AWS calculation can only be based on an employee's average basic pay if the applicable average wage type is determined in the payroll run and stored in the payroll result for the period concerned.

You can configure averages processing in the Implementation Guide of the Payroll Malaysia component. Choose Time Wage Type Valuation ® Averages.

If you want to pro-rate AWS according to the number of months that an employee has worked within the AWS period, you must determine how part-month periods are to be treated.

You can make the corresponding settings in the Implementation Guide of the Payroll Malaysia component. Choose Annual Wage Supplement ® Maintain pro-rate types for AWS.

1. Enter the period for which AWS is to be calculated.
2. To calculate AWS based on an employee's basic pay in a particular payroll period, select the Basic Salary field and enter the relevant date.

To calculate AWS based on an employee's average basic pay, select the Average of Basic field. Enter the payroll period from which the average basic pay is to be read and the corresponding average wage type.

3. To determine the base AWS amount, enter the factor by which the employee's basic pay or average basic pay is to be multiplied.

1. In the Payment Information section, enter the necessary data for payroll processing:

1. Enter the wage type to be used for the AWS payment.
2. Enter the reason for the AWS payment.
3. Enter the payroll period in which payment is effected.
4. If the AWS payment is to be processed within the regular payroll run, select the Reg. Payroll field, otherwise, select the Offcyle field.
5. To distribute payment among several payroll periods:

i) Choose the Further Selection button.

The Payment terms for calculated AWS dialog window appears.

ii) Enter the individual payroll periods and the percentage to be paid in each of them.

iii) For every part-payment and period that you have entered, decide whether payment is to be effected in a regular or an off-cycle payroll run.

iv) Choose Save.

6. If the AWS payment is dependent on the employee's ethnic group or religion, enter these in the Race / Religion fields.

1. In the AWS for Ex-Employee section, you determine which special calculation rules apply to employees who leave the company during the AWS period:

1. If AWS is to be calculated for an ex-employee, select the AWS for employee terminated during AWS period field.
2. Choose Calculation rule for Ex-employee button.

The Additional information about terminated employee dialog window appears.

3. Enter an AWS factor for ex-employees.
4. Decide whether AWS calculation is to be based on an ex-employee's basic pay at the qualifying date or at the termination date. If the former applies, enter the qualifying date.
5. To exclude certain groups of ex-employees from AWS, choose No Pro-Rated AWS for Employee if…

The No prorated AWS for Ex-employee if… dialog window appears.

6. Select the applicable reason and choose Enter.

The Additional Information About Terminated Employee dialog window appears.

7. Choose Enter to accept the data you entered and to leave the dialog window.

1. In the General proration rule section, you define processing rules for employees who have not worked for the complete specified AWS period:

1. Determine whether pro-ration is based on the number of months, working days, or calendar days.
2. If the pro-ration depends on the number of months and you want to apply additional calculation rules for part-month periods, choose Further Selection button and select the applicable pro-ration type.
3. If the pro-ration depends on the number of working days and you want to exclude certain absences from pro-ration, choose Types of absence excluded and select the applicable absence types.

1. In the Probation period section, you define the processing rule for employees whose probation period is part of the AWS period you specified above, or who are still on their probation period when AWS is calculated:

1. Decide whether the qualifying date for the pro-ration of AWS for these employees is the hire date or the date when employment was confirmed.
2. If an employee is still on probation when AWS is calculated, decide whether AWS is excluded, or calculated and paid as usual, or paid only upon confirmation of the employee's further employment.

1. If AWS is to be limited by a maximum amount, enter this amount in the High limit of AWS field.
2. If AWS must not fall below a minimum amount, enter this amount in the Low limit of AWS field.
3. If a flat amount is to be paid, enter this amount in the AWS paid as a fix amount field.

If you enter a fixed amount for AWS, neither the evaluation of the employee's basic pay nor any pro-ration will be performed.

4. To perform a test run, select the Test on field.
5. Enter the batch input folder in which the results are to be stored, so as to make them available to payroll processing.
6. Choose Execute.

The system performs the AWS calculation. Upon completion, it displays a list that states the number of employees for whom AWS has been calculated.

7. On the list, choose List Protocol to display the results. Choose List Error to display the personnel numbers for whom AWS could not be processed correctly.