Piece Rates Explained
1. Piece rate pay occurs when Employees are paid by the unit produced.
This can be recorded in Pallet Connect either in the Stock Item profile or the Employee profile. This article explains both methods of recording piece rates.
2. Add Piece rate to a stock item
From the main menu, click on "Stock".
3. Click on the chosen stock category, for example, "Manage New Pallets".
4. Click on the selected stock item from the list.
5. Click on the "Production" tab.
6. Click this number field to add the piece work rate. In this example, it relates to the pay per build. The piece rate is divided into Ratings. The Rating is assigned in the Employee profile.
TIP! See related article on Ratings.
7. Add piece rate to Employee
From the main menu. Click "Employees"
8. Click "Manage Employees"
9. Click on the selected employee from the list.
10. Click on the "Piece Work" tab.
11. Piece work can be added for a generic production or specific to an item.
The various production types listed depend on the departments selected for the Employee in the 'General' tab. In this example, the Employee can be allocated separate piece rates for build, repair, cut and dismantling.
12. Here, a piece rate will be added for "Generic build". This refers to any build that is captured for this employee. The rate per unit is added.
TIP! A quantity range can also be added. Click "Add Range" to add a range with its own piece rate.
13. A specific build refers to a piece rate that is assigned for one particular item.
To add the item select "Add Pallet Type".
14. Select an active stock item and add the piece rate amount. As with the generic rate, a quantity range can also be added for a specific rate.
15. Click "Update Employee" to save any changes.
16. After production is captured, the cost will be visible in the Production Summary, found in the Production module of the main menu.
17. The piece rate calculation will also be seen in the "Payroll Assistant" report, found in the Employee section of the main menu.
18. PIECE RATE HIERARCHY SUMMARY
A Stock Item piece rate is overridden when there is an Employee Generic piece rate. An Employee Generic rate is overridden when there is an Employee Specific piece rate recorded.
1st: Employee Specific rate
2nd: Employee Generic rate
3rd: Stock Item rate