Local Currency Determination for Compensation Components

When you configure a compensation component, you need to specify how the component determines local currency. Here's the local currency source for each available option:

Option	Source of the Local Currency	Usage Example
Corporate	The configured plan currency	Monetary changes are all in the corporate currency
Element Input	The input currency for the payroll element mapped to the Component Amount column of the compensation component, such as Compensation Amount - Component 1	Bonuses
Legal Employer	The currency defined for the individual's legal employer	Salary adjustments, such as merit or cost of living increase, when the currency of the legal employer is different from the salary basis currency
Salary Basis	The input currency for the payroll element of the salary basis linked to the individual's employment record	Salary adjustments, such as merit or cost of living increase
Formula	The currency retrieved by the specified formula from some other source	When none of the other options fit your business requirements

Tip: To prevent data corruption, you can't change the Local Currency Determination selection after you run the Start Workforce Compensation Cycle process. You have to set all plan cycles to Closed or run the Back Out Workforce Compensation Data process. Then change the local currency determination and run the Start Workforce Compensation Cycle process again.