Factoring Hours Worked
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Windows Application > Time & Expenses > Timesheet Utilities > Factor Hours Worked |
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Timesheet Functions > Timesheet Utilities |
Purpose
The Factor Hours Worked function calculates a factor to be applied to hourly rates to take into account additional unpaid hours worked by reducing the hourly rates for the period concerned.
Additional Information
This procedure is normally performed over a monthly or quarterly time-frame however the examples below are worked on a weekly basis.
Example:
A person is paid for working 37 hours* but they actually work (and book on their timesheet) 45 hours, possibly on different projects. This routine will factor the hours worked for the week by 37/45ths thereby reducing the resource cost of each hour.
*This figure comes from the Hours per week figure stored on the Staff Employment Details page.
Data Entry
Option |
Description |
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Range of Weeks |
The week range is a mandatory option. The routine is constrained only to work with whole weeks, rather than days. This is to eliminate the possibility of errors due to part-time working. The selections are week commencing Mondays. i.e. A range of 03/01/20** to 10/01/20** is TWO weeks, not one week.
The factoring is applied to ALL the timesheet lines entered in this range. So, if the range is for 12 weeks it will use the following calculation assuming the staff member works a 37 hour week
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Group Range Staff Range Overhead Group Range |
A number of option ranges are provided to filter the timesheets affected. |
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Exclude Agency/Contract/External Staff from Factoring |
These options exclude the selected staff from factoring. |
Overtime
To cater for a mix or paid and unpaid overtime, the hours included in the calculation are determined by the setting on the overtime codes worked.
The Include in Factoring Calculation check-box determines whether the hours booked against the overtime code are included in the factoring routine. If checked, the enhancement factors for the overtime code are set to 1 and the hours are excluded from the expected hour’s side of the factoring calculation.
Only applicable to Flexi-Time functionality The Deduct Overtime from Attendance check-box lets you decide whether or not this type of overtime will be deducted from the staff member’s attendance or will be seen as additional hours. This would be used if the current member of staff’s timesheet already has the overtime hours actually booked already and wants to convert some into overtime which would be the checked option, otherwise if you were wanted to add additional hours that are overtime then if would be unchecked. |
The expected hours of a staff member are the contracted hours plus any paid overtime (i.e. overtime codes with the Include in Factoring check-box cleared).
The actual hours of a staff member are the total hours booked.
The factoring routine should be carried out AFTER finalising timesheets but BEFORE invoicing the time or running the period end routine (if applicable).
Examples
Suppose you have the following overtime codes:
Code |
Description |
Include in Factoring Calculation |
0 |
Normal Time |
Y |
1 |
Unpaid Overtime |
Y |
2 |
Paid Overtime |
N |
In the following examples, the contracted hours are 37.
Example 1
Number of weeks in factoring period = 1
Employee works 45 hours, all at normal time.
All hours will be factored by 37/45ths
Example 2
Number of weeks in factoring period = 1
Employee works 37 hours at normal time, and 5 hours at overtime code 1 (unpaid).
All hours are factored at 37/42ths (37 hours normal time + 5 hours at overtime code 1 which is included in the factoring).
Example 3
Number of weeks in factoring period = 1
Employee works 40 hours at normal time, plus 10 hours at overtime code 2 (paid).
All hours are factored by 37/40ths (40 hours normal time but none of the additional 10 hours are included as overtime code 2 is not included in factoring).
Example 4
Number of weeks in factoring period = 2
Employee works 80 hours at normal time.
All hours are factored by 74/80ths ( (2x37)/80 ).
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