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Overtime Calculation

Oracle Projects includes a standard Overtime Calculation extension that supports three kinds of overtime. You probably need to customize this extension to support the kinds of overtime your business uses.

The Overtime Calculation extension determines which kind of overtime to award an employee based on the assigned compensation rule and hours worked. illustrates the overtime policy that the overtime calculation extension delivered with Oracle Projects provides as an example for you to use as a starting point:

  Kind of Overtime  
Compensation Rule Pay When to Apply
     
Hourly
 
  		Time and Half First 4 hours beyond 8 per day
Double Time Every hour beyond 12 per day
Every hour on weekends
     
Compensated Time and Half First 40 hours beyond 40 per week
Double Time Every hour beyond 80 per week
     
Exempt Uncompensated Every hours beyond 40 hours per week
Table 1 - 96. Sample Overtime Policy (Page 2 of 2)

The Overtime Calculation Extension

If you want to use automatic overtime calculation, you need to enable the Overtime Calculation extension using the Implementation Options window.

Before you enable the Overtime Calculation extension, you need to set up your overtime project, and, if necessary, customize the Overtime Calculation extension to implement your company's overtime policy. The Overtime Calculation extension is a client extension that, if enabled, is called by the PRC: Distribute Labor Costs process.

See: Overtime Calculation Extension.

Overtime Adjustments

To handle overtime adjustment processing, the Overtime Calculation extension sums the amount of existing overtime hours for the employee and week, along with summing the total hours of straight time for the employee and week. Before overtime items are created, the Overtime Calculation extension compares the new total overtime hours with the existing overtime hours. If a difference exists between the new total overtime hours and the existing overtime hours, the existing overtime hours are fully reversed before a new overtime expenditure item is created for the new calculated overtime hours. If a difference does not exist, no new overtime items are created.

For example, a week after Pat Miller charged 52 hours to the engineering survey project, Miller submits an adjusting timecard for the previous week to charge an additional 2 hours to the survey project. The timecard clerk enters a timecard line:

The Overtime Calculation had originally calculated and created 12 hours of overtime. With this new timecard line, Miller is entitled to 14 hours of overtime. The Overtime Calculation extension creates two overtime items to record this adjustment:

These two items together record the adjusting 2 hours of overtime.

Overtime adjustments that reduce the overtime hours are processed in the same way as overtime adjustments that increase the overtime hours. The original overtime item is fully reversed and a new overtime item is created to record the new overtime hours.

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