Calculation Processes

The system employs the Allocate Awards page and these processes when calculating variable compensation (VC) allocations and awards:

  • The Determine Allocation Application Engine process (V_DET_ALLOC) calculates target awards.

    It also calculates the performance factor for organization and group goals if weighted goals are a plan business rule.

  • The Calculate Awards Application Engine process (VC_CALWRD and VC_CALWRD_WG) calculates both monetary and non-monetary VC awards, including stock awards, by applying appropriate proration, performance, and adjustment factors to the target award.

  • The Calculate Awards process populates the Allocate Awards page, where you can view and manually adjust awards.

    On this page you also set the award status, which tells the system when to submit awards for payout.

Do not use either the Determine Allocation process or the Calculate Awards process for Ad Hoc plans. Instead, go directly to the Allocate Awards page and manually enter the ad hoc award for each plan member.

Calculation Processes Without Group Funding

To calculate awards when group funding allocation is not used:

  1. Enter group and organization weighted-goal attainments (if applicable).

  2. Run the Determine Allocation process.

  3. Enter individual weighted-goal attainments (if applicable).

  4. Run the Calculate Awards process.

  5. Review and change the award as required on the Allocate Awards by Plan page.

  6. Change the award status on the Allocate Awards by Plan page when the award is ready for approval or submittal.

Calculation Processes with Group Funding

If your plan uses groups and funding, allocate funding to groups in the hierarchy using the Allocate Group Funding page. At each level in the hierarchy, the manager's award must be allocated and approved before the group is funded. Managers and approvers of each group use the Calculate Awards process, the Allocate Awards page, the Approve Awards process (if applicable), and the Allocate Group Funding page before the next lower level of managers can fund their groups.