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Variable Pay final pay out calculations

Olskar
Explorer
0 Kudos
92

Hello everyone.

I am working on implementing the customer's requirements for bonus calculations and need clarification on the standard bonus fields. The customer has specified that no goals (business, team, or individual) should be used in the Variable Pay So I set the configuration as you can see below.

Olga_Skarla_0-1742988941413.png

Olga_Skarla_1-1742988970721.png

Bonus Plan:

Olga_Skarla_2-1742989046737.png

I am trying to understand how the bonus fields are calculated and I have some question to understand:

Why do we have a proration of 2% and 98%? How are the target amount and the assignment basis calculated

Olga_Skarla_3-1742989510911.png

Olga_Skarla_4-1742989530136.png

 

 

 

 

Also, how the Amt field affects the final pay out field? Which standard fields should we use for this solution?

As for the Budget we use a custom field. It allocated when we change the Amt field. IS this one a  correct way?

 

 

Is our client's requirement possible to be applied in the system?

Thank you in advance.

 

 

 

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xavierlegarrec
Product and Topic Expert
Product and Topic Expert
0 Kudos

Hi @Olskar 

It's hard to explain Variable Pay on so many levels but I'll give you some tips and links so you can understand on your own.

  • First of all you should have decimals in your Proration % : instead of 2 and 98, you should see 2.43 or 98.45 to make Prorated Target Amounts accurate. The fix as well as an explanation of how the % are calculated are explained here (see the link to the excel spreadsheet) : https://community.sap.com/t5/human-capital-management-blogs-by-sap/proration-and-number-formats-in-v...
  • The fact that you have an Assignment Basis at 0 in your second screenshots means that somehow on those dates the employee doesn't have any relevant information (no salary or target bonus %) in their profile. You should be able to confirm that by going to Edit Employee History.
  • As per previous discussions here I believe, custom budget will not return the right results in Variable Pay especially not on the spent. Budget is meant to on Results and pointing to the Calculated Target Amount for the individual section. 

 

All the best

Xavier

 

Olskar
Explorer
0 Kudos

Hello @xavierlegarrec ! Thanks for your answer. So how you would advise to use the budget and see how is allocated on the final pay out?