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.