Rounding Rules, Salary Amounts, and Decimal Places to Display

You can specify separate rounding rules for the salary amount, annualized values, and salary ranges on a salary basis. You can also specify the decimal places to show for all numeric salary values that you see on the salary record.

Use the Salary Basis task in the Compensation Management work area.

Rounding Rules and Usages

Here's how amounts and ranges use each rounding rule.

Rounding Rule	Usage
Salary amount	Used by calculations that include the salary amount, for example: To increase a salary using a percentage, such as 3.5% To convert the salary to a different frequency, such as from monthly to annually To prorate the salary based on a specific full-time equivalent, such as from 1 FTE to 0.5 FTE It’s also used when calculating simple component amounts from percentages or adjustment percentages. The rounding rule doesn’t apply to the overall salary amount because it’s a sum of the component amounts.
Annualized values	Specifies how the annual salary and annualized full-time salary amounts appear.
Salary range	Specifies how salary ranges appear and when calculating revised salary ranges, for example: To convert the salary range from one frequency to another To apply salary differentials

Rounding Rule

Usage

Salary amount

Used by calculations that include the salary amount, for example:

To increase a salary using a percentage, such as 3.5%
To convert the salary to a different frequency, such as from monthly to annually
To prorate the salary based on a specific full-time equivalent, such as from 1 FTE to 0.5 FTE

It’s also used when calculating simple component amounts from percentages or adjustment percentages. The rounding rule doesn’t apply to the overall salary amount because it’s a sum of the component amounts.

Annualized values

Specifies how the annual salary and annualized full-time salary amounts appear.

Salary range

Specifies how salary ranges appear and when calculating revised salary ranges, for example:

To convert the salary range from one frequency to another
To apply salary differentials

The rounding rules always affect amounts and values from when you set them and onward. They don't affect previously calculated amounts and values. Here's how you can ensure consistency across historical and current salary amounts:

Create another salary basis with new rules instead of editing an existing salary basis.
Update the salary records with this new salary basis from a specific date.

You can use loading tools, such as HCM Data Loader and HCM Spreadsheet Data Loader to make this transition seamless. Be sure to set the old salary basis to Inactive. This way it's no longer available for people to add it as part of their salary proposals.

Rounding Rule Place and Decimal Place to Display

We recommend that you match the decimal place of your salary amount rounding rule with the decimal place to display. Here's what happens when the decimal and rounding rule places don't match.

Mismatch Issue	Example Scenario	Example Results
If the decimal place to display is longer than your rounding rule place, salary amounts have extra zeroes at the end.	Salary amount: 15.7923234 Decimal place to display: 4 Rounding rule: Nearest .01	Calculations round the amount to 15.79 and salary pages display the amount as 15.7900.
If the decimal place to display is shorter than your rounding rule place, salary amounts get truncated.	Salary amount: 15.7923234 Decimal place to display: 2 Rounding rule: Nearest .0001	Calculations round the amount to 15.7923 and salary pages display the amount as 15.79.

Mismatch Issue

Example Scenario

Example Results

If the decimal place to display is longer than your rounding rule place, salary amounts have extra zeroes at the end.

Salary amount: 15.7923234

Decimal place to display: 4

Rounding rule: Nearest .01

Calculations round the amount to 15.79 and salary pages display the amount as 15.7900.

If the decimal place to display is shorter than your rounding rule place, salary amounts get truncated.

Salary amount: 15.7923234

Decimal place to display: 2

Rounding rule: Nearest .0001

Calculations round the amount to 15.7923 and salary pages display the amount as 15.79.

Payroll element entries ignore the decimal place to display from the salary basis because the elements always use the decimal place of the currency definition. For example, US currency is defined to 2 decimal places. Even if you set your salary amount display to 4 places, the element entries round the amount to 2 places.