Setting Assumptions

Assumptions (and defaults) drive the calculations for workforce-related expenses.

To set assumptions, click Compensation Planning, then the Assumptions tab . Then, click the tab for General, Salary Grades, or Merit Rates. Administrators set these workforce assumptions as part of configuration. If they're granted permissions, planners can then update them as needed.

Assumptions include:

• General assumptions including hours worked per day and week, and working days per month, which drive salary expenses for hourly employees, and the partial payment factor (that is, the pay percentage to apply to Maternity Status).

  For assumptions other than merit, you can set assumptions by entity or at the No Entity level (for default assumptions). If you set assumptions for the entity, then they are used for calculations; otherwise, the assumptions set for No Entity (at the organization level) are used.

  If you enabled Merit Assumptions, you can also set merit assumptions for Merit Month and Cut-off Date for existing employees.

  • Merit Month specifies, for each year, the month in which to give a merit increase.

  • For existing employees, the Cut-off Date indicates the date, for each year, by which an employee must be hired to be eligible for a merit increase.

  Merit assumptions are set at either a global level or entity level depending on how merit assumptions were enabled. For information whether the global or entity level will be used for setting merit assumptions, see Enabling Expense Planning.

  Note:

  For existing employees, you must run Process Loaded Data to see the impact of Merit Month and Cut-off Date.

  Whenever you update Merit Month or Cut-off Date, you must run Process Loaded Data to synchronize at the employee level.

• Salary Grades assumptions, including the salary basis (for example, annual) and rate for Salary Grades.

  You can set assumptions by entity or at the No Entity level (for default assumptions). If you set assumptions for the entity, then they are used for calculations; otherwise, the assumptions set for No Entity (at the organization level) are used.

• Merit Rates, which are added to salary calculations.

  Merit rates are set at a global level or entity level depending on how merit assumptions were enabled. For information whether the global or entity level will be used for setting merit assumptions, see Enabling Expense Planning.

For information about Financial Account Mapping, see Customizing the Mapping for Integration between Workforce and Financials.

After setting assumptions, run the Synchronize Defaults rule (see Synchronizing Defaults.) To set defaults for Salary, Additional Earnings, Benefits, and Taxes, see Setting Defaults.