Enabling Supplementary Oncost Rates on Pay & Bill Agreement Headers

Description

A new field labelled Use Supplementary Rates for Oncosts is available from this release on, in pay and bill agreement headers configured in the Rates and Rules module, as highlighted in the example below.

When the Use Supplementary Rates for Oncosts field is ticked on a pay or bill agreement header the system will use the pay rate of a supplementary pay code, which is linked to the pay code against which a pay item has been paid, to calculate the pay or bill oncost for a pay item respectively.

For more information about how supplementary pay codes work, see Supplementary Oncost Calculation Pay Codes.

Benefits

This enhancement allows pay and bill agreements to be configured so that pay or bill oncosts for job orders that are subject to an agreement can be calculated using the standard method, whereby the pay rates used in oncost calculations are derived from the pay codes of pay items, or the supplementary rates method, whereby the pay rates used in oncost calculations are derived from supplementary pay codes that are linked to the pay codes of pay items.

The supplementary rates method of calculating oncosts can also be enabled for jobs that are subject to standard rates. For more information, see Job - Enabling Supplementary Oncost Rates for Standard Rates Job Orders.

Configuration

A pay or bill agreement can be configured to use the supplementary pay code method for calculating oncosts by ticking the Use Supplementary Rates for Oncosts field on the Agency Portal > Rates and Rules > Pay Agreements > Agreement Header screen and the Agency Portal > Rates and Rules > Bill Agreements Dependent on Pay > Agreement Header screen respectively.

However, the Use Supplementary Rates for Oncosts field is available on pay agreement headers only if the Enable Pay Oncosts Function option is enabled in Maintenance > Hierarchy > Country Settings > Oncosts.

Because the fields on an agreement header are locked down once the agreement has been used it will not be possible to toggle the Use Supplementary Rates for Oncosts field on any existing, used agreement after upgrading. If the option needs to be toggled on an agreement that has already been used a new, identical agreement can be created by copying the used agreement. The option can be then be enabled on the new agreement.

If the same agreement is assigned to jobs for multiple clients and the supplementary rate method of calculating oncosts is required for some, but not all, of those clients, it is necessary to create two copies of the agreement; one that has the Use Supplementary Rates for Oncosts option enabled and the other that does not have the option enabled. The agreements should be named clearly so that the correct agreement can be chosen and applied to a job order by front office staff depending on the client who owns the job order.