This chapter covers the following topics:
There are some tasks that you must set up in General Ledger for all implementations. Oracle Incentive Compensation uses periods and calendars from General Ledger to calculate commission. Go to the General Ledger User's Guide, Setup chapter, for the correct procedures for all of the following General Ledger setups except for Define Currency. For that procedure, see the Multi-Currency chapter.
After you have completed these processes, the rest of the implementation procedures are done at the Operating Unit level. See Chapter 4 for those tasks. In Chapter 4 you select the set of books that you have defined in this chapter.
Oracle Incentive Compensation requires the period types to be defined in General Ledger so that compensation can be calculated. Examples of period types are:
Period (month)
Quarter
Year
You can also define custom period types to suit your business requirements.
A period type determines how you divide your calendar or fiscal year. The Calendar Type page enables you to create period types for either a calendar or a fiscal year. On the page you can also indicate the number of periods per year and enter a description.
After you have defined the period type, you must create an accounting calendar. If the period type you need is already defined, proceed to Define Accounting Calendar.
The accounting calendar contains the exact date ranges for all the periods in a specific calendar or fiscal year.
You can define different calendars for different business activities. Examples of these calendars include Fiscal, Standard 12-month, or variations such as a Fiscal 13-month calendar with 12 months and an adjustment period.
Notes
For prefixes, for a month, you can use the abbreviation, such as Jan for January. For a year, it can be FY-02 or something similar.
Number indicates the sequence of the period. For monthly periods, for example, enter 4 for April, 8 for August, and so on.
The Name field is required, but it is automatically populated by the application.
By default, the application builds the contents of the Subject field by combining the data in the Prefix column with the year suffix and hyphenating them. You can customize the field by entering a new name.
After you have defined your calendar, you need to add periods to it in General Ledger. If no periods are defined in General Ledger, Oracle Incentive Compensation cannot collect transactions or create payment batches.
Any currency that Oracle Incentive Compensation needs to calculate compensation must be defined in General Ledger. For example, if your company trades in North America, you want to define US dollars, Canadian dollars, and Mexican pesos. You can also define multiple forms of the same currency, such as US dollar (next day) and US dollar (same day).
The set of books provides a means to collect and quantify financial data. Oracle Incentive Compensation requires that a set of books be set up in General Ledger. The set of books includes a chart of accounts, calendar, and functional currency.
A chart of accounts is the account structure that you define to fit the specific needs of your organization. An accounting calendar defines the accounting year and the periods it contains. You select the functional currency for your set of books as well as other currencies that you can use for transacting business and reporting purposes.
One set of books can be used for your entire company or different set of books can be set up for different divisions or locations.