CALCULATE BUDGET VALUES

This option is used to do Salary Budget Calculations

Prerequisites to use this option:

• The ITS Payroll System should be fully operational.

• A parameter set for the budget parameters that should be used should should have been created in "Maintain Parameter Sets" {MSBOP-21}. Rules regarding  general increases, STATS rows to include in the budget calculation, the handling of posts that are vacant during (a part of) the budget period, et cetera are entered here.
   
• The Posts and Personnel that should be included or excluded from the budget calculation should be indicated in "Include/Exclude Posts/Personnel" {MSBOP-22}.

General information

• In principle, the program does a full salary calculation for every Payroll Cycle specified without creating Salary Transactions. For more detail on the salary calculation, refer to the Salary Calculation Procedure

• The budget calculation rounds amounts to the nearest whole amount per STATS Row Code as indicated in "Earning/Deduction Types" {FPRG-6}.

• Since a salary calculation could last for several hours, the program is executed in background mode. See the section on "Batch" in the Operational Aspects of  the ITS System

• The budget is done per Post, and for posts that are filled during (a portion of) the budget period, all service records during the budget period are considered in turn.  
   
  

  Please note that the correctness of personnel Service Records is all-important for correct budget calculations
   
  As an example, assume that a budget re-calculation is being performed in July, and that salary calculations have already been completed for the period January to June. 
  The system will first determine from the service records, the individual in a post during a particular month for the period January to June before accumulating the salary transactions for that individual. 
  Hence, if the service record for an individual should be incomplete or incorrect during this period, the individual’s transactions will not be accumulated.
  

• For filled posts, it will take take the following personal information into consideration 
• Appointment and resignation dates
• Date of birth
• Membership of Medical Aid-, Group Life- and Pension schemes
• Date-to-be-pensionedt140344d1.sql
• Appointment Type (including Permanent/Temporary and Salary/Claim indicators)
• For Appointment Types indicated as "Pay by Claim", the program creates one record with a zero personnel number and zero budget value.  The user may enter a budget mount for the year via "Maintain Budget Values" {MSBOP-1}.
• Salary notches and Future Salary Notches
• Barrier notches
• Increase months, 
• Bonus months and 
• Stop Pay indicators
• Global compensation packages applying to the various Appointment Types, as defined in option {FPRG-7} of the Payroll System
• individual salary transactions, as defined in option {FPRI-2}, which span (a portion of) the budgeting year

• For vacant posts, depending on inclusion or exclusion from the budget calculation
• Approved Rank
• Initiation and expiry dates
• Post Status (in the case of Proposed posts).
  

• The following will be done for posts that are vacant during (a portion of) the budget period, depending on inclusion or exclusion from the budget calculation
• The system creates a budget record with "personnel number" 0
• A calculation is done for posts which are linked to ranks with non-zero scales. The compensation package and personal details used in this case would be the package for the personnel number entered in in "Maintain Parameter Sets" {MSBOP-21}. If no personnel number was entered, the budget calculation for the post will only include the basic salary.
• If no scale is known (or zero scales), the program creates one record with a zero personnel number and zero budget value.  The user may enter a budget mount for the year via "Maintain Budget Values" {MSBOP-1}.
  
• The following will be done for Service Records {PBOP-2} with an Appointment Type {PACS-1} where the “Paid by” indicator is “(C)laim”.  Such Personnel Members will, by definition, be linked to a zero default salary scale, and such people will have zero notches.  
• The program creates one record with a zero budget value.  The user may enter a budget mount for the year via "Maintain Budget Values" {MSBOP-1}.

• For Secondary Appointments
• Future (A)pproved Claims in "Maintain Claims" {FPRIC-1} will be budgeted for.
• If no future claims exists, it will be handled in the same way as posts where no scale is known (or with zero scales) i.e. a record per person is created, with zero budget value.  The user may subsequently enter budget amounts for the year via "Maintain Budget Values" {MSBOP-1}. 

• Future notch values in the Salary Notch Record Table in the Fixed Salary Detail {FPRI-1} will override all notch- and general increases to be applied.

• If an Automatic Notch Increase (Refer to Automatic Notch Increases {FPRN-1}) for an employee should be budgeted for, and the automatic notch increase is after a general increase, the program will
• First apply the automatic notch increase to the notch as it was before the general increase
• Validate that the value is valid for the Salary Scales of the person.
• If it is not valid, the notch as after the general increase will keep on being used
• If it is valid, the general increase will be applied to the notch as after the automatic increase

•  Example:
  • A person linked to a specific post is included in the salary budget. 
  • The existing salary scale is : 80 000 x 5000 x 105 000 
  • A 10% general increase effective from 01 March 2006 is be applied, do a salary budget from 01 January 2006 to 31 December 2006. 
  • At 01 January 2006 the person has a notch of R100 000.00. 
  • An Automatic Increase is applied on 01 April 2006, under the current scales it would result in a notch of R105 000.00 
  • A future notch of R120 000.00 exist for the person effective from 01 October 2006. 
  • The salary budget process will calculate the notch to be used for budgeting purposes as follows:

    Cycle	Original Notch	Event	Notch used for Salary Budget	Actual budget amount for Notch
    200601	100 000		100 000	100 000/12 = 8333.34
    200602	100 000		100 000	100 000/12 = 8333.34
    200603	100 000	A 10% general salary increase	110 000	110 000/12 = 9166.67
    200604	110 000	Automatic Increase from the previous 100 000 to 105 000. The system applies the increase. It is still within the scale. The 10% increase is then applied to the new notch The resulting notch is will have a value of 115 500	115 500	115 500/12= 9625.00
    200605	115 000		115 500	115 500/12= 9625.00
    200606	115 000		115 500	115 500/12= 9625.00
    200607	115 000		115 500	115 500/12= 9625.00
    200608	115 000		115 500	115 500/12= 9625.00
    200609	115 000		115 500	115 500/12= 9625.00
    200610	115 000	Future Notch, Effective from 01 October 2006 of 120 000	120 000	120 000/12= 10 000.00
    200611	120 000		120 000	120 000/12= 10 000.00
    200612	120 000		120 000	120 000/12= 10 000.00

    
    

• A control report is produced,  flagging exceptional personnel and posts encountered during the calculation.  Totals are provided for the number of posts and service records that were processed, the total budget and expenditure as calculated, as well as the total budget and expenditure for this parameter.
  

• The “Date of calculation” will be saved to the applicable field on the parameter set.  

The Salary Budgeting System relies heavily on the correctness of the "Posts" Structure {PACS-4}.

• Procedures:
• None