Which quantity is used for piece-rate earnings?
This depends on the company’s approved rate rule. Clearly define and communicate whether the basis is produced, quality-checked or accepted quantity.
ERP Guides
Production labour records guide
How to Manage Piece-Rate Labour Records
Piece-rate labour management links completed quantities to worker, work-order and operation records to support production review and internal earnings calculations. Define accepted quantities, scrap, corrections and approvals in advance so records remain fair and auditable.
Practical workflow
Set up piece-rate records in six steps
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01
Document work and rate-rule scope
Document which operations use piece-rate tracking and which jobs, products and periods the company’s rate rule covers. Validate the calculation rule with the responsible HR/payroll owners.
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02
Link worker, work order and operation identifiers
Define which worker or team, work order and operation each transaction belongs to. If work is shared across shifts, machines or teams, clarify attribution rules.
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03
Distinguish completed and accepted quantities
Record produced quantity separately from quantity accepted after quality review and any rework or rejected quantity. Workers should understand which quantity field the rate rule uses.
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04
Record scrap and correction reasons
Link scrap quantity to operation, work order and cause. Do not silently delete or overwrite incorrect or duplicate records; retain correction history with the editor and approver.
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05
Reconcile records at period close
Compare production records with shift and work-order totals, and verify quantities used for earnings against company approvals. Resolve missing operation reports or pending quality decisions before closing.
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06
Review and share the result with the worker
Provide a clear worker-level statement of accepted quantity, scrap/corrections, applicable rule and approval status. Handle disputes and corrections while retaining transaction history.
Example workflow
Preparing an operation record for earnings review
Suppose a worker reports 120 pieces on a work order. If quality review accepts 114 and classifies 6 as scrap, the production record should show that distinction. The earnings basis follows the company’s approved rule; scrap cause and any correction are reviewed separately.
- 1Work/operation assignment
- 2Quantity reported
- 3Quality and scrap review
- 4Approval and period close
Checkpoints
Check before period calculation
- Is the applicable rate rule and period recorded?
- Is the record linked to the correct worker, order and operation?
- Are produced and accepted quantities distinguished?
- Have scrap and rework records been reviewed?
- Are duplicate and corrected records traceable?
- Are worker and supervisor approvals complete?
Quick answers
Frequently asked questions
How is scrap handled in worker records?
Record scrap separately in production and quality data, linked to its cause and operation. Its effect on earnings must follow company policy and applicable labour rules.
What if several workers contribute to a job?
Define in advance how quantities are attributed in team work, shift handoffs and shared operations. Reconcile worker allocations against total production.
Do these records replace payroll calculation?
No. Production records support quantity and work information; compensation and payroll are handled separately under authorised company processes and applicable rules.