Basic Formulas

This page provides more information about the use of formulas when creating custom items. To learn more about custom items, go to:

• Payroll Setup > Company Setup > Custom Items

To create a formula for a custom item, you should have already selected the type of custom item, given it a name and selected “Formula” from the Input Type drop down menu. An additional field will then appear:

1. Enter a Formula by starting with an “=”.
2. You can then also enter variables, numbers and basic mathematical operators such as +, -, *, /, and ( ).

Examples of basic formulas that could be entered in the Formula field are the following:

• = normal_rate * 40 * 25
• = (basic_salary + normal_pay) / 4.3333 * 0.3333

Variables and functions which can be used when creating formulas are:

Variables

• basic_salary: Basic Salary (salaried employees)
• normal_pay: Basic Hourly Pay (hourly paid employees)
• normal_rate: Hourly Rate
• shifts_worked: Number of shifts worked
• total_income: Total income
• periods_in_year
• hourly_paid
• weeks
• default_days_worked: For monthly employees, equal to their full days per week (Regular Hours) x 4.333. For weekly paid employees, full days per week (Regular Hours).
• days_with_leave_for_system_type:
  • For example: =normal_rate * days_with_leave_for_system_type(‘unpaid’). This would be the number of days taken with unpaid leave. Note: This considers days with unpaid leave, not days of unpaid leave.

Functions

• min: Used to select the lowest of the values in the list provided to it.
  • For example: =min(50,100) = 50
• max: Used to select the highest of the values in the list provided to it.
  • For example: =max(50,100) = 100
• round: The number in brackets will be rounded up or down depending on the decimal. This functions as per the regular rounding of numbers.
  • For example: =round(1.1) = 1 or =round(1.5) = 2
• ceiling: Rounds up the number in brackets to the nearest whole number.
  • For example: =ceiling(1.1) = 2
• floor: rounds down the number in brackets to the nearest whole number. The number will always be rounded down regardless of the decimal point.
  • For example: =floor(1.1) = 1 or =floor(2.7) = 2

“IF” Statements

General IF statements

The IF function returns one value if the specified condition is true and another IF false. The IF statement is also known as a logical formula: If, then, else. If something is true, then do this, else/otherwise do that.

The IF statement works as follows:

if (condition, true statement, false statement)

For example: Suppose that the company deducts a staff social fund contribution based on how much an employee earns. If the employee’s salary is greater than $1 000, then the contribution is $10, but if the employees earns less than $1 000, then the contribution is $8.

The formula will be written as:

= if (basic_salary>1000, 10, 8)

This means that if the basic salary is greater than 1 000, the result will be 10 and if it’s less it will be 8.

Nested IF statements

A nested IF statement is an IF statement within an IF statement. It works as follows:

if ( condition, true statement , ( if ( condition, true statement, false statement) )

For example: Suppose that the company deducts a staff social fund contribution based on how much an employee earns. If the employee’s salary is greater than $1 000, then the contribution is $10, but if the employees earns between $500 and $1 000, then the contribution is $8, and if they earn less than $500 it is $6.

The formula will be written as follows:

= if (basic_salary>1000, 10, if (basic_salary<500, 6, 8)

This means that if the basic_salary is greater than 1 000, the result will be 10. Otherwise, if the salary is less than 500, the result will be 6, otherwise it will be 8.