1. Administering and Working with Strategic Workforce Planning
  2. Administering Strategic Workforce Planning
  3. Configuring Workforce
  4. Enabling Workforce Features
  5. Enabling Expense Planning

Enabling Expense Planning

Select Expense Planning and then select the workforce-related expenses to manage.

Compensation Expenses

If you select Expense Planning, then Compensation Expenses, which includes salary planning, is also selected by default. You can also enable Additional Earnings, Benefits, Taxes, and Non Compensation Expenses by the level of granularity you selected.

For Additional Earnings, Benefits, and Taxes, select an option to enable it, and then select the number of members to create. (By default, the minimum, one member, is selected for each enabled option.) You can have a maximum of 30 members across Additional Earnings, Benefits, and Taxes.

Configure Additional Earnings, Benefits, and Taxes based on the maximum number of components that an employee or job can receive. Set the number of Additional Earnings, Benefits, and Taxes based on your current needs, not your future needs, because you can change these values in the future.

For example, if Employee 1 receives 3 additional earnings, 3 benefits, and 2 taxes while Employee 2 receives 5 additional earnings, 2 benefits, and 4 taxes, then the configuration for the number of additional earnings, benefits, and taxes should be set to 5 additional earnings, 3 benefits, and 4 taxes.

About Compensation Expenses:

  • Oracle recommends that you do not specify aliases for Additional Earnings, Benefits, and Taxes members. These members are placeholders used for assigning defaults to entities.
  • If you reduce the number of Additional Earnings, Benefits, or Taxes, corresponding members are removed from the Account dimension. Before removing a component and its assigned expenses, back up by creating a snapshot. Additionally, review any customizations related to removed members on the forms, member formulas, or business rules (wherever the member is referenced) and make modifications as needed. Workforce won't remove members that are referenced in any customized artifacts such as forms, member formulas, and so on.
  • After increasing the number of Additional Earnings, Benefits, or Taxes, which adds members, assign defaults to new members, and then run Synchronize Defaults to re-calculate compensation expenses.
  • After decreasing the number of Additional Earnings, Benefits, or Taxes, which removes members, run Synchronize Definition to re-calculate compensation expenses.
  • If you decrease the number of Additional Earnings, Benefits, or Taxes, line items are removed from the lower end of the hierarchy. For example, if you had 10 members for Additional Earnings, and you decrease it to 5, then Earning6 to Earning10 are removed.

Additional Options

Merit Based Planning enables you specify merit rates for employees. You can select Merit Based Planning only if you enable granularity for either Employee or Employee and Job.

About Merit Based Planning:

  • If you select only Merit Based Planning (and not Merit Assumptions), merit rates are set at the entity level. You must also enter a Merit Month and Performance Rating to use Merit Based Planning.

  • Beginning with 18.04, Oracle provides a Default Rate so you no longer need to enter a Performance Rating depending on your business needs. You need to enter only a Merit Month for each employee.

  • Merit for new hires is calculated based on the default merit rate.

  • Merit Based Planning using user-entered performance ratings is available only for existing employees.

  • Optionally, if you enable Merit Assumptions, you can specify at what level to plan: Global or Per Entity. Selecting Merit Assumptions also enables additional options for setting merit assumptions for Merit Rate, Merit Month and Cut-off Date for existing employees. See Setting Assumptions.

  • If you select Merit Assumptions, the Global or Per Entity selection applies to all merit-based assumptions, including merit rate, merit month, and cut-off date. Ensure that you load merit rates to the level you select.

  • You can incrementally enable Merit Assumptions.

Note:

To plan merit for new hires, select Merit Based Planning; Oracle recommends that you also select Merit Assumptions and plan at the global or per entity level. Additionally, select Workforce Management, New Hires and Merit Based Planning For New Hires. For more information, see Enabling Workforce Management.