Mendato distinguishes between several time concepts that are essential for precise time tracking, payroll, and planning.
1. Target Time
➡ Definition:
Target time is the contractually defined working time of an employee according to the working time model (e.g. 8 hours per day or 40 hours per week).
➡ Example:
An employee has a target time of 8 hours per day but, due to the operation schedule, sometimes works only 6 hours. This immediately reveals whether the employee could take on additional operations.
➡ Why is it important?
✅ Serves as a baseline for determining availability & utilisation.
✅ Used as a baseline in Master Data > Employees > Working Days.
✅ Target time can be paid out for absences via the working time model.
✅ Forms the basis for the time account — the difference between target and actual time produces overtime or undertime.
2. Planned Time
➡ Definition:
Planned time is the working time set for an employee through a scheduled operation in Mendato.
➡ Example:
An operation is scheduled for 6 hours, but the employee actually works only 5 hours. Depending on the agreement and working time model, the planned times are paid out.
➡ Why is it important?
✅ The basis for operation planning.
✅ Shows how long an employee is supposed to work according to operation planning.
✅ Differences between planned and actual time help reveal unexpected deviations.
✅ Timesheets can be generated based on planned times.
3. Actual Time
➡ Definition:
Actual time is the employee's actually recorded working time (less all breaks).
➡ Example:
An employee starts time tracking at 08:00 and stops at 14:30 (less a 30-minute break) → Actual time = 6 hours.
➡ Why is it important?
✅ Shows the working time actually performed.
✅ Basis for payroll calculation (depending on the collective agreement).
✅ Deviations from planned time help optimise operations.
✅ Compared with target time in the time account — the difference produces overtime or undertime.
4. Compensated Time
➡ Definition:
Compensated time is the working time that is actually used for billing for the employee. It can differ from the actual time because travel times, absences, or public holidays are factored in.
➡ Example:
An employee has an actual time of 6 hours but is additionally credited with 30 minutes of travel time → Compensated time = 6.5 hours.
➡ Why is it important?
✅ The basis for payroll.
✅ Includes supplements (night, public holidays, Sunday work).
✅ Shows which time is actually paid.
✅ The 1st journey is not included. Only from the 2nd journey of the day onward.
5. Time Account
➡ Definition:
The time account tracks the running difference between target and actual time per employee. At a glance, it shows whether an employee has accumulated overtime or undertime.
➡ Example:
An employee has a target time of 8 hours and an actual time of 9.5 hours → +1.5 hours overtime are posted to the time account.
➡ Why is it important?
✅ Automatic calculation of overtime and undertime.
✅ A transparent basis for overtime payout or time-off compensation.
✅ Manual corrections and balance carry-overs (e.g. from Excel/DATEV) are possible.
✅ Available under Personnel > Time Records > Time Account.
➡ Requirement:
The time account must be enabled in the employee's working time model. On days with absences (vacation, sick leave) or public holidays, the target time is automatically set to 0 — no undertime is generated.
Requirements for Full Use of Time Tracking in Mendato
To use time tracking in Mendato fully and correctly, a few requirements must be met:
✅ Employees must be set up in Mendato (Master Data > Employees).
✅ A working time model must be assigned so that the target time is calculated automatically.
✅ Operations must be scheduled so that a planned time exists.
✅ Employees need access to Mendato Operations to record actual times.
✅ Time records must be confirmed before they are used in payroll.
✅ Travel times & supplements must be recorded correctly to ensure complete compensation.
✅ Enable the time account in the working time model to use automatic overtime calculation.
✅ Set the gross hourly wage so that Mendato Controlling can calculate costs correctly.
Summary: How Do the Times Relate?
1️⃣ Target time = Contractual working time (baseline)
2️⃣ Planned time = Working time scheduled in the operation
3️⃣ Actual time = Working time actually recorded (minus break)
4️⃣ Compensated time = Actual time + travel times + supplements
5️⃣ Time account = Running difference between target and actual time (overtime/undertime)
💡 Tip: Correct operation planning & confirmation of time records ensures that all times are complete and audit-proof for payroll. With the time account enabled, you additionally keep an overview of overtime and undertime. To learn how times are converted into Costs, Revenue, and Result, see the controlling article.