Difficulties with LAG-function when calculating overtime

Hi all, I'm having difficulties dealing with values from "previous-rows" (LAG).
 
I have these variables:
balance: A user's balance of worked hours for month, may be negative if worked 
too little.
overtime_rate: percent-value used to calculate "bonus hours". Ex: If a user 
has a balance of 10 hours (meaning 10 hours overtime) and 50% then he gets 5 
"extra hours" which is added to the accumulated total.
compensatory_time: A user may have hours logged as compensatory time when 
having some hours off work.
payout: A number of hours the user gets "payed" (withdraw) when getting 
compensated for overtime for the current month.
 
I have this (simplified example) schema:
 
drop table if exists logged_hours;
 create table logged_hours(
     date DATE NOT NULL,
     balance NUMERIC(100,2) NOT NULL,
     overtime_rate INT NOT NULL,
     compensatory_time NUMERIC(100,2) NOT NULL,
     payout NUMERIC(100,2) NOT NULL
 );
INSERT INTO logged_hours(date, balance, overtime_rate, compensatory_time, 
payout)
 VALUES
       ('2018-01-01',  17.5, 50, 0, 26.25)
     , ('2018-02-01',   2.5, 50, 5   , 0)
     , ('2018-03-01',  14  , 50, 4   , 3.75)
     , ('2018-04-01', -10  , 50, 10  , 0)
 ;

And I'm trying to craft a query to calculate, for each month:
- balance (the "input-value")
- extra overtime
  This is GREATEST(balance minus compensatory-time minus "accumulated total 
from previous period if negative", 0)
- Accumulated balance
  balance + extra_overtime - compensatory_time - payout + "accumulated 
balance from previous period"
 
Here we see that extra_overtime and accumulated_balance are "inter-related"
 
The goal is to come up with a query which gives this data (from the above 
INSERT):
 
date balance basis_for_extra_overtime extra_overtime (50%) total_time payout 
compensatory_time accumulated_balance_after_payout 2018-01-01 17.50 17.5 (17.5 
* 0.5) 8.75 (17.5 + 8.75) 26.25 26.25 0.00 (26.26 – 26.25) 0 2018-02-01 2.50 0 0
2.5 0.00 5.00 (2.5 – 5) –2.5 2018-03-01 14.00 (14 – 4 – 2.5) 7.5 (7.5 * 0.5) 
3.75 (14 + 3.75) 17.75 3.75 4.00 (17.75 – 3.75 – 4 – 2.5) 7.5 2018-04-01 –10.00 
0 0 –10 0.00 10.00 (–10 – 10 + 7.5) –12.5 
 
 
As we see, the "previous period"'s value for 
"accumulated_balance_after_payout" is used in the calculation of the fields 
"basis_for_extra_overtime" (for period 2018-03, because the accumulated balance 
is negative) and "accumulated_balance_after_payout".
 
I have this basis-query:
 
 
SELECT lh.date , lh.balance -- Basis for extra overtime: balance - 
compensatory_time - "previous month's" accumulated_balance_after_payout if 
negative , GREATEST(lh.balance - lh.compensatory_time -- TODO: minus "previous 
month's" accumulated_balance_after_payout if negative , 0) AS 
basis_for_extra_overtime , (GREATEST(lh.balance - lh.compensatory_time -- TODO: 
minus "previous month's" accumulated_balance_after_payout if negative , 0) * 
lh.overtime_rate/100) as extra_overtime -- balance + extra_overtime , lh.balance
-- extra_overtime + (GREATEST(lh.balance - lh.compensatory_time -- TODO: minus 
"previous month's" accumulated_balance_after_payout if negative , 0) * 
lh.overtime_rate/100) AS total_time , lh.payout , lh.compensatory_time -- 
Accumulated balance: (total_time - payout - compensatory_time + "previous 
month's" accumulated_balance , lh.balance -- extra_overtime + (GREATEST
(lh.balance - lh.compensatory_time-- TODO: minus "previous month's" 
accumulated_balance_after_payout if negative , 0) * lh.overtime_rate/100) - 
lh.payout - lh.compensatory_time-- TODO: plus "previous month's" 
accumulated_balance_after_payout AS accumulated_balance_after_payout FROM (
SELECTcast(generate_series('2018-01-01' :: DATE, '2018-11-01' :: DATE, '1 month'
)AS DATE) as start_date) AS q CROSS JOIN logged_hours lh WHERE lh.date = 
q.start_dateORDER BY lh.date ASC ; 
 

And have tried to use LAG to use value from "previous row" when calculating 
"basis_for_extra_overtime":
 
SELECT lh.date , lh.balance -- Basis for extra overtime: balance - 
compensatory_time - "previous month's" accumulated_balance_after_payout if 
negative , GREATEST(lh.balance - lh.compensatory_time + LEAST(LAG( lh.balance + 
(GREATEST(lh.balance - lh.compensatory_time, 0) * lh.overtime_rate/100) - 
lh.payout - lh.compensatory_time )OVER (order by lh.date) , 0) , 0) AS 
basis_for_extra_overtime , (GREATEST(lh.balance - lh.compensatory_time -- TODO: 
minus "previous month's" accumulated_balance_after_payout if negative , 0) * 
lh.overtime_rate/100) as extra_overtime -- balance + extra_overtime , 
lh.balance + (GREATEST(lh.balance - lh.compensatory_time -- TODO: minus 
"previous month's" accumulated_balance_after_payout if negative , 0) * 
lh.overtime_rate/100) AS total_time , lh.payout , lh.compensatory_time -- 
Accumulated balance: (total_time - payout - compensatory_time + "previous 
month's" accumulated_balance , lh.balance + (GREATEST(lh.balance - 
lh.compensatory_time ,0) * lh.overtime_rate/100) - lh.payout - 
lh.compensatory_time-- TODO: plus "previous month's" 
accumulated_balance_after_payout AS accumulated_balance_after_payout FROM (
SELECTcast(generate_series('2018-01-01' :: DATE, '2018-11-01' :: DATE, '1 month'
)AS DATE) as start_date) AS q CROSS JOIN logged_hours lh WHERE lh.date = 
q.start_dateORDER BY lh.date ASC ; 
 
In the query above I use LEAST(<expr>, 0) to only add the value if negative, 
effectively subtracting it, which is what I want.
The problem with this as I've written it above is that it tries to subtract 
the previous row's accumulated_balance_after_payout, but the calculation of 
that is not correct because in order to do that we need the previous 
row's basis_for_extra_overtime, which again is dependent of the 
previous-previous-row, and it kind of gets difficult from here...
 
Anyone has a clever way to solve this kinds of issues and craft a query which 
produces the desired result as in the table above?
 
Thanks.
 
-- Andreas Joseph Krogh