> ## Documentation Index
> Fetch the complete documentation index at: https://documentation.2cloudnine.com/llms.txt
> Use this file to discover all available pages before exploring further.
# QRG Create Pay Codes - Allowance Pay Codes
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## Purpose
The purpose of this quick reference guide is to step through the process of creating Allowance Pay Codes. The intended audience for this document are System Administrators / Standard Users.
## Steps
### Create a new Allowance Pay Code record
Pay Codes are applied to Pay Transactions, Payee Allowances and Interpretation Rules processed for an Employee.
The Allowance Pay Code record is used to define the Pay Codes for Allowance payments made to a Payee. The record holds General Information and Pay Code Setup details.
Create a new Allowance Pay Code by following the steps below:
1. Click on the **App Launcher** icon (see Figure 1).
2. Go to the **Pay Codes** object by using the Search function (see Figure 2).
3. Click on the **New** button (see Figure 3).
4. Select the **Allowance** Record Type and click **Next** (see Figure 4).
5. Populate the following fields to provide the base details for the Allowance Pay Code (see Figure 5):
1. Populate the **Pay Code Name** field with a unique descriptor for the Pay Code.
2. If Invoicing applies, populate the **Invoice Name** field with the identifier to be displayed against Invoice Lines for this Pay Code.
1. When blank, Invoice data will instead reference the Pay Code Name (capped to 15 characters).
3. Enter a value in the **Pay Advice Sort Order** field to define the position of related Pay Transactions on Pay Advice PDFs.
4. Enter a value in the **Sort Order** field to define Timesheet Manager sort order for the Pay Code.
5. Briefly summarise the Pay Code's purpose in the **Description** field.
6. Define the name displayed on Pay Advice PDFs for Pay Transactions related to the Pay Code by populating the **Pay Advice Description** field.
7. To exclude related Pay Transactions from Pay Advice PDFs, select the **Exclude From Pay Advice** checkbox field.
**Important Notes — Pay Code Information**
The External ID field is used to reference corresponding records from external systems, and is only applicable if completing data import using the Integrated Import Tool.
6. Populate the following required fields to define the conditions for the Pay Code (see Figure 6):
1. Define the Pay multiplier used to calculate related Pay Transactions by populating the **Pay Rate Multiplier** field.
2. Define the Invoice multiplier used to create related Pay Transactions by populating the **Invoice Rate Multiplier** field.
3. Define the Allowance Type for related Pay Transactions to reference during STP reporting by selecting from the **STP Allowance Type** picklist field.
1. If **Other** is selected, Users must define this further by populating the **STP Allowance Other Description** field.
7. Populate the following optional fields to define any additional conditions for the Pay Code:
1. If Payroll Tax needs to be reported for related Pay Transactions, select the **AU Payroll Tax Reportable?** checkbox field.
2. If regional Payroll Tax exemptions apply to related Pay Transactions use the **Payroll Tax Report Exceptions** picklist field to select the appropriate value.
3. If the Org is utilising Purchase Order functionality, specify the Pay Transaction and Purchase Order Record Types that may be related by selecting from the **PO Allocation Type** picklist field.
4. To calculate Marginal Tax for related Pay Transactions, select the **PAYG Marginal Tax** checkbox field.
5. If related Pay Transactions are exempt from PAYG taxable earnings calculations, select the **PAYG Tax Exempt?** checkbox field.
6. If related Pay Transactions for Australian Contractors should be excluded from GST calculations, select the **GST Exempt?** checkbox field.
7. To include related Pay Transactions in Ordinary Time Earnings calculations, select the **Contributes to OTE?** checkbox field.
8. If related Pay Transaction amounts should contribute to Total Quantity calculations, select the **Contributes to Total Quantity?** checkbox field.
9. If related Pay Transactions should contribute to Payee Qualifying Earnings for Payday Super, select the **Contributes to Qualifying Earnings?** checkbox field.
10. If related Pay Transaction values should contribute to Quantity Based Deduction calculations during Pay Batch processing, select the **Contributes to Dedn Qty Worked** checkbox field.
11. To indicate that GST must be calculated Pay Transactions invoiced and related to this Pay Code, select **Yes** from the **Invoice Taxable?** picklist field.
8. Click on the **Save** Button.
9. A new **Allowance Pay Code** is now created (see Figure 7).
**Important Notes — Allowance Pay Code Record Management**
Allowance Pay Codes CAN NOT be deleted if they have related records or are used in other records. Deleting records is not recommended unless absolutely essential.
A Pay Code can only be edited if it has not already been referenced within Pay Transactions, Interpretation Rules or Payee Allowance records. A new Pay Code will need to be created if updates are required after this point.
10. To modify an existing **Allowance Pay Code** record, open the required record and select the **Edit** button available on the top right side of the page. You can also double click in any of the fields that need editing or just click on the pencil icon that appears within fields when you move your cursor over the field.
11. When complete, click on the **Save** button.
# Field Descriptions
| Field Name | Description |
| :------------------------------------- | :------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| **AU Payroll Tax Reportable?** | Determines if the Pay Code will be considered during 2cloudnine Payroll Tax reporting processing. |
| **AU Payroll Tax Report Exceptions** | Where a Pay Code is reportable for Payroll Tax, list any localities here where the Pay Code is considered not reportable. |
| **Contributes to Dedn Qty Worked** | Indicates whether the units worked of this Pay Code will be summed during Pay Batch Calculation for the purpose of Quantity Based Deduction Calculation. |
| **Contributes to Qualifying Earnings** | Indicates whether related Pay Transactions contribute to the Payees Qualifying Earnings for Payday Super reporting. |
| **Contributes to Total Quantity** | Indicates whether this Pay Code record contributes to the Total Quantity sum displayed in Pay Batch Manager and in Payee Pay Batch records. |
| **Description** | The description of this Pay Code. |
| **Exclude From Pay Advice** | Indicates that any transactions related to this Pay Code will not be displayed on the standard Pay Advice PDF. |
| **External ID / External Id** | Defines the ID of the corresponding record in an external system that has been used to create/update this record. |
| **GST Exempt?** | When set to true any Pay Transactions using this Pay Code will not attract GST during Australian Contractor Payroll calculation. |
| **Invoice Name** | Defines the Name that will be used on Invoices for the Pay Code, and can only be a maximum of 15 characters. If not populated and if the Pay Code is used in Invoices, it will be blank. |
| **Invoice Rate Multiplier** | The multiplier which will be applied to Invoice Rates using this Pay Code. |
| **Invoice Taxable** | Indicates if the Pay Code should have tax applied to the invoice. |
| **Pay Advice Description** | The description that will be displayed to a Payee on their Pay Advice PDFs for any Pay Transactions related to this Pay Code. |
| **Pay Advice Sort Order** | Defines the order in which pay codes will be displayed on Pay Advice PDFs |
| **Pay Code Name** | The name given to the Pay Code record that is being created. |
| **PAYG Marginal Tax** | Indicates whether marginal taxation should be applied during the Pay Batch Calculation of Pay Transactions using this Pay Code. |
| **PAYG Tax Exempt** | Indicates whether Pay Transactions using this Pay Code will count toward the taxable earnings or the non-taxable earnings of the Payee. |
| **Pay Rate Multiplier** | The multiplier which will be applied to Pay Transactions using this Pay Code. |
| **PO Allocation Type** | Defines which Pay Transaction and Purchase Order Record Types may be related to this Pay Code, if utilising Purchase Order functionality. |
| **STP Allowance Type** | Defines how this Allowance Pay Code will be reported via STP Lodgements: **Gross** where the Allowance should be added to the Gross Pay for Single Touch Payroll and not reported separately; **Car**; **Laundry**; **Meals**; **Other**; **Transport**; **Travel** where the Allowance should be reported separately and categorised under the corresponding Allowance Type, according to the ATO Single Touch Payroll requirements. |
| **STP Allowance Other Description** | Defines what description will be reported when the STP Allowance Type is Other. |
## Further Information
| Document | Document Type | Description |
| :------------------------------------- | :---------------- | :-------------------------------- |
| Create Pay Codes - Deduction Pay Codes | Task Instructions | How to create Deduction Pay Codes |
| Create Pay Codes - Expense Pay Codes | Task Instructions | How to create Expense Pay Codes |
| Create Pay Codes - ETP Pay Codes | Task Instructions | How to create ETP Pay Codes |
| Create Pay Codes - Lump Sum Pay Codes | Task Instructions | How to create Lump Sum Pay Codes |
| Create Pay Codes - Payment Pay Codes | Task Instructions | How to create Payment Pay Codes |
