FlatAmount
The FlatAmount
calculation type is
typically used to calculate fixed amount bonuses.
When you create a FlatAmount
action, you
must specify the action amount.
You can spread the result over the periods for which the action is effective, or place the result into a single period.
Calculation formulas
The FlatAmount
calculation type
uses these formulas depending on whether the spreading is used.
If spreading is used:
Period value = Amount x Phasing factor for this period x Proration factor for this period
If spreading is not used, the period that contains the action start date gets the entire amount without proration:
Period value = Amount
Example 1: FlatAmount calculation with spreading
This example shows the FlatAmount
calculation for a
position with these settings:
- Phasing method: Even
For each period, the phasing factor is 1/12.
- Spread = Yes
- This table shows the amount and the start and end dates for this
action:
Start date End date Amount 2/8/17 6/15/17 $1,200
This table shows the calculated values for each period from February through June:
Month | Period value | Result |
---|---|---|
Feb | $1,200 x 1/12 x 21/28 | $75 |
Mar | $1,200 x 1/12 x 31/31 | $100 |
Apr | $1,200 x 1/12 x 30/30 | $100 |
May | $1,200 x 1/12 x 31/31 | $100 |
Jun | $1,200 x 1/12 x 15/30 | $50 |
Example 2: FlatAmount calculation without spreading
This example shows the FlatAmount
calculation for a
position with these settings:
- Spread = No
- This table shows the amount and the start date for this action:
Start date Amount 2/8/17 $1,200
This table shows the result of the FlatAmount
action without
spreading:
Month | Result |
---|---|
Feb | $1,200 |
The whole amount of this action is assigned to February because the action starts in February and no spreading is used.