Siebel Incentive Compensation Administration Guide > Multi-Currency Transactions > Compensation and Multi-Currency Transactions >
Compensation Calculation and Currency
When you run the compensation calculation engine, the calculation engine converts transactions amounts into the specified plan currency. After compensation is calculated, the calculation engine determines compensation in the payee's compensation currency, and the application displays both payee and administrator currency. The exchange rates used can be found in the Siebel eBusiness Application Currency screens and views. For more information about setting up exchange rates, see Applications Administration Guide.
An administrator typically completes five processes while calculating and releasing compensation for an order. After an order is created, the administrator performs the following procedures:
- Import the order. The administrator imports the order into the Transaction Workbook.
- Export the order. The administrator exports the order into the Calculation Workbook, creating a calculation record.
- Verify the calculation against the plan rule. The administrator measures the calculation record against a plan rule to determine the compensation amount and payment record.
- Execute the calculation run. The administrator executes the calculation run.
- Create the payment release. The administrator releases the payments.
Using this process flow as an example, there are five currency considerations:
- Order currency. The currency denomination used for the order.
- Plan currency. The currency denomination used to measure the order and to weigh performance, and the currency used to define the rate table.
- Participant's divisional currency. An individual is added to a compensation plan by position. Currencies are not associated with individual positions—each position assumes the currency of the division with which it is associated. The division's currency can be modified.
- Participant's compensation currency. The participant's compensation currency defaults to the currency associated with the participant's division, but it can be changed. The calculation engine reads from this currency, not the divisional currency.
- Plan administrator's currency. Siebel Incentive Compensation has a number of summary views and reports designed for plan administrators. Siebel Incentive Compensation automatically converts currency figures into the administrator's currency for review and analysis.
When the order is imported and exported, the calculation record remains in the currency denomination of the order. However, as the calculation run process begins, four currency conversions occur.
The calculation engine computes earnings amounts in participant compensation currency and administrator currency. If these currencies are different than the plan currency, the calculation engine performs a currency conversion based either on the calculation run currency conversion date, or if that date is not specified, the Calculation Run Date.
If a calculation run extends overnight or for a number of days, the calculation run date matches the date the calculation run began.
The currency used for Payment Releases is determined by the position currency at the time the Payment Release is created.
- If the compensation administrator creates the payment release first and changes the position currency later, the old position currency will be used.
- If the compensation administrator changes the position currency first and then creates the payment release, the new position currency will be used.
If there are multiple payment releases with different currencies, the total currency always uses the current position currency, so the total will always be correct.