Technical Articles
Removing assignment proration in Variable Pay
In this recording we look at how to remove the built-in assignment proration in Variable Pay through additional custom fields in the employee history. The recording also provides a demo of how to mass edit existing Employee Central employee history records through CSV.
The excel spreadsheet to simulate the proration impact that I show in the recording can be downloaded here.
Please note : since EC bonus plans eligibility rules use the standard start-date field of each record for mapping (which we here override with 1/1 for all records) this workaround is only possible with non-EC bonus plan eligibility rules (which SAP recommends using because they make troubleshooting easier for customers, allow for EC and non-EC records to be mapped to the same bonus plan, and make bonus calculation jobs run much much faster).
If you would like to know more about the business case of using actual earnings vs contractual salary, please see : https://blogs.sap.com/2023/03/14/using-actual-earnings-instead-of-contractual-salary-in-variable-pay/
If you are having issues with your employee history job to get data from EC, this post can be useful : https://blogs.sap.com/2021/06/18/how-to-troubleshoot-failing-variable-pay-employee-history-jobs/
Finally, if you would like to gain additional knowledge on the complicated module that is Variable Pay, this post can be helpful : https://blogs.sap.com/2021/03/11/3-key-configuration-setups-to-master-in-variable-pay/
Thank you,
Xavier
Thanks Xavier for such informative blog.
We have a business requirement wherein we would lime to stop earning proration for specific LOA cases such as Maternity, paternity leaves employees. Would it be a good way to achieve this requirement via same logic ( which you have shown via this blog)
re-load earnings and then re-calculate bonus and worksheets to check bonus calculations?
Also I would like know in all cases (active and inactive) are we going to use one earnings or salary column in EHF file. Better to keep just one earnings columns
same way why to keep duplication of start date and end dates?
Pl confirm
Thanks
Ritanshi
Hi Ritanshi Bansal
It all depends whether the information regarding LOA is in SuccessFactors (Employee Central or Time off) or outside of SuccessFactors.
If it is in Employee Central then you just need to adjust your employee history eligibility rules to reflect this (Plan Setup > Employee Central Settings).
If it is not in SuccessFactors, then you can use a design like this :
All the best
Xavier
Hi Xavier,
Great Article, We have a requirement where employee belongs to different bonus plan in a year and no proration for the eligible earning.
For ex: Emp A is on pay grade X1 and from 1st Jan 2021 to 30th June 2021, he is on bonus plan "AMAZ" and during this 6 month his eligible earning is 60000.
Emp A is on pay grade X2 (promo happen) and from 1st July 2021 to 31st Dec 2021, He is on bonus plan "COMP" and during this 6 month his eligible earning is 70000.
How can we achieve this type of scenario based on above approach. What we have to make sure for the start date and end date for both the plan.
Regards,
Vishal
Hi Vishal Bhati
The bonus plan situation and bonus equation in your requirement are leading practice configuration.
What is not is : "no proration for the eligible earnings".
To meet this requirement to not have 60,000 and 70,000 prorated based on start and end date of each assignment you must either use the way I show in the recording above or the table called Eligible Earnings in Variable Pay (which I personnally don't like because it creates 2 different places for data to live in Variable Pay making troubleshooting harder for Comp Administrators).
If the earnings (60,000 and 70,000 in your example) are not stored in Employee Central and have to be summed from a payroll system and imported in Employee history please refer to my explanations from this blog :
https://blogs.sap.com/2023/03/14/using-actual-earnings-instead-of-contractual-salary-in-variable-pay/
All the best
Xavier
I would always recommend using Variable Pay but as a side note I also built a process for a customer that calculated earnings completely differently for some employees versus others but wanted to provide a simplified planning experience for planners with only one screen, I documented it here in the use case :
https://blogs.sap.com/2021/01/27/use-case-field-level-eligibility-in-compensation-worksheets/
All the best
Xavier
Hi Xavier,
Thankyou for the KBA.
I have couple of query, How can we achieve the actual earning for the bonus calc based on below scenario. Most of client don't want to spend time to convert the bi-weekly amount in annualized for emp.
Thanks in advance,
Regards,
Vishal
Hi Vishal Bhati
I believe all the answers to your questions are in my blog below which I linked in one of my previous replies :
https://blogs.sap.com/2023/03/14/using-actual-earnings-instead-of-contractual-salary-in-variable-pay/
Please read the last two sections and let me know if you still have comments.
All the best
Xavier