This topic is a worked example of the steps for setting up a global basic plan structure across three business groups. Use this type of plan setup to allocate compensation across currencies or business groups for a single compensation award using a single budget. For example, you can award a single salary increase amount, a single bonus amount, or a single stock option amount to eligible employees.
This sample setup creates plans in US, UK, and Canadian business groups. You can replace these with business groups relevant to your enterprise. This sample setup is an example of how you can use three different business groups to create a global plan. In this example, the US business group is the master business group in which you define the global plan.
Note: Ensure you use the business group in which you define the global plan to complete administrative processing.
Note: You should have defined your business groups and set up conversion rates before you complete your plan design.
Business Rules
Use this sample setup if your business requirements are as follows:
Each country has a country-specific currency
You publish budgets in a single currency - in this example, we use US dollars
You publish budgets as a percentage of eligible salary
You administer bonuses annually.
Your target bonus amount for eligible employees is a percentage of their eligible salary - in this example, we use 5% of eligible salary
You limit access to plans for line managers for a specific period - in this example, they have access to the plan from January 1, 2006 until December 31, 2006
You disallow updates to the plan beyond a particular date - in this example, this date is November 30, 2006
You display all person-related information as of a specific date - in this example, we display all person related information as of January 1, 2006
You use the Supervisor Hierarchy for Approvals
You enable managers to submit worksheets for approval at any time.
Define Plan Years as follows:
01-JAN-2005 - 31-DEC-2005
01-JAN-2006 - 31-DEC-2006
01-JAN-2007 - 31-DEC-2007
01-JAN-2008 - 31-DEC-2008
Define a Life Event called Global Basic Bonus with Compensation as the Type.
Define another Life Event called US Basic Bonus with Compensation as the Type.
Define a Derived Factor called Stated Salary, where US dollar is the currency, Stated Compensation is the source, Annually is the Stated Compensation Periodicity, select the No Minimum and No Maximum check boxes, and As of Event Date as the Determination Code.
Define a Plan Type called Bonus Award, where Compensation Workbench is the Option Type and Comp-Bonus is the Compensation Category. Select the No Minimum and No Maximum check boxes.
See: Defining Plan Types
Define a Plan called Global Basic Bonus Plan with Bonus Award as the Plan Type, May Not be in a Program is the Usage, US dollar is the Currency, and Annually is the Activity Reference Period.
Add all the plan periods you defined to your plan, and add the following tasks:
| Task Type | Self-Service Task Name | Access |
|---|---|---|
| Set Budgets | Set Budgets | Full Access |
| Allocate Compensation | Award Bonuses | Full Access |
| Manage Approvals | Approve Awards | Full Access |
| Review and Submit | Review & Submit | Full Access |
Define a Plan called US Basic Bonus Plan with the same parameters as the Global Basic Plan.
Note: For this plan you must also select the Restrictions tab and select Global Basic Bonus Plan as the Global Plan Name.
Define Plan Enrollment Requirements for the Global Basic Plan as follows:
Select Explicit as the Method in the Enrollment alternate region.
On the Scheduled tab, select Compensation as the Enrollment Type.
In the General alternate region, enter 01-JAN-2006 as the Start and 31-DEC-2006 as the End as the Enrollment or Availability Period.
Enter 01-JAN-2006 as the Assigned Life Event Date.
Select Global Basic Bonus as the Life Event.
Select Processing End Date as the Close Enrollment Date to Use.
Select 01-JAN-2005 to 31-DEC-2005 as the Year Period.
In the Coverage alternate region, select Event as the Enrollment Coverage Start Date. Select 1 Day Before Event as the Enrollment Coverage End Date.
Select the Rates alternate region and select Elections as the Rate Start Date. Select 1 Day Before Event as the Rate End Date
In the Budget alternate region, select the Uses Budget check box if you use budgets. Select Store Budgets as Percentages in the Preserve Budget Column.
In the Miscellaneous alternate region, select Supervisor Hierarchy as the Hierarchy to Use. Select At Any Time as the Approval Mode of Submission. Enter 01-JAN-2006 and 30-NOV-2006 as the Self Service Worksheet Update Period Start and End dates. Select Full Access as the Default Worksheet Access and enter 01-JAN-2006 as the Freeze Date.
Define Plan Enrollment Requirements for the US Basic Plan with the same parameters as the Global Basic Plan.
Note: For the US Basic Bonus Plan, select US Basic Bonus as the Life Event instead of Global Basic Bonus.
Define Standard Rates for the Global Basic Plan as follows:
For Distribution Budgets
Create a new rate called Global Basic Bonus Plan - DB
Select Plan as the Level.
Select Global Basic Bonus Plan as the Compensation Object.
Select Not Applicable as the Tax Type.
Select CWB Distribution Budget as the Activity Type.
Clear the Element and Input Value Required check box.
On the Calculation Method tab, select Flat Amount as the Method, select the Enter Value at Enrollment and the Calculate for Enrollment check boxes. Enter 0 as the Minimum, 1000000000 as the Maximum, 1 as the Increment Amount, and 0 as the Default. Select Round to Nearest One as the Rounding Code.
For Budget Reserves
Create a new rate called Global Basic Bonus Plan - BR with the same parameters as you define for the Distribution Budget.
Note: For this rate, select CWB Reserve as the Activity Type.
For Worksheet Budgets
Create a new rate called Global Basic Bonus Plan - WB with the same parameters as you define for the Distribution Budget.
Note: For this rate, select CWB Worksheet Budget as the Activity Type.
See: Defining Activity Rates for a Standard Contribution/Distribution
Define Standard Rates for the US Basic Bonus Plan as follows:
Worksheet Amounts
Create a new rate called US Basic Bonus Plan - WA with the same parameters as you defined for the Distribution Budget except the following:
Select US Global Basic Bonus Plan as the Compensation Object.
Select Taxable as the Tax Type.
Select CWB Worksheet Amount as the Activity Type.
Select the appropriate Element and Input Value.
On the Processing Information tab, select Bonus as the Compensation Category.
Recommended Amount
Create a new rate called US Global Basic Bonus Plan - RA with the same parameters as you defined for Worksheet Amounts except the following:
Select CWB Recommended Amount as the Activity Type.
Select Not Applicable as the Tax Type.
Clear the Element and Input Value Required check box.
On the Calculation Method tab, select Multiple of Compensation as the Method.
Enter .05 as the Multiplier and select Multiply by as the Operator.
Select Stated Salary as the Compensation Factor.
Eligible Salary
Create a new rate called US Global Basic Bonus Plan - ES with the same parameters as you defined for Worksheet Amounts except the following:
Select CWB Eligible Salary as the Activity Type.
Select Not Applicable as the Tax Type.
Ensure to select the Calculate for Enrollment check box.
On the Calculation Method tab, select Multiple of Compensation as the Method.
Select the Enter Value at Enrollment check box.
Enter 1 as the Multiplier and select Multiply by as the Operator.
Select Stated Salary as the Compensation Factor.
Repeat the steps (3, 7, 9, and 11) you used to create the US Basic Bonus Plan to set up your CA and UK plans.