When time data is being imported into payroll, some imports may require that tip sharing be conducted. This article describes how to create an Allocation Definition to handle such a scenario. Although tip sharing is a common use of allocation definitions, you may find other scenarios where you need to allocate data across different groups.
If you haven't already created a File Definition based off the source file you will be using, please refer to the How to create a new File Definition article.
Create a New Allocation Definition
To create a new allocation definition, access the Admin Console by clicking on your initials at the top right hand corner.
Next you will want to click on the Allocation Definitions tab, and then click the Add button to create a new allocation definition.
If you do not see the Allocation Definitions option in the Admin Console, please Contact Us to request the feature to be added to your account.
In this example we will be creating the allocation definition from a common time import format. The source data includes employees that are Servers and they need to share (or allocate) 50% their tips equally to the Bussers and Cooks each day.
Here is the source file we will be using:
After we enter in a Name and Description of our allocation definition, select the Input File Definition built using the source file above.
Then click the 'Add Protocol' button.
Key Fields - the field(s) that will be used as a grouping mechanism in the source to determine the tip sharing. Since we will be allocating tips each day, select In Date.
Allocation Field - the field that will be allocated. Since we are allocating tips, select Tips.
Allocation Field Method - the calculation or position of the allocated field value(s). Since we want a total of all Server tips to be allocated to Bussers and Cooks, select Sum.
Credit Field - the field that we will be crediting after the allocation is complete. Since we want to tip share, select Tips.
Debit Field - the field that we will be debiting during allocation. Since we want to tip share, select Tips.
Once you have provided the required fields for the protocol, click the 'Add Rule' button.
We want to allocate 50% of all the Server tips equally to the Bussers and Cooks. We would set up the following Rule:
Description - A description of the rule you are creating
Source Key Field - this is the value in the Key field selected in the protocol. Since we want to allocate server tips, select Role from the Source Key Field and enter Server.
Destination Key Field - this is the value in the Key field selected for the destination of the allocation. Since we want to allocate Server tips to Bussers and Cooks, select Role from the Source Key Field and enter Busser,Cook.
Allocation Method - This is the allocation method (Equal of Weighted) and percentage to allocate. For our example, we want to allocate the tips equally by selecting Equal from the Allocation Method dropdown and entering 50 percent.
Once you have created the rule, click the OK button and then Save Changes.
Looking at the allocated results, we can see that 50% of the server tips were deducted from the Servers and credited to the Busser and Cook.
Another allocation method is to weigh the allocation by a specified field in the source file. For example, we can change the Allocation Method to Weighted, select Reg Hours and OT Hours from the Weighted Fields dropdown and enter 50%. This will allocate a higher amount of tips to the Busser/Cook that has more Reg and OT Hours.
Looking at the allocated results, we can see that 50% of the server tips were deducted from the employees where their Role is Server, and credited to the Busser and Cook. However, the Cook received a higher weighted amount because they had more combined Reg and OT Hours.
In order for your Allocation Definition to be available to you, you need to make sure to Publish the Allocation Definition once you have completed it's setup. You can find the Publish toggle at the top right area of your Allocation Definition.
