Setting Up Variable Compensation Control Tables

This chapter provides overviews of control table setup and variable compensation plan types and describes how to:

Define payout formulas.
Define valuation.
Set up variable compensation plans.
Assign payout formulas.

Understanding of Control Table Setup

Before you set up your variable compensation plans, you must define some of the data elements that you’ll use to define the specifics of each plan. Some of the variable compensation control tables are optional and some are required, depending on the plan type, options, and business rules that you define for the plan.

Control Table	Which Plans Use This Control Table
Payout Formula	Required for all plans except those with Ad Hoc Award as the plan member rule.
Valuations	Required for non-monetary and stock plans only.
Goals	Required when the plan type is Goal Sharing and for any other plan that you administer using goals.
Proration periods	Required for plans that specify Calculate Proration as a plan business rule.
Workday Rules	Required for the Workday Schedule method of calculating eligibility proration.
Proration Percentage Rule	Required for the Proration Percentage method of calculating eligibility proration.

Defining Payout Formulas

To define payout formulas, use the Payout Formula component (VC_PAYOUT_FORMULA).

Construct Structured Query Language (SQL) statements and assign them a Payout Formula ID on the Payout Formulas page. Select from the Payout Formula IDs when you set up target, minimum, and maximum payouts for workers, groups, or plans, or when you set up a matrix goal payout schedule.

The payout formula that you define can be a flat amount or a complex SQL statement based primarily on the worker’s Job record.

Page Used to Define Payout Formulas

Page Name	Object Name	Navigation	Usage
Payout Formula	VC_PAYFORM_TBL	Set Up HRMS, Product Related, Compensation, Variable Compensation, Payout Formulas	Define a formula that the Determine Allocation process and Calculate Award process will use to calculate funding and award allocations. The payout formula is a Structured Query Language (SQL) statement that you define on this page.

Creating a Payout Formula

Access the Payout Formula page.

Payout Formula Criteria

Pay Formula SQL

When you save the record, the system displays the payout formula SQL statement that you define using the fields below. The system checks the syntax of the SQL statement and lists any errors.

Rounding Rule

The rule to apply to award calculations that use this payout formula. Select from:

Down: Round the value down to the number of significant digits indicated in the Decimal Places field.
Standard: Use the standard IEEE rounding rules.
Up: Round the value up to the number of significant digits indicated in the Decimal Places field.

If the plan is a stock-type plan, the system uses the rounding rules established on the Stock Option Plan table (ST_OPTION_PLAN) when rounding award calculations.

Decimal Places

Enter the number of decimal places to which you want the system to round the payout formula.

Payout Formula Details

Sequence

(Required) This number determines the order in which the SQL generator builds the formula. Entering sequence numbers in increments of five or 10 gives you room to add a component to the formula without renumbering all the existing components. When you save the page, the system sorts your components according to their sequence numbers.

Insert a new row and enter a sequence number for each component of the SQL statement as you build it.

Operand

Enter an operand for the component. The Operand that you select determines the other fields that are hidden or displayed on the page. This table lists the valid operand values and the additional fields displayed for each:

Operand	Definition	Additional Fields That Display
(none)	Use this value to clear the field of an unwanted value.	None
-	Subtract	None
(	Open Bracket	None
)	Close Bracket	None
*	Multiply	None
/	Divide	None
+	Add	None
Constant	Fixed value	Value/Rec/Rate Code
Rate Code	Refers to a Rate Code that you specify from the Rate Code table.	Value/Rec/Rate Code
Rec. Field	Refers to a field that you specify from a record.	Value/Rec/Rate Code and Field Name

Value/Rec/Rate Code

The value that you enter here depends on the Operand that you select. This is a summary of the relationships between the Operand and the Value/Rec/Rate Code:

Operand Selected	Value/Rec/Rate Code
Constant	Enter a fixed amount. This Value can be a percent or other fixed value to be used in the calculation. For non-monetary plans, enter the number of units to be awarded to each plan member.
Rate Code	Enter a Rate Code from the Rate Code table.
Rec. Field	Select a Record from these options: EMPLOYMENT, JOB, PERSONAL_DATA, and SAL_GRADE_TBL.

Field Name

Select from the available options for the Record that you selected. When the system executes the SQL statement, it uses the value of the selected field in the plan member’s record.

See Also

Reporting Awards Calculations

Payout Formula Example

To define a payout formula of 1 percent of the worker’s job annual rate, select the Job record, the Annual Rate field name (on the Job record), the operator *, and the constant .01. Place the formula in parentheses, so the final formula in the Pay Formula SQL field is: (JOB.ANNUAL_RT * 0.01).

Defining Valuation

To define valuation, use the Valuations component (VC_VALUATION).

For non-monetary plans and stock plans, set up a valuation ID on the Valuations page. Assign a value to the valuation ID, which represents the value of one unit of the award under the plan (expressed in the currency that you specify). If you change the value of a valuation ID, the system uses the value on the Valuation ID maximum effective-dated row that is equal to or less than the payout period end date.

When the system reports the value of awards under a non-monetary plan or stock plan, the value is calculated by multiplying the number of units awarded to the member (determined by the payout formula and other factors) by the value per unit as defined by the valuation ID. Depending on the plan’s business rules, the award value attributed to the worker’s compensation package might be reduce d by a proration factor, performance factor, or adjustment factor.

Because of the nature of stock prices, the stock value calculated in this way is used for variable compensation reporting only, because it might not reflect the true value of the stock options at a particular time.

For non-monetary-type plans, the value calculated with the valuation ID is used for payroll tax reporting, as well as data reporting through the Variable Compensation and Total Compensation business processes.

Page Used to Define Valuation

Page Name	Object Name	Navigation	Usage
Valuation	VC_VALUATION	Set Up HRMS, Product Related, Compensation, Variable Compensation, Valuations	Define units of non-monetary and stock awards and assign a currency value for one unit. This page is required only if you set up non-monetary or stock variable compensation (VC) plans.

Creating a Valuation Definition

Access the Valuation page.

Effective Date

Enter the effective date of the value that you are entering for the Valuation ID.

If you change the value of the Valuation ID, the system uses the monetary value associated with the Valuation ID on the maximum effective-dated row that is equal to or less than the payout period end date.

Amount

Enter the monetary value of one unit of the non-monetary award represented by this Valuation ID. For example, enter the monetary value of one holiday turkey. For stock-type plans, one unit is one option/share.

Currency Code

Select the code for the currency in which to administer an award for this Valuation ID. When you assign the valuation ID to a VC plan, the currency code of the valuation ID must match the currency code of the plan.

You can override the default value that the system enters.

Defining Goals

To define goals, use the Goals component (VC_GOAL_TBL).

Use goals that you name and describe on the VC Goal Tbl (variable compensation goal table) page to set up a plan with either weighted goals or a goals matrix.

Goals are not an option if the plan member rule is Ad Hoc Award.

Page Used To Define Goals

Page Name	Object Name	Navigation	Usage
Vc Goal Tbl (variable compensation goal table)	VC_GOAL_TBL	Set Up HRMS, Product Related, Compensation, Variable Compensation, Goals	Name and describe generic goals to use with variable compensation (VC) plans. Use the goals that you define here when you set up weighted goals or matrix goals for a VC plan. You do not need this page if you do not administer plans with goals.

Page Name

Object Name

Navigation

Usage

Vc Goal Tbl (variable compensation goal table)

VC_GOAL_TBL

Set Up HRMS, Product Related, Compensation, Variable Compensation, Goals

Name and describe generic goals to use with variable compensation (VC) plans. Use the goals that you define here when you set up weighted goals or matrix goals for a VC plan.

You do not need this page if you do not administer plans with goals.

Setting Up Weighted Goals

To create weighted goals, use the Plan Goals (VC_PLAN_GOAL) and Plan Goals with Groups (VC_PLAN_GOAL_WG) components.

Set up goals only at levels for which the Plan Goal Weight is above 0% on the VC Plan - Plan Definition page. You can set up any number of goals at each level, as long as the total weighting percent at each level is 100%.

Example of One Goal at One Level

Goal	ROI (return on investment)
Weighting Percent	100 percent
Comments	ROI goal of 18 percent

Example of Three Goals at One Level

Goal	ROI	EPS	TSR
Weighting Percent	50 percent	25 percent	25 percent
Comments	ROI goal of 18 percent	EPS of $2.35	11 percent of TSR

Pages Used to Set Up Weighted Goals

Page Name	Object Name	Navigation	Usage
Plan Goals - Organization Goals	VC_ORG_GOAL	Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Goals, Organization Goals Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Goals with Groups, Organization Goals Compensation, Variable Compensation, Maintain Plan, Plan Goals, Organization Goals Compensation, Variable Compensation, Maintain Plan, Plan Goals w/ Groups, Organization Goals	Assign goals to the plan at the organization level and indicate their relative weighting. The sum of all organization goals must be 100 percent.
Group Goals	VC_GRP_GOAL	Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Goals, Group Goals Compensation, Variable Compensation, Maintain Plan, Plan Goals w/ Groups, Group Goals	Assign goals to the plan at the group level and indicate their relative weighting. The sum of all group goals must be 100 percent. The search dialog for the component lists only plans that use groups.
Default Individual Goals	VC_IND_GOAL	Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Goals, Default Individual Goals Compensation, Variable Compensation, Maintain Plan, Plan Goals, Default Individual Goals	For plans that do not use groups. Assign default goals to the plan at the individual level and indicate their relative weighting. The sum of all individual goals must equal 100 percent. The system enters the goals that you set up on the Default Individual Goals setup page as the default goals on the Individual Goal Attainments page, where you can modify them for individual workers.
Default Individual Goals	VC_IND_GOAL_WG	Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Goals with Groups, Default Individual Goals Compensation, Variable Compensation, Maintain Plan, Plan Goals w/ Groups, Default Individual Goals	For plans that use groups. Assign default individual goals to each group in the plan and indicate their relative weighting. The sum of all individual goals must equal 100 percent. The system enters the goals that you set up on the Default Individual Goals setup page as the default goals on the Individual Goal Attainments page, where you can modify them for individual workers.

Defining a Variable Compensation Plan

To define variable compensation plans, use the Define Variable Comp Plan (VC_PLAN) component.

Use the three VC Plan setup pages to define a variable compensation plan as well as its options, business rules, and payout periods. Use some of the data that you defined in the variable compensation control tables in these pages.

Common Elements Used in This Section

VC Plan ID (variable compensation plan ID)	The unique identifier used to access many of the variable compensation pages. Once you open a page, the system displays the ID that you entered to access the page.
Payout Period ID	An identifier for the payout period, such as Q1 for the first quarter. This is a key for many of the variable compensation pages.

Pages Used to Define a Variable Compensation Plan

Page Name	Object Name	Navigation	Usage
VC Plan - Plan Definition	VC_PLAN_TBL	Set Up HRMS, Product Related, Compensation, Variable Compensation, Define Variable Comp Plan, Plan Definition Compensation, Variable Compensation, Maintain Plan, Define Variable Comp Plan, Plan Definition	Define a variable compensation plan, plan dates, earnings code, plan type, and specifics related to the plan type.
VC Plan - Plan Business Rules	VC_PLAN_BUS_RULE	Set Up HRMS, Product Related, Compensation, Variable Compensation, Define Variable Comp Plan, Plan Business Rules Compensation, Variable Compensation, Maintain Plan, Define Variable Comp Plan, Plan Business Rules	Specify the method of administering plan membership and select optional business rules for the plan.
VC Termination Status	VC_EE_TERM_STAT	Click the EE Term Status link on the VC Plan - Plan Business Rules page.	Select the termination status codes that exclude workers from payment under a plan that has Empl VC Record as the plan member rule.
Plan Payout Periods	VC_PAYPRD_TBL	Set Up HRMS, Product Related, Compensation, Variable Compensation, Define Variable Comp Plan, Plan Payout Periods Compensation, Variable Compensation, Maintain Plan, Define Variable Comp Plan, Plan Payout Periods	Define or change the beginning and ending dates of a variable compensation plan’s payout periods.

Specifying the VC Plan Definition

Access the Plan Definition page.

Plan Start Date

Enter the date on which you want the plan to begin. Once you save the plan definition, you cannot change this date.

For stock-type plans, this date cannot be earlier than the stock plan’s approval date.

Plan End Date

Enter the date on which you want the plan to end. Once you save the plan definition, change the Plan End Date only to a later date if you want to extend the plan.

For stock-type plans, this date cannot be later than the stock plan’s expiration date.

Currency

Select the currency in which you want the system to calculate, display, and report allocations. For roll up purposes, you must select one currency for the plan. Payout is in the appropriate currency for the worker.

For stock-type plans, the default value is the currency code for the stock ID on the Stock Exchange table. The currency of the VC plan must match the currency of the Stock plan.

Plan Type

Select from the available options: Discretionary Bonus, Goal Sharing, Non-Monetary, Other, Profit Sharing, Stock ISO, Stock NQ, Stock NSAR, Stock RSA, and Stock ISAR.

Fields Related to Plan Type

When you select a specific plan type, the system displays these additional fields:

Plan Type	Visible Fields
Discretionary Bonus	Plan Goals
Goal Sharing	Plan Goals
Non-Monetary	Valuation ID, Plan Goals
Other	Plan Goals
Stock (ISO, NQ, NSAR, RSA, and ISAR)	Plan Goals, Stock ID, Stock Plan, Valuation ID.

Plan Goals

Select the type of goal administration to use with the plan. Values are:

Goals Matrix: If you select this value, the Matrix Columns field appears in the Plan Details group box.
Weighted Goals: If you select this value, additional fields appear below in which you define weighting percents for goal levels.

Stock ID

Enter the ID that applies to this plan. Values prompt from the Stock table. This field does not appear if you do not use Stock Administration.

Stock Plan

Enter the ID that applies to this VC plan. This field does not appear if you do not use Stock Administration.

Plan Details

The plan definitions in this section of the page might change during the life of the plan. Insert a row and enter new data to modify a plan.

Earnings Code	Payroll reporting code. Applies to awards paid out through Payroll for North America.
GP Earnings	Payroll reporting code. Applies to awards paid out through Global Payroll.
Valuation ID	Select an ID from the available options, which prompt from the VC Valuation table. This field appears only if the Plan Type is Non-Monetary or one of the Stock types. The ID that you select must be defined with the same currency code as the Currency Code that you select for this Plan ID. This field represents only the valuation ID. The monetary value associated with the valuation ID used to calculate the award value is determined using the maximum effective-dated row on the VC Valuation table that is equal to or less than the payout period end date.
Matrix Columns	This field appears if you select Goals Matrix in the Plan Goals field. Select the number of columns that you will set up in your goals matrix: Three, Five, or Seven.

Goal Weights

In this group box, indicate the relative weighting of goals at each of the three goal levels: organization, group, and individual. The default weight is 0 percent at each level. Change the percent only for the levels of goals used by the plan. The sum of all levels must equal 100 percent.

Org Weight (organization weight)	Enter the relative percentage of organizational goals compared to other goals used in administering the plan.
Group Weight	Enter the relative percentage of group goals compared to other goals used in administering the plan. Indicate a weight for group goals only if the plan’s Group Member Rule is Empl VC Rec with Groups or Define Tree Group, as specified on the VC Plan - Plan Business Rules page.
Ind Weight (individual weight)	Enter the relative percentage of individual goals compared to other goals used in administering the plan.
Total Weight	The system computes the totals of the percentages as you enter them at each level and displays the sum in the Total Weight field. Adjust the weights until the sum of all levels equals 100 percent.

Specifying Plan Business Rules

Access the Plan Business Rules page.

Plan Member Rule

Select the rule to use to administer membership under this VC plan: Ad Hoc Award, Empl VC Record (employee variable compensation record), Empl VC Record with Groups (employee variable compensation record with groups), and Define Tree/Group.

EE Term Status (employee termination status)

This link appears if you select Empl VC Record. Click to access the VC Termination Status page, where you select the termination status codes that exclude workers from payment under the plan.

Static Plan Rules

Static Plan Rules

These rules remain in effect for the life of the VC plan. You cannot change these rules by inserting a new row.

Carryover Awards

Select if you want to carry over balances at the worker level for unallocated awards. Selecting this check box enables the Carryover Balance, Accum Carryover (accumulated carryover), and Carryover Amount fields on the Award Allocations page. The system maintains the carryover balance for the life of the plan.

Carryover is not an acceptable option for Non-Monetary and stock-type plans.

This field is unavailable if you’ve selected the Ad Hoc Award option as the Plan Member Rule.

Funded Plan

Select if you allocate a funding amount to the VC plan or are defining a stock-type plan.

Plan Details

The plan definitions that you select in this group box might change during the life of the plan. To modify a plan, insert a row and enter new data.

Calculate Proration	Select if you want to prorate eligibility under the plan. This check box is unavailable for entry if you selected the Ad Hoc Award option as the Plan Member Rule.
Gross-Up	Select if you want payroll to apply gross-up rules to award payouts under this plan.
Separate Check	Select if you want payroll to issue the awards on a check separate from the worker’s normal paycheck. If you are processing awards through Payroll for North America and you selected Gross-Up on this page, you must select Separate Check.
Approve Awards	Select if you want to approve awards by either of these methods: Run the Approve Awards or Approve Awards by Group process to approve or unapprove awards at the plan or group level. Designate an approver who can manually approve awards individually under the plan on the Award Allocation page.
Approver	This field appears if you select Approve Awards for a plan that has Ad Hoc Award or Empl VC Record as the Plan Member Rule. Enter the ID of the person authorized to approve awards for the entire plan. The system displays the worker’s name next to the employee ID that you enter. If you administer the plan using groups, the approver is established through VC group tree security, so the Approver field remains hidden.

Plan Tree

This group box appears on the page only if the Plan Member Rule is Empl VC Record with Groups or Define tree/Group.

Tree Name	Select the name of the VC Tree that you want to associate with this VC plan.
Group ID	The ID of the highest group on the tree that you select in Tree Name.

See Also

Calculating Eligibility and Proration

Selecting Termination Status Codes for Employee VC Record Plan Member Rule

Access the VC Termination Status page.

Payroll Status

Select the payroll status values that cause a worker to be ineligible under the plan. The eligibility process excludes workers from the plan if they have a selected status on their Job record as of the eligibility evaluation date.

Values areActive, Deceased, Leave of Absence, Leave With Pay, Retired With Pay, Retired, Suspended, Terminated, Terminated With Pay, Terminated Pension Pay Out, Short Work Break, and Retired-Pension Administration.

These values are entered by default: Deceased, Retired With Pay, Retired, Terminated, Terminated With Pay, Terminated Pension Pay Out, and Retired-Pension Administration.

You may add and delete values to reflect the rules for each plan that you set up with Empl VC Record plan member rule. These selections are not effective-dated.

See Also

Understanding Eligibility and Proration

Defining Plan Payout Periods

Access the Plan Payout Periods page.

The Plan Payout Period rows are unavailable for entry if the VC plan has expired or if any approved awards exist for that payout period.

Payout Periods

Payout Period ID

Enter an identifier for the payout period, such as Q1 for the first quarter.

Period Begin Date

Enter the beginning date of the payout period. As the default date, the system enters the day after the prior period’s end date. For example, if the prior period’s end date is 01/31/2000, the next period’s default begin date is 02/01/2000.

After you save the page, the system sorts the rows by Period Begin Date.

Period End Date

Enter the last date in the payout period. If the date that you enter is later than the Plan End Date as defined on the Plan Definition page, the system issues the error message “Period End Date must not exceed the Plan End Date of [selected plan end date].”

If the Period Begin Date of one period overlaps with the Period End Date of another period, the system issues the message, “Payout Period dates must not overlap.”

Assigning Payout Formulas

To create and payout formulas, use the Plan Payouts (VC_PAYOUT) and the Plan Payouts With Groups (VC_PAYOUT_WG) components.

Use the Plan Payouts page or the Plan Payouts with Groups page to assign payout formula IDs to target, minimum, or maximum payouts under the plan.

Note. If you are administering the plan using matrix goals, do not assign payout formulas on this page. Instead, associate payout formulas with the goals matrix on the Matrix Goals: Payout Schedule page.

Determining Payout Award Formulas

Minimum Payout	The minimum award that a plan or group member should receive.
Target Payout	The award a plan member would receive upon 100 percent completion of objectives.
Maximum Payout	The maximum award that a plan or group member should receive.

The Determine Allocation process calculates the target, minimum, and maximum awards. If the worker is eligible for the entire period, after the Calculate Awards process applies the performance factor to the target award, it compares the calculated award to the minimum and maximum awards.

If the calculated award is less than the minimum award, the process overwrites the calculated award with the minimum. If the calculated award exceeds the maximum, the process overwrites the calculated award with the maximum. When the process overwrites the calculated award with the minimum or maximum, it sets a Calculation Source indicator on the Award Allocation page.

Deciding Which Payouts Page to Use

Use this table to determine which of the Plan Payouts pages to use:

Plan Rule	Plan Payouts Page
Ad Hoc	Do not assign payout formulas; instead, enter the award amount directly on the Award Allocations page.
Employee VC Record	Use the Plan Payouts page to assign optional minimum and maximum payouts at the plan level. (Assign the Target Payout at the worker level on the Individual's Payout page.)
Employee VC Record with Groups.	Use the Plan Payouts with Groups page to assign optional minimum and maximum payouts at the group level. (Assign the Target Payout at the worker level on the Individual's Payout page.)
Define Tree/Group	Use the Plan Payouts with Groups page. The system applies payouts established on this page to all members of the selected group and to child groups for which you do not specify otherwise.
Matrix Goals (with any plan member rule except Ad Hoc)	Do not use either of these pages; instead, associate payout formulas with the goals matrix on the Matrix Goals: Payout Schedule page.

See Also

Viewing and Adjusting Award Allocations

Pages Used to Assign Payout Formulas

Page Name	Object Name	Navigation	Usage
Plan Payouts	VC_PAYOUT	Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Payouts Compensation, Variable Compensation, Maintain Plan, Plan Payouts	Assign payout formulas at the minimum and maximum levels under the plan. Plans that use matrix goals or ad hoc membership are not available. Use this page if the Plan Member Rule is Empl VC Record.
Plan Payouts with Groups	VC_PAYOUT_WG	Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Payouts With Groups Compensation, Variable Compensation, Maintain Plan, Plan Payouts w/ Groups	Assign payout formulas at the target, minimum, and maximum levels under the plan. Plans that use matrix goals are not available.

Page Name

Object Name

Navigation

Usage

Plan Payouts

VC_PAYOUT

Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Payouts
Compensation, Variable Compensation, Maintain Plan, Plan Payouts

Assign payout formulas at the minimum and maximum levels under the plan. Plans that use matrix goals or ad hoc membership are not available.

Use this page if the Plan Member Rule is Empl VC Record.

Plan Payouts with Groups

VC_PAYOUT_WG

Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Payouts With Groups
Compensation, Variable Compensation, Maintain Plan, Plan Payouts w/ Groups

Assign payout formulas at the target, minimum, and maximum levels under the plan. Plans that use matrix goals are not available.

Assigning Payout Formulas for Employee VC Record Plans

Access the Plan Payouts page.

Payout Values

To establish a payout, select a payout formula from the available options. Values prompt from the Payout Formula table (VC_PAYFORM_TBL). All payout fields are unavailable for entry if awards have been approved, manually altered, or sent for payout/distribution for the period during which the Effective Date falls.

The system applies the payout to all members of the plan.

Depending on the Plan Member Rule, some fields are unavailable for entry and some fields are optional, as summarized in this table:

Field	Empl VC Record	Ad Hoc Award
Minimum Payout	Optional field.	Field unavailable for entry.
Target Payout	Field unavailable for entry. Set the Target Payout at the worker level on the Individual's Payout page.	Field unavailable for entry. Enter the award at the worker level directly on the Award Allocation page.
Maximum Payout	Optional field.	Field unavailable for entry.

See Also

Viewing and Adjusting Award Allocations

Assigning Payout Formulas for Plans with Groups

Access the Plan Payouts With Groups page.

Group ID

Select an ID from the available options, which are groups in the VC Tree that you specified for the plan. The default Group ID is the root group of the tree.

Set the payouts for the highest group to which it applies. The system automatically applies the payout to all child groups in the tree unless a specific payout formula is applied to a child group.

Payout Values Per Group

To establish a payout, select a payout formula from the available options. Values prompt from the Payout Formula table (VC_PAYFORM_TBL). No payout fields are available for entry if awards have been approved or sent for payout/distribution for the period during which the Effective Date falls.

The system applies the payout to all members of the selected group and its child groups if you do not define payouts at lower levels on the tree.

Depending on the Plan Member Rule, some fields are unavailable for entry and some fields are optional, as summarized in this table:

Field	Empl VC Record with Groups	Define Tree/Group
Minimum Payout	Optional field.	Optional field.
Target Payout	Field unavailable for entry. Set the Target Payout at the worker level on the Individual's Payout page.	Required field except when the plan uses matrix goals.
Maximum Payout	Optional field.	Optional field.

Setting Up Proration Tables

To set up proration tables, Workday Schedules (VC_WORK_DY_SCHED), Percentage Proration Rules (VC_PRORATE_RULE), and Prorate Periods (VC_PRORATE_PRD) components.

This section describes how to:

Set up workday rules.
Set up proration percentage rules.
Define proration frequency parameters.

Pages Used to Set Up Proration

Page Name	Object Name	Navigation	Usage
Workday Schedules	VC_WRK_DY_SCHED	Set Up HRMS, Product Related, Compensation, Variable Compensation, Workday Schedules	Set up Workday Rules in which you create schedules assigning a factor to each day of the week (Sunday through Saturday).
Prorate Percent	VC_PRORATE_TBL	Set Up HRMS, Product Related, Compensation, Variable Compensation, Percentage Proration Rules	Define ranges of eligible days and associate a percentage with each range.
Prorate Periods	VC_PRORATE_PRD	Set Up HRMS, Product Related, Compensation, Variable Compensation, Prorate Periods Compensation, Variable Compensation, Maintain Plan, Prorate Periods	Define proration frequency parameters for a prorated plan’s payout periods. The Calculate Eligibility/Proration process evaluates eligibility as of the proration period end dates generated on this page.

Setting Up Workday Rules

Access the Workday Schedule page.

Factor

Enter the factor for each day. For example, you could assign a factor of 1 for a full working day, .5 for a half day, and 0 for a holiday.

Setting Up Proration Percentage Rules

Access the Prorate Percent page.

Define a lookup table that the system uses to determine the worker’s proration factor based on the number of eligible days in the period.

Eligible Status

You can define separate proration rate schedules for Active and Terminated workers under each Prorate % ID. Select whether this proration rate schedule applies to workers who are Active or Terminated at the end of the payout period.

Terminated status includes these worker status values on the Job record: Deceased, Retired, Retired with Pay, Terminated, and Terminated with Pay.

If you do not define a proration rate schedule with a value of Terminated in Eligible Status, the system assigns a proration factor of 0 to workers with these termination worker status values in their Job record.

All other worker status values on the Job record are associated with the Active value in this field.

Eligible Days

Enter the ending number in the eligible days range. For example, if the range is 1-15 days, enter 15.

Proration Percentage

Associate a proration factor, expressed as a percentage, with the eligible days range. This is the proration factor used by the Calculate Awards process if the worker’s eligible days for the period falls into this Eligible Days range.

Define a date range and assign a proration percentage of 0 if you want to exclude workers who are not eligible in the first portion of the period. For example, you can exclude workers were not eligible in the first 21 days of the period by setting up an eligible days range that ends in 21 and associating 0 as the proration percentage.

Defining Proration Parameters

Prorate periods are subsets of the plan payout period. Prorate periods can have daily, weekly, or monthly frequency. Daily frequency is the most accurate, but the processing time is greater.

Access the Prorate Periods page.

Period ID

Select a payout period from the available options. Values prompt from the VC_PAYPRD_TBL. The list does not include payout periods for which an award has been finalized, canceled, or manually entered. In other words, if the Award Status on the Award Allocation page is other than Initial Calculation for any award in the plan, or if any award was manually allocated, that payout period is not available.

The system displays the payout Period Begin and Period End Dates that you defined on the VC Plan - Plan Payout Periods page.

Proration Freq (proration frequency)

Select a proration frequency from these values:

By Workdays (daily frequency): The Workday Rule ID field appears.

Calendar Days (daily frequency): The Prorate % ID field appears.

Monthly: The Date Ind field appears.

Weekly: The Day field appears.

Workday Rule ID

If you select By Workdays as proration frequency, you must select a workday rule. The maximum number of Eligible Days defined in the rule you select must not be less than the number of days in the payout period.

Prorate % ID

This field appears if you select Calendar Days.

If you use the proration percentage calculation method, select a prorate percentage ID to associate a prorate percentage schedule with the plan for the payout period.

If you use daily calculation method without proration percentages, leave this field blank.

Day

If you select Weekly as the proration frequency, you must select the day of the week as of which you want the system to calculate the proration. Values are the 7 days of the week (Sunday through Saturday).

Date Ind (date indicator)

If you select Monthly proration frequency, select a date indicator in this field. Values include:

End of Month: The system calculates eligibility as of the end of each month.

Day of Month: The Day of Mon field appears.

Day of Mon (day of the month)

Enter the number of the day of the month as of which you want the system to calculate eligibility. Select any number from 1 - 28. Set theDate Ind to End of Month if you select a number higher than 28.

End Date

After you define the proration frequency, the system displays the end date here of each proration period within the payout period you specified.

Run Status

The system selects this check box when the Calculate Eligibility/Proration process completes the eligibility calculation for the corresponding proration period.

Setting Up Variable Compensation Funding

To set up funding for variable compensation plans, use the Plan Funding (VC_PLAN_FUNDING) component.

This section describes how to allocate funds to a variable compensation plan.

Page Used to Fund Variable Compensation Plans

Page Name	Object Name	Navigation	Usage
Plan Funding	VC_PLAN_FUNDING	Set Up HRMS, Product Related, Compensation, Variable Compensation, Plan Funding Compensation, Variable Compensation, Maintain Plan, Plan Funding	Allocate funds to a variable compensation plan. The system tracks these funds and adjusts the fund’s available balance as you allocate awards. Plan funding is optional. Fund the plan at any time in the life of the plan.

Allocating Funds to a Variable Compensation Plan

Access the Plan Funding page.

This table lists the fields that are visible for the different plan types:

Monetary Plans	Non-monetary Plans	Stock Plans
VC Plan ID	VC Plan ID	VC Plan ID
Plan Funding	Plan Funding (Units)	Shares Available to Plan
Funds Available	Plan Balance	Plan Balance
Funding Date	Funding Date	Funding Date
Amount Funded	Funding Units	Funding Units
Currency	Last Updated User Name	Last Updated User Name
Last Updated User Name	Last Update Timestamp	Last Update Timestamp
Last Update Timestamp

Plan Funding	(Monetary plans) The sum of all funding amounts for the plan. The system recalculates the Plan Funding amount each time you add or change an amount in the Amount Funded column.
Plan Funding (Units)	(Non-monetary plans) The sum of all funding units for the plan. The system recalculates the Plan Funding (Units) amount each time that you add or change an amount in the Funding Units column.
Funds Available	(Monetary plans) For plans without groups: The amount of funds remaining for distribution that have not been allocated to awards, which is recalculated each time you access the page. For plans with groups: The amount of Plan Funding minus the amount of funding that has been allocated to the top group.
Shares Available to Plan	(Stock-type plans) The sum of all the shares allocated from Stock Administration to Variable Compensation for the stock plan and stock ID, minus any shares funded to other plans to date.
Plan Balance	(Non-monetary and stock-type plans) For plans without groups: The total of Funding Units allocated to this plan ID minus any awards allocated from the plan. For plans with groups: The total of Funding Units allocated to this plan ID minus the number of funding units that have been allocated to the top group.
Seq. Nbr. (sequence number)	The system sequentially numbers the rows in the grid. The default for the first row is 1. You cannot delete a saved row.
Funding Date	Enter the date of the funding that you are allocating to the plan. Today’s date is the system default.
Amount Funded	(Monetary plans) Enter the amount of funding that you want to add to the plan. Enter a negative amount if you want to decrease the plan funding.
Funding Units	(Non-monetary or stock-type plans) Enter the number of units that you want to add to the plan. Enter a negative amount if you want to decrease the plan funding. Stock funding units cannot exceed the value in the Shares Available to Plan field.

Plan Start Date	Enter the date on which you want the plan to begin. Once you save the plan definition, you cannot change this date. For stock-type plans, this date cannot be earlier than the stock plan’s approval date.
Plan End Date	Enter the date on which you want the plan to end. Once you save the plan definition, change the Plan End Date only to a later date if you want to extend the plan. For stock-type plans, this date cannot be later than the stock plan’s expiration date.
Currency	Select the currency in which you want the system to calculate, display, and report allocations. For roll up purposes, you must select one currency for the plan. Payout is in the appropriate currency for the worker. For stock-type plans, the default value is the currency code for the stock ID on the Stock Exchange table. The currency of the VC plan must match the currency of the Stock plan.
Plan Type	Select from the available options: Discretionary Bonus, Goal Sharing, Non-Monetary, Other, Profit Sharing, Stock ISO, Stock NQ, Stock NSAR, Stock RSA, and Stock ISAR.

Plan Member Rule	Select the rule to use to administer membership under this VC plan: Ad Hoc Award, Empl VC Record (employee variable compensation record), Empl VC Record with Groups (employee variable compensation record with groups), and Define Tree/Group.
EE Term Status (employee termination status)	This link appears if you select Empl VC Record. Click to access the VC Termination Status page, where you select the termination status codes that exclude workers from payment under the plan.

Period ID	Select a payout period from the available options. Values prompt from the VC_PAYPRD_TBL. The list does not include payout periods for which an award has been finalized, canceled, or manually entered. In other words, if the Award Status on the Award Allocation page is other than Initial Calculation for any award in the plan, or if any award was manually allocated, that payout period is not available. The system displays the payout Period Begin and Period End Dates that you defined on the VC Plan - Plan Payout Periods page.
Proration Freq (proration frequency)	Select a proration frequency from these values: By Workdays (daily frequency): The Workday Rule ID field appears. Calendar Days (daily frequency): The Prorate % ID field appears. Monthly: The Date Ind field appears. Weekly: The Day field appears.
Workday Rule ID	If you select By Workdays as proration frequency, you must select a workday rule. The maximum number of Eligible Days defined in the rule you select must not be less than the number of days in the payout period.
Prorate % ID	This field appears if you select Calendar Days. If you use the proration percentage calculation method, select a prorate percentage ID to associate a prorate percentage schedule with the plan for the payout period. If you use daily calculation method without proration percentages, leave this field blank.
Day	If you select Weekly as the proration frequency, you must select the day of the week as of which you want the system to calculate the proration. Values are the 7 days of the week (Sunday through Saturday).
Date Ind (date indicator)	If you select Monthly proration frequency, select a date indicator in this field. Values include: End of Month: The system calculates eligibility as of the end of each month. Day of Month: The Day of Mon field appears.
Day of Mon (day of the month)	Enter the number of the day of the month as of which you want the system to calculate eligibility. Select any number from 1 - 28. Set theDate Ind to End of Month if you select a number higher than 28.
End Date	After you define the proration frequency, the system displays the end date here of each proration period within the payout period you specified.
Run Status	The system selects this check box when the Calculate Eligibility/Proration process completes the eligibility calculation for the corresponding proration period.