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Oracle® Fusion Applications Incentive Compensation Implementation Guide
11g Release 1 (11.1.1.5.0)
Part Number E20381-01
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14 Define Incentive Compensation Shared Configuration

This chapter contains the following:

Manage Profile Options and Flexfields

Incentive Compensation Flexfields: Explained

Manage Calendars

Manage Currencies and Currency Conversions

Manage Profile Options and Flexfields

Incentive Compensation Profile Options: Explained

Oracle Fusion Incentive Compensation has two profile options, which you can set at the site level.

Incentive Compensation Flexfields: Explained

All incentive compensation descriptive flexfields, which ship enabled in the application, relate to transactions. Use them to map transaction attributes in the source application, which do not exist by default in Oracle Fusion Incentive Compensation, to the CN_TP_TRANSACTIONS_ALL table.

The descriptive flexfields consist of two VARCHAR2 and the NUMBER data types:

Enable these attributes for use in the Crediting, Classification, and Calculation processes in the Define Business Unit Configuration for Incentive Compensation task list, Configure Tables and Columns task.

Manage Calendars

Incentive Compensation Calendars, Periods, and Period Types: How They Work Together

This topic covers how an incentive compensation calendar supports processing activities for incentive compensation business units by first definingperiod typesand periods, and then exploring how they work together.

Period Type

Determines how you divide your calendar or fiscal year. The following table shows the delivered types and corresponding periods in a year:


Period Type

Periods in a Year

Monthly

12

Quarterly

4

Semi-Annually

2

Yearly

1

Create custom period types as required. Enter the number of periods in a year so that the application can validate the periods that you define for the calendar. Select the shortest required period range (for example, weekly or monthly) to ensure that the application can accumulate attainments, maintain goals and subledger balances, and process payments at this level, or any higher level.

Restriction

Period

Define for each calendar based on the selected period type, including the definition of period with year, period name, sequence, and start and end date--inclusive of both the dates. Abbreviate the period name if you want, for example Jan for January or W1 for Week1. The application arranges periods based on the sequence values that you enter.

Restriction

Tip

Create all of the periods required for the compensation plans, measures, and goals before creating the plans, measures, and goals.

Calendars and Periods: How They Work

The following table shows the various calendar and period tasks that first you and then the application perform.


User Actions

Application Actions

1. Create a calendar and associated periods as a single entity within the application.

Store the calendar data in the calendar entity (CN_CALENDARS) and the period data in the period entity (CN_PERIODS).

2. Assign a calendar to a business unit as part of the business unit set up.

Insert the periods (zero or more) that are assigned to that calendar into the business unit level tables. For each interval type defined for the business unit, insert each period into the CN_CAL_PER_INT_TYPES table.

The CN_PERIOD_STATUS table stores basic period data, including the default status (Never Opened) given to each period.

3. Edit the period status (for example, select Open) within the business unit.

Update the period statuses in the CN_PERIOD_STATUS table accordingly. If required, launch a concurrent request to populate the period data in all of the participant-related (SRP) tables.

4. Create new, future periods in the calendar.

Insert the new period records into the following tables:

  • CN_PERIODS: Track the nonbusiness unit based calendar period

  • CN_PERIOD_STATUS: Track the periods and associated statuses for each business unit. If there are three business units associated with the calendar, insert the newly created period record into all of the business unit tables.

  • CN_CAL_PER_INT_TYPES: Group each period into the interval type for each business unit. If there are three business units associated with a calendar, and assuming each one has four interval types (Period, Quarter, Semi-Annual, and Year), insert the newly created period record as 12 records (3 business units * 4 interval types).

FAQs for Manage Calendars

Can I use the same incentive compensation calendar for different business units?

Yes, you can use the Calendar choice list in the Define Business Unit Configuration for Incentive Compensation task list, Manage Parameters task to assign the calendar to the business units, if they require the same calendar set up. The application automatically propagates any change to the calendar, such as new periods, to all of the business units using the calendar.

What happens if I assign an incentive compensation calendar to a business unit?

You can update the calendar name and add more periods, but you cannot change the period type.

What happens if I create periods for a new fiscal year in an incentive compensation calendar already used by business units?

The application adds the new period record to the list of periods maintained in period status and interval related tables, in all the incentive compensation business units to which you assigned the calendar. For example, if you assign a calendar to Vision Operations and Vision Services and you created a Jan-2010 period for this calendar, the application adds this period to the tables maintaining period statuses and interval periods for Vision Operations and Vision Services.

Tip

Create all the periods required for performance measures and goals first.

Manage Currencies and Currency Conversions

Multicurrency: How Incentive Compensation Uses It

Oracle Fusion Incentive Compensation enables you to maintain and process transactions in multiple currencies. Support your global workforce by processing the transactions, originating in different source currencies, in a single processing currency or in each participant's home currency. Compensate participants selling in various countries or different business units within one or more incentive compensation business units.

Tip

A given participant can belong to only one business unit. End date the participant in the current business unit and then add the participant to the new one, if you must change the participant's business unit.

Settings That Affect Multicurrency

There are currency as well as conversion rate, rate type, and date parameters in the Define Shared Configuration for Incentive Compensation task list, Manage Currencies and Manage Currency Conversions tasks.

Choose which rate to use to convert amounts among the four currency options. Create rate types such as Corporate, Daily, and Period Average, and define rates differently under each one of them to use in different scenarios. For example, you decide to use Daily rates to convert transaction and credit amounts, and Period Average rates to convert payment amounts. In this case, use these two parameters to set appropriate rate types for these processes.

The Payment Conversion Date parameter determines whether the application uses the transaction date or the payment batch pay date to look up the corresponding currency rate to use for payment conversion.

How Currency Is Stored

To support multicurrency processing, the application stores transactions, credits, earnings, and payments in the following currencies.


Entity

Source Currency

Processing Currency

Operating Currency

Participant Home Currency

Transactions

Yes

 

Yes

 

Credits

Yes

Yes*

Yes

Yes

Earnings

 

Yes*

Yes

Yes

Payments

 

Yes*

Yes

Yes

* Represents the core currency associated with the transactional entity. Other currencies are available for transaction traceability and reporting. For example, when you adjust the amount of a base transaction, the application does the adjustment in the source currency, whereas, by default, the application shows the credit and earning amounts in the processing currency.

Tip

The application maintains attainments only in processing currency.

Processing in Participant Home Currency Example

Assume you are a compensation manager working for multinational company ABC with a global sales force. You decided to compensate North American salespersons working in Canada and the United States in a single incentive compensation business unit with the operating currency of USD. The processing currency is Participant Home Currency so you compensate the Canadian sales force in its home currency of CAD and the US sales force in USD.

Collection: Since your salespeople are selling in the US and Canada, you collect transactions in USD and CAD, into the same business unit. Now, you track two transactions, one booked in US dollars and another in Canadian dollars, assuming an exchange rate of 1 CAD equals 0.9302326 USD.

Note

The application converted the transaction amount from source currency to operating currency and stores it for each transaction. It does any adjustment to the transaction using the source currency amount.


Transaction Number

Transaction Event Date

Transaction Amount in Source Currency

Transaction Amount in Operating Currency

T01012010-1

1-Jan-2010

10,000 USD

10,000 USD

T01022010-9

1-Feb-2010

21,500 CAD

20,000 USD

Crediting: The application manages credit and roll up creation in source currency and adjustments in the processing currency. It automatically converts and populates the source currency, operating currency, and home currency credit amount in all of the previous cases. Assume that the two orders are for a team of two salespeople, one working from the US and another from Canada, sharing 50 percent credit. The application generates credits in the home currency of the credit receiver because the processing currency is set to participant home currency.


Transaction Number

Transaction Event Date

Credit Receiver

Credit Amount in Processing Currency

Credit Amount in Source Currency

Credit Amount in Operating Currency

Credit Amount in Home Currency

T01012010-1

1-Jan-2010

US Salesperson

5,000 USD

5,000 USD

5,000 USD

5,000 USD

T01012010-1

1-Jan-2010

Canadian Salesperson

5,375 CAD

5,000 USD

5,000 USD

5,375 CAD

T01022010-9

1-Feb-2010

US Salesperson

10,000 USD

10,750 CAD

10,000 USD

10,000 USD

T01022010-9

1-Feb-2010

Canadian Salesperson

10,750 CAD

10,750 CAD

10,000 USD

10,750 CAD

Calculation: The application calculates the earnings in the processing currency and also converts them to, and stores them in, operating currency and home currency. Assume that both salespeople are on the same plan with individualized rates and goals and that they get earnings (10 percent of credited amount) as follows:


Transaction Number

Transaction Event Date

Credit Receiver

Earning Amount in Processing Currency

Earning Amount in Operating Currency

Earning Amount in Home Currency

T01012010-1

1-Jan-2010

US Salesperson

500 USD

500 USD

500 USD

T01012010-1

1-Jan-2010

Canadian Salesperson

537.5 CAD

500 USD

537.5 CAD

T01022010-9

1-Feb-2010

US Salesperson

1,000 USD

1,000 USD

1,000 USD

T01022010-9

1-Feb-2010

Canadian Salesperson

1,075 CAD

1,000 USD

1,075 CAD

Note

The three previous processes use the currency conversion rates defined under the transaction conversion rate type parameter.

Payment: The application computes the payment amounts in the processing currency and also converts them to home currency and operating currency. It does payment and manual adjustments in processing currency and again converts and stores them in home currency and operating currency.


Transaction Number

Transaction Event Date

Credit Receiver

Payment Amount in Processing Currency

Payment Amount in Operating Currency

Payment Amount in Home Currency

T01012010-1

1-Jan-2010

US Salesperson

500 USD

500 USD

500 USD

T01012010-1

1-Jan-2010

Canadian Salesperson

537.5 CAD

500 USD

537.5 CAD

T01022010-9

1-Feb-2010

US Salesperson

1,000 USD

1,000 USD

1,000 USD

T01022010-9

1-Feb-2010

Canadian Salesperson

1,075 CAD

1,000 USD

1,075 CAD

Note

The Payment process uses the currency conversion rates defined under the payment conversion rate type. The rate that the application uses for conversion is based on the Payment Conversion Date parameter.

Processing in Operating Currency Example

This example uses the data from the previous example to show how the application processes and stores transactions when you set operating currency to Processing Currency. The changes are shown in processing currency columns in the following tables.

Collection


Transaction Number

Transaction Event Date

Transaction Amount in Source Currency

Transaction Amount in Operating Currency

T01012010-1

1-Jan-2010

10,000 USD

10,000 USD

T01022010-9

1-Feb-2010

21,500 CAD

20,000 USD

Crediting


Transaction Number

Transaction Event Date

Credit Receiver

Credit Amount in Processing Currency

Credit Amount in Source Currency

Credit Amount in Operating Currency

Credit Amount in Home Currency

T01012010-1

1-Jan-2010

US Salesperson

5,000 USD

5,000 USD

5,000 USD

5,000 USD

T01012010-1

1-Jan-2010

Canadian Salesperson

5,000 USD

5,000 USD

5,000 USD

5,375 CAD

T01022010-9

1-Feb-2010

US Salesperson

10,000 USD

10,750 CAD

10,000 USD

10,000 USD

T01022010-9

1-Feb-2010

Canadian Salesperson

10,000 USD

10,750 CAD

10,000 USD

10,750 CAD

Calculation


Transaction Number

Transaction Event Date

Credit Receiver

Earning Amount in Processing Currency

Earning Amount in Operating Currency

Earning Amount in Home Currency

T01012010-1

1-Jan-2010

US Salesperson

500 USD

500 USD

500 USD

T01012010-1

1-Jan-2010

Canadian Salesperson

500 USD

500 USD

537.5 CAD

T01022010-9

1-Feb-2010

US Salesperson

1,000 USD

1,000 USD

1,000 USD

T01022010-9

1-Feb-2010

Canadian Salesperson

1,000 USD

1,000 USD

1,075 CAD

Payment


Transaction Number

Transaction Event Date

Credit Receiver

Payment Amount in Processing Currency

Payment Amount in Operating Currency

Payment Amount in Home Currency

T01012010-1

1-Jan-2010

US Salesperson

5,00 USD

500 USD

500 USD

T01012010-1

1-Jan-2010

Canadian Salesperson

500 USD

500 USD

537.5 CAD

T01022010-9

1-Feb-2010

US Salesperson

1,000 USD

1,000 USD

1,000 USD

T01022010-9

1-Feb-2010

Canadian Salesperson

1,000 USD

1,000 USD

1,075 CAD

Incentive Compensation Currencies: How They Are Converted

The application maintains incentive compensation currency conversions for instances where the sale currency is different from the operating currency or the participant home currency as well as when you want to use a different conversion rate than the default daily rates, for example, if you want to use period-based rates.

Settings That Affect Currency Conversion

In the Define Shared Configuration for Incentive Compensation task list, Manage Currency Conversions task, create your rate types and associated rates. Then, use the Define Business Unit Configuration for Incentive Compensation task list, Manage Parameters task to make your selections for these parameters:

How Currency Is Converted

  1. Select one of the standard conversion rate types or create a custom one.

    Create custom rate types (using unique names) based on your business requirements. For example, if your business units use period average based rates for conversion, create a new rate type, enter start and end dates (based on your calendar period definition), and provide the period-average rates for the date range.

  2. Create or edit conversion rates.

    Enter the required values. If you also enter an end date, the start date must be earlier than the end date for each record. Create two records for each date range and from and to currencies where the second record is the inversion of the first. For example, you create one record with an exchange rate from USD to CAD for the start date 1-Jun-2010 and a second record with an exchange rate from CAD to USD for the same date. The application may use the inverse rate for reference purposes to compute the transactional amount from the operating amount, if required.

    Restriction

    For the from and to currencies and date range for a rate type, you can use only one rate. If you want different rates for the same date range and set of from and to currencies, define a different rate type.

    Restriction

    You can edit rates as long as the incentive compensation period is not closed in any of the associated incentive compensation business units.

FAQs for Manage Currency Conversions

How can I use different incentive compensation rates to process transactions and payments in different incentive compensation business units?

Define multiple incentive compensation currency rate types for the same date, different incentive compensation business units, or different usage and associate the appropriate rate type with each business unit. The rate types may match those in your general ledger, but it is not required. For example, one business unit requires daily-based rates where the rate is different for each day. Another business unit requires period-based rates where the period is monthly and each period has the same rate, which might be the average or end rate for the period. Yet another business unit also requires period-based rates, but its period is weekly instead of monthly.

Where does incentive compensation use the transaction and payment conversion rate types?

The application uses the currency conversion rates that you defined for the rate type (in the Define Shared Configuration for Incentive Compensation task list, Manage Currency Conversions task) , and selected for Transaction Conversion Rate Type and Payment Conversion Rate Type (in the Define Business Unit Configuration for Incentive Compensation task list, Manage Parameters task), to convert transaction and payment amounts from one currency to another during Crediting, Rollup, and Calculation processing.

The application stores transactions, credits, earnings, and payments in various currencies. It uses the rates to convert currencies among the various amounts shown here.


Amounts in Entities

Source Currency

Processing Currency

Operating Currency

Participant Home Currency

Transactions

Yes

 

Yes

 

Credits

Yes

Yes

Yes

Yes

Earnings

 

Yes

Yes

Yes

Payments

 

Yes

Yes

Yes