Participant Termination Processing Parameters

When an Incentive Compensation participant is terminated in HCM Cloud, a process picks up the termination action and termination date and updates participant information. You must Set the Enable Participant Termination Processing parameter to yes and define how the termination date is applied.

The Run All Participant Processes process, with HCM Updates selected, updates the participant active end date with the termination date. The compensation end date is used to support continued incentive processing for a grace period. The pay group always ends on the compensation end date. Use the Manage Parameters UI to define these parameters:

• Period End for Compensation End Date

  The compensation end date supports continued incentive processing for a grace period. This period of time is typically when any final adjustments and payments are made to close out the participant. You can set the compensation end date in either of the following ways:

  • Set it to occur at the end of the period containing the participant active end date (which is the same as the termination date). For example, if the termination date is April 15 and your calendar period is monthly, then the compensation end date is April 30.

  • Set it to occur a set number of periods after the active end date. If you select 3 periods, then the compensation end date in the example is July 31.

• Plan Assignment End Date

  Choose either the participant active end date or the compensation end date to be the compensation plan assignment end date.

• Payment Plan Assignment End Date

  Choose either the participant active end date or the compensation end date to be the payment plan assignment end date.

Indirect assignments are also end dated by end-dating the participant roles. Consider this when determining how you will use roles. For example, if you use a single role to assign the payment plan and the pay group and you then set the Payment Plan Assignment End Date to use the active end date, then the termination isn't processed. For this example, there's a conflict. The pay group must have an end date that matches the compensation end date (July 31) and the parameter for payment plan indicates you want the active end date (April 15). Since end dating that single role can't accomplish the desired end dates, the termination isn't processed.