Cost Element Register
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 Cost Element Register

This function allows you to set up the cost element codes that will be used throughout the System. If you have the appropriate access rights, you will also be able to modify and delete cost element codes.

A cost element code represents a specific code that either forms a formula, factor or payroll element. Cost element codes represent the detailed requirement for cost items that would be used for payroll and budgeting purposes. These cost element codes are defined by the company based on the typical operations and also based on the 'Collective Bargaining Agreement' (CBA). These codes are defined during implementation and consistently built up upon. This then serves as a reference for end users to streamline day-to-day operations.

The Cost Element Register consists of CBA related items (for example, Basic Pay), non-CBA related items (for example, Training) and factors that are used as parameters to support the formula generation. It is possible that some elements are both CBA related and configured as factors.

Note: Changes in cost element will affect the new CBA but not the existing CBA.

Screen Navigation: Home - Administration - Registers - General - Cost Element

 

Creating Cost Element Codes

To create cost element codes:

1. From the HR Manager main menu, click Registers under the Home - Administration sub menu. Then, click General, followed by Cost Element.

2. The cost element codes that have been previously created will be displayed on the screen. To create a new cost element code, click New.

3. The Cost Element screen will be displayed where you can enter information in the following fields:

Field

Description

Cost Element

Enter a code to represent this cost element.

Description

Enter a description of this cost element.

Default Value

Enter the default value of this cost element that is to be displayed when it is attached to a CBA.

Sort Seq

Enter the sort sequence of this cost element as it is to appear in the cost element table. For instance, if you enter '1', then this cost element will appear as the first code in the cost element table.

Mode

Use the available drop down list to select the classification of this cost element:

 

Earning - If this mode is selected, then this cost element will be available for selection as an earning on the Crew Payroll screen.

 

Deduction - If this mode is selected, then this cost element will be available for selection as a deduction on the Crew Payroll screen.

 

Ship Account - If this mode is selected, then this cost element will be available as a transaction type for Master's Cash.

 

System - Select this mode to indicate that this cost element is a BASS-defined code that is used by the System. This code usually has a pre-defined logic to it; for example, for OT Cost Element in the Payroll Setup, it can be tied to an Account Code for transfer to Finance.

 

Factor - Select this mode to indicate that this cost element is a parameter for formula calculation. Any formula attached to this cost element will be automatically displayed in the Formula field throughout the System.

 

Budget - If this mode is selected, then this cost element will be available for selection in the Budget module.

 

Loan - If this mode is selected, then this cost element will be available for selection as a loan type on the Crew Loan screen.

 

Vessel Cash - Select this mode to indicate that this cost element is to be used for vessel cash-related transactions such as receiving cash, forex, etc.

 

Payment From/To

Use the drop down list to select the range for the wage calculation. If you select Sign On/Sign Off, then the System will include the Sign On and Sign Off dates when calculating a crew member's wage. If you select Wage From/To, the System will follow the Wage From/To dates entered for a Crew Activity and use that as the basis for the Wage calculation for a crew member.

Max Amount

Enter the ceiling amount for the payment that can be made based on this cost element. This is normally used for Additional Earnings and an approval prompt will be displayed if the maximum amount is exceeded.

Formula

The formula for the calculation of this cost element. Click the Lookup function to open the Formula pop-up window. Here, you can type in the formula at the bottom half of the table. You can double-click on the cost element codes that are displayed instead of typing in the Code ID when specifying your formula. For example, if you are setting up the cost element 'Fixed Overtime', you may enter your formula as: 'BASICPAY * 0.02'. Note that 'BASICPAY' in this instance is the Code ID for 'Basic Pay'.

Payroll Group

If 'PRORATA' is selected, then the crew member's wage (based on this cost element) will be pro-rated for the number of working days based on his sign on date. For instance, if he signs on in the middle of the month, then his wage for that month will be pro-rated.

 

If 'FULL' is selected, then the crew member will receive the full month's wage (based on this cost element) even if he signs on in the middle of the month.

 

If 'DAILY RATE' is selected, this indicates that the wage calculation for this cost element in the CBA will be based on a daily rate basis.

Cash Value

If this check box is not selected, this would indicate that this cost element is a factor rather than a monetary item. For example, 'Base Wage', 'Leave Pay' and 'New Year Bonus' has a Cash Value BUT 'Leave Day' does not have a Cash Value.

For CBA Listing

Selecting this check box would make this cost element available for selection in the Cost Element Lookup window when creating a new CBA.

Editable (Applicable only for wages not based on CBA)

Selecting this check box indicates that this cost element can be overwritten in the CBA or Crew Wage screen.

For Office Transaction Only

Select this check box if you do not want this cost element to be displayed at the vessel site.

Include Pay From

Cost Elements are tied to a CBA that is then assigned to a crew member to determine the wage he receives. So if this check box is selected, when a crew member signs on to a vessel, his 'Sign On' month will be included in the payment of wages for the purposes of this cost element.

 

Note: The wage payment would also be based on the selection made in the Payroll Group field and also on the selection made in the Payment From/To field.

Include Pay To

Cost Elements are tied to a CBA that is then assigned to a crew member to determine the wage he receives. So if this check box is selected, when a crew member is assigned to a vessel, his 'Sign Off' month will be included in the payment of wages as well for the purposes of this cost element.

 

Note: The wage payment would also be based on the selection made in the Payroll Group field and also on the selection made in the Payment From/To field.

Every Month

Selecting this check box indicates that the crew member will be paid (based on this cost element) for the months onboard the vessel excluding the Sign On and Sign Off months. If he is to be paid for all the months that he is onboard the vessel, including the Sign On and Sign Off months, then please ensure that you select the 'Include Pay From', 'Include Pay To' and 'Every Month' check boxes.

Payroll:

Other Transaction

If this check box is selected, the cost element can be used in Other Earning, Other Deduction & Other Payment in the Ship Account.

Reimbursement

Select this check box to indicate that this cost element is a reimbursement payment. This check box will be enabled if the Mode of this cost element is 'Earning' and the Other Transaction check box is selected.

Accumulative

If this check box is selected, then the cost element will be displayed in the Crew Balance screen under the Accumulative column.

To Allottee (Filipino only)

When Mode = 'Earning' and the 'Other Transaction' check box is selected, this cost element will be available for selection in the Cost Element Lookup window in the Other Earnings window (Crew Payroll screen). However, if the 'To Allottee' check box is selected as well, then the Beneficiary name must be entered (in the Other Earnings window) before the record can be saved.

 

When Mode = 'Deduction' and the 'Other Transaction' check box is selected, this cost element will be available for selection in the Cost Element Lookup window in the Other Deductions window (Crew Payroll screen). However, if the 'To Allottee' check box is selected as well, then the Beneficiary name must be entered (in the Other Deductions window) before the record can be saved.

 

So if this check box is selected, the cost element will then be taken into consideration for Manual Allotment Deduction and Auto Allotment Deduction when generating allotments on the Generate Allotments screen.

AWS

Select this check box to indicate that this cost element can be used when calculating the Annual Wage Supplement bonus. AWS is a special type of bonus given to crew members every year (in the month of December) provided that they meet the specified criteria:

- The crew member must have completed 270 days of service in the current year.

- AWS calculation will only take into account cost elements that have been tagged for AWS i.e. where the ‘AWS’ checkbox has been selected.

Wages Type

Use the drop-down menu to select the type of wages that is tied to this cost element. This is usually used for contribution calculations and for grouping purposes, for example, CPF calculations.

Payment Against Cost

Select the payment against a cost using the available drop down list. This is for use in the Accounting system.

Pay At

For use of Accumulated Cost Element to define whether Pay At Sign Off or Next Sign On.

Back Pay Against

Using this field, you can select the cost element that any back payment to the crew is to be made against. For example, if you create a cost element called 'Back Pay Basic Salary' and then in this cost element record, you select the cost element called 'Basic Salary' in the Back Pay Against field, this indicates that the crew member is being given back payment against his basic salary.

Manning Budget:

Contribute to Monthly Cost Total in Manning Budget - Prorata

If this check box is selected, the cost element code created here would be made available in the manning budget summary cost frame and thus multiplied against the number of months nominated in the said budget for tabulation purposes.

Per Budget

If this check box is selected, the cost element per budget value will be displayed when assigning the manning summary cost on the Budget screen.

Overall Cost

If this check box is selected, the cost element code created here will be available for selection when assigning the overall cost on the Budget screen.

Crewing: Selecting any of the check boxes indicates that this cost element will be available for selection in the Cost Element field (under the Overall Cost tab on the Budget screen) for Travel, Training or Medical cost purposes when creating a new budget.

Contribution: Click the '+' icon at the bottom left of the table and make a selection from the Lookup window.

Contribution Group

Select the contribution group that is to be tied to this cost element. This allows you to state which cost elements should fall within a particular contribution group. For example, if your contribution group is 'EPF' and you then add cost elements such as 'Basic Pay' and 'Leave Pay, this indicates that the System will calculate EPF deductions for basic pay and leave pay from the crew member's wages.

Base Factor Inactive

If this check box is selected, it indicates that this Cost Element will not be combined with other contribution Cost Elements during calculation. If this check box is not selected, this Cost Element will be combined with other contribution Cost Elements for calculation and therefore the contribution bracket percentage will be increased.

Scenario 1 - In the 'BASICPAY' Cost Element, this check box is selected for a particular contribution group, let's say Group X. Subsequently in the 'BONUS' Cost Element, this check box is also selected for the same contribution group, i.e. Group X. So now, the contribution percentage will be jointly determined. If calculated together, the crew member may fall in a higher contribution bracket hence increasing the contribution percentage. If the check box is not selected, then the contributions will be calculated individually for each Cost Element hence lowering the contribution percentage.

Scenario 2 - In the 'BASICPAY' Cost Element, this check box is selected for a particular contribution group, let's say Group X. Subsequently in the 'BONUS' Cost Element, this check box is not selected. So the contribution will be calculated separately while the contribution for basic pay will be calculated jointly with all other Cost Elements that have this check box selected from the same contribution group.

4. Click Save to complete the creation of this new cost element code.

 

 

Editing Cost Element Codes

To edit existing cost element codes:

1. From the HR Manager main menu, click Registers under the Home - Administration sub menu. Then, click General, followed by Cost Element.

2. The cost element codes that have been previously created will be displayed on the screen. To edit an existing cost element code, click on an entry to view its details on the Cost Element screen.

3. You may then edit the details of the cost element code in the available fields. Please note that the main Cost Element field cannot be edited.

4. Click Save to save the changes you have made.

 

 

Deleting Cost Element Codes

To delete existing Cost Element Codes:

1. From the HR Manager main menu, click Registers under the Home - Administration sub menu. Then, click General, followed by Cost Element.

2. The cost element codes that have been previously created will be displayed on the screen. To delete an existing cost element code, highlight an entry on the screen.

3. Click Delete. Confirm your intention to delete the cost element code. The cost element code will then no longer be listed on the table.

Note: Alternatively, you can click on a cost element code to view its details on the Cost Element screen. Click Delete and confirm your intention to delete the code.