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Compensation Workbench

Combination Plan Sample Setup

Introduction

The combination plan structure enables you to use a single budget amount to award
compensation across different types of compensation.For example, you can allocate
salary increases, bonuses, and stock option awards from the same budget, also on
the same worksheet.If you want to award different type of compensation on the
same worksheet but want to use different budget amounts (ie. 1 budget for salary
and 1 budget for bonus), please follow the Component Plan Sample Setup ( Note
302084.1).

A Compensation Workbench plan can stand-alone or can be global.


Stand-alone plans exist within a single business group and use a single
currency.The same plan acts as its own global plan and local plan.
Global plans cross business groups and may use multiple currencies.When creating
a global plan, you define a global plan in a master business group and in the
currency in which budgets are to be published.You create local plans in each
business group that has employees eligible for the plan.You then link the global plan
to each local plan.Local plans may be in the same or different currency than that of
the global plan.

All plan structures, whether stand-alone or global, must have a global and local plan
pairing.A local plan must always be linked to a global plan even if its one in the
same.

This document will guide you in setting up a global combination plan to award
salary increases and bonuses.You can use this same sample setup to create a standalone plan by disregarding all steps related to US, UKand CA plan setup.These steps
are noted by (Skip for stand-alone plans).

The sample setup uses the US, UK, and CA business groups.These countries do not
need to be used specifically.This sample setup is only intended to serve as an

example of how 3 different business groups can be used to create a global plan.The
US business group is the master business group in which the global plan is
defined.Administrative processing must be done in the same business group in
which the global plan is defined.Steps to set up a new business group are not
included.Steps to set up conversion rates are also not included.Please refer to
Online Help for instructions these setup steps.

Note: The Total column in the Compensation Summary table within the Allocate
Compensation task does will not provide a real total for each row of data.This is
because budgets defined at the plan level in this sample setup. You can hide the
option level columns if you choose so that managers will not be confused.An
example of the data provided in the Compensation Summary table based on this
sample setup is below.

Compensation Summary

Total

Global Merit

Global Bonus

Eligible Employees

100

100

100

Employees Receiving

95

95

95

% Receiving

95

95

95

Total Eligible Salaries

1,500,000
USD

1,500,000
USD

1,500,000
USD

Budget

150,000 USD

150,000 USD

150,000 USD

Budget as % of Total Eligible Salaries

10%

10%

10%

Total Allocated

145,000 USD

90,000 USD

55,000 USD

Unused Budget

5,000 USD

Average Allocated as % of Eligible


Salaries

9.67%

6%

3.67%

Business Rules

Some of the business rules in which this sample setup is based are as follows.
- Each country has a country specific currency.
- Budgets are published in USD.
- Budgets are published in a percentage of eligible salary.
- Managers may update rankings and rate employee performance.
- Managers may view and update employee assignment information.
- Salary increases are administered in an annual frequency.
- Line managers have access to the plan from January 1, 2006 until December 31,
2006.
- Updates to the plan cannot be made beyond November 30, 2006.
- All person related information should be displayed as of January 1, 2006.
- Approvals will climb the Supervisor Hierarchy.
- Worksheets may be submitted for approval at any time.

Setup Steps
I.

Define Plan Years

1. Navigate to Total Compensation > General Definitions> Additional Setup >


Program/Plan Years.
2. Enter 01-Jan-05 as the Plan Start.
3. Enter 31-Dec-05 as the Plan End.
4. Save.
5. Repeat for each year up to 2008.

II.

Define Life Events

This form is available to core HR customers.However, only life events that are of the
type Compensation (or Grade/Step Progression) are supported without an

Advanced Benefits license.Life event triggers are not supported without an


Advanced Benefits license.

Life event names must be unique for each plan.

1. Navigate to Total Compensation > General Definitions> Additional Setup > Life
Event Reasons.
2. Name the life event Global Combination.
3. Select Compensation as the Type.
4. Save.

(Skip for stand-alone plan)


Repeat steps 1 through 5 and create another life event called US Combination.

III.

Create Derived Factors

A Stated Compensation derived factor is used by a standard rate to determine


eligible salary.

1. Navigate Total Compensation > General Definitions> Eligibility/Rate Factors >


Derived Factors.
2. Select the Compensation tab.
3. Name the factor Stated Salary.
4. Select US Dollar as the Currency.
5. Define Stated Compensation as the Source.
6. Define Annually as the Stated Compensation Periodicity.(The periodicity
computes all amounts the same regardless of salary basis. Upon distribution of the
award, salary is converted back based on the salary basis of the individual.)
7. Check No Minimum and No Maximum.
8. Select As of Event Date as the Determination Code.

9. Save.

IV.

Define Plan Type

1. Navigate to Total Compensation > Programs and Plans> Plan Types.


2. Name the plan type Combination Plan.
3. Choose Compensation Workbench as the Option Type.
4. Choose Combination Plan as the Compensation Category.
5. Save.

V.

Define Options

Options are defined to house the different types of compensation being awarded
within the combination plan.

1. Navigate to Total Compensation > Programs and Plans > Options.


2. Create a new option and name it Global Salary Increase.
3. Select Combination Plan as the Plan Type.
4. Save.The Group Option field and checkbox will fill in automatically upon saving.
5. Repeat the above steps and create options for Global Bonus.

(Skip for stand-alone plan)


Repeat steps 1-5 and create local options for US Salary Increase and US Bonus.For
each local option, in the Group Option field, select the corresponding global option
name (i.e. Global Salary Increase and Global Bonus).

VI.

Define Plans

When setting up a global plan, a global plan must be defined along with the local
plans for each country that has employees eligible for the plan.Local plans also

identify each local currency (or country) in which compensation will be awarded.
When setting up a stand-alone plan, you only need to setup a single global plan.

1. Navigate to Total Compensation> Program and Plans > Plans.


2. Create a new plan and name it Global Combination Plan.
3. Choose Active as the Status.
4. Choose Combination Plan as the Plan Type.
5. Choose May Not be in a Program for the Usage.
6. (Skip for stand-alone plans).(For the US Combination Plan only, select the
Restrictions tab.Select Global Combination Plan in the Global Plan Name field.For
the global plan, upon saving, the Global Plan box will automatically be checked and
the Global Plan Name field will be populated with its own name.)
7. Select Not in Program tab.
8. Choose US Dollar as Currency.
9. Choose Annually as Activity Reference Period.
10. Save.

Define Details
11. Select the Details button.
12. Select the Plan Periods tab.
13. Enter 10 as the Sequence.
14. Choose 01-Jan-05 and 31-Dec-05 as the Start and End Date.
15. Repeat the above steps for all plan years through 2008.
16. Save.

Define Tasks
17. Select the Compensation Workbench tab.
18. Enter 10 as the Sequence.

19. Select the Task Type of Set Budgets.


20. Enter Set Budgets as the Self-Service Task Name.
21. Set the Access to Full Access.
22. Enter 20 as the next Sequence.
23. Select the Task Type of Job Changes/Promotions.
24. Enter Update Assignment Information as the Self-Service Task Name.
25. Set the Access to Full Access.
26. Enter 30 as the next Sequence.
27. Select the Task Type of Performance Ratings.
28. Enter Rate Employee Performance as the Self-Service Task Name.
29. Set the Access to Full Access.
30. Enter 40 as the next Sequence.
31. Select the Task Type of Allocate Compensation.
32. Enter Award Salary Increases and Bonuses as the Self-Service Task Name.
33. Set the Access to Full Access.
34. Enter 50 as the next Sequence.
35. Select the Task Type of Manage Approvals.
36. Enter Approve Awards as the Self-Service Task Name.
37. Set the Access to Full Access.
38. Enter 60 as the next Sequence.
39. Select the Task Type of Review and Submit.
40. Enter Review & Submit as the Self-Service Task Name.
41. Set the Access to Full Access.
42. Save.

Attach Options

43. Select the Options button.


44. On the General tab, enter 1 as the sequence and select the Global Salary option.
45. Set the status to Active.
46. Enter 2 as the next sequence and select the Global Bonus option.
47. Set the status to Active.
48. Save.

(Skip for stand-alone plan)


Repeat the above steps 1-48 and create a local plan called US Combination Plan
(skip the Define Tasks steps 17-42).In step 6, on the Restrictions tab, select the
Global Combination Plan in the Global Plan Name field.The Global Plan box should
be unchecked.In the Attach Options steps 43-48, attach the US Salary and US Bonus
options to the US Combination Plan.

VII.

Define Plan Enrollment Requirements

1. Navigate to Total Compensation > Programs and Plans > Plan Enrollment
Requirements.
2. Query the Global Combination Plan.
3. Select the General tab.
4. Select the Plan tab.
5. On the Enrollment alternate region, select Explicit as the Method.
6. Save.

Define Timing
7. Select the Timing tab.
8. Select the Scheduled tab.
9. Select Compensation as the Enrollment Type.

10. Select the General alternate region.


11. For the Enrollment or Availability Period, enter 01-Jan-2006 as the Start and 31Dec-2006 as the End.
12. Enter 01-Jan-2006 as the Assigned Life Event Date.(This is the date as of which
plan design and person data is checked for eligibility and rate calculations.)
13. Select Global Combination as the Life Event.
14. Select When Elections Are Made as the Close Enrollment Date to Use. (This code
allows you to close the event for this plan during the Compensation Workbench Post
Process.)
15. Choose 01-Jan-2005 to 31-Dec-2005 as the Year Period.
16. Select the Coverage alternate region.
17. For the Enrollment Coverage Start Date, select Event.
18. For the Enrollment Coverage End Date, select 1 Day Before Event.
19. Select the Rates alternate region.
20. For the Rate Start Date, select Elections.
21. For the Rate End Date, select 1 Day Before Event.
22. Choose the Budget alternate region.
23. Check Uses Budget box.(This flag must be checked if using budgets.)
24. Select Store Budgets as Percentages in the Preserve Budget Column.
25. Select the Miscellaneous alternate region.
26. Choose Supervisor Hierarchy as the Hierarchy to Use. (Supervisor hierarchy is
more easily used for cross-business group processing.)
27. Select the Approval Mode of Submission at any time.
28. Select the Performance alternate region.
29. Enter 01-Dec-2006 as the New Ratings Become Effective date.
30. Choose the Miscellaneous alternate region.
31. Enter 01-Jan-2006 as the Self Service Update Period Start date.
32. Enter 30-Nov-2006 as the Self Service Update Period End date.

33. Choose Full Access as the Default Worksheet Access.


34. Enter 01-Jan-2006 as the Freeze Date
35. Enter 01-Dec-2006 as the Assignment Changes Become Effective date.
36. Choose Periodic Review as the Salary Change Reason.
37. Save.

(Skip for stand-alone plan)


Repeat the above steps for the US Combination Plan.In step 13, select the US
Combination life event.

IX.

Define Standard Rates

For the global combination plan structures, budget rates (Budget Amount,
Worksheet Budget, Reserve Amount) are defined for the global plan at the option in
plan level.Budget rates only need to be defined in the master business group.One
set of budget rates should be defined for each option in plan.

If you are creating a stand-alone plan, skip all rate setup as noted below.

Distribution Budget
The distribution budget is the budget that a manager gives another manager to
further distribute down the reporting hierarchy.This is not the budget amount a
manager sees on his worksheet.

1. Navigate to Total Compensation> Rates/Coverage Definitions > Standard Rates.


2. Create a new rate and call it Global Combo Plan DB.
3. Set the Status to Active.
4. Select the General tab.
5. Set the Level to Plan.
6. Select Global Combination Plan as the Compensation Object.

7. Select CWB Distribution Budget as the Activity Type.


8. Select Not Applicable as the Tax Type.
9. Uncheck the Element and Input Value required flag.
10. Select the Calculation Method tab.
11. Select Flat Amount as the Method.
12. Check the Enter Value at Enrollment box.
13. Verify that the Calculate for Enrollment box is also checked.
14. Enter 0 as the Min.
15. Enter 1000000000 as the Max.
16. Enter 1 as the Increment Amount.
17. Enter 0 as the Default.
18. Set the Rounding Code to Round to nearest one.
19. Save.

Budget Reserve
A budget reserve allows managers to hold back money in a budget for later use.This
rate is optional and should only be defined if managers are allowed to set aside a
reserve.

1. Navigate to Total Compensation > Rates/Coverage Definitions > Standard Rates.


2. Create a new rate and call is Global Combo Plan - RB.
3. Set the status to Active.
4. Select the General tab.
5. Set the Level to Plan.
6. Select Global Combination Plan as the Compensation Object.
7. Select CWB Reserve as the Activity Type.
8. Select Not Applicable as the Tax Type.

9. Uncheck the Element and Input Value required flag.


10. Select the Calculation Method tab.
11. Choose Flat Amount as the Method.
12. Check the Enter Value at Enrollment box.
13. Verify that the Calculate for Enrollment box is checked.
14. Enter 0 as the Min.
15. Enter 1000000000 as the Max.
16. Enter 1 as the Increment Amount.
17. Enter Default as 0.
18. Set the Rounding Code to Round to Nearest one.
19. Save.

Worksheet Budget
This is the budget amount that a manager sees on his worksheet.

1. Navigate to Total Compensation> Rates/Coverage Definitions > Standard Rates.


2. Create a new rate and call it Global Combo Plan - WB.
3. Set the Status to Active.
4. Select the General tab.
5. Set the Level to Plan.
6. Select Global Combination Plan as the Compensation Object.
7. Select Not Applicable as the Tax Type.
8. Select CWB Worksheet Budget as the Activity Type.
9. Uncheck the Element and Input Value required flag.
10. Select the Calculation Method tab.
11. Select Flat Amount as the Method.

12. Check the Enter Value at Enrollment box.


13. Verify that the Calculate for Enrollment box is also checked.
14. Enter 0 as the Min.
15. Enter 1000000000 as the Max.
16. Enter 1 as the Increment Amount.
17. Enter 0 as the Default.
18. Set the Rounding Code to Round to Nearest one.
20. Save.

Worksheet Amount
This rate is required and represents the amount a manager enters on the worksheet
in money or shares.Attaching an element entry to this rate forwards this amount to
the payroll system upon running of the post process.

1. Navigate to Total Compensation> Rates/Coverage Definitions > Standard Rates.


2. Create a new rate and call it Global Combo Plan - WA.
3. Set the Status to Active.
4. Select the General tab.
5. Set the Level to Plan.
6. Select Global Combination Plan as the Compensation Object.
7. Select Not Applicable as the Tax Type.
8. Select CWB Worksheet Amount as the Activity Type.
9. Uncheck the Element and Input Value required flag.
10. Select the Calculation Method tab.
11. Select Flat Amount as the Method.
12. Check the Enter Value at Enrollment box.
13. Verify that the Calculate for Enrollment box is also checked.

14. Enter 0 as the Min.


15. Enter 1000000000 as the Max.
16. Enter 1 as the Increment Amount.
17. Enter 0 as the Default.
18. Set the Rounding Code to Round to Nearest one.
19. Select the Processing Information tab.
20. Select Combination Plan as the Compensation Category.
21. Save.
22. Repeat the above steps and create a worksheet amount rates for Global
Combination Plan Merit and Global Combination Plan Bonus.In step 20, select
Base Pay and Bonus, respectively, as the Compensation Category.

(Skip for stand-alone plans)


Repeat the above steps and create a worksheet amount rates for US Combination
Plan, US Combination Plan Salary and US Combination Plan Bonus.

Eligible Salary
Eligible Salary is the salary used for CWB calculations.Eligible salary differs from
base salary and stated salary in that eligible salary is determined as of a common
date for all eligible persons.Base salary is a persons salary as of the date accessed
in CWB and is displayed in the frequency of the persons pay basis.Stated salary
may be converted to a different frequency and is displayed as of a specific
date.Stated salary is commonly defined as a multiple of a compensation factor.

In this sample setup, eligible salary is equal to stated salary.

1. Navigate to Total Compensation > Rates/Coverage Definitions > Standard Rates.


2. Name the rate Global Combo Plan ES.
3. Indicate Active as the Status.

4. Select the General tab.


5. Select the Level as Plan.
6. Select Global Combination Plan as the Compensation Object.
7. Select CWB Eligible Salary as the Activity Type.
8. Select Not Applicable as the Tax Type.
9. Uncheck the Element and Input Value required flag.
10. Select the Calculation Method tab.
11. Verify that the Calculate for Enrollment box is checked.
12. Uncheck the Enter Value at Enrollment box.
13. Choose Multiple of Compensation as the Method.
14. Enter 1 as the Multiplier.
15. Select Multiply by as the Operator.
16. Select Stated Salary as the Compensation Factor.
17. Set the Rounding Code to Round to Nearest one.
18. Save.
19. Repeat the above steps and create eligible salary rates for Global Combination
Plan Merit and Global Combination Plan Bonus.

(Skip for stand-alone plans)


Repeat the above steps and create eligible salary rates for US Combination Plan, US
Combination Plan Salary, and US Combination Plan Bonus.

If you are creating a stand-alone plan, your plan design is complete.Please refer to
Note 356770.1 for Administration help.If you are creating a global plan, please
complete the following setup steps.

XI.

Setup UK and CA Business Groups

Global plan structures are based on compensation being awarded across business
groups or using multiple currencies.For this sample setup, UK and CA business
groups must be set up if they are not already.(Please refer to Online Help for
instructions to set up a new business group.)

Once your business groups are set up, for each business group, follow the same
steps as above for the following items only.All other compensation objects can be
copied using the Plan Copy Process.
- Define Plan Years
- Create Derived Factors
- Create Life Event*

* If you are copingyour plan design into the same business group, you need to
create a new Life Event for your copied plan.You cannot reuse an existing life event.

The Plan Copy Process can copy your US Component Plan and all of its child records
into your UK and CA business groups one at a time as the setup is virtually the
same.Do not copy the global plan.

1. Navigate to Total Compensation> Programs and Plans > Plan Design Copy.
2. Select the link to Copy or Export Plan Design.
3. Enter UK Combo Plan as the Process Name.
4. Enter 01-Jan-1990 as the Effective Date.
5. Hit Next.
6. Select your US Combination Plan.
7. Hit Next.
8. Select the Target Category as Different Business Group (assuming that the UK
business group is in the same database.If not, then Export to a File.)

9. Hit Next.
10. Query your UK business group as the Target Business Group.
11. Enter 01-Jan-1990 as the Effective Date to Copy.
12. Select Reuse existing objects if current name exists in target as the Reuse
Method.
13. Enter a Prefix of UK.
14. Hit Next.
15. No mapping is needed.Hit Next.
16. Hit Submit.

Update the names of the copied compensation objects assuming that they do not
already exist in the target business group.
17. In the UKbusiness group, navigate to Total Compensation > Programs and Plans
> Options.
18. Query your UKUS Salary Increase option.
19. Change it the name to UK Salary Increase.
20. Save and repeat for UKUS Bonus.
21. Navigate to Total Compensation> Programs and Plans > Plans.
22. Query your UKUS Combination Plan.
23. Change the name of your plan to UK Combination Plan.
24. Change the Status to Active.
25. Select the Restrictions tab. Make sure that the Global Combination Plan is the
Global Plan.
26. Select the Not in Program tab.
27. Change the Currency to Euro.
28. Save.

Update Rate Names (Optional, as rate names are not displayed anywhere in CWB.)

29. Navigate to Total Compensation> Rates/Coverage Definitions > Standard Rates.


30. Query all your UKUS rates that you copied and delete the USfrom the names.
31. Save.

Create a local plan in the CA business group


32. Repeat the above steps to create a local plan in your CA business group.In step
26, the Currency should be Canadian Dollars.

Your plan design is complete.