Viewing and finalizing pending lump sum payouts for rate progressions

Lump sum payments are generated based on rate progression rules for employees who have reached the last step of their grade or are eligible for step movement. Employees must have time records created to process their payouts.

Lump sum calculations occur when an employee moves to a new step or reaches the maximum step, provided that both the Allow Lump Sum Payments and Allow Lump Sum on Step Move check boxes are selected in the rate progression rule. Eligible employees receive payouts based on the criteria defined in the rule.

For example, an employee moving from Step 2 to Step 3 under a qualifying rule receives a new pay rate and a lump sum payout. An employee at the maximum step receives only the lump sum payout when processed.

Select Compensation > Pay Rate Processing > Rate Progression > Lump Sum Payouts.
On the Pending tab, open a payment to review the details.
You can change the dates, the calculated payment amount and the pay code.
To finalize one or more payments, select the payments on the Pending Payouts tab and select Actions > Finalize Payout.
The finalized payments are displayed on the Finalized tab. You can interface them to a payroll application.
When the interface records are created, the payments are moved to the Submitted tab.

When the payout record is finalized and the payment schedule for the employee’s primary work assignment has HR Payroll enabled, a time record is created in Approved status. The payout record is updated to Submitted To Payroll status. You can access the time record from the payout record.

If errors are displayed, the time record is not created and the payout record is set to Finalized With Error. After the error is corrected, you can take the Submit To Payroll action to finalize the payout and create the time record.

To process time records correctly, you must set up the pay code for the payout record with a calculation type of Do Not Calculate.