Variable Pay Budget Calculation

[Olga_Skarla]

Hello everyone,

I am trying to understand the budget calculation for Variable Pay. More specific, we want the the budget to be allocated in a compensation manager, so that why we use the custom field way.  We noticed that at the budget field the total has an unexpected amount, that it the same with the Business calc amount field. Should this be linked? And why is linked? 

Also, in the final pay out field, when we enter an amount into the override field, we noticed that the pay out field take the same amount with Business Calc Amount. The Forecast Budget and Modeling Budget are necessary? We can just use the Result Budget?

I would appreciate your advice.

Thank you in advance.

[xavierlegarrec]

Hi @Olga_Skarla 

The idea of Budgets in Variable Pay is that they are based on the individual section target amount since Business component is something that is paid (or not paid if gates are designed and achievements aren't met) but not something a comp planner should be able to change.

A comp planner can pump up the individual payout (but not the business payout) based on guidelines (similar to Compensation guidelines).

What exactly are you trying to achieve with custom field based budgets ?

All the best,

Xavier

[Olga_Skarla]

Hello @xavierlegarrec , thanks for your answer. We want to allocate the budget for each compensation manager in the system, as we do in the salary plan where we used the custom way for the budget. More specific we add with a lookup table the budget amount and we have the total amount which is allocated as it should in the process. In the variable pay form we do the same but we face an issue: we see the budget amount but at the total we see an unexpected amount which we do not know where it comes from. We use results budget. 

Also the final amount of the bonus is 0 into the final pay out field, and when we enter an amount into the override field, the final pay out takes the same amount with the business calculation amount field. We use only individual calculations and we do not use business goals.

Your guideline would be helpful.

[xavierlegarrec]

Hi @Olga_Skarla  please check and explore possible configuration options using this KBA : https://me.sap.com/notes/2323284

I have never tried to build something like this and I am still wrapping my head on your explanations. If you use the Result budget then the Total will be the sum of individual goal payouts (factored by the section weight which in your case should be at 100% since you are not using business or team sections).

Why would you want the Total shown in the budget to not be aligned with the sum of all calculated payouts ?

All the best

Xavier