Set Up Balances for Percentage Elements

When you create a deduction element, select the Percentage Deduction Calculation rule to create a balance called <ELEMENT NAME> Eligible Compensation.

Use this balance definition to define the following items:

• Balance feed from the earnings element result value as either pay value or output value

• Effective date to capture the balance feed history

When you define the balance feed on the Element Summary page, make sure the effective date is early enough to define the balance feed and capture the history. For example, you may want to define the balance feed with an effective date of 01-January-1951 or something similar. When you click the Balance Feeds link on the Manage Balance Definitions page, the effective date is shown as the system date. Change the effective date so that it captures the history.

After capturing the earnings input values, enter the percentage deduction in the Percentage input value of the deduction element.

For example, let's say you entered 10000 as the basic salary and 10 percent as the basic deduction.

• If the basic salary pay value is 10000, your basic deduction is 1000.

• If the basic salary pay value is 5000, your basic deduction is 500.