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# Quick Topic - Dilution With Raises That Occur Mid-Period

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:

A user 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 user receives a pay increase on 07/03/2018 which is a Tuesday, not equal to the time period begin date.

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

2. Add a new rate by clicking the +New link. Use the first Sunday after 07/01/2018 as the begin date, which will be 07/08/2018 as shown below.

3. Click the +Rate link 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 07/01/2018 to 07/07/2018.

4. Calculate the effective cost rate for this time period. In our example, the user is paid 1 day at the \$10 rate and 4 days at the \$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.