This chapter covers the following topics:
You must set application parameters in order for the application to perform key processes. Here you identify the information you set up in General Ledger and set up ways for Oracle Incentive Compensation to measure achievement and perform currency conversion.
Setup Tasks > Application Parameters
At the beginning of implementation, you need to define the Instance Name and Currency Conversion Type, and indicate whether compensation plans can be customized.
Define Instance Name: This cannot be changed after it is set.
Currency Conversion Type: This setup is shared with General Ledger.
Customizing Compensation Plans: Select Yes if you plan to personalize rates at the resource level. If you don't plan to do so, then set this to No for more efficient calculation processing.
For reports, at this early stage of the implementation process you can indicate the reporting hierarchy and also whether draws should be displayed in the Year-To-Date summary report.
Defining the reporting hierarchy is done as a security measure. It sets which resources' reports a manager can access using the Incentive Compensation User (Manager Self Service) responsibility.
There are three reporting hierarchies from which you can choose in this release:
Sales Compensation
Sales and Telesales
Compensation Reporting Hierarchy
As an example, REP1 and MGR1 belong to compensation group GRP1, with usage of Sales Compensation. If the system parameter is set for Sales Compensation. then the manager can access reports for both REP1 and MGR1.
As a second example, the setups are as follows:
| Resource | Comp. Group | Usage |
|---|---|---|
| REP2 | CHILD-GRP1 | Sales and Telesales |
| MGR2 | GRP2 (parent group of CHILD-GRP1) |
Sales Compensation Sales and Telesales |
If the system parameter is set to Sales Compensation, then when you access any of the manager reports and click on the Resource list of values, only MGR2 is listed. REP2 does not appear, because REP2 is not in the Sales Compensation reporting hierarchy. However, if the reporting hierarchy is set to Sales and Telesales, when you access the manager reports and click on the Resource LOV, both MGR2 and REP2 are displayed.
If your business doesn't use draws, you can select No in the Display Draw in the Year-To-Date Summary report drop-down list to remove that field from the report.
You must select a set of books to use for your instance of Oracle Incentive Compensation. This set of books is previously created in Oracle General Ledger. After you have selected the set of books it cannot be changed, and becomes a read-only field. The application processes incentive compensation payments according to periods defined in a calendar associated with the set of books. See Chapter 3 in this document and also the Oracle General Ledger User's Guide, Setup chapter).
The following information is displayed as view-only on this page:
Operating Unit
Functional Currency associated with this set of books
Accounting Calendar associated with this set of books
Period type associated with this set of books
Intervals are associated to a plan element to accumulate achievements for a specific period of time. They group predefined periods into larger units of time. Achievements accumulated during the interval are used to determine the rate at which compensation is calculated. This depends on how your organization wants to pay compensation.
Commonly used intervals include period, quarter, and year. You must define interval numbers for these intervals before they can be selected during creation of plan elements.
On the Interval Settings page you can view seeded and previously created intervals and create new intervals. Select the interval to assign interval numbers below.
Navigation
Setup Tasks > Define Interval Settings
Notes
Years listed in the Year list of values must be previously defined in General Ledger.
Interval numbers are user definable. When an interval is first created, all of the interval number fields contain a single numeral 1. You must then manually enter the interval numbers that you need for each year. After you have entered the numbers and clicked Apply, they will remain stored, even if you select other years from the drop-down list.
Interval numbers must be unique for each interval. For example, for quarterly intervals, JAN-07, FEB-07, MAR-07 are all numbered 2007001, APR-07, MAY-07, JUN-07 are all numbered 2007002, and so on. For Monthly intervals, JAN-07 is numbered 2007001, FEB-07 is numbered 2007002, MAR-07 is numbered 2007003, and so on.
Credit types are associated with plan elements and are also used in reporting. Credit types include functional currency, points, air miles, or any custom form of credit that you want. These definitions are optional, and credits must be converted to functional currency to be paid.
Oracle Incentive Compensation uses the functional currency to perform all calculations. This is the currency used by General Ledger to record transactions and maintain accounting data for the set of books. It cannot be changed within Oracle Incentive Compensation.
You can view, change, remove, or add a credit type.
Use credit conversion to set conversion factors for converting one credit type to another, such as setting the conversion rate between the nonmonetary credit type and the functional currency.
Navigation
Setup Tasks > Application Parameters > Define Credit Types and Credit Conversion Factors
Notes
Precision defines the number of decimal places in which the credit type is displayed. Extended precision is the number of places in which calculation is performed.
Only one conversion rate can be in effect for a particular date range. Date ranges cannot overlap.