PeopleSoft Enterprise Human Resources 9.1 PeopleBook: Manage Variable Compensation

Calculating Allocations and Awards

This chapter provides an overview of awards calculations and discusses how to:

Determine allocations.
Calculate awards.
View and adjust awards allocations.
Report on awards calculations.

Understanding Awards Calculation

This section discusses calculation processes and lists terms and definitions.

Calculation Processes

The system employs the Allocate Awards page and these processes when calculating variable compensation (VC) allocations and awards:

The Determine Allocation Application Engine process (V_DET_ALLOC) calculates target awards.

It also calculates the performance factor for organization and group goals if weighted goals are a plan business rule.
The Calculate Awards Application Engine process (VC_CALWRD and VC_CALWRD_WG) calculates both monetary and non-monetary VC awards, including stock awards, by applying appropriate proration, performance, and adjustment factors to the target award.
The Calculate Awards process populates the Allocate Awards page, where you can view and manually adjust awards.

On this page you also set the award status, which tells the system when to submit awards for payout.

Do not use either the Determine Allocation process or the Calculate Awards process for Ad Hoc plans. Instead, go directly to the Allocate Awards page and manually enter the ad hoc award for each plan member.

Calculation Processes Without Group Funding

To calculate awards when group funding allocation is not used:

Enter group and organization weighted-goal attainments (if applicable).
Run the Determine Allocation process.
Enter individual weighted-goal attainments (if applicable).
Run the Calculate Awards process.
Review and change the award as required on the Allocate Awards by Plan page.
Change the award status on the Allocate Awards by Plan page when the award is ready for approval or submittal.

Calculation Processes with Group Funding

If your plan uses groups and funding, allocate funding to groups in the hierarchy using the Allocate Group Funding page. At each level in the hierarchy, the manager's award must be allocated and approved before the group is funded. Managers and approvers of each group use the Calculate Awards process, the Allocate Awards page, the Approve Awards process (if applicable), and the Allocate Group Funding page before the next lower level of managers can fund their groups.

Terms and Definitions

Payout Formula	Formulas that the system uses to calculate target, minimum, and maximum payouts under the plan. Define payout formulas on the Payout Formulas setup page.
Target Payout Formula	The payout formula that the Determine Allocation 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 that the Calculate Awards process uses to determine the minimum award that the plan member should receive under the plan. Optionally, assign minimum payout formulas at the plan or group level.
Maximum Payout Formula	The formula that the Calculate Awards process uses to determine the maximum award that 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 Determine 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 not enough funding is available to pay out the calculated awards.
Performance Factor	The factor that 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 Allocation 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 Allocate Awards 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 Allocation 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 Allocation 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 Allocation process calculates this value and enters it in the Target Value field on the Allocate Awards 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 Allocate Awards 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 Allocate Awards page.
Actual Award	The adjusted award as further changed on the Allocate Awards page by manual adjustment or carryover amount. If not changed, the actual award is equal to the adjusted award. When 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.

Determining Allocations

This section provides an overview and discusses how to run the Determine Allocation process.

Understanding the Determine Allocation Process

Run the Determine Allocation process prior to running the Calculate Awards process. The system uses the information calculated by the Determine Allocation process when it calculates awards, when it calculates group funding allocations, and when it projects target awards for Total Compensation (TC) reporting.

Determining Allocations for Variable Compensation

When you run the Determine Allocation process from the VC menu, the process calculates this data:

The target award for each plan member, without making any adjustments for proration, performance, or funding.
The minimum and maximum awards for each plan member, if specified in the plan, without making any adjustments for proration, performance, or funding.
The organization attainment factor, if the plan uses organization-weighted goals.
The group attainment factor for each group, if the plan uses groups and group-weighted goals.
The sum of target awards for each group in the plan if the plan uses groups.

If the plan uses funding, it enters these payouts on the Allocate Group Funding page.
The sum of minimum awards (if specified in the plan) for each group in the plan, if the plan uses groups.
The sum of maximum awards (if specified in the plan) for each group in the plan, if the plan uses groups.

Determining Allocations for Total Compensation Reporting

The Human Resources Total Compensation Extract process uses the Determine Allocation process when you extract variable compensation (VC) data to the TC data warehouse. When run from the Reporting TC Extract process, the Determine Allocation process:

Determines the applicable VC period IDs for the date range specified on the TC Extract process run control page.
Collects all actual awards for the VC plan members covered by the TC plan ID and time frame.
If specified to do so on the TC Extract run control page, calculates the target awards when no actual award exists for the VC plan members covered by the TC plan ID and time frame.
Applies valuation to non-stock, non-monetary awards using the valuation ID defined in the VC plan definition.

Note. The Total Compensation Extract from the Variable Compensation business process does not extract any data for stock-type plans.

Page Used to Determine Allocations

Page Name	Definition Name	Navigation	Usage
Determine Allocation	RUNCTL_VC_DET_ALL	Compensation, Variable Compensation, Calculate Awards, Determine Allocation	Run the Determine Allocation process, which calculates 100 percent variable-compensation payouts, as well as performance factors for organization and group goals.

Running the Determine Allocation Process

Access the Determine Allocation page (Compensation, Variable Compensation, Calculate Awards, Determine Allocation, Determine Allocation).

Rate Type

Select the exchange rate type that you want the system to use when converting target awards into the currency of the plan.

Values are Commercial Rate, Financial Rate, Floating Rate, Free Market Rate, Official Rate, and Spot Market Rate.

Calculating Awards

The Calculate Awards process calculates both monetary and non-monetary variable-compensation (VC) awards, including stock awards. It enters the results of its calculations on the Allocate Awards page. The award calculation can be simple or complex, depending on the plan business rules.

Values Used by the Calculate Awards Process

The Calculate Awards process uses these values:

Target, minimum, and maximum values computed by the Determine Allocation process.
Group and organization performance factors computed by the Determine Allocation process.
Proration factor computed by the Determine Eligibility/Proration process.
Funding amounts entered on the Plan Funding and Allocate Group Funding pages.

Calculations Performed by the Calculate Awards Process

The Calculate Awards process:

Determines the performance factor if the plan uses weighted goals.
Calculates the individual performance factor, if appropriate.
Sums the performance factors from all goal levels to determine the performance factor to use for calculating the award.

The Calculate Awards process then:

Calculates one of these formulas:

Business Rules	Formula
No proration or goals	Target Value
Proration	Target Value × Proration Factor
Weighted goals	Target Value × Performance Factor
Weighted goals and proration	Target Value × Proration Factor × Performance Factor
Matrix goals	Value of the payout from the Payout Schedule
Matrix goals and proration	Value of the payout from the Payout Schedule × Proration Factor

Calculates the calculated award by comparing the value calculated in the previous step to the maximum award and minimum award, if specified in the plan.
- If the plan uses proration and the proration factor of the group member is less than one, the system does not perform this step.
- If the award is greater than the maximum, the process sets the calculated award at the maximum.
- If the award is less than the minimum, the process sets the calculated award at the minimum.
Calculates the funds available for funded plans and computes the adjustment factor, if appropriate.
Calculates the adjusted award by applying the adjustment factor to the calculated award.
Proceeds according to the plan type:
- Monetary plans: Calculates the award amount and award value by applying the VC rounding rule to the adjusted award.
- Non-monetary plans: Stores the adjusted award as the award unit. The process calculates the award value by applying valuation and VC rounding rules to the award unit.
- Stock-type plans: Calculates the award unit by applying stock rounding rules, and then calculates the award value by applying valuation and VC rounding rules to the award unit.
Updates the Award table and sets the Award status to Init Calc (initial calculated).

The system populates the Allocate Awards page from the Award table. Modify and approve awards on the Allocate Awards page.

Note. If the plan uses group funding, managers must calculate the awards for their direct reports, and the approver must approve them, before they can allocate funding to the child groups.

Pages Used to Calculate Awards

Page Name	Definition Name	Navigation	Usage
Calculate by Plan	RUNCTL_VC_CALWRD_P	Compensation, Variable Compensation, Calculate Awards, Calculate by Plan, Calculate by Plan	Run the Calculate Awards process for plans that do not use groups. This process calculates awards and enters calculation data on the Allocate Awards by Plan page. Select a VC plan ID and payout period.
Calculate by Group	RUNCTL_VC_CALWRD_G	Compensation, Variable Compensation, Calculate Awards, Calculate by Group, Calculate 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 Allocate Awards by Group page. Select a VC plan ID, payout period, and group ID.

Page Name

Definition Name

Navigation

Usage

Calculate by Plan

RUNCTL_VC_CALWRD_P

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

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

Select a VC plan ID and payout period.

Calculate by Group

RUNCTL_VC_CALWRD_G

Compensation, Variable Compensation, Calculate Awards, Calculate by Group, Calculate 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 Allocate Awards by Group page.

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

Viewing and Adjusting Awards Allocations

This section provides overviews of award status and the Allocate Awards pages and describes how to:

View and adjust awards for plans without groups.
View and adjust awards for plans with groups.
Use the Allocate Awards page for Ad Hoc Awards.

Understanding Award Status

The system uses status codes to track awards from allocation through submittal for payout and distribution. If your organization uses PeopleSoft Payroll for North America, PeopleSoft Global Payroll, or PeopleSoft Stock Administration, status codes track the awards through final payout or distribution.

The system tracks awards in these fields on the Allocate Awards pages:

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.

Definitions of Individual and Group Award Status Codes

This table provides definitions of award status codes and shows where differences exist at the individual and group levels of awards tracking:

Status	(Individual) Award Status	Group (Award) Status
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 select Approve Awards as a plan business rule, select this status to tell the system that the award is final and ready for payout or 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 (error)	The system enters this status for the award if PeopleSoft Payroll for North America, PeopleSoft Global Payroll, or PeopleSoft 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 Allocate Awards page with calculated award data.	Same definition as for individual Award Status.
J (rejected)	The system enters this status if PeopleSoft Payroll for North America, PeopleSoft Global Payroll, or PeopleSoft 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 PeopleSoft Payroll for North America, PeopleSoft Global Payroll, or PeopleSoft 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.

Application of Individual and Group Award Status Codes

This table illustrates the steps in the awards process and the status at each level for plans that use the Approve Awards process and those that do not.

Note. In this table, payroll refers to PeopleSoft Payroll for North America and PeopleSoft Global Payroll; stock refers to PeopleSoft Stock Administration.

Procedure That Modifies the Status	Individual Award Status Approval	Individual Award Status No Approval	Group Status Approval	Group Status No Approval
Calculate Awards	Initial Calculation	Initial Calculation	Initial Calculation	Initial Calculation
Allocate Awards	Recommended or Canceled	Ready to Submit or Canceled	Ready to Submit	Ready to Submit
Approve Awards	Approved	Not Applicable	Ready to Submit	Not Applicable
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

Understanding the Allocate Awards pages

After you run the Calculate Awards process, use the Allocate Awards by Plan page or Allocate Awards by Group page to:

Review, change, and finalize awards before the system submits them for payout or distribution.

If you funded the plan, the system updates the funds available or balance of funding as you change the individual awards.
Administer carryover balances and guarantees if these are part of the plan.
Monitor the status of each award and the award status of the group or plan as a whole.

Some of the Changes Possible for Individual Awards

Here are some of the changes you can make to individual awards on this page:

Change the earnings code.
Adjust the worker's carryover balance if you selected Carryover Awards on the Plan Business Rules page.
Replace the actual award that the system calculated with the guarantee amount if you entered a guarantee on the Individual's Payout page.
Modify the award by a percent that you enter in the Modifier field on this page.
Enter an award amount of your choice in the Actual Award field.

Entering Award Status

When you are satisfied with the award amount, enter one of these values in the Award Status field:

If you did not select Approve Awards on the Plan Business Rules page, select the Ready to Submit status.
If you selected Approve Awards on the Plan Business Rules page, select the Recommended status.

The approver changes the status to Approved either manually or by using the Approve Awards process.

The system changes the Group Status to Ready to Submit when all of the awards for the plan ID and payout period have either the Canceled, Ready to Submit, or Approved status. When the Group Status is Ready to Submit, the system publishes the awards for payout or distribution.

Access Restrictions

At each level of groups on the tree, the group manager's access to his or her group on this page is restricted in the following way:

If the plan requires award approval, the manager's Award Status must be set to Approved or the award must have been submitted already.
If the plan does not require award approval and the manager is a member of the group, the manager's Award Status must be set to Ready to Submit or the award must have been submitted already.
If the plan does not require award approval and the manager is not a member of the group, a manager's access to his or her group is not restricted.

Workflow notifies managers when they can access the page for their groups.

Pages Used to View and Adjust Awards Allocations

Page Name	Definition Name	Navigation	Usage
Allocate Awards by Plan	VC_AWD_ALLOC	Compensation, Variable Compensation, Finalize Awards, Allocate Awards by Plan, Allocate Awards by Plan	View and change the awards calculated by the Allocate Awards by Plan process or enter awards for Ad Hoc plans. Also view and change the award status of individual awards.
Allocate Awards by Group	VC_AWD_ALLOC_WG	Compensation, Variable Compensation, Finalize Awards, Allocate Awards by Group, Allocate Awards by Group	View and change the awards calculated by the Allocate Awards 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 Allocate Awards by Plan page.

Page Name

Definition Name

Navigation

Usage

Allocate Awards by Plan

VC_AWD_ALLOC

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

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

Allocate Awards by Group

VC_AWD_ALLOC_WG

Compensation, Variable Compensation, Finalize Awards, Allocate Awards by Group, Allocate Awards by Group

View and change the awards calculated by the Allocate Awards 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 Allocate Awards by Plan page.

Viewing and Adjusting Awards for Plans Without Groups

Access the Allocate Awards by Plan page (Compensation, Variable Compensation, Finalize Awards, Allocate Awards by Plan, Allocate Awards by Plan).

Note. Depending upon the business rules that you defined for the plan, different fields appear in this section.

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. Values are: I - Initial Calculation D - Ready to Submit S - Submitted E - Corrections Required J - Rejected P - Paid/Granted
EmplID and Name	When you specify a plan ID and payout period ID upon accessing 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 hid 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	Select to display the plan member records in the page in the order of EmplID or Name.
Status	The worker's eligibility status in the plan. See Viewing and Adjusting Plan Member Eligibility.
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 (global payroll 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 USD, and later enter 100 USD in the Carryover Amount field, the Accum Carryover field l shows 400 USD. If you later enter a negative amount of –150 USD in the Carryover Amount field, the Accum Carryover field shows 250 USD. 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 accumulated 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. When 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 PeopleSoft 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 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 USD and the modifier is 75 percent. The system changes the actual award to 750.00 USD (.75 × 1000). Example 2: The adjusted award is 1,000 USD and the modifier is 110 percent. The system changes the actual award to 1,100 USD (1.10 × 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)	This 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, 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 field 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 field as the actual award changes.

Award Detail

The business rules that you defined for the plan determine the fields that appear.

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 not enough funding is available 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 Determine 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 on the page only 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 on the page only 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 on the page only if the plan uses group-level weighted goals.
Ind Perf Factor (individual performance factor)	A factor determined by the individual weighted goal attainments. This field appears on the page only if the plan uses individual-level weighted goals.

Viewing and Adjusting Awards for Plans with Groups

Access the Allocate Awards by Group page (Compensation, Variable Compensation, Finalize Awards, Allocate Awards by Group, Allocate Awards by Group).

All fields on this page are identical to the fields on the Allocate Awards by Plan page, with these exceptions:

Group ID is an additional field on the Allocate Awards by Group page.

The Orig Allocation (original allocation), Balance, and Reserves fields appear on the Allocate Awards by Group page for plans that use group funding allocations. These fields replace the Plan Funding and Available fields that appear on the Allocate Awards by Plan page.

Group ID	The ID that you entered to access this page, along with a description of the group.
Orig Allocation (original allocation)	The total amount that you funded to the group and period represented [or identified] by this ID for the period represented by this ID.
Balance	The unallocated balance of the original funding. The system increases and decreases the amount in this field when you change the award allocation for each group member.
Reserves	The balance of funding from previous periods that is still available for allocation to the group.

Using the Allocate Awards Page for Ad Hoc Awards

If the plan member rule is Ad Hoc Award, do not run the Calculate Awards process prior to accessing the Allocate Awards page. Instead, enter the awards directly on this page.

To enter an Ad Hoc award:

Select the worker from the plan members listed on the Allocate Awards page.

The members that you entered directly on the Plan Members page are available on the Allocate Awards page.
Enter an award amount for the worker directly into the Actual Award field.
In the Award Status field, select Recommended if the plan requires approval or Ready to Submit if approval is not required.

For Ad Hoc Awards, these fields are visible on the page; all others are hidden:

Earnings Code
GP Earnings
Award Date
Award Status

Select Recommended if the plan requires approval or Ready to Submit if approval is not required.
Actual Award

Enter the amount of the award.
(calculation source)

After you enter an actual award amount, the word Manual appears above the Actual Award field to indicate that the award is manually entered.
Award Value

Reporting Awards Calculations

The system provides reports to help you review the results of the Calculate Awards process and review carryover balances. This section lists the pages used to run the awards reports and discusses how to use the:

Variance Report.
Carryover Report.
Non-Monetary Report.

Page Used to Report Awards Calculations

Page Name	Definition Name	Navigation	Usage
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 Allocate Awards 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.

Page Name

Definition Name

Navigation

Usage

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 Allocate Awards 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.

Using the Variance Report

The detailed report lists all workers in a plan by group, the worker's target award value, actual award value, and variance between the target and actual award. It also indicates whether the award is either the minimum or maximum payout under the plan. In addition, this report shows the total target award value, actual award value, and variance for each group and the grand total for the plan.

The summary report lists the total target award value, actual award value, and variance for each group, as well as the grand totals for the plan.

Using the Carryover Report

The detailed report lists all workers in a plan by group and their carryover balances. The summary report lists the total carryover balance for each group, as well as the totals for the plan.

Using the Non-Monetary Report

The detailed report tracks the number of units awarded under a plan and the value to workers. The report lists only awards that are beyond the status of Initial Calculation. The detailed report lists all workers in a plan by group, their target values, their calculated awards, their actual award in non-monetary units, and their actual awards as a monetary value. The summary report lists the total non-monetary units for each group, as well as the totals for the plan