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.