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Quick Topic - Dilution With Raises That Occur Mid-Period

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Version 12

Title: Dilution With Raises That Occur Mid-Period

Brief description:

In Unanet, a new Person cost rate must begin on the same day as the Dilution Period begin date. When dilution is turned on, Unanet requires that you line up the raise begin date with the dilution period begin date. When raises occur mid-period, however, you can still get the correct dilution cost with the solution below.

What’s covered in this document:

Solution

Create a rate entry in the Person Profile that represents the blended rate. See example below.

Example:

User01 has a cost rate of \$10.00/hour and his company uses a Weekly time period set up, beginning on Sunday, 07/01/2018, The user is paid \$10/hour. The calendar date 07/03/2018 is a Tuesday, not equal to the time period begin date.

1. Open the Person Profile and select the Rates tab.

2. Add a new rate by clicking the +New link. Use the first Sunday (period begin date) after 07/081/2018 as the begin date as shown below.
3. Click +Rate one more time to add the special time period when two cost rates (\$10 and \$15) are used. In our example, it is the week of 12/29/2012 to 1/5/2013
4. Calculate the effective cost rate for this time period. In our example, the User01 is paid 1 day at \$10 rate and 4 days at \$15 rate. The effective rate for this week is (1 * \$10 + 4 * \$15)/5 = \$14 or to think of it in a different way: 20% of the time period he is paid at the rate of 10, 80% of that time period, he is paid at the rate of \$15, thus the effective rate is 20% * \$10 + 80% * 15 = \$14.

In similar fashion, one can calculate the effective cost rate if the company uses bi-weekly, semi-monthly or monthly time period.