The Harvest Bonus,
also called Harvest Premi, system.
Introduction
In this document, we discuss how the Harvest Premi system works within the IES Business Implementation for Oil Palm Plantation, and together with the following Payroll options: -
1) Agri Oil Palm
2) Agri Flex
Note: The Harvest Bonus system may only be
used by 1 Payroll of one of the above types, in each Datamart.
Basic Principles of the Harvest Premi system
Employees who perform a Harvesting Activity
achieve a certain work result, and based on this work result, a formula is
applied to calculate the Harvest Premi payable to the Employee. This is the
direct Harvest Premi, but there is also an indirect Harvest Premi for
Supervisors and others who do not achieve a direct work result, but rather derive
their bonus from the performance of the group, i.e. the Division.
The Harvest Bonus, as calculated for each
Employee, becomes a payable on the Employee payslip, and is part of the ‘Man
Cost’ for this Employee, the latter being
recoverable
to the Activity Cost Centres where performed, when using the
automatic
Man Cost Recovery system.
Primary Inputs of Harvest Premi data
The primary data input towards Harvest Bonus is found on the Physicals Man Journal form. The version of the Man Journal shown here includes selection of a Gang (Work Group) within a Division, and upon this selection the ‘man list’ is populated.
Each detail line lists the Activity Detail
for that ‘man’, and where the Main Allocation
Account is for a Harvesting Activity
(appearing on the Harvesting Activities list in the set up for Harvest Premi), then this line qualifies for Harvest Premi calculation.
We note that the Man Journals are used to
record Man Activities, other premi or bonuses, overtime AND possibly Harvest
Bonus input. Therefore, Harvest Bonus is sensed only IF the implied Activity is
a qualifying (Harvesting) Activity for Harvest Bonus.
The Work Result (WR) Type may or may not be
specified, and can be a specific Work Result for Harvesting, or not. The WR
Total (Work Result Total) is the trigger to determine whether this is Direct or
Indirect Harvest Premi and will be used for calculation of DIRECT harvest bonus
on this line, for this Employee. If the correct harvest activity is sensed, but
there is no work total, then this will result in INDIRECT premi being sensed,
i.e. for Supervisors, Administrators and or other persons who get harvest bonus
based on the group performance of the individuals in the Division group, i.e.
those who earn DIRECT harvest bonus.
To explain this again, we can say that: -
a)
To qualify for Direct Premi on a Day
Date, an Employee must be listed on a journal line for the Date, with a
Harvesting Activity AND a WR Total > 0
b)
To qualify for Indirect Premi on a
Day Date, an Employee must be listed on a journal line for the Date, with a
Harvesting Activity AND a WR Total = 0
It is possible to
list an Employee multiple times for a Day Date, with Harvesting Activity or not,
and the Resource Quantity may be zero to avoid the line being sensed for Day
recovery. Therefore, to list anybody for indirect Harvest Premi, it is allowed
to record a Journal line with zero Resource Quantity (for example zero Manday
or zero Man hour).
When an Employee qualifies
for Direct harvest Premi on a Date, the Employee is
automatically excluded from Indirect Premi for that Date, irrespective of
number of Journals. Also, there are 2 Rates for Indirect, and when the Employee
is also listed on the same Journal at the qualifying Supervisor level, then
that Supervisor Rate is attracted and the Employee is automatically excluded
from Indirect Premi at the next Rate for the same Date. For example, a Supervsior
who must get Indirect Harvest Premi on a Day Date must be listed somewhere on a
Man Journal for that Date, with a Harvest Activity in the main Allocation, with
or without Reosurce Qty, and certainly with WR Total = zero, and then that
Supervisor must also be listed on the same Journal as the Supervisor.
[How to get to this option: -
Choose Physicals, Transaction Processing,
Physicals: Man
How Harvest Premi is calculated
The basic Harvesting Performance Premi is
calculated like this: -
Work Result * Komidal - Basis Borong
For example, if the work result is 150
(kg), this is multiplied by the
Komidal to yield 1500 (where Komidal = 10
kg), and from this we deduct the
Basis Borong (in our example 700kg).
So, a typical result would be:
150 * 10 = 1500
Deduct
-700
Result =
800
To realize the actual Premi paid, we have 2
rates. Rate 1, when = 300 Kg (up to),
is
applied for the 1st 300kg of the 800 above, and Rate 2 is applied for all
kg
above the 300 Kg, in this case for 500kg (of the 800).
So, with Rate 1 @ 10, and Rate 2 @ 12, our
result will be: -
300 * 10 = 3,000
500 * 12 = 6,000
Total
= 9,000 (Payment)
The work result is learned from the Man
Physicals Journals, and applied
for
Harvesting Activities as listed. The above example of 9,000 may be seen
as
a typical daily result for an Employee performing Harvesting. This is the
DIRECT Premi.
The INDIRECT Premi is calculated for
Supervisors and others
who
qualify for a Premi based on the group result. This Premi is calculated
on
a day basis, for all Employees earning the above-stated Premi, in a Division.
Then, on the Total Day Result for the
Division (which could include a number
of
Blocks or Fields, which are derived from Job and/or GL Allocation on the Man
Physical Journal lines), there is a total DIRECT Premi. Employees who qualify
for INDIRECT Premi will earn the Premi based on the following calculation: -
Total Day Premi Result / Num of Employees
performed * Indirect %
There are 2 of these
Indirect Premi %. Number 1 is for the Harvesting Supervisor Level 1 found on
the Man Journals that include the Harvesting Activities. Number 2 is
used
for all others who qualify, and this includes all Employees listed on the
Man Journals as Supervisor Levels 2 and 3,
PLUS all Employees listed for the
Harvesting Activities on the day, in the
same Division, but without a DIRECT
Premi.
(It IS necessary to list all Employees eligible for indirect premi on a journal
with lines for these Employees, where the main allocation represents a
Harvesting Activity, but where there is NO work result total, i.e. zero.)
So, if #1 % = 150, and #2 % = 125, then if
the total day result is 300,000 and
performed
by 200 people, then the INDIRECT Premi will be calculated like this:
300,000 / 200 = 1,500
For #1 %, this is: 1,500 * 150% = 2,250
(payment)
For #2 %, this is: 1,500 * 125% = 1,875
(payment)
Note (1): Komidal and Basis Borong are
specified as main parameters in the
Payroll system, and applied for all Blocks
except where it is separately
specified
for the Block (on the Field Master), in which case the local
Block parameters are used.
Note (2): It is possible for an Employee to
earn DIRECT premi more than once for the same day, if so captured, but INDIRECT
premi will only be calculated by the system ONCE for any Employee per day – if
more than 1 ‘indirect’ line is sensed for the same Employee, then
it is disregarded.
Below, we show the main (default) settings
for Komidal and Basis Borong.
[How to get to this option: -
Choose Payroll, Set Up and Controls,
Harvesting Premi Parameters]
Above, we see the various parameter
settings for Harvest Premi calculation, and also which Activities qualify for
calculation of Harvest Premi.
However, the Komidal and Basis Borong may
vary by Block and by Plant Year, and where this applies, it is specified on the
Field Master (Blocks). Therefore, when no Komidal and Basis
Borong is sensed for the Block and Plant Year (according to the Job and / or GL
Allocation Account), then the system will use the default parameters (shown
above).
Below, we see how the Komidal and Basis
Borong may be specified by Pant Year on the Block (Field Master) –
[How to get to this option: -
Choose Physicals, File Maintenance, Fields
Master]
When the Block has a specific Komidal and
Basis Borong setting by Plant Year, then the latest Plant Year as specified at
‘Plant Years’ will be used as the Plant Year for selection of modified Komidal
and Basis Borong.
Execution of the Calculation and Reports
The Calculation of all Harvest Premi is
always performed by (calendar) Month, but on a day basis within the month. In
other words, the system will always calculate each day, but all days in the
month. This is done by inspection of all the Man Journals, by day, for line
entries that qualify. In each case, the Division is sensed (based on the Block
where performed, which is derived from the Main Job or GL Allocation Account),
because the bonus and especially the group bonus (indirect premi) is based on
the performance of the day for a Division.
This calculation can be performed on demand
or daily, or whenever reports are required. When the Payroll is performed for
the month, the system will automatically re-perform all Harvest Bonus
calculations for the month in order to ensure that the correct payment values
are available to the Payroll.
Options for “On Demand Calculation” and
Reports on the Harvest Premi can be found by choosing Payroll, Payroll
Activity, Harvest Bonuses.
And below, we show a part of a typical ‘day
report’ of Harvest Premi results.
Divisions
and Blocks
All Harvest Premi is calculated by
Division, for the sake of Indirect Premi which is based on Division result.
Where does the Division derive from? Always from the Block sensed for a Journal
Line with Direct Premi. (A Block on FIELDMASTER always has a Division.)
Where does the Block derive from? Always
from the allocation of a Journal line with Direct Premi, as follows: -
We check 1st if there is a Job
on the main Allocation. If there is, then we check the Job to
see if it is flagged with a Block number or not.
If there is no Job allocation or no Block
flag on the Job allocation, then the Block must be derived from the main GL
allocation for the Journal line. ‘Block’ is a name on the General Ledger, and
the logic for determining the Block is determined by the Chart setup.
If no Block is found either from Job or GL
allocation, then the Harvest Premi is still calculated and acrrues to a Block
“*” and Division “*”.