Pay: Contractors, by Load Attributes -- Multiple Contractors (split rate)

The circumstance posed when you have multiple contractors performing the same activity in the same block presents a certain amount of additional complexity in The Logger's Edge.  For example, you might have two subcontractors working as loaders in a given block.  In order to distinguish which contractor should be paid for which loads, you must track the contractor on a load-by-load basis.  (If you only have single contractors performing an activity in a block, check Load Slips - Other Than Trucking - Single Contractor per Activity on a Block for a simplified way to handle this scenario.)   The Logger's Edge provides the capability to track contractors on a load slip basis and pay them according to distinct sets of pay rules (if required).

In your block setup (see below),  you must select 'Track Activities, Employees, Equipment on Load Slips' in order to pay multiple contractors on a block for a given activity. See below.

There are three basic 'Pay' columns in the grid: 'Pay Contractor Equipment,'  'Pay Contractor Operator,'  and 'Pay Own Operator.'

In the simple case, where your contractors always use their own operators to run their equipment, you will only need to check  'Pay Contractor Equipment' and then set your pay rate to embody both the use of the equipment and the operator -- i.e. the 'All Found Rate'.  This case is shown for Delimbing in the screen above.  See Pay: Contractors, by Load Attributes -- Multiple Contractors (full rate) for this case. 

Sometimes things are not always so simple -- subcontractors don't always provide their own operator.  When your subcontractors supply their own equipment, but sometimes (or always) use some other contractor's (or your own employee) operators,  you will need to split the payment rate between the contractor owner (for use of the equipment) and the operator (for operator services).  This case is shown for Loading in the screen above.  In order to split the payment for an activity, you need to invoke the use of the 'Pay Contractor Operator' and/or 'Pay Own Operator' in the activity grid.  This selection allows you to split the pay rate between the contractor who owns the equipment and the contractor who provides the operator (of course, the operator can always be your own employee).

This document covers this 'Split Rate' case.

See Pay: Contractors, by Load Attributes -- Multiple Contractors (full rate) for the case (the delimbing example above) where your subcontractors always use their own operators to run their equipment and you pay them a combined (full) rate.

The first step in the 'Split Rate' case is  to select 'Track Activities, Employees, Equipment on Load Slips' in order to pay multiple contractors on a block for a given activity.

Select:

  1. 'Pay Contractor Equipment' in order to pay the equipment owner;
  2. 'Pay Contractor Operator' in order to pay a contract operator; and/or
  3. 'Pay Own Operator' in order to pay an employee operator.

In this setup you can split the activity payment between the contractor owner (for use of the equipment) and the contract operator or employee operator (for driving services).

If you only have contract operators, you do not need to check 'Pay Own Operator.'  Likewise if you only have employee operators, you do not need to check 'Pay Contractor Operator'.  You only need to check both boxes if you have a mix of employee operators and contract operators.

Once you have setup your block, you need to setup your pay contract for each contractor and their payment terms. 

Contractors can be paid according to the weight or volume of the loads that your company delivers to a mill.  For example you might pay a harvesting contractor $25.00/Tonne or $80.00/MBF on the loads that you handle.  You can also pay a contractor a percentage of the revenue you receive from a mill.  For example, if you are paid by the mill $50 for harvesting, you could set up a contract to pay a contractor 75 percent of that amount.  This type of contract may be useful when you have a large number of rate breaks on your revenue contract and merely want to pay your contractors a percentage of what you get paid.  If you had to set up contractor pay rates for each revenue rate break, there could be a substantial time wasted in maintaining the pay schedule.  The alternative of setting up just one rate (say 75 percent) can be much easier to maintain as it automatically takes into account any revenue rate breaks or changes over time.

The pay contracts for equipment owners. contract operators and employee operators are distinct contracts and can be completely different.  For example, you could pay the equipment owner on a volume basis (MBF, M3, Cord) and the operator on a weight (Ton, Tonne, etc) basis.  As another example, you could pay the equipment owner on a 'Percent of Load Revenue' and pay the operators based on an attribute (weight or volume) basis.  You do not need to pay each party in the same way -- you can use different method for each.

These two cases are explained below:

Case I.  You pay based on load attributes (weight, volume).  

Steps:

  1. Set up the Contractor.  Select Setup | Vendors from the Main Menu
  2. Set up Activity to be Paid on Block.  Select Setup | Blocks | Setup from the Main Menu.  On the block you must identify the activities for which a contractor will be paid.  See the discussion above.  This task must be performed for each block that has loads for which multiple equipment owners and operators need to be paid.
  3. Set up the Equipment.  Set up each Equipment Unit.  The Logger's Edge will use the owner you specify for the equipment to determine who gets paid.
  4. Set up Pay Contract (Equipment Owner).  Select Contracts | Payment Contracts | Contract Setup from the Main Menu.
  5. Set up Pay Contract (Contract Operator) (optional). Select Contracts | Payment Contracts | Contract Setup from the Main Menu.  You need to perform this step if you have contract equipment operators.
  6. Set up Pay Contract (Employee Operator) (optional). Select Contracts | Payment Contracts | Contract Setup from the Main.  You need to perform this step if you have employee equipment operators.
  7. Enter Load Slips.  Select Data Entry | Load Slips | Load Data.  You do not need to enter the activities, workers or equipment on the load slip.  You must enter the Equipment Number on the Load Slip (under the Load Activities Tab).  The Logger's Edge will pay the owner of the equipment.  You must also enter the equipment operator on the Load Slip.  The Logger's Edge will pay the employer of the operator (if he is a contract operator) or will pay the operator directly if he is an employee.
  8. Run Vendor (Contractor) Calculator.  Select Calculators | Vendors - Full. 
  9. Review Vendor (Contractor) Statement. Select Reports Vendor Statements.  If the equipment owner is a different contractor than the employer of a contract operator,  The Logger's Edge will generate a statement for each contractor.
  10. Run Employee Calculator (optional). Select Calculators | Employees - Full.  You need to perform this step if you have employee operators.  Contract operators are handled under Vendors.
  11. Review Employee Statement (optional).  Select Reports Employee Statements.  You need to perform this step if you have employee operators.  Contract operators are handled under Vendors.

Case II.  You pay based on percentage of load revenue.

Steps:

This type of contract is special in that it its 'rate' is really expressed as a percent of the revenue you earn on a load-by-load basis.  Thus, in order to use this type of contract, you must perform the additional step of entering or calculating the revenue for each load (step 7 below).

  1. Set up the Contractor.**  Select Setup | Vendors from the Main Menu
  2. Set up Activity to be Paid on Block.**  Select Setup | Blocks | Setup from the Main Menu.  On the block you must identify the activities for which a contractor will be paid.  See the discussion above.  This task must be performed for each block that has loads for which multiple equipment owners and operators need to be paid.
  3. Set up the Equipment.**  Set up each Equipment Unit.  The Logger's Edge will use the owner you specify for the equipment to determine who gets paid.
  4. Set up Pay Contract (Equipment Owner).  Select Contracts | Payment Contracts | Contract Setup from the Main Menu.
  5. Set up Pay Contract (Contract Operator) (optional). Select Contracts | Payment Contracts | Contract Setup from the Main Menu.  You need to perform this step if you have contract equipment operators.
  6. Set up Pay Contract (Employee Operator) (optional). Select Contracts | Payment Contracts | Contract Setup from the Main.  You need to perform this step if you have employee equipment operators.
  7. Enter Load Slips.**  Select Data Entry | Load Slips | Load Data.  You do not need to enter the activities, workers or equipment on the load slip.  You must enter the Equipment Number on the Load Slip (under the Load Activities Tab).  The Logger's Edge will pay the owner of the equipment.  You must also enter the equipment operator on the Load Slip.  The Logger's Edge will pay the employer of the operator (if he is a contract operator) or will pay the operator directly if he is an employee.
  8. Enter Revenue on Load Slip or Use The Logger's Edge to Automatically Calculate Revenue.  In order for the 'percent of load revenue' pay contract to work, you must have revenue entered for each load.
  9. Run Vendor (Contractor) Calculator.**  Select Calculators | Contractors - Full. 
  10. Review Vendor (Contractor) Statement.  Select Reports Contractor Statements.
  11. Run Employee Calculator (optional).** Select Calculators | Employees - Full.  You need to perform this step if you have employee equipment operators.  Contract operators are handled under Vendors.
  12. Review Employee Statement (optional).  Select Reports Employee Statements.  You need to perform this step if you have employee equipment operators.  Contract operators are handled under Vendors.

** Step is the same as in Case I.

Split Pay Rules:

Pay Equipment Owners

The key to pay a given activity is the 'Equipment No' for that activity on the Load Slip.  The 'Equipment No' identifies the specific equipment that performed that specific activity.  In order to pay a contractor for a specific activity you must enter the equipment unit for that activity on the load slip -- an entry of 'NONE' will not work.  There are three basic cases that are handled by The Logger's Edge.

  1. The Pay Contract Specifies a Specific Contractor.  If the Equipment on the Load Slip is owned by the same contractor as on the pay contract, the load will be paid.  Otherwise, if the Equipment on the Load Slip is (1) owned by a different contractor, or (2) is owned by your company, or (3) entered as 'NONE', it will not be paid.
  2. The Pay Contract Specifies the 'OWNER' wild card.  If the Equipment on the Load Slip is owned by a contractor, that contractor, whoever it is, will be paid.  For example, if you have 20 loads with six different equipment owners, each of the six will be paid for their own loads under the same 'OWNER' contract.  If the Equipment on the Load Slip is (1) owned by your company, or (2) entered as 'NONE', it will not be paid.
  3. There are two otherwise identical Pay Contracts: one that Pay Contract Specifies a Specific Contractor, and a second that Specifies the 'OWNER' wild card.  If the Equipment on the Load Slip is owned by the same contractor as on the specific pay contract, the specific contractor will be paid.  If the Equipment on the Load Slip is owned by a different contractor, that contractor, whoever it is, will be paid under the 'OWNER' contract. The specific contractor will not be paid under the 'OWNER' contract if he is paid under the Specific Contract.  If the Equipment on the Load Slip is (1) owned by your company, or (2) entered as 'NONE', it will not be paid.

Pay Equipment Operators

Equipment operators are paid based on your entries for pay activities in the block setup wizard.  There are two checkboxes: 'Pay Contractor Operator' and 'Pay Own Operator'.  If you have employee operators, you need to check 'Pay Own Operator.'  Likewise if you have contract operators, you do need to check Pay Contractor Operator.  You need to check both boxes if you have a mix of employee operators and contractor operators.  Each checkbox is handled separately by The Logger's Edge.

Pay Contract Equipment Operator

The key entry in order to pay the Equipment Operator is the worker identified for the activity on the load slip.   The worker identifies the operator of the equipment that worked the load.  In order to pay a equipment operator you must enter the operator -- an entry of 'NONE' will not work.  There are three basic cases that are handled by The Logger's Edge.

  1. The Pay Contract Specifies a Specific Worker.  If the Worker on the Load Slip is the same worker as on the pay contract, the load will be paid (technically, the employer of the operator will be paid, if the operator is a contract worker).  Otherwise, if the Worker on the Load Slip for the activity is (1) a different worker, or (2) is a company employee, or (3) entered as 'NONE', the load will not be paid.
  2. The Pay Contract Specifies the 'DRIVER' wild card.  If the Worker on the Load Slip for the activity is employed by a contractor, that contractor, whoever it is, will be paid.  For example, if you have 20 loads with six different contract equipment operators, each of the six will be paid for their own loads under the same 'DRIVER' contract.  If the Worker on the Load Slip is (1) an employee of your company, or (2) entered as 'NONE', the load will not be paid.
  3. There are two otherwise identical Trucking Pay Contracts: one that Pay Contract Specifies a Specific Worker, and a second that Specifies the 'DRIVER' wild card.  If the Worker on the Load Slip for the activity is the same worker as on the specific pay contract, the specific worker's employer will be paid.  If the Worker on the Load Slip is different from the worker on the specific contract, that worker's employer, whoever it is, will be paid under the 'DRIVER' contract.  The specific worker will not be paid under the 'DRIVER' contract if he is paid under the Specific Contract.  If the Worker on the Load Slip is (1) employed by your company, or (2) entered as 'NONE', the load will not be paid.

Pay Employee Equipment Operator

The key entry in order to pay the Equipment Operator is the employee identified for the activity on the load slip.   The employee identifies the operator of the equipment that worked the load.  In order to pay a equipment operator you must enter the operator -- an entry of 'NONE' will not work.  There are three basic cases that are handled by The Logger's Edge.

  1. The Pay Contract Specifies a Specific Employee.  If the worker on the Load Slip for the activity is the same worker as on the pay contract, the load will be paid (the employee operator will be paid).  Otherwise, if the worker on the Load Slip is (1) a different operator, or (2) is not an of your company employee, or (3) entered as 'NONE', the load will not be paid.
  2. The Pay Contract Specifies the 'DRIVER' wild card.  If the worker on the Load Slip for the activity is one of you employees, that employee, whoever it is, will be paid.  For example, if you have 20 loads with six different employee equipment operators, each of the six will be paid for their own loads under the same 'DRIVER' contract.  If the Worker on the Load Slip is (1) not an employee of your company, or (2) entered as 'NONE', the load will not be paid.
  3. There are two otherwise identical Trucking Pay Contracts: one that Pay Contract Specifies a Specific Worker, and a second that Specifies the 'DRIVER' wild card.  If the Worker on the Load Slip for the activity is the same as on the specific pay contract, the employee operator will be paid.  If the Worker on the Load Slip is different from the worker on the specific contract, that worker, whoever he is, will be paid under the 'DRIVER' contract.  The specific worker will not be paid under the 'DRIVER' contract if he is paid under the Specific Contract.  If the Worker on the Load Slip is (1) not employed by your company, or (2) entered as 'NONE', the load will not be paid.

Troubleshooting Common Errors:

1.    Error: PAY_CONTRACT_RATE not Set up For...

When running the vendor calculator, one of the most common errors is when a contract rate is not found for a certain activity for a given load.  There are two examples show below.  Example 1 shows a pay error for when is occurs when The Logger's Edge is trying to pay the equipment owner.  The activity is indicated as DELIMB.  The third line 'Equipment: DL621-WP; Contract Employee: No' is what distinguishes the error message  --  it tells you that the equipment is unit number DL621-WP and that the Contract Employee is 'No.'  The unit number tells you the equipment unit that The Logger's Edge is trying to pay; the 'Contract Employee: No' part of the message tells you that The Logger's Edge is not trying to pay a contract operator.  This type of message occurs when you have told that you want to pay 'Contractor Equipment' in the block setup.

Example 1.   

"Error: PAY_CONTRACT_RATE not Set up For: TICKET_NO = WF-10001 DATE_OUT = [12/16/2004 7:33:00 AM] and Activity = DELIMB
Equipment: DL621-WP; Contract Employee: No
Ticket: WF-10001 Detail:
Tract: 02-CLEAR-8001
Destination: IP-AUGUSTA
Species: PINE
Grade: #2 Saw
Truck No: HL6005
Truck Type: 7A
Route: ON"
 

The message in Example 2 differs primarily from the message in Example 1 the third line (in red).  This line 'Employee: GS; Contract Employee: Yes'  tells you that The Logger's Edge is trying to pay the operator 'GS' for Delimbing.  The 'Contract Employee: Yes' part of the message tells you that The Logger's Edge is indeed trying to pay a contract operator (as opposed to the equipment owner).  This type of message occurs when you have told that you want to pay a 'Contractor Operator' in the block setup.

Example 2.   

"Error:  PAY_CONTRACT_RATE not Set up For: TICKET_NO = WF-10001 DATE_OUT = [12/16/2004 7:33:00 AM] and Activity = DELIMB
Employee: GS; Contract Employee: Yes
Ticket: WF-10001 Detail:
Tract: 02-CLEAR-8001
Destination: IP-AUGUSTA
Species: PINE
Grade: #2 Saw
Truck No: HL6005
Truck Type: 7A
Route: ON"

The message in Example 3 is quite similar to the message in Example 2.  The message in Example 3 occurs when you run the employee (as opposed to vendor) calculator.  This line 'Employee: JL; Contract Employee: No'  tells you that The Logger's Edge is trying to pay the employee operator 'JL' for Trucking.  The 'Contract Employee: No' part of the message tells you that The Logger's Edge is not trying to pay a contract operator (as opposed to an employee operator).  This type of message occurs when you have told that you want to pay your 'Own Operator' in the block setup.

Example 3.   

"Error: PAY_CONTRACT_RATE not Set up For: TICKET_NO = WF-10001 DATE_OUT = [12/16/2004 7:33:00 AM] and Activity = DELIMB
Employee: JL; Contract Employee: No
Ticket: WF-10001 Detail:
Tract: 02-CLEAR-8001
Destination: IP-AUGUSTA
Species: PINE
Grade: #2 Saw
Truck No: HL6005
Truck Type: 7A
Route: ON"

These errors occur when a valid pay rate is not found for the a load slip for a contractor or contract driver on a load.

Things to check when this occurs:

2.    "Error: No Conversion Set Up For LBS to CORD For Block 01-GREEN-1001
Ticket: 6948 Detail:
Block: 01-GREEN-1001
Destination: IP-AUGUSTA
Species: PINE
Grade: NONE
Truck No: T'10001
Truck Type: 7A
Route: ON"

The fragment 'Ticket: 6948' refers to the ticket number.  In this example, this error occurs because a conversion factor is not found to convert 'LBS' into 'CORD'.  Anytime, The Logger's Edge cannot convert the weight measure on the block to the pay basis, you will receive this message.  For example, if you have set kilograms up on the block as your weight measure and want to pay a contractor in cubic meters (M3) and you fail to set up a conversion factor you will receive a message such as 'No Conversion Set Up For KGS to M3'.

The fragment 'For Block 01-GREEN-1001'  tells you the block that has the problem.  There are 2 conditions that give rise to this error.

1.    The volume measure on your block does not match your pay basis.  (For example, your volume measure may be 'Tonne', but you want to pay in cubic meters 'M3'.) 

2.    There is no 'Generic Conversion' available.  Generic conversions are KGs to Tonnes and Lbs to Tons.

If these conditions are present, you must select option 'C' in the conversion setup window in the block setup wizard (see below) and then manually enter your conversion factors.        

Things to check when you get a conversion error are:

3.    An Activity Should be Paid, but NO Pay is Generated and there is no Error Message

Things to check when this occurs:

4.    "Error: Missing Load Revenue for Load= 7531 and Activity= DELIMB"

 The fragment 'Load= 7531' refers to the ticket number.  Things to check when this occurs:

5.    "Warning: Truck COST_PER_UNIT not found for Truck Code: T10011,8/7/2004 2:06:00 PM"

When The Logger's Edge  calculates load pay, it also calculates the internal cost of your own log trucks (where truck costing is based on load units rather than hours).  This message informs you that there is no valid rate for the truck hauling the indicated load.  Things to check when this occurs:

Note:  If you don't care about equipment costing, you can always set the Std Cost/Unit rate to $0.00, and thereby eliminate the warning message.  This message will not prevent The Logger's Edge  from otherwise calculating payment for the load.

6.    "Warning: Truck FULL_FOUNDED_RATE_PROD not found for Truck Code: T10011,8/7/2004 2:06:00 PM"

When The Logger's Edge  calculates load pay, it also calculates the internal cost of your own log trucks (where truck costing is based on load units rather than hours).  This message informs you that there is no valid rate for the truck hauling the indicated load.  Things to check when this occurs:

Note:  If you don't care about equipment costing, you can always set the Full Cost/Unit rate to $0.00, and thereby eliminate the warning message.    This message will not prevent The Logger's Edge  from otherwise calculating payment for the load.

7.    The wrong rate is applied.

Things to check when this occurs:

8.    Multi-Pay Errors.  The Logger's Edge allows you to split the payment for the same activity between two different vendors.  As a consequence, there are occasions where the same activity (for a given ticket) will be paid twice (or more) correctly, but there will be other times that the same activity is paid twice (or more) in error.  When The Logger's Edge finishes a pay calculator it checks to see if there are any multiple payments for an activity -- if there are, The Logger's Edge reports a 'Multi-Pay Error'.

Example:

--------------------------MULTI PAY ERROR ---------------------------------------------
ERROR: MULTIPLE PAY FOR TICKET:7019, ACTIVITY: DELIMB
Pay Date: 8/9/2004; Tract: 02-CLEAR-2102, DESTINATION IP-AUGUSTA
1) Pay Contract: 2BR - DELIMB Paid to: 2BR; Amount: $165.78; Pay Period: [Aug 1 04 V]
2) Pay Contract: ARROW - DELIMB Paid to: ARROW; Amount: $182.36; Pay Period: [Aug 1 04 V]

The above error message says that the ticket '7019' has been paid twice for the activity 'DELIMB'.  The two lines -- numbered 1) and 2) -- show each pay contract that has been applied, presumably one is the correct contract and the other is incorrect.  If both payments are correct, you don't need to do anything.  In this case the error message serves as a harmless warning.

If you don't want to pay both contracts, you should check:

 

 

 

 

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