Use this procedure to calculate all employee and position expenses, by HR organization, that reflect expenses and calculations for compensation elements such as benefits, FTE assignments, allocations, and vacancy expenses.
Note:
Effective dating applies to all compensation types. For example, if a salary change is effective June 5, 2012, other expenses are automatically calculated using this date.
If benefit expenses are based on a percentage of total pay (bonuses and commissions for example), benefits increase if the salary changes.
To calculate the compensation budget:
Ensure that FTE, salary grade, and allocation details are defined for the positions or employees whose expenses you want to calculate. This data must exist in order to calculate the budget. See Maintaining Job Compensation Details, Maintaining Employee Compensation Details, or Maintaining Position Compensation Details.
Expand Budget Preparation, and then select Calculate compensation budgets.
Specify the following to identify the budget to calculate:
Scenario—Type of budget such as baseline or forecast
Version—Budget stage (for example, worst case if the scenario is forecast)
Entity —Depending on your access permissions, select the HR organization (department, bureau, or cost center, for example) for which to calculate budget expenses. Selecting a parent level entity member calculates the budget for all children. Select Total Entity to calculate expenses for your entire organization.
Note:
To recalculate the budget to reflect a version revision made on an approved budget, select the revision member.
Review the budget calculated for positions and employees and make necessary changes. See Reviewing Expenses, Reviewing Position and Job Budgets, and Reviewing Employee Budgets. To allocate the entire calculated compensation budget for the entity, see Allocating Compensation Expenses to General Ledger Accounts.