Incentive Payment Parameters
Settings that you make using the Manage Parameters task in the Setup and Maintenance work area affect payment processing, including paysheet approvals and payment conversions. You also specify whether to reset subledger balances and the level of analyst security.
Payment Approvals
If you don't require the payment approval process, then set Default Paysheet Approval Status to Approved. Approved is the final status before paying the payment batch. Enter values for these two amount parameters to specify an amount range that the payment process should automatically approve:
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Minimum Payment Automatic Approval Amount
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Maximum Payment Automatic Approval Amount
The provided payment approval process includes an exception rule that uses these values to send actionable notifications to compensation managers if a paysheet amount is less than or equal to the minimum amount and greater than or equal to the maximum amount. If these parameter amounts aren't set, then the payment approval process:
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Doesn't automatically approve any of the paysheets
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Uses the regular approval process that's in place and continues the regular approval process activities for all paysheets
Currency Conversions
Several currencies are involved with payments.
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The primary currency of the paysheet is the processing currency.
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You can view the paysheet detail amounts in the operating and participant home currencies.
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Payments are always made in the participant's home currency.
You created one or more conversion rate types that each contains a set of currency to currency rates for specified dates. Select the payment conversion rate type you want to use to convert payments to the participant's home currency. The payment conversion date is compared with the rate table to choose the effective rate.
The Manage Participant Detail page in the Participant Snapshot work area shows the participant's home currency and effective dates. Moving to another country can change the participant's effective currency. Either the event date or the pay date is matched to the participant's effective home currency dates to determine the correct currency. Use the Home Currency field to select the event date of the payment transaction or the pay date.
Subledger Balances
Specify whether to reset participant balances back to zero at the start of each year. If you answer no to the Reset Balances Each Year parameter, unpaid balances carry forward normally to be paid as if it's not the end of the year. If you answer yes, then make a selection for the Pay Prior Years Payments parameter.
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All Prior Years is the default. The current year payment batch includes payments due to be recovered from any prior years.
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One Prior Year includes in current year payment batches payments due or to be recovered from only one year prior to the current payment batch year.
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No Prior Years prevents including payments due or to be recovered from any prior years in current year payment batches..
Analyst Security
The Analyst Security parameter controls which participants you can search for in the Select Participant tab of the Participant Snapshot work area. The setting also controls your search for a participant when you create a dispute. Select one of the following for analyst security:
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If you select By participant, then analysts can access data and tasks for only their assigned participants.
Note: This parameter has no effect on the data that compensation managers can access. -
If you select By business unit, then all users with the Incentive Compensation Analyst job role can review and edit all participant data in the business units they have access to.
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If you select By Group, then analysts can access and perform certain tasks not only for participants associated with them but also for participants associated with other analysts within the group. An analyst group forms when analysts and compensation managers are selected as administrators and share the same node of the analyst hierarchy.
Analyst Paysheet Visibility
Control who can see and perform tasks for paysheets using the Analyst Paysheet Visibility parameter. There are two settings:
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Use the default value All Paysheets, and analysts can view all pay sheets for participants in the summary page, but the Analyst Security setting controls their access to paysheet details.
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Set to Use Analyst Security, and analysts may not be able to view all paysheets in the summary page since visibility to a paysheet is controlled by the Analyst Security parameter.
Allow Payment Batches in Future Periods
Control whether or not you can create and pay payment batches for a period in the future. The default value is no to prevent the creation of payment batches for future periods. Change it to yes in your test environment to conduct testing on new year compensation plans and payment flows. Change the parameter to yes if you have plan configurations that require creating payment batches for future periods.