes. Complete fields as necessary.
6. Save and close this Award Advanced Rates record.
7. Repeat steps 2 - 6 until all required Award Advanced Rates records are entered.
8. Click the Save + Close button to close the Award record.

Associate Contract with AAR Calculation Award

You need to associate the employee’s contract with the award that contains the AAR Calculation.

Note: You can link Advanced Rate rules with an employee's contract, even if that award does not cover the employee.

1. Navigate to Human Resources | Contract Management | Contracts.
2. Open the required Contracts record.
3. In the Details tab | Apply AAR calc from Award field, select the appropriate Award record.
4. Click the Save + Close button to close the Award record

Associate Employee with Contract and Award

Employees are included in AAR Calculations only if their record has either of the following:

• A contract with an advanced rates award in the Apply AAR calc from Award field.
• An award that uses advanced rates.

1. In an employee's record and navigate to the Payroll | Payroll | Contract tab.
2. In the Contract field, select the required Contract and copy across Contract defaults.
3. In the Award field, select the required Award and recalculate annual salary.
4. Click the Rate tab.
5. Add a Rate Override

Add Rate Overrides

The AAR Calculation will fail unless the employee’s Rates tab contains at least one valid rate override. The AAR Calculation needs to add an end date to the previous rate and it cannot do so if no previous rate exists.

Test the AAR Calculation Command

It is advisable to do a test run of the AAR Calculation. This allows to you check which employees are eligible for a rate change and if necessary make any minor amendments before rates changes are actually made.

To complete a test run of the AAR Calculation ensure you select Display eligible employees in the Advanced Award Rate Calculation | Details tab | Type field.