Pay Incentive Compensation Participants

Incentive compensation managers and analysts process participant payments in the Payments work area. You can change or remove any payment approval step or flow as well as bypass the process altogether.

In the Setup and Maintenance work area, use the following:

• Offering: Sales

• Functional Area: Sales Foundation

• Task: Manage Task Configurations for Incentive Compensation

Here's the procedure to pay participants:

1. Compensation managers or analysts create the payment batches, which contain the paysheets for the participants in the associated pay group.

   The payment process creates payments using participants in a pay group. So, you can only use one pay group per payment batch at any given time, for each pay group or set of participants. When you create a payment batch for all participants, the payment process automatically generates a paysheet for every participant associated with the pay group used by the payment batch. You can search and select individual participants to add to the batch. If searching by role is enabled, the results can contain multiple records for a participant, one for each role the participant has.

   Note: Incentive compensation analysts assigned to participants can only create or edit a paysheet for those participants they manage.

   When you create a payment batch, you can filter what plan components you want to bring over in your payment batch by using the Earnings Calculated and Incentive Type fields. The value you choose in the Incentive Type field in Payment batches is matched exactly with the Incentive Type field in Plan Components.

   The Earnings Calculated field is matched with the Calculate Incentive field from Plan Components. The value you choose in the Earnings Calculated list can be Bonus, Commission, or All. This table shows how corresponding plan components are matched.

   Earnings Calculated field in Payment Batch	Calculate Incentive field in Plan Component
   Bonus	Per interval
   Commission	Per event
   All	Per interval and Per event

2. Compensation analysts review and adjust paysheets, They can verify the payment amount in both processing currency and home currency. When the numbers look correct, they lock the paysheets and submit them for review.

3. Compensation managers verify and approve paysheets and set the batch status to Frozen.

   Tip: Before a compensation manager can pay a payment batch, all paysheets must have a status of Approved.

4. The payment process does these actions:

   1. Sets the status for the batch and for the paysheets in the batch to Paid.

      Note: The payment process saves payment batches and their associated paysheets for audit purposes. After the process sets the status for a payment batch to Paid, you can't do the following:

   2. Updates participant balances with final payment and adjustment amounts

      Tip: If you process payments again for the same period, after processing earnings again, then the process displays the amount of difference in earnings and adjustments in the new batch.

5. Compensation managers export payments using the Export Payments process.

Tip: Send only paid paysheets to your payroll system. Unpaid paysheets can change and then not match what was paid from payroll.