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Author's profile photo Xavier Le Garrec

FTE and Proration examples in Compensation



The FTE (Full Time Equivalent) is the quotient of an employee’s scheduled hours divided by the hours for a full-time workweek.


What is the reason for the FTE ?

For employees who do not work full-time if their full time annual salary is stored (as per the leading practice in terms of Data Migration to Employee Central’s Comp Info portlet) then NOT adjusting their salary range by the FTE could cause erroneous calculations with regards to range penetration and compa-ratio which could result in incorrect guideline recommendations.


Let’s take an example based on the data for Ethan Howard in the screenshots below.

In SAP Compensation leading practices, merit guidelines are based on Compa Ratio ranges combined with Performance Rating where :

  • An employee with 102.94% in Compa Ratio and a rating of Exceeds Expectations would get a guideline of 3% to 4%.
  • An employee with 205.88% in Compa Ratio and a rating of Exceeds Expectations would get a guideline of 1% to 3% (due to the already high Compa Ratio).

This example shows us how the FTE makes sure that for the same Performance Rating employees working full-time get a higher guideline recommendation than employees working part-time.


How is it built ?

In SuccessFactors the FTE is a standard field built in the Job Info portlet of Employee Central (EC) and used in the standard calculation of the standard Compa Ratio and Range Penetration fields (FTE impact on Compa Ratio and Range Penetration can be removed through “Ignore FTE during Compa Ratio and Range Penetration Calculation” checkbox in Company System and Logo Settings since 1H 2022 – ECT-175722).

Here are some examples from the Compensation Information portlet of Employee Central :


Compensation worksheets can be aligned with Employee Central’s behavior through the addition of the standard field FTE below :



Once added the FTE value will impact both the Pay Range display and the Compa Ratio calculation on the Compensation worksheets just like in EC (the only difference being that in EC the ranges aren’t already impacted by the FTE like on the comp worksheet, instead the detail of the calculation [Pay Range midpoint * FTE] is visible – please see screenshots above).


  • Before :

  • After :


If we don’t want the display of the Compa Ratio to be impacted by the FTE but would like to get to a similar outcome in terms of salary increase for the employee we can keep the FTE standard field in Design Worksheet and add the following XML tag (not available through Admin UI, only through XML change) :


  • isActualSalaryImported=”false” (see comments at bottom for more details on where to add this tag in the xml)


In that case the Current Salary of the employee also gets adjusted by the FTE (on top of the Salary Ranges which already were), hence the Compa Ratio is showing as if there was no FTE impact BUT the Recommendation amounts in standard recommendation column shrink as a consequence of the salary being reduced by the FTE. By impacting the salary by the FTE the individual budget envelope for the team member will also get adjusted.



Finally, the standard FTE field in Compensation cannot be controlled by Number Format rules : it will always display the same exact number of decimals than what was loaded either in EC or in the User Directory File (rounding or truncating isn’t possible on the standard FTE field of the Compensation worksheet).







Proration is a feature only available in Compensation templates that adjusts Guidelines, Recommendations and Budgets based on the time the employee spent in the company during the Fiscal Year considered for planning.


How is it different from the FTE ?

  • The FTE captures a permanent part-time situation with ties to payroll.
  • The Proration feature captures something that happened only over the past fiscal year, for example an employee who usually works full-time but took a 6 months sabbatical during the fiscal year considered for salary review is only entitled to 50% of this upcoming salary increase.


Here is an example of Proration in a Compensation worksheet :

  • Before :

  • After 



How it it built ?

There are 2 ways to set up Proration in a Compensation template :

  • By Percentage : from a field in EC or an MDF object (field of type String) mapped to the standard Proration field in Design Worksheet (field Id = proration)








  • By Dates : dates can be defined in the compensation template settings as per the screenshot below. The worksheet will compare the date from EC feeding the salaryProratingStartDate standard field from Design Worksheet (which can be mapped to any Date fields in EC) against the Proration settings dates entered by Comp Admin in the Plan Setup > Settings page and from there the system will calculate a percentage and populate it into the standard Proration field in Design worksheet. Note : the salaryProratingEndDate field doesn’t require any mapping on it for Proration % to be calculated correctly.












How to determine which one to use ?

It really depends on whether the Employee Central configuration already has a field that captures Proration as a percentage or not. If not, then using dates may be easier as Date of Last Hire is usually an information that is captured in Employee Central. However Proration setup using dates does not support cases where the employee starts and stops work multiple times in the same compensation period (it only compares one date against a range of dates to return a percentage). In that scenario, it would be best to calculate the proration outside the system and import the calculated percent.


Do most customers use Proration ?

No. In my own experience and the experience of my colleague who consolidated the knowledge for this post most customers do not use Proration (however they do use FTE) and instead of Proration they like to fully exclude employees who were hired or rehired past a certain date (which is a little bit of a different case than proration). They do prorate for bonus however by using the employee history eligibility rules in Variable Pay.


What are known limitations or useful knowledge ?

  • Percentages in the Proration field can be higher than 100% only if the following tag in the XML of the template (currently not supported through Admin UI) is set to True : canExceedReviewPeriod=”true”.
  • Budgets are not automatically Prorated unless a specific setting is selected in the Budget settings :


What is “Raise Prorating” ?

If we don’t want guidelines and recommendations to be automatically adjusted but would like to get to a similar outcome in terms of salary increase we can use the Raise Prorating feature which only impacts the Total Increase standard field as per the explanations and example below.

To use Raise Prorating, we need to remove the standard Prorating fields and instead add the Total Raise Prorating standard fields below. Raise Prorating cannot be applied to Budgets like standard Prorating can and will need to be manually added to the formula of each Budget envelope.



Use Case around Raise Prorating (credit : David Somelofske, SAP) 

  • The customer requirement is to use raise prorating, import the value and then edit allowing for proration over 100%.
  • Another important requirement is that raise prorating should only apply to merit and not to any other standard recommendation column (promo, lumpsum, extra…)

Solution :

  • Make the xml changes highlighted in the screenshot below.


  • Use Field Based Permission groups to limit the edit to comp admins and have the planners being read only.
  • Finally, make sure to set the Total Raise Prorating standard field as editable (Read Only is No) and (if needed) set validation as per the screenshot below:




As a conclusion one important thing to focus on when implementing these two features is to carefully look at all the custom formulas where these two FTE and Proration standard fields should be added as a multiplier to keep an overall consistency in the design of the worksheet. This is particularly true for budgets envelopes or spent formula.

Thank you and please comment if you have come across additional cases on these topics.

Credits go to Skip Jones (SAP) for consolidating the knowledge that helped in creating this post.

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      Author's profile photo Carole LE GARREC
      Carole LE GARREC

      Merci beaucoup

      Author's profile photo NAGARAJ HS

      Thank you for sharing knowledge on FTE & Proration. Really helps!

      Looking forward for next interesting topic.



      Author's profile photo Anne Zijlmans
      Anne Zijlmans

      Dear Xavier,


      Thank you so much for this blog. We use the include fte flag as our Annualized Salaries are parttime annualized salaries. As a result, it prorates both the salary ranges (from the pay matrix) as well as the salary. This calculates a wrong compa-ratio.

      Understanding from your blog, we would have to set the isActualSalaryImported to 'true', to get the compa-ratio calculation we want. However, I don't see that tag in my xml and once added in the fte line of the xml, I get an error.

      Can you please share where to put the tag?

      Kind regards,


      Author's profile photo Xavier Le Garrec
      Xavier Le Garrec
      Blog Post Author

      Hi Anne Zijlmans

      It's here :


      All the best,


      Author's profile photo Anne Zijlmans
      Anne Zijlmans

      Hi Xavier,

      Thank you so so much. Now it's working as per our own calculations!

      The only thing I'm wondering, is that when I now go to the xml again, the tag isActualSalaryImported is not visible. Do you have the same experience? Or do you see it when you close and re-open  / re-view (via Provisioning) the xml?


      Again, thanks a lot!

      All the best,


      Author's profile photo Xavier Le Garrec
      Xavier Le Garrec
      Blog Post Author

      I don't have this issue. It always shows for me when I open Provisioning.

      Author's profile photo Anne Zijlmans
      Anne Zijlmans

      Ok! Thank you.

      Author's profile photo Xavier Le Garrec
      Xavier Le Garrec
      Blog Post Author

      Here is a recording where I don't have this issue :

      Author's profile photo Ritanshi Bansal
      Ritanshi Bansal

      Thanks Xavier for detailed expalination w.r.t to FTE and Proration


      Is it possible to do proration based upon basic salary instead of annualized sal. our requirement is to consider. Base monthly sal as on 31st march for proration. Can you pl send me some clue




      Author's profile photo Xavier Le Garrec
      Xavier Le Garrec
      Blog Post Author

      Hi Ritanshi Bansal

      Yes it is possible but to do so you would have to do planning based on pay frequencies (Option 1 of the blog introduction below) :

      If you leave curSalary and localCurrency, salaryRate and unitsPerYear blank the forms will automatically pull which ever paycomponent an employee has on the profile that is marked as Use for Compensation = "both" or "Comp" in its settings.

      Once you have this in place then the rest is exactly as per my blog explanations above.

      All the best


      Author's profile photo Ritanshi Bansal
      Ritanshi Bansal

      Thanks Xavier. Much appreciated!

      If there is any provision wherein we can pick monthly sal as on 31st dec for proration. It should not consider entire year sal rather they need monthly basic sal as on 31st dec. Is it possible?


      Kindly confirm

      Thanks for all help


      Author's profile photo Xavier Le Garrec
      Xavier Le Garrec
      Blog Post Author

      Hi Ritanshi Bansal

      Yes that's what the template EC effective date under Plan Setup > EC settings will take care of. Just set it to 12/31 and it will work.

      If you use VP then the same is done through Point in time feature.

      All the best