Defining planning rules

Planning Rule

Specify a short and long description for the planning rule. For example, MERIT.

Version Date

Specify the effective date for the rule.

Award Type

Select Salary to create a planning rule that creates budget increases for a resource's base pay.

Note: 

For a market adjustment salary rule, select Salary.

Select Equity to create a planning rule that creates budget equity awards, expressed as a number of units (shares) or an amount.

Select Bonus to create a planning rule that creates budget bonus awards.

Both salary and equity planning rules use budget calculation rules to generate budget amounts. Bonus planning rules can also use budget calculation rules to generate budget award amounts. Or, they can be associated with an incentive compensation plan that includes a bonus award pay component and use the pay component payout amounts as bonus awards.

Currency

Required. Select a currency for the rule.

Status

Select a status for the rules: Preliminary, Final, or Inactive.

Select Final after you have completed the setup for the rule.

Rounding Method

Select the rounding method to use.

Select Normal for the number to round up if the last digit is 5 or more. The number is rounded down if the last digit is less than 5.

Select High for the number to round up.

Select Low for the number to round down.

Rounding to

Specify the rounding precision. For example, to round to two decimals, type 0.01.

Rating Scale

Select the rating scale to determine guidelines and lump sum rules based on a performance factor.

Require Approval Process

Select this check box if a process flow approval workflow is required. Use the Approval Rules tab to define the rules to use. See Defining approval rules for planning rules. This option is not available when roll up approval is enabled.

Allow Lump Sum Payments

Select this check box if your organization awards lump sum payments to individuals who have reached the top of their salary range. If you select this check box, additional setup tabs are displayed after you click Save.

Note: 

This option is not applicable to market adjustment rules or to equity rules.

Award from Multiple Rules

Select this check box if you can create more than one rule for your organization. For example, merit, promotion, or merit bonus. These rules are combined into a single awarding view for managers. If you select this check box, you must create an awarding view and the rules that are tied to it.

If you leave this check box blank, a preliminary salary awarding view is created.

Transfer Budget Amount

Select this check box if the planning rule is set up for budget amounts to be transferred.

If budget amounts can be transferred, when a resource transfers to a new supervisor, the budget amount is subtracted from the previous supervisor's total budget and added to the new supervisor's total budget.

Equity Type

For equity planning rules, select the equity type.

Equity Award Option

For equity planning rules, select Units if the equity allocation is awarded as units. Select Amount if the equity allocation is awarded as an amount. For example, a percent of base pay.

Plan Identifier

If the equity award is associated with a plan, specify the plan identifier.

Follow-up tasks:

• Define budget calculations for the planning rule.

• Optionally, define guidelines for the planning rule.

• Optionally, define validations for the planning rule.

• Optionally, define approval rules for the planning rule.

• Optionally, define the awarding view display rules for the planning rule

• Optionally, for equity planning rules only, define equity grant information.

• Optionally, for salary planning rules only, define lump sum payments for the planning rule.

• When your rule is complete, change its status to Final.

  Note: 

  A compensation awarding view and the planning rules that it includes must be final before you can run budget calculations on the compensation awarding view.