Defining lump sum payments (flat amounts) for planning rules

Note: 

Lump sum rules are ignored if a salary structure is not on the work assignment.

  1. Select Administration > Setup.
  2. In the Compensation Planning pane, click Planning Rules.
  3. Open the planning rule.
  4. On the Lump Sum Payment Rules tab, select Create > Create Flat Amount Rule.
    Note: 

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

    On the Create Flat Amount Rule form, specify this information:

    Eligibility Group

    Select an eligibility group for the lump sum payment.

    Pay Code

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

    Amount

    Specify the amount for the lump sum payment. Everyone in the eligibility group you select will receive this amount.

    Calculate Flat Amount

    This is calculated by taking the amount awarded by a manager and subtracting the salary structure maximum.

    Reduce Budget

    Select 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 lump sum will be created when the resource's new base rate of pay exceeds the salary structure maximum at this percentage. For example, if the salary structure maximum is 100,000 and the threshold is 90%, a lump sum is created when the resource's new rate exceeds 90,000.

  5. Click Save.