Setting Up Base Compensation Budgeting and Planning

To set up base compensation budgeting and planning, use the Budget Types (SP_BUD_TYPE_TBL_GBL), Define Budgets (CONTROL_TBL_GBL), Salary Plan Default Values (SAL_PLAN_CONTROL_GBL), and Salary Plan Group Default Values (SAL_PLAN_CNTRL_GRP_GBL) components.

This section provides an overview of salary increase budgeting and planning, and discusses how to set up salary increase budgeting and planning.

Page Name

Definition Name

Usage

Budget Types Page

SP_BUD_TYPE_TBL

Define budget types and assign default values for action and reason codes.

Define Budgets Page

CONTROL_TBL

Set up a budget plan that may span multiple budget periods.

Default Budget Parameters Page

SAL_PLAN_CONTROL

Define default budget and salary increase plan control dates, currency defaults, the salary increase method, eligibility dates, and the salary increase effective date.

Assign Group Budget Parameters Page

SAL_PLAN_CNTRL_GRP

Establish default control values for salary increase budgets and plans that you set up for a particular group ID.

The system populates this page with the default values you defined on the Default Budget Parameters page. You can change the default values for the group.

When you create salary increase budgets and plans, you first need to set up control data that the system uses to determine worker eligibility for salary increases. Set up sets of default control data that you can modify at the group level.

Complete these steps to set up default controls for salary increase budgets and plans:

  1. Define budget default IDs on the Define Budgets page.

  2. Define plan default control values on the Default Budget Parameters page.

  3. Define budget default control values at the group level on the Assign Group Budget Parameters page.

    The values that you save on this page are the default control values that the system enters on the Group Budgets component and Budget Description page when you establish salary adjustment budgets and plans for this group.

Use the Budget Types page (SP_BUD_TYPE_TBL) to define budget types and assign default values for action and reason codes.

Navigation:

Set Up HCM > Product Related > Compensation > Base Compensation > Budget Types > Budget Types

This example illustrates the fields and controls on the Budget Types page.

Budget Types page

Field or Control

Description

Effective Date

Enter an effective date for the budget type.

Status

Select Active or Inactive. Only budget types with a status of Active can be used.

Action

Select a value from the Action table.

Reason Code

Select a value from the Action Reason table.

Use the Default Budget Parameters page (SAL_PLAN_CONTROL) to define default budget and salary increase plan control dates, currency defaults, the salary increase method, eligibility dates, and the salary increase effective date.

Navigation:

Set Up HCM > Product Related > Compensation > Base Compensation > Default Budget Parameters > Default Budget Parameters

This example illustrates the fields and controls on the Default Budget Parameters page.

Default Budget Parameters page

Use the default values you set up here when you define salary increase plans for worker groups.

Default Values

Field or Control

Description

Budget Period Start Date and Budget Period End Date

Enter the beginning date and ending date of the budget plan's effective period. The system uses the start and end dates that you enter here to verify that the increases you plan take effect between the two dates.

Salary Planning Start Date

Enter the salary planning start date. The system basis its calculations for new increases on the salary planning start date.

Currency Code

Select the currency code that you want the system to enter as the default currency code when you create salary increase plans. The system enters the base currency value in the Primary Permission List Preferences table defined for your user ID as the default value.

Level of Proration

Displays budget and salary plan calculations in the frequency that you select here. The available values are from the Frequency table.

Default Rate Type

Select the rate type that you want the system to enter as the default for your salary increase plans. Valid values are the exchange rate types that you previously established in the Rate Type table (RT_TYPE_TBL). The system uses this rate type for all currency conversions.

Salary Increase Method

Select one of the two options as the default method of implementing salary increases under your salary increase plans. You can change the method when you define salary increase plans for specific groups.

Field or Control

Description

All Employees at the Same Time

Select if you want all salary increases under your salary plans to be implemented for all workers at the same time. If you select this option, the New Hire Eligibility Date field becomes available for data entry. The effective date of the workers' salary increases will be the effective date that you define for the increase on the Budget Requested page.

Employee Anniversary Date

Select if you want salary increases under your salary plans to be implemented on the worker's anniversary date. The anniversary date can be the worker's hire or rehire date. If you select this option, the New Hire Eligibility Date field becomes unavailable for data entry.

If you select this option, you must:

  • Enter a budget period that spans an entire year (for example, 04/01/2000 to 03/31/2001), and the effective date of the budget must be the budget period start date.

  • Select Annual as the Level of Proration.

  • Define only one increase in the budget. The effective date of the budget increase must be the same as the budget period start date. The worker's anniversary date will be the effective date of the increase in the worker's job data row.

    You cannot define multiple increases by effective date and effective sequence if administration is by worker anniversary date.

  • Run the Create/Refresh Anniversary Dates process before loading the increases to Job Data.

    The process should be run before creating the budget. The system calculates the budget based on the list of workers created by this process.

Eligibility Dates

Field or Control

Description

New Hire Eligibility Date

If you selected All Employees at the Same Time as the salary increase method, this field becomes available for data entry.

Enter the cutoff point for workers to be included in the plan. Any workers hired after this date will not appear in the budget or plan. This date must be prior to the salary planning start date.

(MEX) Mexico

In Mexico, you can define salary increase calculations in two ways:

  • Increment Budget Method (standard budget raise method)

    The standard method allows you to take the budgeted percentage and insert it into the worker's salary plan.

  • Increment Matrix Method (salary increase matrix method)

    The salary increase matrix method allows you to take the percentage from the salary increase matrix.

Once you select the Increment Matrix Method option on the Default Budget Parameters page and the Assign Group Budget Parameters page, you need to calculate the salary increase for the worker.

Use the Assign Group Budget Parameters page (SAL_PLAN_CNTRL_GRP) to establish default control values for salary increase budgets and plans that you set up for a particular group ID.

The system populates this page with the default values you defined on the Default Budget Parameters page. You can change the default values for the group.

Navigation:

Set Up HCM > Product Related > Compensation > Base Compensation > Assign Group Budget Parameters > Assign Group Budget Parameters

This example illustrates the fields and controls on the Assign Group Budget Parameters page.

Assign Group Budget Parameters page

Note: Even if you do not change any of the default values, you must open this page and save the data before you can create salary increase budgets or plans.

Group Default Values

Field or Control

Description

Budget Default ID

Use this field to select the values you want the system to enter on this page as the default control values for this group. Set up the default values for Budget Default IDs on the Default Budget Parameters page.

Start Date and End Date

Displays the start and end dates of the budget period that you entered for this Budget Default ID on the Default Budget Parameters page.