Managing Awards Approval and Payout

This chapter discusses how to:

• Approve and submit awards.

• Integrate with payroll applications.

• Integrate with Stock Administration.

• Report on award payout and distribution.

• View and report on variable compensation history.

Approving and Submitting Awards

This section provides an overview and discusses how to:

• Approve awards by plan.

• Approve awards by group.

Understanding Approval and Submittal of Awards

When you're satisfied with the awards on the Allocate Awards page, finalize them for payout or distribution using an automated approval process, manual approval, or no approval. After you finalize all of the awards in a plan or group for a payout period, the system automatically submits them for payout or distribution.

When you define the variable compensation (VC) plan, decide whether to finalize awards for processing with or without approval. If you select award approval, you can run the Approve Awards batch process or approve awards individually.

Finalizing and Submitting Awards Without Approval

To finalize and submit awards without approval:

1. Deselect the Approve Awards check box on the Plan Business Rules page.

2. Manually set the Award Status of each award to Ready to Submit on the Allocate Awards page when you are satisfied with the award amount.

   When all individual awards in the period for the plan or group have the Ready to Submit or Canceled Award Status, the system changes the Group Status on the Allocate Awards page to Ready to Submit.

   The system automatically submits awards for payout or distribution when the Group Status is Ready to Submit and changes the status to Submitted.

Approving Awards Manually

To approve awards manually:

1. Select the Approve Awards check box on the Plan Business Rules page.

   • If the plan member rule is Ad Hoc Awards or Empl VC Record, also identify the approver ID on this page.

   • For plans that use groups, establish the approver for each group when you set up VC Tree security.

2. The manager manually sets the Award Status of each award to Recommended on the Allocate Awards page when satisfied with the award amount.

   When all awards have the Recommended status, the system sends a workflow notifying the authorized approver.

3. The approver changes the Award Status to Approved for each award that he or she wants to approve.

   Only the authorized approver can enter the Approved status.

   • If the plan does not use groups, specify the approver ID on the Plan Definition page.

   • If the plan uses groups, define the approver ID when you define the group on the Group Definition page.

     When all individual awards for the period under the plan or group have the Approved or Canceled Award Status, the system changes the Group Status to Ready to Submit. When the Group Status is Ready to Submit, the system automatically submits awards for payout or distribution and changes the status to Submitted.

Approving Awards in a Batch Process

To approve awards in a batch process:

1. Select the Approve Awards check box on the Plan Business Rules page.

   • If the plan member rule is Ad Hoc Awards or Empl VC Record, also identify the approver ID on this page.

   • For plans that use groups, establish the approver for each group when you set up VC Tree security.

2. When satisfied with the award amount, the manager manually sets the Award Status of each award to Recommended on the Allocate Awards page.

   When all awards have the Recommended status, the system sends a workflow notifying the authorized approver to run the approval process.

3. When the Award Status on the Allocate Awards page is Recommended, the approver runs the Approve Awards by Plan process or the Approve Awards by Group process.

   Only the authorized approver can run the process for the plan or group.

   • If the plan does not use groups, specify the approver ID on the Plan Definition page.

   • If the plan uses groups, define the approver ID when you define the group on the Group Definition page.

     The process changes the Award Status of all approved awards from Recommended to Submitted and then to Approved.

     When all individual awards for the period under the plan or group have the Approved or Canceled Award Status, the system changes the Group Status to Ready to Submit.

     When the Group Status is Ready to Submit, the system automatically submits awards for payout or distribution and changes the status to Submitted.

See Also

Viewing and Adjusting Awards Allocations

Pages Used to Approve and Submit Awards in Batch Process

Approving Awards by Plan

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

Plan ID	The only available values are the VC plans for which this user ID is the designated approver on the Plan Business Rules page.
Approve	Select to approve all awards that have the Recommended status under the plan for the corresponding payout period. Deselect this field to remove approval if you already ran the approval process and now want to change it. The system selects Approve by default.

Approving Awards by Group

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

This page is identical to the Approve Awards by Plan page with the addition of the Group ID field.

Integrating with Payroll Applications

This section provides an overview of integration with payroll applications and discusses how to:

• Integrate with PeopleSoft Payroll for North America and PeopleSoft Global Payroll.

• Set up integration points with payroll applications.

Understanding Integration with Payroll Applications

When the Group Status field on the Allocate Awards page is D (ready to submit), the Variable Compensation system submits monetary and non-stock, non-monetary awards for payout.

PeopleSoft Payroll for North America

If PeopleSoft Payroll for North America is installed on your database, the system publishes the awards directly to PeopleSoft Payroll for North America for payout.

PeopleSoft Global Payroll

If PeopleSoft Global Payroll is installed on your database, the system publishes the awards directly to PeopleSoft Global Payroll for payout.

Payroll Interface

If Payroll Interface is installed on your database, the system automatically generates a flat file containing the award data, which your organization can use as input into your Payroll Interface system.

Multiple Payroll Systems

If you have multiple payroll systems installed on your database, the system refers to the pay system indicator on the worker's Job record to determine how to submit the award. If the worker is paid through PeopleSoft Payroll for North America or PeopleSoft Global Payroll, the system publishes the award through Integration Broker. If the worker is paid through Payroll Interface, the system creates a flat file for submittal.

Integrating with PeopleSoft Payroll for PeopleSoft North America and Global Payroll

Integration between Variable Compensation and these two payroll applications is automated through PeopleSoft Integration Broker. The variable compensation administrator does not run any processes for this integration. If awards are returned due to error, the VC administrator must resolve the reason for the error. The VC administrator can also request that awards be rejected if they are submitted in error.

These steps summarize the award payout integration between variable compensation (VC) and the PeopleSoft Payroll for North America and PeopleSoft Global Payroll applications.

Note. In this summary, payroll refers to both the PeopleSoft Payroll for North America and PeopleSoft Global Payroll applications unless otherwise specified.

1. VC publishes awards.

   When the status of all individual awards on the Allocate Awards page is D, S, or C, the system changes the group status to D and publishes a message that inserts the awards into a publishing staging table. The Group Status and individual Award Status on the Allocate Awards page are changed to S (submitted).

2. Payroll subscribes to the message.

   Subscription inserts the awards into a subscribing staging table.

3. Payroll validates or rejects the VC data.

   • Validated awards:

     If VC data is valid, payroll proceeds with processing.

   • Erred or rejected awards:

     When payroll validates the VC data, it checks for error conditions that require correction prior to payroll processing. If errors are detected, payroll publishes an acknowledgment to VC and supplies reason codes.

4. VC subscribes to the acknowledgement of rejected or erred awards. The subscription updates the Award tables.

   • If all awards for a specified VC plan and payout period are rejected at VC request due to error in VC submission, the Group Status and Award Status are changed to J (rejected).

   • If awards fail validation, the Group Status and Award Status are changed to E (error) and payroll supplies a reason code.

   • The award date is updated to the current date.

   • Workflow notification of erred or rejected awards is sent to the VC administrator.

     If the awards are erred or rejected by PeopleSoft Payroll for North America, the VC administrator can run the Subscription Error report to see the details of rejections, errors, and reasons. Otherwise, the VC administrator can check the Service Operations Monitor to view the details.

   • VC administrator corrects the awards and sets the individual Award Status to D (ready to submit). When all individual awards have the status of D, S, or C, the Group Status is changed to D, which triggers publishing of the awards.

5. Payroll processes validated awards and issues checks.

6. Payroll publishes a verification of payment to VC.

7. VC subscribes to the verification of payment. The subscription updates the Award tables.

   • The subscription updates the Group Status and Award Status to P (paid/granted).

   • The subscription updates the Award Date to the value set by payroll as the date of payment (PeopleSoft Payroll for North America only).

Error Reason Codes

When PeopleSoft Payroll for North America or PeopleSoft Global Payroll publishes notification of erred awards (Award Status of E), the notification includes reason codes for the error.

• PeopleSoft Payroll for North America error reason codes:

  • Invalid Earning Code (Invalid EC).

  • Invalid Employee ID & Record# (Invalid EE).

  • Invalid Currency Code (Invalid CC).

  • Transaction already exists (Tran exist).

  • Amount Exceeds Payroll Maximum (Exceed Max).

• Global Payroll Error Reason Codes:

  • Invalid Currency Code (Invalid CC).

  • Transaction already exists (Tran exist).

  • Error Updating Gen PI (PI Err).

  • Error Updating ACK_PUB (Pub Err).

  • Invalid Pin Number (Pin Err).

See Also

Integrating with PeopleSoft HRMS and Enterprise Expenses

Integrating with Variable Compensation Functionality

Setting Up Integration Points with Payroll Applications

Before using the integration between the Variable Compensation business process and PeopleSoft Payroll for North America or PeopleSoft Global Payroll, configure the Integration Broker local node, set up routings, and activate these service operations:

See Also

Interactive Services Repository in the Implementation Guide section of My Oracle Support.

Working with Integration Points in Enterprise HRMS

Enterprise PeopleTools PeopleBook: Integration Broker

Integrating with Stock Administration

This section provides an overview and discusses how to set up the integration with Stock Administration.

Summary of Integration with Stock Administration

When the Group Status on the Allocate Awards page is D (ready to submit), the Variable Compensation system publishes the awards directly to Stock Administration for distribution if Stock Administration is installed on your database.

These steps summarize the award distribution integration between the Variable Compensation business process and Stock Administration:

1. The Variable Compensation (VC) business process publishes awards to Stock Administration.

   When the status of all individual awards on the Allocate Awards page is D, S, or C, the system changes the group status to D and publishes a message that inserts the awards into a staging table. The Group Status and individual Award Status on the Allocate Awards page are changed to S (submitted).

2. Stock Administration subscribes to the VC's message. Subscription performs validation and proceeds to either generate grants or to void, modify, or reject grants.

   • Generate Grants:

     Stock Administration runs the Generate Grants Application Engine process to generate the grants and batch publishes the awards to VC.

     The batch publish of grants generated results in these changes to the VC Award table:

     – Changes the Award Date to the date granted.

     – Changes the Award Status to P (paid/granted) when granted with no validation errors or to E (error) when granted with validation errors.

     – Updates the Actual Award to the number of shares granted.

     – Updates the Award Value.

   • Void, modify, or reject grants: (This is generally done a data entry error occurred in the run control for generating the grants)

     – Batch publish of voided grants to VC sets Award Status to C (canceled).

     – Batch publish of modified grants to VC through staging table generates the same updates to VC data as publishing grants without modification.

     – Batch publish of rejected grants sets Award Status to J (rejected) if the awards were sent to Stock Administration in error.

     Note. After the awards are rejected, they can't be recalculated in the same period. They must be recalculated in the following period.

3. Shares for VC plans or funding periods that have expired are returned to Stock Administration.

   Stock Administration decreases the VC funding table by the number of shares remaining.

4. Stock Administration updates VC tables when stocks split.

   • It updates the Awards table and the Plan Funding table.

   • Batch publishes affected VC awards.

5. Stock Administration recalculates award value when stock is repriced and publishes revised awards updating the award value.

See Also

Administering Variable Compensation Grants

Setting Up Integration Points with Stock Administration

Before using the integration between the Variable Compensation business process and Stock Administration, configure the Integration Broker nodes and activate the appropriate queues, handlers, and routings for these service operations:

See Also

Interactive Services Repository in the Implementation Guide section of My Oracle Support.

Working with Integration Points in Enterprise HRMS

Enterprise PeopleTools PeopleBook: Integration Broker

Reporting on Award Payout and Distribution

PeopleSoft Enterprise provides these reports to assist in payout processing:

• Actual Awards report.

  After the system submits the awards for payout, run the Actual Awards report. This report is similar to the Calculate Awards report, but it shows any modifications that you made to the award on the Allocate Awards page.

• Subscription Errors report.

  The variable compensation (VC) administrator can run the Subscription Error report after receiving workflow email notification that an erred or rejected award has been returned from PeopleSoft Payroll for North America or Stock Administration.

Page Used to Report on Award Payout and Distribution

Viewing and Reporting on Variable Compensation History

This section discusses how to use the Review Employee Award History page to view worker award history information online. Use the Review Employee Award History report or the Plan History report to print variable compensation history by worker or by plan, respectively.

Pages Used to View and Report on Variable Compensation History

Viewing Employee Target and Awards History

Access the Review Employee Award History page (Compensation, Variable Compensation, Finalize Awards, Review Employee Award History, Review Employee Award History).

Award Date	The date on which the award was granted for each payout period.
Award (Amt) (award amount)	The award amount in the currency of the plan. (This column is hidden if the worker did not receive a monetary award in the plan period.)
Award (Units)	This column of the grid is hidden if the worker did not receive a non-monetary or stock award in the plan period.
Award Value	The value of the award granted in each period, expressed in the currency of the plan.
Target Value	The value of the worker's target award (expressed in the currency of the plan) as calculated by the Calculate Awards process for each payout period.
Total Actual Award	The total of awards granted to the worker under the plan ID, expressed in units or currency, depending on the plan type. Monetary value is expressed in the currency of the plan.
Total Target Award	The total of target awards calculated for the worker under the plan ID, expressed in units or currency, depending on the plan type. Monetary value is expressed in the currency of the plan.