Calculating Base Compensation Budgets
This section provides overviews of Base Compensation budgeting procedures and budget setup and configuration for group salary increases, lists common elements, and discusses how to budget group increases.
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Page Name |
Definition Name |
Usage |
|---|---|---|
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GROUP_INCR_BUDGET1 |
Assign a Budget ID and describe a salary increase budget for a group of workers. |
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GROUP_INCR_BUDGET2 |
Define the action and action reason for the budget and to view requested and current budget totals. Use this page to submit a budget for approval, to modify and approve the budget, and to approve the salary plan associated with the budget. |
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|
GROUP_INCR_BUDGET3 |
Enter and calculate increases for group members by base pay rate codes. The system calculates the totals for the group and displays them on the Create/Approve Group Budget - Budget Requested page. |
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GROUP_INCR_BUDGET6 |
View specific budget amounts based on groups and action and reasons combinations. Add more budget fields and create user-defined fields to store additional budget data. |
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Calculate Group Budget Page |
RUNCTL_CALCBUDGET |
Run the Budget Calculation application engine process, which calculates the total budget amount and percent for the rate code increases that you enter on the Create/Approve Group Budget - Budget Components page. It enters the totals in the Requested and Current data rows on the Create/Approve Group Budget - Budget Requested page. You can calculate the budget using online processing if the group is small. For large groups, use this application engine process. Define a group increase budget before using this page. |
You have the following options when using the Group Increases pages, the Budget Calculation process, and the Budget Comparison Inquiry pages:
You can calculate a budget using either online processing in the Group Increases component pages or the Budget Calculation batch process.
You want to use the batch process if your group is larger than 25 workers.
If you create more than one budget for the same group and budget period, you can compare budgets during the approval process or skip the budget comparison steps.
You can approve a budget on either the Create/Approve Group Budget - Budget Requested page or the Compare Group Budgets - Comparison page.
Complete these steps to establish a salary increase budget for a group:
Create a group using the group build pages.
Set up salary plan control values for the group.
Assign a budget ID and describe the budget on the Create/Approve Group Budget - Budget Description page.
You can approve only one budget for a single group and budget period start date.
Define the effective date, sequence, action, and action reason for the budget increase on the Create/Approve Group Budget - Budget Requested page.
You can budget for different action or action reason combinations that take effect on different dates within the same budget. However, do not do this if the increases are administered by Anniversary Date.
Load rate codes to view all the rate codes for the group on the Create/Approve Group Budget - Budget Components page.
Enter salary increases by selecting a matrix or by entering an amount, a percent, and so on for each rate code, as needed, on the Create/Approve Group Budget - Budget Components page. You must save the page if you want to run the calculations that comprise the next step.
Calculate the requested and current budget amounts by clicking the Calculate button on either the Create/Approve Group Budget - Budget Components page or the Create/Approve Group Budget - Budget Requested page, or by running the Budget Calculations Application Engine process.
If your group is large, you will want to use the application engine process.
The system enters the calculated totals of the requested budget in the Requested and Current rows on the Create/Approve Group Budget - Budget Requested page.
If you are not using the requested budget functionality, do not click the Request Approval button.
(Optional) Access the Create/Approve Group Budget - More Budget Details page and select the Total Current Annual Salaries, Approved Budget, and Allocation Amount check boxes. Click the Get Selected Values button to view the calculated budget values. You may also use the new additional fields for reserve amount, vacant position budget amount, and new position budget amount. Six user-defined fields are also provided.
If you are requesting a budget for approval, submit the budget for approval by clicking the Request Approval button on the Create/Approve Group Budget - Budget Requested page.
Compare budgets (if you created more than one budget for the same group and budget start date) on the Compare Group Budgets pages.
Approve the budget without modification by selecting the Budget Approved check box on the Compare Group Budgets - Comparison page.
Modify the current budget, approve it, or use it for salary planning without approving it.
To modify the budget, change the values in the Current Budget grid on the Create/Approve Group Budget - Budget Components page.
To approve the budget, enter dates, select the Approve the Budget check box, and then save.
Use the approved or unapproved budget as the basis for creating a salary increase plan.
Image: Budgeting setup process, including the required steps to set up group budgets for group salary increases
This diagram illustrates the process flow required to set up group budgets for group salary increases.
|
Field or Control |
Definition |
|---|---|
| Budget Period and Level of Proration |
Displays the control dates and the level of proration that you set up for the group in the Default Budget Parameters page. |
| Total Count |
Displays the total count of workers in the group as of the salary plan start date. |
| Total FTE (full-time equivalent) |
Displays the total number of FTEs for the group as of the salary plan start date. |
| Total Annual Salaries and Total Current Annual Salaries |
The total sums of salaries for workers who meet the following criteria:
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Use the Create/Approve Group Budget - Budget Description page (GROUP_INCR_BUDGET1) to assign a Budget ID and describe a salary increase budget for a group of workers.
Navigation
Image: Create/Approve Group Budget - Budget Description page
This example illustrates the fields and controls on the Create/Approve Group Budget - Budget Description page.
You can set up a number of different budgets with distinct budget IDs for the same group in the same budget period. You can compare these budgets in the Compare Group Budgets pages.
Set up the group default values on the Default Budget Parameters page.
Budget
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Field or Control |
Definition |
|---|---|
| Get Group |
Click to retrieve or refresh the total count, FTE, and total annual salaries information for this group ID. |
Group Default Values
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Field or Control |
Definition |
|---|---|
| Salary Planning Start Date |
Displays the Salary Planning Start Date that you set up for the group in the Assign Group Budget Parameters page. |
| New Hire Eligibility Date |
If you are administering salaries by the All Employees at the Same Time method, displays the new hire eligibility date that you set up for the group in the Assign Group Budget Parameters page. |
Use the Create/Approve Group Budget - Budget Requested page (GROUP_INCR_BUDGET2) to define the action and action reason for the budget and to view requested and current budget totals.
Navigation
Image: Create/Approve Group Budget - Budget Requested page
This example illustrates the fields and controls on the Create/Approve Group Budget - Budget Requested page.
Use this page to submit a budget for approval, to modify and approve the budget, and to approve the salary plan associated with the budget.
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Field or Control |
Definition |
|---|---|
| Calculate |
After you enter or change rate codes and increase values in the Requested Budget or Current Budget grid on the Create/Approve Group Budget - Budget Components page, click Calculate to calculate the budget and populate the Current, Requested, Planned Increase and Variance Percent, and Amount fields on this page. The system calculates the total for the group based on the following data:
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Field or Control |
Definition |
|---|---|
| Effective Date |
Select an effective date for the action and action reason associated with this budget. This is the effective date which will ultimately be loaded into Job Data. The effective date enables you to budget for different action and action reason combinations that take effect on different dates within the same budget. By using the Seq (sequence number), Effective Date, Action, and Reason fields, you can perform multiple actions on the same rate code for the same effective date and different action reasons. Note: If you administer salary increases by Employee Anniversary Date under the plan, you can only define one increase in the budget, which must have the salary plan start date as the effective date. |
| Sequence |
If you enter an additional action with the same effective date and different action reason, increase the sequence number by one integer. The system assumes the first action to have a sequence number of 0; therefore, enter a sequence number of 1 for your second use of the an action code and action reason for the same effective date. You may have the same effective dates for pay rate changes for merit and promotions, and other types, using specific effective sequences. |
| Request Approval |
(Optional) Click this button to send a workflow notifying the approval manager to review the budget. Workflow must be enabled. |
| Budget Type |
Select a budget type from the available values. The values come from the Define Budgets page. The default value for this field appears. |
| Action |
Select from these values associated with this budget: Demotion, Pay Rt Chg (pay rate change), Posn, Chg (position change), and Promotion. The default value for this field appears. |
| Reason |
Select from the list of action reason code values established in the Action Reason Code table. |
| Budget Manager |
The default value is the Manager ID defined for the group when the group was defined. You can override this ID if necessary. When you enter the manager ID, the system automatically updates the Rcd# (record number) field with the manager's worker record number. |
| Record |
The system enters the worker record number of the budget manager you identified. |
| Percent |
Displays the total percent change in salaries. Note: Before doing this subtraction and division, Requested Amount and Current Amount values (prorated to level of proration) must be converted to an annual amount. |
| Amount |
Displays the change in total salaries. These calculations include all base pay rate codes in each Job compensation package as well as any new percentage or salary points calculations resulting from the planned increase. |
| Date |
Enter the date that you are requesting this budget (in the Requested row) or approving the budget (in the Current row) or approving the salary plan (in the Planned Increases row). The system enters this date if you approve the budget on the Compare Group Budgets - Comparison page. |
| Requested |
This information represents the amount being requested for salary increases. |
| Current |
This information represents the budget as revised by the approver on the Create/Approve Group Budget - Budget Components page. This amount is available for distribution to group members on the Propose Raises page. |
| Planned Increases |
This information represents the total increases that you define in the salary increase plan associated with this budget. All amounts appear in the budget currency and frequency. |
| Budget Approved |
The approval manager first enters the date in the Current budget row and then selects the Budget Approved check box when satisfied with all of the budget figures. The system selects this check box if you approve a budget on the Compare Group Budgets - Comparison page. Only one approved budget can exist at one time for a single group and budget period start date. Only the budget manager can cancel a budget approval by deselecting this check box. Then, the Requested Budget and Current Budget grids on the Create/Approve Group Budget - Budget Components page will become available for edit. |
| Grand Totals |
The total amount requested for the budget. |
| Amt (amount) |
The system enters the total increases according to the current budget, calculated and displayed at the level of proration defined for the budget. |
| % (percent) |
The system enters the percentage of increase between the sum of the annualized salaries as of the start date of the plan and the calculated increased salaries in the current budget. |
| Variance |
After you create a salary increase plan associated with this budget, displays the variance between the Requested Amount and Current Amount. If the variance displays as a positive amount, the salary plan exceeds the budgeted amount. If the variance displays as a negative amount, the planned salaries fall short of the budgeted amount. |
| Salary Plan Approved |
The approval manager selects this check box to approve the plan. It must be selected to load the salary increases to Job Data. |
Use the Create/Approve Group Budget - Budget Components page (GROUP_INCR_BUDGET3) to enter and calculate increases for group members by base pay rate codes.
The system calculates the totals for the group and displays them on the Create/Approve Group Budget - Budget Requested page.
Navigation
Image: Create/Approve Group Budget - Budget Components page: Amounts tab (1 of 2)
This example illustrates the fields and controls on the Create/Approve Group Budget - Budget Components page: Amounts tab (1 of 2).
Image: Create/Approve Group Budget - Budget Components page: Changes tab (2 of 2)
This example illustrates the fields and controls on the Create/Approve Group Budget - Budget Components page: Changes tab (2 of 2).
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Field or Control |
Definition |
|---|---|
| Calculate |
After entering or adjusting the details of the requested budget or current budget by rate code in the grids, click Calculate to calculate the budget totals. The system updates both the Current budget totals and the Requested budget totals on the Create/Approve Group Budget - Budget Requested page. If you have a large group, use the Budget Calculation application engine process instead of this button. |
Budget
|
Field or Control |
Definition |
|---|---|
| Sequence |
Select a budget by sequence if more than one budget, budget period, budget ID, effective date, and action and action reason is available for this group. |
| Action |
Select a budget by action if more than one budget, budget period, budget ID, and effective date is available for this group. |
| Reason |
Select a budget by action and reason if more than one budget, budget period, budget ID, effective date, and action is available for this group. |
| Load Rate Codes |
Click this button so that the system populates default values for all rate codes for group members as shown on their Job Data records. |
Amounts Tab
When the budget is approved, this grid is not accessible. You are not able to insert or delete rows, and you cannot modify any value in the grid.
Note: If you modify a budget that was already approved, you need to recalculate the budget. You cannot save the page unless a recalculation is done. It is not possible to modify a budget that has salary increases already loaded to JOB since these increases change the status in the Propose and Summarize Raises page to Processed. If a budget is modified, the status will automatically be set to Proposed, even if the status was previously Approved.
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Field or Control |
Definition |
|---|---|
| Rate Code |
Select a base pay rate code for which you want to budget an increase. The system calculates the budget for all workers in the group who have this rate code in their compensation package. |
| Total Increase |
Displays the result of the calculation for all workers in the group who have the rate code in their compensation packages. It shows the total increase amount for the rate code, in the currency and frequency of the rate code. For example, suppose there are five workers in the group who have the rate code and you increase the amount by 100 USD, the amount in this field is 500 USD (5 × 100). |
| Currency and Frequency |
Display the currency and frequency that you defined for the rate code on the Comp Rate Code Table page. |
| Frequency |
Select the frequency for the rate code. Values come from the Frequency ID table. |
Changes Tab
The fields on this tab are unavailable if a salary matrix is associated with any rate code on the Amounts tab.
|
Field or Control |
Definition |
|---|---|
| Matrix Name |
Select a salary matrix if you want to calculate a budget using a salary matrix. You can enter an existing salary increase matrix name that was created using a configurable matrix. Based on the criteria of this configurable matrix, the system will then apply the appropriate increase to workers in the group when calculating the budget. Examples of criteria are performance ratings, compa-ratio, or position in range. PeopleSoft provides sample salary increase matrices. If you populate a matrix name, do not enter values in the Change Amount or Change Percent fields. When you select a salary increase matrix name, the Details link becomes active. Click the Details link if you want to go to the matrix definition, including its current data content. The system will display the relevant values that will be used during budget calculation. Note: If you are using performance review as an input, the review rating must be of PERFRATING type. |
| Change Amount |
If the rate code type is Flat Amount, Hourly Rate, or Hourly Rate + Flat Amount, you can enter a change amount for the rate code. The system calculates the budget by adding this new amount to the compensation for the rate code. If you enter a Change Amount value, the Change Percent field is deselected. |
| Change Percent |
If the rate code type is Flat Amount, Hourly Rate, or Hourly Rate + Flat Amount, you can enter a percent of increase in the amount for the rate code. The system calculates the budget by adding this percent increase to the compensation for the rate code. If you enter a Change Percent value, the Change Amount field is deselected. |
| Change Points |
If the rate code type is Points, you can enter an additional number of points for the rate code. The system calculates the budget by adding this number of points to the points for the rate code and multiplying by the point value that you define on the Comp Rate Code Table page. If you enter a Change Points value, the Percent of Points field is deselected. |
| Percent of Points |
If the rate code type is Points, you can enter a percent of increase in the number of points for the rate code. The system calculates the budget by adding this percent increase to the points for the rate code and multiplying by the point value that you define in the Company Table. If you enter a Percent of Points value, the Change Points field is deselected. |
| Add Percent |
If the rate code type is Percent, you can enter an additional percent for the rate code. The system calculates the budget by adding this percent to the existing rate code percent. |
Current Budget Amounts and Changes
As you enter the Requested Budget details, the system copies them into the Current Budget grid. The approval manager can adjust the budget in the Current Budget grid. When you click Calculate or run the Budget Calculation process, the system calculates and enters the adjusted totals in the Current row on the Create/Approve Group Budget - Budget Requested page.
When the budget is approved, this grid is not accessible. You are not able to insert or delete rows, and you cannot modify any value in the grid.
The fields in this section are identical to the fields on the Amounts and Changes tabs in the Requested Budget section.
Use the Create/Approve Group Budget - More Budget Details page (GROUP_INCR_BUDGET6) to view specific budget amounts based on groups and action and reasons combinations.
Add more budget fields and create user-defined fields to store additional budget data.
Navigation
Image: Create/Approve Group Budget - More Budget Details page
This example illustrates the fields and controls on the Create/Approve Group Budget - More Budget Details page.
Calculated Values
|
Field or Control |
Definition |
|---|---|
| Approved Budget |
The budget as revised by the approver on the Create/Approve Group Budget - Budget Components page. This amount is available for distribution to group members on the Propose Raises page. |
| Allocation Amount |
The total increase that you define in the salary increase plan associated with this budget. The amount appears in the budget currency and frequency. |
Customizable Values
|
Field or Control |
Definition |
|---|---|
| Reserve Amount |
Use this field to store budget amounts to be saved for allocation at a later time. |
| Vacant Position Budget Amount |
Stores budget amounts for vacant positions. |
| New Position Budget Amount |
Stores budget amounts for new positions. |
| User Defined <#> |
Store additional budget values in these fields to have all budget values in one place and to use for reports. |