Pay Codes

Pay codes are used to identify how vendor payments are calculated.

You will only need to set them up if you will be using the services of haul vendors to deliver materials and wish to automatically generate haul vendor invoices in AP.

Pay Basis

Each pay code is assigned a 'basis', which determines how the pay rate will be calculated. Pay codes can be unit-based; that is, the pay rate will be applied on a per unit, units per mile, or units per hour basis. If unit based, the pay basis will default from the material units; however, this applies only on tickets, since time sheets do not specify material units (in which case, the pay basis would need to be entered manually). For hourly or load-based pay codes, the pay basis will default from the number of hours or loads specified on the ticket or time sheet. Pay codes can also have a basis of “% of haul charge”. When this option is used, the pay basis on tickets and time sheets will default from the total haul charge amount. The pay rate is applied, resulting in a payment amount that is a percentage of the total haul charge.

Pay Rates

Standard pay rates are defined for each pay code; however, if you are using quotes, you can override the standard values. See Pay Code/Rate Overrides on Quotes in Related Topics below.

Pay rates are defined by location group, but may also be specific to other factors such as location, material category, material, vendor, truck type, truck, and haul zone. For example, you may have a standard rate specified for each location, but you have a couple of vendors that give you a special rate on certain materials or categories of material. You can then set up a rate for each vendor, and that rate will be used whenever a ticket or time sheet is entered that specifies that vendor and material.

From the example above:

  1. These two entries define standard pay rates at the Location level. All materials hauled from these locations by any haul vendor will use these pay rates.
  2. These two entries define pay rates at the location/category/vendor level. All materials within the specified category hauled from these locations by the specified vendors, will use these rates. Because these entries contain more specific criteria, they will override the entries at the location level whenever materials in the specified category are entered on a ticket or time sheet along with the specified haul vendor.

The system uses a hierarchical method to determine which rate will actually be used when the pay code is specified on a ticket or time sheet. The pay basis also plays a part in determining what hierarchy the pay rate will follow.  For more information, the pay rate hierarchy topics in Related Topics below.