Defining flat amounts entered by managers

Note: Lump sum rules are ignored if a salary structure is not on the work assignment. A manager can define lump sum amounts on planning rules that permit lump sum amounts and on awarding views with Allow Manager Amount Adjustments or Allow Manager Percent Adjustments selected.

Select Compensation > Set Up > Compensation Planning > Planning Rules.
Open the planning rule.
On the Lump Sum Payment Rules tab, right-click and select Create Manager Enters Flat Amount.

Note: The Lump Sum Payment Rules tab is displayed only if you select the Allow Lump Sum Payments check box on the Options tab.

On the Create Manager Enters Flat Amount form, specify this information:

Eligibility Group

Select an eligibility group for the lump sum payment.

Pay Code

Specify a pay code that is stored on the payment records for interfacing with a payroll application.

Reduce Budget

Select the check box to indicate that the flat amount reduces the budgeted award pool.

Percent Of Salary Range Threshold

Specify the percentage for the salary range threshold.
The threshold value prevents a salary award from exceeding the salary structure maximum at this percentage. No lump sum amount is calculated. The manager can specify the lump sum amount.

Example

Rate of Pay = 40 0000

Salary Range Maximum = 50 0000

On the selected lump sum rule, Percent Of Salary Range Threshold = 90%, which means a threshold award of 45 0000.

If the manager enters a 20 percent award, then the new pay rate should be 48 000. The new pay rate is calculated as 45 000 due to the Percent Of Salary Range Threshold value. No lump sum is calculated or awarded.

If the manager can specify adjustments to the lump sum payments, then the manager can leave the field blank or specify a lump sum payment.