How Rate Changes Affect Historical and Approved Days

This article explains how the Inn-Flow Calculation Engine processes rate changes, how those changes impact historical and approved days, and what users should expect during payroll export. This information applies to all hourly rates, including Paid-Per-Room (PPR) rates.

Note: This only affects client with the new Labor Calculation Engine enabled. Please reach out to your Implementation Manager or CSM for more information on enablement. 

Overview

The Inn-Flow Calculation Engine processes rate changes through a real-time queue system. This ensures accuracy and prevents payroll exports from occurring until all rate updates have completed. Once a rate change is submitted, it will not take effect immediately. Inn-Flow updates it through the calculation queue to ensure all timecard calculations are correct before payroll is finalized.

Rate changes only apply to unapproved days. Any day that has already been approved keeps the rate it was approved with. If you want a new rate to apply to previously approved days, you must unapprove them first.

Note: If a payroll has already been processed, rate changes cannot be retroactively applied to that pay period and would require a correction or off-cycle payroll.

How Upcoming Payroll Is Protected

If there are pending rate changes, Inn-Flow will automatically prevent users from exporting payroll. This is to ensure payroll accuracy and to prevent underpayment, overpayment, or compliance issues.

When rate recalculations are pending, the Payroll Export page will display:

1. A clear alert stating that rate changes are still processing
2. A list of all employees whose rate changes are not yet complete
3. A message explaining that payroll export is temporarily blocked

Once all rate changes finish processing, Inn-Flow automatically updates the rates and payroll export becomes available.

A notification will be sent to your Notification Inbox informing you that the payroll export is now ready to proceed. The notification will include a link directly back to the Payroll Export page with the correct hotel selected.

How Rate Changes Work

1. Real-Time Queue Processing

When a user submits a rate change:

1. The change enters a queue for recalculation
2. The system updates all unapproved days that fall within the last 3 months
3. Approved days remain untouched to preserve data integrity

2. A 3‑Month Lookback Window

To ensure accuracy, rate changes only recalculate up to 3 months of timecards.

3. Approved Days Retain Their Original Rate

Once a day is approved, it freezes the rate that was in effect at the time of approval.

If you need the new rate to apply to an approved day:

1. Unapprove the day
2. Submit the rate change
3. Allow the system to finish recalculating
4. Re-approve the day

4. Paid-Per-Room (PPR) is Fully Supported

All PPR service-level rates follow the same logic.

1. PPR rates update only for unapproved days
2. Approved days retain the locked rate until unapproved
3. Rate updates will not complete until all service-level rates are processed

Example Scenarios

Example 1: Rate Change During the Pay Period

1. Employee's rate changes from $15.00 to $16.00 on January 10.
2. The pay period runs January 1–15.
3. You submit the change on January 12.

What happens?

1. All unapproved days on or after January 10 recalc at $16.00
2. Days before January 10 remain at $15.00
3. Payroll export is blocked until the recalculation queue finishes

Example 2: Rate Change on an Approved Day

1. Employee worked on February 3
2. Day was already approved
3. You change the rate on February 20

What happens?

1. The Feb 3 day does not update
2. To apply the new rate, unapprove Feb 3 and allow recalculation

Example 3: PPR Housekeeper Changing Rates

1. PPR rate increases from $5.25 to $5.75 per room on March 1
2. Housekeeper cleaned rooms on Feb 28 and March 2

What happens?

1. Feb 28 stays at $5.25 (historical)
2. March 2 updates to $5.75 after processing

Example 4: Payroll Ready to Export — But a Change Happens

You’re ready to run payroll. Then:

1. You unapprove a day
2. You update an employee’s rate
3. You return to the Payroll Export page

What happens?

1. Payroll export is blocked
2. You are notified that rate changes are pending
3. A list of affected employees appears
4. Once complete, you receive a notification

This ensures the updated rate is used instead of the old rate.

Why Payroll Export Must Wait

Rate changes affect wage calculations, overtime, blended overtime, PPR totals, and overall payroll accuracy. Allowing payroll to export while rates are still updating would cause:

1. Incorrect pay
2. Incorrect overtime calculations
3. Incorrect cost allocation
4. Compliance issues

By blocking payroll export until recalculation completes, Inn-Flow ensures accuracy and compliance.

Summary

Here’s what to remember:

1. Rate changes update only unapproved days
2. Approved days stay locked unless manually unapproved
3. A 3‑month lookback prevents unnecessary recalculation
4. Payroll export is temporarily blocked until recalculations finish
5. Notifications alert you when payroll becomes available
6. Applies to both hourly and PPR rates
7. If a payroll has already been processed, rate changes cannot be retroactively applied to that pay period and would require a correction or off-cycle payroll.

This ensures payroll accuracy and protects your team from compliance risks.

If you have questions, please reach out to Inn-Flow Support.