PeopleSoft HCM 9.2: Human Resources Manage Variable Compensation - Oracle

PeopleSoft HCM 9.2: HumanResources Manage VariableCompensationApril 2021

PeopleSoft HCM 9.2: Human Resources Manage Variable CompensationCopyright 1988, 2021, Oracle and/or its affiliates.This software and related documentation are provided under a license agreement containing restrictions on use anddisclosure and are protected by intellectual property laws. Except as expressly permitted in your license agreementor allowed by law, you may not use, copy, reproduce, translate, broadcast, modify, license, transmit, distribute,exhibit, perform, publish, or display any part, in any form, or by any means. Reverse engineering, disassembly, ordecompilation of this software, unless required by law for interoperability, is prohibited.The information contained herein is subject to change without notice and is not warranted to be error-free. If youfind any errors, please report them to us in writing.If this is software or related documentation that is delivered to the U.S. Government or anyone licensing it on behalfof the U.S. Government, then the following notice is applicable:U.S. GOVERNMENT END USERS: Oracle programs (including any operating system, integrated software,any programs embedded, installed or activated on delivered hardware, and modifications of such programs) andOracle computer documentation or other Oracle data delivered to or accessed by U.S. Government end users are"commercial computer software" or “commercial computer software documentation” pursuant to the applicableFederal Acquisition Regulation and agency-specific supplemental regulations. As such, the use, reproduction,duplication, release, display, disclosure, modification, preparation of derivative works, and/or adaptation of i) Oracleprograms (including any operating system, integrated software, any programs embedded, installed or activatedon delivered hardware, and modifications of such programs), ii) Oracle computer documentation and/or iii) otherOracle data, is subject to the rights and limitations specified in the license contained in the applicable contract. Theterms governing the U.S. Government’s use of Oracle cloud services are defined by the applicable contract for suchservices. No other rights are granted to the U.S. Government.This software or hardware is developed for general use in a variety of information management applications. It isnot developed or intended for use in any inherently dangerous applications, including applications that may create arisk of personal injury. If you use this software or hardware in dangerous applications, then you shall be responsibleto take all appropriate fail-safe, backup, redundancy, and other measures to ensure its safe use. Oracle Corporationand its affiliates disclaim any liability for any damages caused by use of this software or hardware in dangerousapplications.Oracle and Java are registered trademarks of Oracle and/or its affiliates. Other names may be trademarks of theirrespective owners.Intel and Intel Inside are trademarks or registered trademarks of Intel Corporation. All SPARC trademarks are usedunder license and are trademarks or registered trademarks of SPARC International, Inc. AMD, Epyc, and the AMDlogo are trademarks or registered trademarks of Advanced Micro Devices. UNIX is a registered trademark of TheOpen Group.This software or hardware and documentation may provide access to or information about content, products, andservices from third parties. Oracle Corporation and its affiliates are not responsible for and expressly disclaim allwarranties of any kind with respect to third-party content, products, and services unless otherwise set forth in anapplicable agreement between you and Oracle. Oracle Corporation and its affiliates will not be responsible for anyloss, costs, or damages incurred due to your access to or use of third-party content, products, or services, except asset forth in an applicable agreement between you and Oracle.Documentation AccessibilityFor information about Oracle's commitment to accessibility, visit the Oracle Accessibility Program website at http://www.oracle.com/pls/topic/lookup?ctx acc&id docacc.Access to Oracle SupportOracle customers that have purchased support have access to electronic support through My Oracle Support. Forinformation, visit http://www.oracle.com/pls/topic/lookup?ctx acc&id info or visit http://www.oracle.com/pls/topic/lookup?ctx acc&id trs if you are hearing impaired.

ContentsPreface: Preface.ixUnderstanding the PeopleSoft Online Help and PeopleBooks. ixHosted PeopleSoft Online Help. ixLocally Installed Help. ixDownloadable PeopleBook PDF Files.ixCommon Help Documentation.ixField and Control Definitions. xTypographical Conventions. xISO Country and Currency Codes. xRegion and Industry Identifiers. xiTranslations and Embedded Help. xiUsing and Managing the PeopleSoft Online Help.xiiRelated Links for PeopleSoft HCM. xiiContact Us.xiiFollow Us.xiiChapter 1: Getting Started with Variable Compensation. 13Variable Compensation Business Processes. 13Variable Compensation Integrations. 13Variable Compensation Implementation.14Chapter 2: Understanding Variable Compensation. 15Variable Compensation Plans. 15Selecting Plan Types. 15Determining Plan Membership. 16Using Goals. 16Selecting Other Plan Business Rules and Options. 17Eligibility and Awards Processing.18Award Payout. 18Variable Compensation Reporting. 19Sample Plan Diagrams.19Ad Hoc Plan - Sample Process Flow. 20Define Tree and Groups Plan - Sample Process Flow. 21Chapter 3: Setting Up Data Elements. 23Understanding Data Element Setup.23Defining Payout Formulas. 23Page Used to Define Payout Formulas. 24Payout Formulas Page.24Defining Valuation. 26Page Used to Define Valuation. 27Valuations Page.27Defining Goals. 28Page Used to Define Goals.28Setting Up Eligibility Proration Tables. 29Pages Used to Set Up Eligibility Proration Tables.29Workday Schedule Page.29Percentage Proration Rules Page. 30Prorate Periods Page. 32Copyright 1988, 2021, Oracle and/or its affiliates.iii

ContentsChapter 4: Setting Up Variable Compensation Plans.35Understanding Variable Compensation Plan Types.35Monetary Plan Types.35Non-Monetary Plan Types.36Stock-Type Variable Compensation Plans. 36Other Plan Types. 37Defining a Variable Compensation Plan. 37Pages Used to Define a Variable Compensation Plan. 37Common Elements Used in This Section. 38Plan Definition Page.38Plan Business Rules Page. 41VC Termination Status Page. 43Plan Payout Periods Page.44Assigning Payout Formulas. 45Pages Used to Assign Payout Formulas. 45Understanding Payout Formula Assignment and Processing. 46Plan Payouts Page. 47Plan Payouts With Groups Page. 48Setting Up Goals, Funding, and Proration. 49Chapter 5: Setting Up Plan Membership.51Understanding Plan Member Rules.51Setting Up Plan Members for Ad Hoc Awards.52Page Used to Set Up Plan Members for Ad Hoc Awards. 52Eligible Employees by Plan Page. 52Setting Up Members with Employee Variable Compensation Records. 53Pages Used to Set Up Members with Employee Variable Compensation Records. 54Individual's Payout Page. 54Creating Groups Using Group Build.56Attaching Groups to Trees.57Advantages of Trees.57Important Points About Creating Variable Compensation Trees. 58Variable Compensation Settings in PeopleSoft Tree Manager. 58Effective-Dated Trees and Variable Compensation. 59Deleting Parent-Child Duplicates for Rollup.59Establishing Tree Security. 61Pages Used to Establish Tree Security. 61Group Tree Security Page. 61VC - Tree Group Security Page.63Updating Trees and Tree Security. 64Reporting on Tree Membership.65Pages Used to Report on Tree Membership. 66Tree Member Overlap Page. 66Chapter 6: Processing Eligibility and Proration. 69Understanding Eligibility and Proration Calculation. 69Understanding Proration Factor Calculations.69General Proration Factor Calculation.69Daily, Weekly, or Monthly Frequency Calculation Method. 70Workday Schedule Calculation Method.71Proration Percentage Calculation Method. 72Proration Calculation Method for Plan Members Who Fall Off a Tree.73Determining Eligibility and Calculating Proration.74ivCopyright 1988, 2021, Oracle and/or its affiliates.

ContentsPage Used to Calculate Eligibility and Proration. 74Determine Eligibility Page. 74Viewing and Adjusting Plan Member Eligibility. 76Pages Used to View and Adjust Plan Member Eligibility.76Understanding How to View and Adjust Plan Member Eligibility. 76Understanding Eligibility Status. 77Eligible Employees by Plan Page. 79Member History Page.83Eligible Employees by Group Page. 85Maintaining Eligibility for Employee Variable Compensation Record Plans.85Chapter 7: Setting Up and Using Weighted Goals.87Understanding Weighted Goals. 87Weighted Goal Terminology. 87Weighted Goal Levels. 87Steps for Using Weighted Goals.88Calculation of the Performance Factor. 88Setting Up Weighted Goals. 90Pages Used to Set Up Weighted Goals.90Understanding Weighted Goal Setup. 91Prerequisites. 91Entering Weighted Goal Attainments. 92Pages Used to Enter Weighted Goal Attainments. 92Understanding Weighted Goal Attainments.92Organization's Goals Page.93Group's Goals Page. 93Individual's Goals Page. 94Individual w/in Group Page. 95Running the Organization and Group Goals Report. 96Page Used to Run the Organization and Group Goals Report. 97Chapter 8: Setting Up and Using Matrix Goals.99Understanding Matrix Goals.99Types of Matrix Goals. 99Matrix Goal Terminology.100Steps for Using Matrix Goals. 101Example of Goals Matrix and Performance Score Calculation. 102Setting Up Matrix Goals.104Pages Used to Set Up Matrix Goals. 104Matrix Goals Page.104Matrix Goals (With Groups) Page. 106Payout Schedule Page. 106Entering Matrix Goal Attainments. 107Pages Used to Enter Matrix Goal Attainments.108Define Goal Attainments - Matrix Goals Page.108Matrix Goals w/in Group Page. 109Chapter 9: Funding Variable Compensation Plans and Groups. 111Understanding Variable Compensation Funding. 111Budgeting Awards. 112Page Used to Run the Budget Report.112Budget Page.112Funding Variable Compensation Plans.114Page Used to Fund Variable Compensation Plans.114Copyright 1988, 2021, Oracle and/or its affiliates.v

ContentsUnderstanding Plan Funding. 114Plan Funding Page.114Understanding Group Funding Allocation. 116Top Down Funding.117Managers and Approvers. 117Summary of the Group Funding Allocations Process. 117Example of Group Funding Allocations. 119Allocating Funds to Groups.123Pages Used to Allocate Funds to Groups. 123Understanding Access to the Allocate Group Funding Page.124Allocate Group Funding Page.124Allocate Group Funding - Fund Plan Page. 128Chapter 10: Calculating Allocations and Awards. 131Understanding Awards Calculation. 131Calculation Processes.131Common Elements Used in Awards Calculation. 132Determining Allocations. 134Page Used to Determine Allocations. 134Understanding the Determine Allocation Process. 134Determine Allocation Page. 135Calculating Awards. 135Pages Used to Calculate Awards.137Viewing and Adjusting Awards Allocations. 137Pages Used to View and Adjust Awards Allocations. 138Understanding Award Status. 138Understanding the Allocate Awards Pages. 140Allocate Awards by Plan Page.141Allocate Awards by Group Page.148Using the Allocate Awards Page for Ad Hoc Awards.150Reporting Awards Calculations. 150Pages Used to Run Awards Reports. 151Using the Variance Report. 152Using the Carryover Report. 152Using the Non-Monetary Report.152Chapter 11: Managing Awards Approval and Payout.153Approving and Submitting Awards. 153Pages Used to Approve and Submit Awards in Batch Process. 153Understanding Approval and Submittal of Awards. 153Approve Awards by Plan Page. 155Approve Awards by Group Page. 156Integrating with Payroll Applications.156Understanding Integration with Payroll Applications.156Integrating with PeopleSoft Payroll for PeopleSoft North America and Global Payroll. 157Setting Up Integration Points with Payroll Applications.159Integrating with Stock Administration.

PeopleSoft HCM 9.2: Human Resources Manage Variable Compensation . Understanding the PeopleSoft Online Help and PeopleBooks The PeopleSoft Online Help is a website that enables you to view all help content for PeopleSoft applications and PeopleTools. The help provides standard navigation and full-text searching, as well as