Oracle® Fusion Applications Incentive Compensation Implementation Guide 11g Release 7 (11.1.7) Part Number E20381-07 |
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This chapter contains the following:
Manage Profile Options and Flexfields
Incentive Compensation Base Transaction Descriptive Flexfield: Explained
Manage Currencies and Currency Conversions
Oracle Fusion Incentive Compensation has two profile options, which you can set at the site level.
CN_DEBUG: Select Yes when you want the application to write the debug errors to the CN_PROCESS_AUDIT_LINES table.
CN_MARK_EVENTS: Select Yes when you want the application to record every event in the Changed Events Log for inclusion in the next incremental calculation and plan deployer processes.
Use Base Transaction incentive compensation descriptive flexfield global segments to store transaction attributes that do not exist by default in the CN_TP_TRANSACTIONS_ALL table.
The global segment data types VARCHAR2 and NUMBER have the following customizable attributes available for immediate use.
Data Type |
Attributes |
---|---|
VARCHAR2 (240 CHAR) |
ATTRIBUTE1 - ATTRIBUTE150 |
NUMBER |
ATTRIBUTE_NUMBER1 -- ATTRIBUTE_NUMBER50 |
In the Setup and Maintenance work area:
Use the Manage Incentive Compensation Descriptive Flexfield task to configure one or more global segments, including associating any relevant value sets or lookups, and deploy the Base Transaction descriptive flexfield.
Use the Configure Tables and Columns task to enable the global segments for use in the calculation process.
Use the Manage Custom Rule Qualifiers task to enable the global segments for use in the crediting and classification processes.
This topic covers how an incentive compensation calendar supports processing activities for incentive compensation business units by first definingperiod types and periods, and then exploring how they work together.
Determines how you divide your calendar or fiscal year. The following table shows the delivered types and corresponding periods in a year:
Period Type |
Periods in a Year |
---|---|
Monthly |
12 |
Quarterly |
4 |
Semi-Annually |
2 |
Yearly |
1 |
Create custom period types as required. Enter the number of periods in a year so that the application can validate the periods that you define for the calendar. Select the shortest required period range (for example, weekly or monthly) to ensure that the application can accumulate attainments, maintain goals and subledger balances, and process payments at this level, or any higher level.
Restriction
You cannot accumulate attainments for a period type shorter than your selection. For example, if you select Monthly, you cannot accumulate attainments weekly.
You cannot edit or delete standard or custom period types used by any calendar.
Define for each calendar based on the selected period type, including the definition of period with year, period name, sequence, and start and end date--inclusive of both the dates. Abbreviate the period name if you want, for example Jan for January or W1 for Week1. The application arranges periods based on the sequence values that you enter.
Restriction
The date ranges within one period cannot overlap with other periods and must be continuous with reference to the previous and next periods.
After you associate a calendar with a business unit and open the first period for the business unit, you cannot edit the calendar.
Tip
Create all of the periods required for the compensation plans, measures, and goals before creating the plans, measures, and goals.
The following table shows the various calendar and period tasks that first you and then the application perform.
User Actions |
Application Actions |
---|---|
1. Create a calendar and associated periods as a single entity within the application. |
Store the calendar data in the calendar entity (CN_CALENDARS) and the period data in the period entity (CN_PERIODS). |
2. Assign a calendar to a business unit as part of the business unit set up. |
Insert the periods (zero or more) that are assigned to that calendar into the business unit level tables. For each interval type defined for the business unit, insert each period into the CN_CAL_PER_INT_TYPES table. The CN_PERIOD_STATUS table stores basic period data, including the default status (Never Opened) given to each period. |
3. Edit the period status (for example, select Open) within the business unit. |
Update the period statuses in the CN_PERIOD_STATUS table accordingly. If required, launch a concurrent request to populate the period data in all of the participant-related (SRP) tables. |
4. Create new, future periods in the calendar. |
Insert the new period records into the following tables:
|
Yes, you can use the Calendar choice list in the Define Business Unit Configuration for Incentive Compensation task list, Manage Parameters task to assign the calendar to the business units, if they require the same calendar set up. The application automatically propagates any change to the calendar, such as new periods, to all of the business units using the calendar.
You can update the calendar name and add more periods, but you cannot change the period type.
The application adds the new period record to the list of periods maintained in period status and interval related tables, in all the incentive compensation business units to which you assigned the calendar. For example, if you assign a calendar to Vision Operations and Vision Services and you created a Jan-2010 period for this calendar, the application adds this period to the tables maintaining period statuses and interval periods for Vision Operations and Vision Services.
Tip
Create all the periods required for performance measures and goals first.
Correct the interval numbers for the new period under various interval types for the business units.
Open the period in all of the corresponding business units to use it for transaction processing.
Oracle Fusion Incentive Compensation enables you to maintain and process transactions in multiple currencies. Support your global workforce by processing the transactions, originating in different source currencies, in a single processing currency or in each participant's home currency. Compensate participants selling in various countries or different business units within one or more incentive compensation business units.
Tip
A given participant can belong to only one business unit. End date the participant in the current business unit and then add the participant to the new one, if you must change the participant's business unit.
There are currency as well as conversion rate, rate type, and date parameters in the Define Shared Configuration for Incentive Compensation task list, Manage Currencies and Manage Currency Conversions tasks.
Operating currency
Tip
Set this value to the currency in which your top management wants to view reports.
Participant home currency
Processing currency
Tip
If you set processing currency to:
Operating currency, then the Crediting, Calculation, and Payment processes use the single operating currency for processing.
Participant home currency, then the Crediting, Calculation, and Payment processes use each participant's home currency for processing. Also, you may have to individualize participant compensation plan details, such as rates and goals, because you establish compensation plan elements at the business unit level.
Note
The application maintains participant subledger balances only in the processing currency. A participant may have subledger balances in more than one currency if you set the processing currency as Participant home currency, and the participant's home currency changes.
Important
Reassign incentive plans if you change the participant's currency.
Choose which rate to use to convert amounts among the four currency options. Create rate types such as Corporate, Daily, and Period Average, and define rates differently under each one of them to use in different scenarios. For example, you decide to use Daily rates to convert transaction and credit amounts, and Period Average rates to convert payment amounts. In this case, use these two parameters to set appropriate rate types for these processes.
Payment Conversion Rate Type: The application uses the rates within the selected rate type to convert the payment amount from processing currency to operating currency or home currency.
Transaction Conversion Rate Type: The application uses the rates within the selected rate type for conversion during the Collection, Crediting, and Calculation processes as well as while adjusting transactions.
The Payment Conversion Date parameter determines whether the application uses the transaction date or the payment batch pay date to look up the corresponding currency rate to use for payment conversion.
To support multicurrency processing, the application stores transactions, credits, earnings, and payments in the following currencies.
Entity |
Source Currency |
Processing Currency |
Operating Currency |
Participant Home Currency |
---|---|---|---|---|
Transactions |
Yes |
|
Yes |
|
Credits |
Yes |
Yes* |
Yes |
Yes |
Earnings |
|
Yes* |
Yes |
Yes |
Payments |
|
Yes* |
Yes |
Yes |
* Represents the core currency associated with the transactional entity. Other currencies are available for transaction traceability and reporting. For example, when you adjust the amount of a base transaction, the application does the adjustment in the source currency, whereas, by default, the application shows the credit and earning amounts in the processing currency.
Tip
The application maintains attainments only in processing currency.
Assume you are a compensation manager working for multinational company ABC with a global sales force. You decided to compensate North American salespersons working in Canada and the United States in a single incentive compensation business unit with the operating currency of USD. The processing currency is Participant Home Currency so you compensate the Canadian sales force in its home currency of CAD and the US sales force in USD.
Collection: Since your salespeople are selling in the US and Canada, you collect transactions in USD and CAD, into the same business unit. Now, you track two transactions, one booked in US dollars and another in Canadian dollars, assuming an exchange rate of 1 CAD equals 0.9302326 USD.
Note
The application converted the transaction amount from source currency to operating currency and stores it for each transaction. It does any adjustment to the transaction using the source currency amount.
Transaction Number |
Transaction Event Date |
Transaction Amount in Source Currency |
Transaction Amount in Operating Currency |
---|---|---|---|
T01012010-1 |
1-Jan-2010 |
10,000 USD |
10,000 USD |
T01022010-9 |
1-Feb-2010 |
21,500 CAD |
20,000 USD |
Crediting: The application manages credit and roll up creation in source currency and adjustments in the processing currency. It automatically converts and populates the source currency, operating currency, and home currency credit amount in all of the previous cases. Assume that the two orders are for a team of two salespeople, one working from the US and another from Canada, sharing 50 percent credit. The application generates credits in the home currency of the credit receiver because the processing currency is set to participant home currency.
Transaction Number |
Transaction Event Date |
Credit Receiver |
Credit Amount in Processing Currency |
Credit Amount in Source Currency |
Credit Amount in Operating Currency |
Credit Amount in Home Currency |
---|---|---|---|---|---|---|
T01012010-1 |
1-Jan-2010 |
US Salesperson |
5,000 USD |
5,000 USD |
5,000 USD |
5,000 USD |
T01012010-1 |
1-Jan-2010 |
Canadian Salesperson |
5,375 CAD |
5,000 USD |
5,000 USD |
5,375 CAD |
T01022010-9 |
1-Feb-2010 |
US Salesperson |
10,000 USD |
10,750 CAD |
10,000 USD |
10,000 USD |
T01022010-9 |
1-Feb-2010 |
Canadian Salesperson |
10,750 CAD |
10,750 CAD |
10,000 USD |
10,750 CAD |
Calculation: The application calculates the earnings in the processing currency and also converts them to, and stores them in, operating currency and home currency. Assume that both salespeople are on the same plan with individualized rates and goals and that they get earnings (10 percent of credited amount) as follows:
Transaction Number |
Transaction Event Date |
Credit Receiver |
Earning Amount in Processing Currency |
Earning Amount in Operating Currency |
Earning Amount in Home Currency |
---|---|---|---|---|---|
T01012010-1 |
1-Jan-2010 |
US Salesperson |
500 USD |
500 USD |
500 USD |
T01012010-1 |
1-Jan-2010 |
Canadian Salesperson |
537.5 CAD |
500 USD |
537.5 CAD |
T01022010-9 |
1-Feb-2010 |
US Salesperson |
1,000 USD |
1,000 USD |
1,000 USD |
T01022010-9 |
1-Feb-2010 |
Canadian Salesperson |
1,075 CAD |
1,000 USD |
1,075 CAD |
Note
The three previous processes use the currency conversion rates defined under the transaction conversion rate type parameter.
Payment: The application computes the payment amounts in the processing currency and also converts them to home currency and operating currency. It does payment and manual adjustments in processing currency and again converts and stores them in home currency and operating currency.
Transaction Number |
Transaction Event Date |
Credit Receiver |
Payment Amount in Processing Currency |
Payment Amount in Operating Currency |
Payment Amount in Home Currency |
---|---|---|---|---|---|
T01012010-1 |
1-Jan-2010 |
US Salesperson |
500 USD |
500 USD |
500 USD |
T01012010-1 |
1-Jan-2010 |
Canadian Salesperson |
537.5 CAD |
500 USD |
537.5 CAD |
T01022010-9 |
1-Feb-2010 |
US Salesperson |
1,000 USD |
1,000 USD |
1,000 USD |
T01022010-9 |
1-Feb-2010 |
Canadian Salesperson |
1,075 CAD |
1,000 USD |
1,075 CAD |
Note
The Payment process uses the currency conversion rates defined under the payment conversion rate type. The rate that the application uses for conversion is based on the Payment Conversion Date parameter.
This example uses the data from the previous example to show how the application processes and stores transactions when you set operating currency to Processing Currency. The changes are shown in processing currency columns in the following tables.
Collection
Transaction Number |
Transaction Event Date |
Transaction Amount in Source Currency |
Transaction Amount in Operating Currency |
---|---|---|---|
T01012010-1 |
1-Jan-2010 |
10,000 USD |
10,000 USD |
T01022010-9 |
1-Feb-2010 |
21,500 CAD |
20,000 USD |
Crediting
Transaction Number |
Transaction Event Date |
Credit Receiver |
Credit Amount in Processing Currency |
Credit Amount in Source Currency |
Credit Amount in Operating Currency |
Credit Amount in Home Currency |
---|---|---|---|---|---|---|
T01012010-1 |
1-Jan-2010 |
US Salesperson |
5,000 USD |
5,000 USD |
5,000 USD |
5,000 USD |
T01012010-1 |
1-Jan-2010 |
Canadian Salesperson |
5,000 USD |
5,000 USD |
5,000 USD |
5,375 CAD |
T01022010-9 |
1-Feb-2010 |
US Salesperson |
10,000 USD |
10,750 CAD |
10,000 USD |
10,000 USD |
T01022010-9 |
1-Feb-2010 |
Canadian Salesperson |
10,000 USD |
10,750 CAD |
10,000 USD |
10,750 CAD |
Calculation
Transaction Number |
Transaction Event Date |
Credit Receiver |
Earning Amount in Processing Currency |
Earning Amount in Operating Currency |
Earning Amount in Home Currency |
---|---|---|---|---|---|
T01012010-1 |
1-Jan-2010 |
US Salesperson |
500 USD |
500 USD |
500 USD |
T01012010-1 |
1-Jan-2010 |
Canadian Salesperson |
500 USD |
500 USD |
537.5 CAD |
T01022010-9 |
1-Feb-2010 |
US Salesperson |
1,000 USD |
1,000 USD |
1,000 USD |
T01022010-9 |
1-Feb-2010 |
Canadian Salesperson |
1,000 USD |
1,000 USD |
1,075 CAD |
Payment
Transaction Number |
Transaction Event Date |
Credit Receiver |
Payment Amount in Processing Currency |
Payment Amount in Operating Currency |
Payment Amount in Home Currency |
---|---|---|---|---|---|
T01012010-1 |
1-Jan-2010 |
US Salesperson |
5,00 USD |
500 USD |
500 USD |
T01012010-1 |
1-Jan-2010 |
Canadian Salesperson |
500 USD |
500 USD |
537.5 CAD |
T01022010-9 |
1-Feb-2010 |
US Salesperson |
1,000 USD |
1,000 USD |
1,000 USD |
T01022010-9 |
1-Feb-2010 |
Canadian Salesperson |
1,000 USD |
1,000 USD |
1,075 CAD |
The application maintains incentive compensation currency conversions for instances where the sale currency is different from the operating currency or the participant home currency as well as when you want to use a different conversion rate than the default daily rates, for example, if you want to use period-based rates.
In the Define Shared Configuration for Incentive Compensation task list, Manage Currency Conversions task, create your rate types and associated rates. Then, use the Define Business Unit Configuration for Incentive Compensation task list, Manage Parameters task to make your selections for these parameters:
Processing Currency: Determines how the application actually converts currencies during processing. There is a Calculation Currency column on each transaction entity, which holds the value of the processing currency. Processing currency is either Operating currency (in which case every transaction would record the same currency) or Participant home currency.
Important
After you run the Calculation process or close a period, you cannot edit the value for this parameter.
Transaction Conversion Rate Type
Collection Conversion Rate Type
Payment Conversion Rate Type
Select one of the standard conversion rate types or create a custom one.
Create custom rate types (using unique names) based on your business requirements. For example, if your business units use period average based rates for conversion, create a new rate type, enter start and end dates (based on your calendar period definition), and provide the period-average rates for the date range.
Create or edit conversion rates.
Enter the required values. If you also enter an end date, the start date must be earlier than the end date for each record. Create two records for each date range and from and to currencies where the second record is the inversion of the first. For example, you create one record with an exchange rate from USD to CAD for the start date 1-Jun-2010 and a second record with an exchange rate from CAD to USD for the same date. The application may use the inverse rate for reference purposes to compute the transactional amount from the operating amount, if required.
Restriction
For the from and to currencies and date range for a rate type, you can use only one rate. If you want different rates for the same date range and set of from and to currencies, define a different rate type.
Restriction
You can edit rates as long as the incentive compensation period is not closed in any of the associated incentive compensation business units.
Define multiple incentive compensation currency rate types for the same date, different incentive compensation business units, or different usage and associate the appropriate rate type with each business unit. The rate types may match those in your general ledger, but it is not required. For example, one business unit requires daily-based rates where the rate is different for each day. Another business unit requires period-based rates where the period is monthly and each period has the same rate, which might be the average or end rate for the period. Yet another business unit also requires period-based rates, but its period is weekly instead of monthly.
The application uses the currency conversion rates that you defined for the rate type (in the Define Shared Configuration for Incentive Compensation task list, Manage Currency Conversions task) , and selected for Transaction Conversion Rate Type and Payment Conversion Rate Type (in the Define Business Unit Configuration for Incentive Compensation task list, Manage Parameters task), to convert transaction and payment amounts from one currency to another during Crediting, Rollup, and Calculation processing.
The application stores transactions, credits, earnings, and payments in various currencies. It uses the rates to convert currencies among the various amounts shown here.
Amounts in Entities |
Source Currency |
Processing Currency |
Operating Currency |
Participant Home Currency |
---|---|---|---|---|
Transactions |
Yes |
|
Yes |
|
Credits |
Yes |
Yes |
Yes |
Yes |
Earnings |
|
Yes |
Yes |
Yes |
Payments |
|
Yes |
Yes |
Yes |