Bonus Calculation Explanation - Variable Pay

[Olskar]

Hello everyone!

I need some explanation on bonus calculation. For our customer we use additive formula (base + individual). We also use guidelines for PM Rating that the employee are not eligible for bonus, if their pm rating is <3. We do not use business or team goals.

As you can see below, we notice that the final pay out field takes the same amount as the total target amount. The final pay out amount is coming from the base. We try to understand how the base is calculated. Can anyone please clarify the differences of these fields and how the base is calculated and where for the bonus calculation.

Last, our customer requires a custom calculation for the bonus and it is different from the system's.

Bonus Calculation Screenshot:

Your advice would be helpful.

Kind Regards,

Olga

[catmoye]

Hi Olga,

I cannot access the attachment so apologies if some details are provided there. 

First of all, I am a bit confused by the formula you mention (base + Individual), as I dont think it exists. The only formulas that are available are all "base multiplied by something". If you use an additive formula, then it would be "base*(business + individual)". If you do not use business goals, then it will result in "base*individual". 

The base is determined in the calculation settings and is usually the salary * target percentage for the bonus, but I do not know how it is configured for you. 

If you wanted to achieve something like (base + base*individual), then you would have to set up the calculation to be "base*(business + individual)", with a single business goal set with a result of 100%. 

Without more details I am unable to help you further I am afraid

[xavierlegarrec]

Hi @Olskar 

You can check out this blog if you are confused with Bonus Calculation formula. Everything is explained with visual examples. 

https://community.sap.com/t5/human-capital-management-blogs-by-sap/bonus-calculation-equations-in-va...

I would advise making all standard fields visible and relaunching worksheets and checking if you can find a standard field that calculates things as expected. If you don't then most likely something is up with your configuration and as per @catmoye you would need to show us more details about it (document everything with screenshot or a recording).

All the best

Xavier

[Olskar]

Hello! Thanks @xavierlegarrec we will investigate your proposed answer. As per @catmoye we do not use goals. So thats why we have additive formula, base + individual performance enabled. Please check the screenshot from the bonus calculation that I added at the question's body text. Last, the target percentage you mentioned, where is defined and assigned to each employee in the system?