Common Elements Used in Awards Calculation

Field or Control	Description
Payout Formula	Formulas that the system uses to calculate target, minimum, and maximum payouts under the plan. Define payout formulas on the Payout Formulas setup page.
Target Payout Formula	The payout formula that the Determine Allocation process uses to calculate the target award. Depending upon how you define the plan, assign target payout formulas to plan members at the individual level, the group level, or through the matrix goal payout schedule.
Minimum Payout Formula	The formula that the Calculate Awards process uses to determine the minimum award that the plan member should receive under the plan. Optionally, assign minimum payout formulas at the plan or group level.
Maximum Payout Formula	The formula that the Calculate Awards process uses to determine the maximum award that the plan member should receive under the plan. Optionally, assign maximum payout formulas at the plan or group level.
Proration Factor (or Prorate Factor)	A factor calculated by the Determine Eligibility/Proration process. This factor is based on the amount of time the worker was a member of the plan during the payout period. The Calculate Awards process multiplies the plan member's target award by the proration factor when it calculates the calculated award.
Adjustment Factor	A factor calculated and applied by the Calculate Awards process to adjust each individual award by the same ratio for funded plans when not enough funding is available to pay out the calculated awards.
Performance Factor	The factor that the Calculate Awards process uses to adjust for weighted-goal attainments. The performance factor for a given goal is the attainment percent multiplied by the weighting percent of the goal and by the weighting percent of the level.
Target Award	The award received upon completion of 100 percent of all applicable goals, including organization, group, and individual goals. The Determine Allocation process calculates the target award, which is the calculated value of the target payout formula without applying any proration factor, performance factor, or adjustment factor. The Calculate Awards process uses the target award to calculate the calculated award. Target award is labeled Target Value on the Allocate Awards page.
Minimum Award	The calculated value of the minimum payout formula assigned to the plan or group, without applying any proration factor, performance factor, or adjustment factor. The Determine Allocation process calculates the minimum award.
Maximum Award	The calculated value of the maximum payout formula assigned to the plan or group, without applying any proration factor, performance factor, or adjustment factor. The Determine Allocation process calculates the maximum award.
Target Value	The value of the target award expressed in the currency of the variable compensation plan or in units if the plan is non-monetary. The Determine Allocation process calculates this value and enters it in the Target Value field on the Allocate Awards page.
Calculated Award	The target award multiplied by the performance factor (if the plan uses weighted goals) and the proration factor (if the plan is prorated) and adjusted to the minimum or maximum, if appropriate. The Calculate Awards process calculates the calculated award and enters it in the Calculated Award field on the Allocate Awards page.
Adjusted Award	The calculated award multiplied by the adjustment factor. The Calculate Awards process calculates the adjusted award and enters it in the Adjusted Award field and in the Actual Award field on the Allocate Awards page.
Actual Award	The adjusted award as further changed on the Allocate Awards page by manual adjustment or carryover amount. If not changed, the actual award is equal to the adjusted award. When approved, the actual award is the amount of currency or units approved for payout or distribution.
Award Value	The value of the actual award expressed in the currency of the variable compensation plan. The Calculate Awards process applies the valuation ID and rounding rules to calculate the monetary award value of non-monetary units.