Overview of Variable-Rate Allowance Setup
Follow the steps described here to create an allowance, the rate of which can vary at employee level.
The following table summarizes the tasks and setup decisions:
| TASK | ATTRIBUTE | VALUE |
|---|---|---|
| Create Allowance Element | Calculation rule | Factor |
| Periodicity | Annual | |
| Create Rate Definition – Factor Allowance Element | Category | Element |
| Storage Type | Factor | |
| Create Calculation Value Definition | Calculation Type | Rate Definition |
| Calculation Values - Rate Definition | User-defined rate definition created for factor allowance element | |
| Contributor type | Rate Definition | |
| Contributor Name | User-defined salary basis rate definition | |
| Create Calculation Factor for Allowance Element | Calculation Step | Rate Amount |
| Calculation Value Definition | User-defined calculation value definition | |
| Create an Earnings Formula | Type | Oracle Payroll |
| Create Status Processing Rules | N/A | N/A |
| Create Element Entries | N/A | N/A |
| Run Generate HCM Rates Process | Process Mode | Full |