Payout Formula

Formulas the system uses to calculate target, minimum, and maximum payouts under the plan.

Define payout formulas on the Payout Formula setup page.

Target Payout Formula

The payout formula that the Determine Allocations process uses to calculate the target award.

Depending upon how you define the plan, assign target payout formulas to plan members at the individual level, the group level, or through the matrix goal payout schedule.

Minimum Payout Formula

The formula the Calculate Awards process uses to determine the minimum award the plan member should receive under the plan.

Optionally assign minimum payout formulas at the plan or group level.

Maximum Payout Formula

The formula the Calculate Awards process uses to determine the maximum award the plan member should receive under the plan.

Optionally assign maximum payout formulas at the plan or group level.

Proration Factor (or Prorate Factor)

A factor calculated by the Calculate Eligibility/Proration process.

This factor is based on the amount of time the worker was a member of the plan during the payout period. The Calculate Awards process multiplies the plan member’s target award by the proration factor when it calculates the calculated award.

Adjustment Factor

A factor calculated and applied by the Calculate Awards process to adjust each individual award by the same ratio for funded plans when there is not enough funding to pay out the calculated awards.

Performance Factor

The factor the Calculate Awards process uses to adjust for weighted goal attainments.

The performance factor for a given goal is the attainment percent multiplied by the weighting percent of the goal and by the weighting percent of the level.

Target Award

The award received upon completion of 100 percent of all applicable goals, including organization, group, and individual goals.

The Determine Allocations process calculates the target award, which is the calculated value of the target payout formula without applying any proration factor, performance factor, or adjustment factor. The Calculate Awards process uses the target award to calculate the calculated award.

Target award is labeled Target Value on the Award Allocations page.

Minimum Award

The calculated value of the minimum payout formula assigned to the plan or group, without applying any proration factor, performance factor, or adjustment factor. The Determine Allocations process calculates the minimum award.

Maximum Award

The calculated value of the maximum payout formula assigned to the plan or group, without applying any proration factor, performance factor, or adjustment factor.

The Determine Allocations process calculates the maximum award.

Target Value

The value of the target award expressed in the currency of the variable compensation plan or in units if the plan is non-monetary.

The Determine Allocations process calculates this value and enters it in the Target Value field on the Award Allocation page.

Calculated Award

The target award multiplied by the performance factor (if the plan uses weighted goals) and the proration factor (if the plan is prorated) and adjusted to the minimum or maximum if appropriate.

The Calculate Awards process calculates the calculated award and enters it in the Calculated Award field on the Award Allocation page.

Adjusted Award

The calculated award multiplied by the adjustment factor.

The Calculate Awards process calculates the adjusted award and enters it in the Adjusted Award field and in the Actual Award field on the Award Allocation page.

Actual Award

The adjusted award as further changed on the Award Allocations page by manual adjustment or carryover amount.

If not changed, the actual award is equal to the adjusted award. Once approved, the actual award is the amount of currency or units approved for payout or distribution.

Award Value

The value of the actual award expressed in the currency of the variable compensation plan.

The Calculate Awards process applies the valuation ID and rounding rules to calculate the monetary award value of non-monetary units.

Determine Allocation

RUNCTL_VC_DET_ALL

Compensation, Variable Compensation, Calculate Awards, Determine Allocation

Run the Determine Allocations process, which calculates 100 percent variable compensation payouts, as well as performance factors for organization and group goals.

Calculate Awards by Plan

RUNCTL_VC_CALWRD_P

Compensation, Variable Compensation, Calculate Awards, Calculate by Plan, Calculate Awards by Plan

Run the Calculate Awards process for plans that do not use groups. This process calculates awards and enters calculation data on the Award Allocations page.

Select a VC Plan ID and payout period.

Calculate Awards by Group

RUNCTL_VC_CALWRD_G

Compensation, Variable Compensation, Calculate Awards, Calculate by Group, Calculate Awards by Group

Run the Calculate Awards process for selected groups within plans administered with groups. This process calculates awards and enters calculation data on the Award Allocations page.

Select a VC Plan ID, payout period, and group ID.

Award Status

Shows the status of the individual award within a plan or group.

Group Status

Shows the status of all awards within the plan or group. The system enters all Group Status codes.

A (approved)

If you choose Approve Awards as a plan business rule and run the Approve Awards process, the system enters the Approved status for each approved award.

If you approve awards manually, the designated approver enters the Approved status to approve awards.

None

C (canceled)

Select this status to tell the system that you have no intention of granting this award. Canceled is a final status, meaning that it does not inhibit the approval and submittal processes.

None

D (ready to submit)

If you do not choose Approve Awards as a plan business rule, select this status to tell the system that the award is final and ready for payout/distribution.

The system enters this status when all awards in the period for the plan or group are ready to be submitted for payout or stock distribution.

E (errored)

The system enters this status for the award if Payroll for North America, Global Payroll, or Stock Administration cannot proceed with payout or distribution because of an error in the individual award.

(corrections required)

Same definition as for individual Award Status.

I (initial calculation)

The Calculate Awards process enters this status when it initially populates the Award Allocations page with calculated award data.

Same definition as for individual Award Status.

J (rejected)

The system enters this status if Payroll for North America, Global Payroll, or Stock Administration rejects all of the awards for the entire plan or group due to an error at the plan or group level.

Same definition as for individual Award Status.

P (paid/granted)

The system enters this status after successful payout or distribution through Payroll for North America, Global Payroll, or Stock Administration.

Same definition as for individual Award Status.

R (recommended)

If you choose Approve Awards as a plan business rule, give each award the Recommended status when it is ready for approval.

None

S (submitted)

The system enters this status when it publishes awards for payout or distribution.

Same definition as for individual Award Status.

Calculate Awards

Initial Calculation

Initial Calculation

Initial Calculation

Initial Calculation

Award Allocation

Recommended or Canceled

Ready to Submit or Canceled

Ready to Submit

Ready to Submit

Approve Awards

Approved

NA

Ready to Submit

NA

Publish to payroll, stock, or flat file.

Submitted

Submitted

Submitted

Submitted

Subscribe to payroll or stock.

(Error)

Error

Error

Corrections Required

Corrections Required

Subscribe to payroll or stock.

(Rejected)

Rejected

Rejected

Rejected

Rejected

Subscribe to payroll or stock.

(Paid/Granted)

Paid/Granted

Paid/Granted

Paid/Granted

Paid/Granted

Award Allocation

VC_AWD_ALLOC

Compensation, Variable Compensation, Finalize Awards, Allocate Awards by Plan, Award Allocation

View and change the awards calculated by the Award Allocation process or enter awards for Ad Hoc plans. Also view and change the award status of individual awards.

Award Allocations with Groups

VC_AWD_ALLOC_WG

Compensation, Variable Compensation, Finalize Awards, Allocate Awards by Group, Award Allocation with Groups

View and change the awards calculated by the Award Allocations process for group members. Also view and change the award status of individual awards.

Use if you administer the plan using groups. If the plan does not use groups, the system enters the award data on the Award Allocations page.

End Date

The end date that you defined on the Payout Period table for the Payout Period ID that you entered.

Sent to Payroll Date

The system populates this field when it publishes the awards to payroll or stock.

Plan Funding

For funded plans, the system enters the sum of all plan funding amounts that you entered on the Plan Funding page with a date prior to the payout period End Date.

This field does not appear on the page if the plan is not funded, or if you allocated funds to groups.

Available

For funded plans, the system displays the funds remaining for distribution that have not been allocated to awards. The system updates the Available field each time the Actual Award amount changes.

This field does not appear on the page if the plan is not funded, or if you allocated funds to groups.

Group Status

The status that applies to awards in this payout period for the entire plan or entire group (if the plan uses groups).

The Calculate Awards process enters the default value of Initial Calculation. If the Group Status is Submitted, all editable fields on the page are unavailable for entry.

The system changes the Group Status according to the status of the entire group of individual awards. Available values are:

• I - Initial Calculation

• D - Ready to Submit

• S - Submitted

• E - Corrections Required

• J - Rejected

• P - Paid/Granted

Name EmplID (employee ID)

When you specify a Plan ID and Payout Period ID upon entering the page, the system loads all of the plan members for whom the user has security access. Use the Name and EmplID fields to easily find and display an individual’s award record in the bottom portion of the page.

Click the Refresh Search Fields? button to display the first chunk of members and to clear the search fields before entering new search parameters. The field to the left of this button tells you which rows are visible compared to the total number of rows that match the current search criteria. For example, 12 to 20 of 56 means that rows 12 to 20 are displayed out of a total of 56 rows.

Search

After entering new search parameters, click this button.

Click the First Item button to display the first chunk of members.

Click the Previous Item button to display the previous chunk of members.

Click the Next Item button to display the next chunk of members.

Click the Last Item button to display the last chunk of members.

Sort by

Choose to display the plan member records in the page in the order of EmplID or Name.

Earnings Code

The value that you defined for the plan on the Plan Definition page appears. Select a different value to modify the code at the worker level.

GP Earnings

The value that you defined for the plan on the Plan Definition page appears. Select a different value to modify the code at the worker level.

Carryover Balance, Accum Carryover, Carryover Amount

These fields are hidden if you did not select Carryover Awards on the Plan Business Rules page or if the plan is a non-monetary plan (including stock-type plans).

These three fields work together to help you administer carryovers for each worker in the plan.

Carryover Balance

The Carryover Balance that you have withheld for the worker to date under this plan appears. When you approve the worker’s award, the system updates the Carryover Balance with the amount in the Accum Carryover (accumulated carryover) field for this period.

Accum Carryover (accumulated carryover)

The Accum Carryover field tracks the cumulative effect of the amounts that you enter in the Carryover Amount field for the worker in this payout period. For example, if you first enter $300, and later enter $100 in the Carryover Amount field, the Accum Carryover field l shows $400. If you later enter a negative amount of -$150 in the Carryover Amount field, the Accum Carryover field shows $250.

After making several changes in the Carryover Amount, if you want to know what the worker’s award would be without any adjustment in the carryover balance, add the Accum Carryover amount to the value in the Actual Award field.

To see what the new carryover balance would be, add the Accum Carryover amount to the value in the Carryover Balance field. When you approve the worker’s award, the system updates the Carryover Balance with the amount in the Accum Carryover field.

Carryover Amount

Use the Carryover Amount field to adjust the worker’s Carryover Balance. Enter a positive amount to increase the worker’s carryover balance and decrease the award. Enter a negative amount to decrease the worker’s carryover balance and increase the award.

As you adjust the Carryover Amount, the system changes the amount in the Actual Award and Accum Carryover fields. The amount in the Carryover Balance field does not change until you approve the award.

Guarantee

If you entered a guarantee for the worker on the Individual's Payout page, the system displays that amount in the Guarantee field on this page. Manually change the Actual Award to the guarantee amount at your discretion. The system does not automatically enforce guarantees.

This field is not visible if the plan member rule is Ad Hoc Award or Define Tree/Group.

Award Date

The system enters the payout period end date as the default value. When you set the Award Status to Approved or Ready to Submit and save the page, the system sets the Award Date to the current date. If you approve awards using the Approve Awards process, the system sets the Award Date to the date that the process runs.

Manually change the Award Date to another date, such as the period end date.

If you try to change the Approved status to any other status, the system warns you that it will reset the Award Date to the period end date.

For Stock plans paid out through Stock Administration, the system changes the Award Date to the Grant Date after creating stock grants.

For plans paid out through Payroll for North America, the system changes the Award Date to the value set by the payroll system as the date of payment.

Award Status

The status of the individual worker award.

The default value is I (initial calculation). Select a status from these options:

• A- Approved: This value is only available if Approve Awards is selected on the Plan Business Rules page. If you use the Approve Awards batch process, the system enters this value. If you manually approve awards, only the designated approver can select this value.

• C - Canceled: Select this value to cancel the award.

• I - Initial Calculation: The system enters this value as the default.

• R - Recommended: This value is available only if you select Approve Awards on the Plan Business Rules page.

• D - Ready to Submit: This value is available only if you do not select Approve Awards on the Plan Business Rules page.

Modifier (%)

Enter a value in the modifier field to modify by the specified percentage an award that the system has calculated. Enter a value above 100 percent to increase the award; enter a value below 100 percent to decrease the award. The default is 100%.

The system multiplies the Adjusted Award by the percent value that you enter and updates the Actual Award and the Award Value fields. It also updates funding information.

Example 1: The Adjusted Award is $1,000 and the modifier is 75 percent. The system changes the Actual Award to $750.00 (.75 x 1000).

Example 2: The Adjusted Award is $1,000 and the modifier is 110 percent. The system changes the Actual Award to $1,100 (1.10 x 1000).

After modifying an award, the system enters the Manual value in the Calculation Source field that is next to the Modifier field.

Calc Source (Calculation Source)

The Calculation Source field is the unlabeled field next to the Modifier field. The system enters a value here to indicate the source of the Actual Award amount. Values are:

• System: The Calculate Awards process calculated the Actual Award based on the target formula and other factors.

• Manual: You have manually entered or changed the Actual Award You can enter an Actual Award for Ad Hoc plans, or change the Actual Award by directly entering an amount, or use the Modifier and Carryover Amount fields.

• System − Min: The system substituted the minimum award because the calculated award is lower than the minimum award that you specified for the plan or group.

• System − Max: The system substituted the maximum award because the calculated award is higher than the maximum award that you specified for the plan or group.

Actual Award

The Calculate Awards process enters the adjusted award amount as the default value in the Actual Award field. The system updates the Actual Award when you enter a Carryover Amount or enter a value in the Modifier field. You can also enter a different amount directly into the Actual Award field.

If the plan is an Ad Hoc plan, enter the worker’s award directly into the Actual Award field. The system sets the Calculation Source to Manual.

When you or the system enters or changes the amount in the Actual Award field, online processing automatically updates funding information.

Award Value

The system enters the monetary value of the Actual Award It updates this Award Value as the Actual Award changes.

Target Value

The value of the target award as expressed in the currency of the VC plan or in units if the plan is non-monetary. The Determine Awards process calculates this value.

Calculated Award

The target award multiplied by the performance factor (if the plan uses weighted goals) and the proration factor (if the plan is prorated). The Calculate Awards process calculates this value.

Adjustment Factor

The factor calculated and applied by the Calculate Awards process to adjust each individual award by the same ratio for funded plans when there is not enough funding to pay out the calculated awards.

This field does not appear on the page if the plan does not use funding.

Adjusted Award

The calculated awards multiplied by the adjustment factor. The Calculate Awards process calculates the Adjusted Award.

Adjusted awards cannot be less than the minimum or more than the maximum payout.

Original Award [Units]

This field is for Stock type plans only. It displays the number of units in the original award, before any stock splits. Splits are reflected in the Actual Award field when the award is published to Stock for distribution.

Original Award Value

This field is for Stock type plans only. It displays the value of the original award, before any stock repricing. Repricing is reflected in the Award Value field when the award is published to Stock for distribution.

Prorate Factor

A factor calculated by the Calculate Eligibility/Proration process. It is based on the amount of time the worker was a member of the plan during the payout period.

This field appears only on the page if prorate eligibility is a plan business rule.

Org Perf Factor (organization performance factor)

A factor determined by the organization weighted goal attainments.

This field appears only on the page if the plan uses organization level weighted goals.

Group Perf Factor (group performance factor)

A factor determined by the group weighted goal attainments.

This field appears only on the page if the plan uses group level weighted goals.

Performance Factor

A factor determined by the goal attainments for weighted goals at the various levels under the plan. The Calculate Awards process applies the performance factor to the target award.

This field appears only on the page if the plan uses weighted goals.

Report name Varies

RUNCTL_VC_REP

• Compensation, Variable Compensation, Award Reports, Calculate Awards

• Compensation, Variable Compensation, Award Reports, Actual Awards

• Compensation, Variable Compensation, Award Reports, Variance

• Compensation, Variable Compensation, Award Reports, Carryovers

• Compensation, Variable Compensation, Award Reports, Employee History

• Compensation, Variable Compensation, Award Reports, Non Monetary Report

• Compensation, Variable Compensation, Award Reports, Plan History

Use this page to run these reports:

• Calculate Awards Report (VC003). Use this report to view the results of the Award Calculation process.

• Variance Report (VC010). Use this report to view the variance between the target award and the actual award that appears on the Award Allocations page.

• Actual Awards Report (VC001). Use this report to view the actual variable compensation awards that were received.

• Carryover Report (VC004). Use this report to view the carryover balances.

• Employee History Report (VC005). Use this report to view variable compensation data for workers.

• Non Monetary Report (VC008). Use this report to view non-monetary information associated with variable compensation plans.

• Plan History Report (VC009). Use this report to view information about the history of a variable compensation plan.