FBT Statutory Report Calculation — Employee Contribution (ECM)

Overview

The calculation behind Employee Contribution (Budget), Employee Contribution (Actual) and related values on FBT Statutory Reports includes ECM (Employee Contribution) and NON (Days Not in Use) records for contracts that are active or suspended during an FBT year.

A system setting controls how long pending ECM budget values (those not yet posted) keep counting once a contract stops operating. By default, they stop at the contract's suspend date, or at the contract end date where the contract isn't on inertia. See Pending ECM Cut-Off Setting below.

Where It Appears

• Fleet / Administration / Reports → FBT Statutory, including the FBT Statutory Annual Report and its client-specific versions

• Fleet / Administration / Reports → FBT Optimal (statutory figures)

• Reporting / Standard Reports → FBT Per Driver / Vehicle (FBT cost and reportable benefit; see Expected Behaviour below)

• Novated Driver reports, including Whole of Life

• FBT PDFs produced through the driver portal

• Contracts / FBT tab

Pending ECM Cut-Off Setting

The setting is held in Setup › Reference Data › gb_controls:

Change the setting on the Setup › Reference Data › gb_controls screen so it takes effect immediately.

The setting affects pending ECM budget values only. Posted ECM budget values, ECM and NON events, Days Available and the FBT Liability End Date work the same way whichever value is set.

How It Works

1. Each of these reports, and the Contracts / FBT tab, calculates values for a selected FBT year, using the 'Year Ending' filter on the reporting screens.

2. On the FBT Statutory report, the 'Year Ending' filter is automatically reset to the current FBT year end in the background.

3. For each contract, the report works out the latest date up to which pending ECM budget values can count — the pending cut-off. With the setting at its default (no), the cut-off is:

   • the suspend date, if the contract is suspended

   • otherwise, the contract end date, if the contract isn't on inertia

   • otherwise, the report date.

   With the setting at yes, the pending cut-off is always the report date.

4. The report then selects the ECM (Employee Contribution) budget and event records, and the NON (Days Not in Use) event records:

   • Employee Contribution (Budget) includes:

     • all posted ECM budget values with a billing date within the selected FBT year

     • all pending ECM budget values with a billing date within the selected FBT year that falls on or before the pending cut-off.

   • Employee Contribution (Actual) includes the same ECM budget values, plus all ECM event amounts for active events with an event date within the selected FBT year.

   • Days Not in Use includes all NON event amounts for active events with an event date within the selected FBT year, regardless of whether the contract is suspended.

5. Days Available, FBT Payable and Reportable FBT continue to calculate automatically from these values.

Expected Behaviour

Suspended Contracts

With the setting at no (default):

• Pending ECM budget values dated on or before the suspend date are included. A value dated on the suspend date itself is included.

• Pending ECM budget values dated after the suspend date are excluded from Employee Contribution (Budget) and (Actual).

• Posted ECM budget values are included as normal.

• ECM and NON events dated after the suspend date are still included.

• If a contract is suspended after its contract end date, pending values count up to the suspend date.

Active (Non-Suspended) Contracts Not on Inertia

With the setting at no (default):

• Pending ECM budget values dated on or before the contract end date are included.

• Pending ECM budget values dated after the contract end date are excluded.

• Posted ECM budget values are included as normal.

Contracts on Inertia

• When the Inertia flag is checked, pending ECM budget values count up to the report date, so a contract running past its contract end continues to pick up pending values.

• The Inertia flag also means Days Available is calculated using the FBT year's end date.

Setting at "yes"

• On every contract, pending ECM budget values with a billing date within the FBT year count up to the report date. This applies whether the contract is suspended, has passed its contract end date or is on inertia.

Report Date

• The report date limits pending ECM budget values only. Posted values within the FBT year are always included.

FBT Liability End Date

• The FBT Liability End Date is used in calculating Days Available. It doesn't extend or shorten the period in which pending ECM budget values are counted, whether it is earlier or later than the suspend date or contract end date.

Records That Are Never Counted

• ECM budget values dated before the contract start date

• History-only ECM budget values.

Contract Dates

• Third Party Start, Contract Start, Contract End, Suspend Date and FBT Liability End Date are all used in calculating Days Available for the FBT year.

• Suspend Date and Contract End also set the pending cut-off described above.

• None of these dates are used to select NON records.

Previous FBT Years

• Reports run for a closed FBT year use the setting as it is today, not as it was when the report was first run. Changing the setting therefore changes figures for earlier years when they are re-run.

Contract API

• FBT figures returned by the Contract API, including saved queries run through the API, use their own calculation and don't follow this setting. They may differ from the reports listed above.

FBT Per Driver / Vehicle Report

• The FBT cost and reportable benefit on this report follow the setting. Its Employee Contribution allocation doesn't change with the setting.

Other FBT Features Unchanged

• FBT Treatment, FBT Reduced Value and other existing FBT selections and calculations are unchanged.

Known Limitation — FBT Per Driver / Vehicle Report

• Where a Days Not in Use (NON) event falls outside a driver's allocation period on the contract, the FBT Per Driver / Vehicle report can't reliably determine which driver to allocate that event to. This is a pre-existing anomaly.

• It's most relevant to Operating Lease contracts, where a vehicle's driver can change over time. Novated Lease contracts aren't affected, because the driver doesn't change.

• Customers with Operating Lease contracts should review FBT Per Driver / Vehicle results carefully where a driver change has occurred during the FBT year.