Defining compensation formulas

Use this procedure if you use multiple factors to determine a resource's compensation. Formulas are used on compensation tables.

  1. Select Compensation > Set Up > Incentive Compensation tab.
  2. On the Compensation Formulas tab, click Create.
  3. Specify this information:
    Compensation Formula

    Specify a long and short description for the formula.

    Effective Date

    Specify an effective date for the compensation formula. The effective date must be on or before the compensation table version on which this formula will be used.

    Factors 1 - 5

    Select up to five factors to be multiplied together.

    For example, on a compensation table, to pay out 80 percent of a weighted target, define the 80 percent on the Compensation Table tab. Define the weighted target (in this example, base pay) in the factor fields of the Compensation Formula tab.

    Amount

    Select a specific amount by which to multiply the factors.

    Factors 1 - 5

    If you use a divisor in your calculation, select up to five factors to be multiplied together and used as a divisor.

  4. Click Save.