Compensation Workbench provides two general styles of budgeting:
Automatic Budgeting: use this type of budget if you predetermine budgets prior to giving managers access. For example, you enter a budget of 7.5% for all managers in the west, and 10% for all managers in the east. Auto-issuing budgets gives the compensation professional control over the amount a manager can allocate to reporting employees and creates a uniform compensation distribution across the enterprise. You can set up variable rate profiles to vary the flat percentage or amount based on a variety of eligibility criteria such as location.
Roll-Down Budgeting: use this type of budget if you predetermine the initial budget only, and line managers complete the budgeting task. As a compensation administrator, you publish the initial budget with the highest-level manager, or with multiple lower managers. Managers roll the budgets down the hierarchy by distributing the budget. Managers decide the level to which they want the budget to trickle down by selecting the budgeting method on the Budget Task.
You include the budgeting task in the plan design only if you want to use roll-down budgeting. You can define budgets as monetary amounts or as a percentage of eligible salary in the Plan Enrollment Requirements window. You can also define the budget in non-monetary units such as Shares or Stock Options.
To configure the number of decimal places to display for budget and worksheet amounts that are expressed as a percentage of eligible salary, you must set the following profile options:
BEN: CWB Budget as Percent of Eligible Salary Decimals - set this profile option to Yes to display budgets as percent of eligible salary
BEN: CWB Allocation as Percent of Eligible Salary Decimals - set this profile option to Yes to display decimals for percent of eligible salary based on allocated amounts
You can decide how you store your budgets - either as a percentage of eligible salary or as an amount. You can also choose to maintain fixed amounts or to recalculate the budget based on a percentage.
If you have a combination plan, you must budget for at least one component, but you are not required to budget for each component of the plan.