PUBLIC

Document Version: 1H 2024 – 2024-05-16

Implementing Employee Compensation Data

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Content

1 Employee Central Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

2 Where to Find Other Payment-Related Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3 Compensation Data Structure Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

3.1 Foundation Objects for Handling Pay-Related Areas. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
3.2 Optional: Pay Component Groups and Pay Component Group Calculation. . . . . . . . . . . . . . . . . . . . . . . 10
Calculation of Annualized Values. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
3.3 Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13
3.4 Pay Scale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
3.5 Pay Grade/Pay Range. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.6 Pay Range. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
3.7 Compa Ratio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
3.8 Range Penetration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
3.9 Forward Propagation in Employee Central Compensation Information. . . . . . . . . . . . . . . . . . . . . . . . . . 18
Fields Not Propagated in Compensation Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Fields Not Propagated in Pay Component Recurring. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
3.10 Example Business Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Optional: Automatically Propagating Salary Structures. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Optional: Defaulting Pay Components During Hire/Rehire. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

4 Prerequisites for Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

4.1 Enabling Compensation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
4.2 Data Model Field Information for Compensation Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41
4.3 Data Model Field Information for Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
4.4 Data Model Field Information for Pay Scale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
4.5 Data Model Field Information for Pay Range. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44
4.6 Permissions for Employee Central Compensation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46
4.7 Currency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
Setting Up the Currency Exchange Rate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
4.8 Setting Up Country/Region-Specific Picklists for Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . 54
4.9 Displaying Compensation Widgets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56
4.10 Changing Compensation Information with Job Information Changes. . . . . . . . . . . . . . . . . . . . . . . . . . . 59
4.11 Unit of Measure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
Creating Units of Measure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60
4.12 Configuring Decimal Places for Pay Component Groups. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61
4.13 Configuring Decimal Places for Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .62

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2 PUBLIC Content
5 Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
5.1 Pay Component Types: Number or Percentage. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64
5.2 Creating a Pay Component. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66
Showing Pay Components in Value Help. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69
5.3 Configuring Country/Region-Specific Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71
5.4 Optional: Creating a Pay Component Group. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73
5.5 Preventing Changes to a Pay Component Already in Use. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .75
5.6 Controlling Visibility of Pay Components in the Employee Profile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 77
5.7 End-Dated Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78
Adding an End Date to Recurring Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80
5.8 Compensation Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81
5.9 Generating Compensation Insights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84
5.10 Data Validation for Compensation Information and Recurring Pay Components (MSS and History UI)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .85
5.11 Record Suppression for Compensation Information and Recurring Pay Components. . . . . . . . . . . . . . . 86

6 Non-Recurring Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

6.1 Non-Recurring Pay Components. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87
6.2 Spot Bonus Block . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 88

7 Pay Range. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
7.1 Determining Pay Ranges in Calculations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89
Examples for Pay Range Calculations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90
Troubleshooting Pay Ranges in Calculations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91
7.2 Showing the Pay Range in Job Information. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 92
7.3 Exporting Pay Ranges. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94

8 Pay Scale. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
8.1 Pay Scale Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96
Migrating Pay Scale Type and Pay Scale Area Fields. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97
Creating Pay Scale Area. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98
Creating Pay Scale Type. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 99
Creating Pay Scale Groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .99
Creating Pay Scale Levels. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Changing the Pay Scale (Mass Changes). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100
Business Rules for Indirect Valuation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 101
8.2 Tariff Change Effects on Employee Compensation (Pay Scale Increase) . . . . . . . . . . . . . . . . . . . . . . . . 112
Exporting the Pay Scale Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 114
Importing the New Pay Scale Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .115
Adjusting Employee Compensation Data Based on Tariff Changes . . . . . . . . . . . . . . . . . . . . . . . . . .117
8.3 Adjust Pay Scale Level. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
8.4 Grade Step Progression. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Prerequisites for Grade Step Progression. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122

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Content PUBLIC 3
 Creating an Off Cycle Event Batch Object. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 122
Creating the Business Rule for Grade Step Progression. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 127
(Optional) Monitoring the Grade Step Progression Job. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .128

9 Compensation Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

9.1 Configuring the Compensation Structure Object. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130

10 Implementing Location-Based Payments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134

10.1 Prerequisites. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Enabling Intelligent Services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 134
Enabling Location-Based Payments Settings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .135
Enabling Role-Based Permissions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 135
10.2 Configuring Pre-Delivered Business Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Changing the Location for an Existing Employee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136
Changing the Location for a New Hire. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
10.3 Configuring New Business Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 137
10.4 Configuring the Rule for Legal Entity. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
10.5 Enabling the Location - Coefficient Configuration Lookup. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 139
Troubleshooting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 141
10.6 Changing the Location. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 142

11 Implementing and Managing Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143

11.1 Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 143
Enabling Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .143
Permissions for Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .144
UI Configuration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .146
Assigning Screen IDs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150
Business Rules. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .152
Configuring People Profile for Deduction Blocks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
Adding Custom or New Fields. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158
Forward Propagation in Employee Central Recurring Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . 160
Importing a Recurring Deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 169
Importing a One Time Deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
11.2 Managing Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 170
Creating a One Time Deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Editing a One Time Deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171
Creating a Recurring Deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172
Editing a Recurring Deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173
Example Business Rules for Deductions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 173

12 Change History. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 175

Implementing Employee Compensation Data

4 PUBLIC Content
1 Employee Central Compensation

Employee Central Compensation helps you to set up and manage a pay structure for your company. You can
create annualized salaries as well as compensation packages for your employees. The system helps you visualize
where an employee is in their pay range or where they are in comparison others in a team. It is possible to set up
location-based payments as well as country/region-specific pay components. Spot bonuses or deductions can be
created for users as well if required.

Implementing Employee Compensation Data

Employee Central Compensation PUBLIC 5
2 Where to Find Other Payment-Related
Information

This guides covers topics related to compensation information. There are other guides that may interest you as well
though.

Topic Link

Advances Implementing Advances in Employee Central

Deductions Implementing and Managing Deductions in Employee Central

Payment Information Implementing Payment Information in Employee Central

Implementing Employee Compensation Data

6 PUBLIC Where to Find Other Payment-Related Information
3 Compensation Data Structure Overview

3.1 Foundation Objects for Handling Pay-Related Areas

Some of the foundation objects (FO) can be used to handle payroll-related issues.

Here is a graphic to show how all the objects work together.

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Compensation Data Structure Overview PUBLIC 7
Pay-Related Objects A-Z

Object Object Type Description

Pay Component Foundation/Legacy An employee’s pay is comprised of more

than one component, such as basic sal-
ary, target bonus, company car allow-
ance, and so on.

For each pay component, a company

needs to define attributes such as:

• Is the pay component recurring or

one-time?
• If the pay component is recur-
ring, what is the frequency?
This can be set directly on
the pay component and propa-
gated to the employee’s record
when the pay component is se-
lected, or it can be derived from
other attributes, such as the
pay group.
• Is the pay component an amount or
a percentage?
• If percentage, what is the per-
centage based on? For exam-
ple, is it based on how much
of a particular product the em-
ployee makes or sells?
• Is the pay component actual pay or
a target amount?
• Who has the ability to select or view
the pay component? This can be
controlled using RBP.
• Should the pay component be used
by the Compensation module?
• Is the pay component taxable or
non-taxable?

Frequency Foundation/Legacy Frequency is used by the pay component

foundation object to determine how of-
ten a pay component is paid - for exam-
ple, annually.

Implementing Employee Compensation Data

8 PUBLIC Compensation Data Structure Overview
Object Object Type Description

Pay Component Group Foundation/Legacy It is possible to group pay components

into pay component groups. The amount
of a pay component group is equal to the
sum of the pay components it includes.
If the amounts in question are in differ-
ent currencies or for periods of less than
a year, the system automatically annual-
izes them and converts the currencies.

Pay Grade Foundation/Legacy Pay grade is a foundation object related

to job classification. A job classification is
connected by default to a pay grade. This
is optional and you can turn it off in the
object definition for the JobClassification
object by setting the visibility of the pay-
Grade field to Not Visible.

It can be used to identify when a trans-

action is lateral move, a promotion, or a
demotion.

Pay Range Foundation/Legacy Pay range is primarily used for the cal-
culation of compa ratio and range pen-
etration. The system stores minimum,
median, and maximum points of a pay
range.

Your company can define as many pay

ranges as required. The range generally
includes pay grade, geozone, and legal
entity and are updated every year.

Pay Group MDF We recommend that you group people

who share the same payroll-related at-
tributes into one pay group. For exam-
ple, employees in Europe who are all
paid by payroll and paid bi-weekly can be
grouped into one European pay group.

Pay Calendar MDF The pay calendar foundation object

stores all the payroll periods within a
year. For example, June 1 – June 15 2016
could be one payroll period.

Foundation objects can be changed using the Manage Organization, Pay, and Job Structures UI.

MDF objects can be changed using the Manage Data UI.

Implementing Employee Compensation Data

Compensation Data Structure Overview PUBLIC 9
3.2 Optional: Pay Component Groups and Pay Component
Group Calculation

You can set up pay component groups to calculate and display annualized sums of recurring pay components in
the Compensation Information block.

 Note

In pay component groups, the default decimal rounding is 3 digits in UI, APIs, business rules, and reporting.
However, this is configurable and can be changed in the Manage Organization, Pay and Job Structures page.

General

Pay component groups are linked only to pay components. It is also possible to link from legal entity to pay
component groups (which limits the pay components you can see in the profile to the ones relevant for your legal
entity) but is only possible using an association.

Determining the Currency Shown for Pay Component Groups

You can define the currency in which the pay component group should be displayed and in what order, and whether
the group is used for the calculation of compa ratio and/or range penetration. In addition, you specify which pay
components belong to which group.

The currency is not a required field. If no currency is entered in the pay component group definition, the system
determines which currency to use for the display. If the currency used is decided by the system, it is based on the
following criteria:

• If the pay component group has currency defined, that is used

• If all recurring pay components of the employee are in a single unique currency, that is used
• If not, the currency from the legal entity (if defined) is used
• If not, the currency from country assigned to the legal entity is used
• If still nothing has been found, the currency of one of the employee's pay components is used

When viewing the Compensation Information block, the pay component groups are calculated on-the-fly, that is,
they are not stored to the database. As for the calculation, it is relatively simple. For pay components of type:

• Amount: convert currency if needed and annualize (meaning, multiply monthly salary by 12)
• Number: calculate amount = number * rate, then convert currency if needed and annualize
• Percentage: calculate annualized (and converted) value of base pay component, then multiply by given
percentage

 Note

For percentages, frequency is not relevant for this calculation. Frequency only affects the calculated
amount for the employee pay components.

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10 PUBLIC Compensation Data Structure Overview
For Ad-Hoc reporting, the values are calculated using a sync job.

Here is an example of the pay component groups in the Compensation Information block.

If you select the question-mark icon, the system displays the annualized values of all the pay components that are
in the pay component group (those for which the employee has data) for the total earning opportunity (TEO).

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Compensation Data Structure Overview PUBLIC 11
Configuration for Total Compensation History

If a pay component group has the Use for Range Penetration setting (you can check in Manage Organization, Pay
and Job Structures to be sure), then that will be used in Total Compensation History. If no such pay component
group exists for the employee, then the first pay component group from the list will be used (this can be influenced
by the Sort Order flag in the pay component group definition).

3.2.1 Calculation of Annualized Values

A pay component group sum can be the sum of the annualized values of the pay components assigned to it. These
annualized values are calculated by taking the annualization factor of the "Frequency" object set against the pay
component to calculate the annualized value. The frequency of the pay component determines how this value is
calculated.

 Tip

The system considers all frequencies where the annualization factor is 0 to be hourly frequencies independent
of the text name, and that non-zero annualization factor means not hourly, independent of the text name of the
frequency.

 Note

The pay component group is in a certain currency, so whatever currency the pay components have, they must
be converted to the pay component group currency in the annualization and sum building process.

For more information, refer to Optional: Pay Component Groups and Pay Component Group Calculation.

Example: Non-Hourly Frequencies

Here is an example of the steps needed to calculate the annualized value for pay components with frequencies that
are not hourly based.

1. Associate the Base Salary pay component to the Annualized Salary pay component group.
2. Assign the Base Salary pay component to an employee with the amount of "$1,000" and set the frequency to
Monthly (MON).
The Monthly (MON) frequency has an annualization factor of 12.
3. Check the Compensation Information block to ensure that the Annualized Salary field displays "$12,000".
The annualized salary is the pay component value multiplied by the annualization factor of the frequency
(annualized salary = pay component value * annualization factor). So, in the example, "12,000" is the result of
1,000 multiplied by 12.

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12 PUBLIC Compensation Data Structure Overview
Example: Hourly Frequencies - Annualization Factor = 0

Here is an example of the steps needed to calculate the annualized value for pay components with frequencies that
are hourly based and where the annualization factor is zero.

1. Associate the Base Salary pay component to the Annualized Salary pay component group.
2. Assign the Base Salary pay component to an employee with the amount of "$250" and set the frequency to
Hourly (HOURLY).
The Hourly (HOURLY) frequency has an annualization factor of 0, which means that working hours are taken in
account.
3. Check the Standard Hours of the employee in Job Information - in our example, we use 25 hours a week.
4. Check the Compensation Information block to ensure that the Annualized Salary field displays "$325,000".
The annualized salary is the pay component value multiplied by the standard hours multiplied by 52 weeks in a
year. So, in the example, the "325,000" is the result of 250 * 25 * 52.

Example: 'Hourly' Frequencies - Annualization Factor Greater than 0

Here is an example of the steps needed to calculate the annualized value for pay components with frequencies that
are hourly based and have an annualization factor greater than zero.

 Note

If there is an annualization factor greater than zero, then it's calculated the same as non-hourly frequencies.

If the value is nonzero, the amount of the pay component is multiplied with the annualization factor, for example
12. This means that $100 a month (amount of pay component) x 12 months in a year (annualization factor) =
$1200 for the year.

Please refer to the Example 1 above for more information.

3.3 Pay Components

This section explains all the elements that make up the pay for employees.

An employee’s pay is comprised of more than one component, such as:

• Basic salary
• Target bonus
• Company car allowance

For each component, a company needs to define the following:

• Whether the component is recurring or one-time. If recurring, how often it is paid? (this is called the Frequency
- see below).
• Whether the component is paid as an absolute amount, as a percentage, or as a number
• If the component is paid out as a percentage of other pay components, specify which pay component forms
the basis for the percent calculation.

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Compensation Data Structure Overview PUBLIC 13
• If it is based on how much of a particular product the employee makes or sells, you should specify the relevant
unit and rate unless these are set using pay scale.
• Is it actual pay or a target amount?
• Should the component be visible to managers on Manager Self-Service?
• Whether it is to be used by the Compensation module?
• Whether it is taxable or non-taxable

There are validation checks in place that the system performs when changing the configuration of a pay
component. In most cases the configuration of a pay component should never be changed once it is used in
employee data. This is because it could have a negative or unexpected impact, causing incorrect calculations in
payouts. Do not set pay components to the status Inactive. It is always best to create a new pay component if major
changes are needed.

Integration

Pay components are used in several areas of the system other than just compensation information. They are also
used in the following areas of Employee Central:

• Time Off
• Global Benefits
• Advances and Deductions
• Compensation

Rounding of Values

For the pay component value and calculated amount fields in recurring pay components, the system rounds the
values as follows:

• If the Maximum Fraction Digits are not specified anywhere, the default number of decimal places is 3.
• The Maximum Fraction Digits can be specified for the fields in Manage Business Configuration if the default
value doesn't meet customer requirements.
In this case, both the pay component value and calculated amount fields are rounded using the value specified
for the respective pay component value or calculated amount field. Please ensure that the number of digits
specified for the calculated amount is identical to that of the value field, as some UIs shorten the calculated
amount according to the field definition, which may confuse users.
• If the Maximum Fraction Digits are specified for the pay component in Manage Organisation, Pay, and Job
Structures, then that value is used to round all the fields listed above for the pay component.

The rounding is half-even; that is, if you enter 51.645 and you have two decimal places defined, you get 51.64.

Related Information

Creating a Pay Component [page 66]

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14 PUBLIC Compensation Data Structure Overview
3.4 Pay Scale

A pay scale is a salary (tariff) structure that shows the rates of pay for employees working at each level of an
organization.

It may be based on one or more factors such as the employee's level, rank or status, length of time with the
company, or difficulty of the work. The pay scale is made up of pay scale levels, which define the pay components
that are assigned to each employee in that level.

The pay scale structure enables pay component values for employees to be defined based on a fixed pay structure.
This is often used for unionized employees, for whom collective bargaining and contractual agreements exist to
control employees’ pay on a scaling basis.

The pay scale objects have no relationship with the pay ranges and pay grades.

Related Information

Pay Scale Structure [page 96]

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Compensation Data Structure Overview PUBLIC 15
3.5 Pay Grade/Pay Range

Pay grades are a framework of salary ranges.

Pay grades form a matrix for employees to move through. They can move through a vertical range where each level
corresponds to the responsibility of, and requirements needed for a certain position; as well as a horizontal range
that allows monetary incentives to reward the employee's quality of performance or length of service.

Pay grades and pay ranges are required for compa ratio and range penetration calculations.

3.6 Pay Range

Pay Range is primarily used for the calculation of Compa Ratio and Range Penetration. The system stores
minimum, median, and maximum points of a pay range.

Salary ranges within each pay grade are based on qualifications, skills, experience, equity in comparison to similar
positions, and external market values. Salary ranges allow for differences among positions within the same grade
as well increasing levels of responsibility and performance within the same job.

Your company can define as many pay ranges as required. The range generally includes Pay Grade, Geozone, and
Legal Entity and are updated every year.

In order to determine the pay range of an employee, the system will proceed as follows:

1. For each associated field type, it looks for a field in the employee Job Information with the same type.
Ideally there is only one field with a specific type (example pay grade) in Job Information. If a standard field and
a custom field exist with the same type, the system will use the standard field. If several custom fields exist with
the same type, the system will simply pick one. Even if a Job Information field is inactive – the system takes
both active and inactive fields into account.
For example, if there are 2 fields with a specific type configured in the Corporate Data Model, where one is
active but the other inactive. When the system tries to determine the pay range, it will find both fields and it is
possible that the system picks the inactive field. This can lead to an unexpected pay range being determined.
Therefore, we recommend that there should be only one such Job Information field – no matter if active or not.
2. The system looks for a pay range that matches all the associated field values from employee job info.
3. If one (or more) matching pay ranges are found, the system uses the first one.
Defining several pay ranges that match one combination of associations is a (common) configuration error.
4. If no matching pay range is found, the system will remove the last associated field from the list (based on the
order of the associations in the Corporate Data Model) and repeats steps 2—4 until either a match is found or
no associations are left (= no pay range for this employee).

Related Information

Determining Pay Ranges in Calculations [page 89]

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16 PUBLIC Compensation Data Structure Overview
3.7 Compa Ratio

Compa ratio is a key metric for an employee's compensation. It measures the relationship between the salary of an
employee or a position, and the mid-point of the pay range for that employee or position.

Compa Ratio = Employee Compensation/Mid-point of Range

If an employee is earning the exact amount of the mid-point of their salary range, their compa ratio will be 1.0 (or
100%). Anything less than 1.0 means they are earning less than mid-point and if the compa ratio is more than 1.0
they are earning more than the mid-point.

If you have a lot of employees, sorting your compa ratios in ascending or descending order can be a useful way to
quickly see which of your employees is earning significantly less or more than the mid-point of their range.

Compa ratio is updated when the amount of a pay component is changed. For manual changes in Job Information,
ensure that the Enable Compensation Refresh setting is set to Yes to trigger the recaluclation of fields in
Compensation Information. This is for manual changes only and not for fields changed by rules or for the Position
field.

There are two settings you can choose for compa ratio calculation:

• Admin Center Company System and Logo Settings Ignore FTE During Compa Ratio and Range
Penetration Calculation
When you choose to ignore the FTE, the calculation of compa ratio and range penetration does not show FTE at
all. When FTE is considered, then the calculation reflects the value of the FTE as listed in Job Information.
• Admin Center Company System and Logo Settings Calculate Range Penetration or Compa Ratio even if
FTE and Standard Weekly Hours are null
Usually the Compa Ratio and Range Penetration fields display an error if the standard weekly hours for an
employee are null. If this setting is activated, then these fields are calculated using FTE = 1, meaning, as if the
employee were full-time.

Related Information

Changing Compensation Information with Job Information Changes [page 59]

3.8 Range Penetration

Range penetration is a key metric for an employee's compensation. It shows the level of an individual's pay
compared to the total pay range.

It is calculated as follows:

Range Penetration = (Compensation – Min)/(Max-Min)

Range penetration and compa ratios show how an employee’s pay progresses with increasing skill and
performance. Range penetration describes how far into a range an individual’s pay has progressed. Rather than just

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Compensation Data Structure Overview PUBLIC 17
being a comparison to one piece of data (the midpoint), range penetration looks at a salary in relation to the whole
pay range.

While range penetration can be useful on an individual basis, looking at where all of your employees fall within
each of your ranges can also be a useful indicator that maybe your ranges are too wide or too narrow. In addition,
range penetration can be useful if you use portions of the range as target levels for certain categories of employees,
meaning that you want new hires to be in the first 25% of the range, and experts or consistent high performers to
be in the top 25% of the range.

There are two settings you can choose for range penetration calculation:

• Admin Center Company System and Logo Settings Ignore FTE During Compa Ratio and Range
Penetration Calculation
When you choose to ignore the FTE, the calculation of compa ratio and range penetration does not show FTE at
all.
When FTE is considered, then the calculation reflects the value of the FTE as listed in Job Information.
• Admin Center Company System and Logo Settings Calculate Range Penetration or Compa Ratio even if
FTE and Standard Weekly Hours are null
Usually the Compa Ratio and Range Penetration fields display an error if the standard weekly hours for an
employee are null. If this setting is activated, then these fields are calculated using FTE = 1, meaning, as if the
employee were full-time.

3.9 Forward Propagation in Employee Central Compensation

Information
Forward propagation means that a change in the value of a field in an object is also made (“propagated”) to future
records for the same object.

The forward propagation of this field change stops as soon as one of the future records has a field value that is
different than the original field value.

For recurring pay components, propagation stops for all fields as soon as a future record is found in which one field
does not match the original value.

Changes to Compensation Information (hris element: compInfo) are propagated individually, whereas recurring
pay components (hris element: payComponentRecurring) are propagated as a group. This is due to the fact that
pay components consist primarily of a group of fields whose values make sense only as a group (amount +
currency + frequency or number + currency + frequency + unit + custom fields) so that it is reasonable to stop
propagation entirely when one field changes.

 Note

Some fields are not propagated, for either technical or business reasons.

 Note

Business rules are applied only once and the changes resulting from these rules are propagated.

When forward propagation makes changes to future records, then the timestamp and user are also changed in the
future.

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18 PUBLIC Compensation Data Structure Overview
When a change to a recurring pay component is propagated, the time stamp and user of the last change to the
Compensation Information record is also updated. In case recurring pay components are propagated, the field
‘calculated amount’ is recalculated for the future recurring pay components instead of being propagated.

Processes where changes are always propagated:

• Changes are made to the compensation data in Benefits

Benefits processing reads future records of compensation information and changes them accordingly
independently of the settings made in the Admin Center Company System and Logo Settings .

Processes where changes are never propagated:

• Changes made on the Editing UI of Compensation Information History

• Deletion of records in the Compensation Information History UI
• Changes are made to the compensation data using Pay Scale Pay Increase
Pay Scale Pay Increase reads and processes future compensation records but does not propagate changes
from one record to the next.

Processes with separate settings for forward propagation:

• Imports
• Compensation Planning

Forward Propagation with Centralized Services

Changes to compensation information are propagated when:

• Changes are made to the compensation data using MSS

• Changes are made using Insert New Record on the History of Compensation Information screen
• Changes are made to the compensation data by cross-block rules

 Note

These changes are propagated as if they were made using the compensation UI; that is, the rules are
applied once and the changes are propagated independently of the end date of the original changes to Job
Information.

Example

A company may have 2 pay components, one for full-time employee and one for part-time employees. The
employees have both pay components in their compensation information data. The amount for the part-time pay is
calculated using a business rule based on the full-time pay amount and the employee’s FTE.

In this example, an employee has a future change from full-time to part-time (80%) on April 1st at a 20% salary
reduction.

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Compensation Data Structure Overview PUBLIC 19
Pay Component/Month JAN - FEB MAR APR-JUN

FT 5000 5000 5000

PT 5000 5000 4000

The employee receives a pay increase on March 01. The full-time pay component is changed manually from 5000
to 5050 and the part-time pay component is adjusted using a business rule from 5000 to 5050 (as the employee is
still working full time in March).

The system tries to propagate the following changes:

1. Pay component FT changes from 5000 to 5050

Since the record for April for this pay component has the same original value (5000), the pay component can
be changed.
2. Pay component PT changes from 5000 to 5050
The record for April for this pay component has the value 4000, which differs from the original March value.
The change cannot be propagated.

After the change and propagation, the employee has the following pay components:

Pay Component/Month JAN - FEB MAR APR-JUN

FT 5000 5050 5050

PT 5000 5050 4000

Related Information

Fields Not Propagated in Compensation Information [page 20]

Fields Not Propagated in Pay Component Recurring [page 21]
Forward Propagation of Data with Imports
Role-Based Permissions for Employee Data Import Administrators

3.9.1 Fields Not Propagated in Compensation Information

Here is some additonal information about the fields that are not forward propagated for Compensation
Information.

HRIS Entity HRIS Field

Compensation Information actionId

allowDelete

change-source

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20 PUBLIC Compensation Data Structure Overview
HRIS Entity HRIS Field

created-on

created-by

effectiveLatestChange

endDate

event

eventReason

item-id

last-modified-on

last-modified-by

notes

seqNumber

startDate

wfConfig

3.9.2 Fields Not Propagated in Pay Component Recurring

Here is some additonal information about the fields that are not forward propagated for Pay Component Recurring.

HRIS Entity HRIS Field

Pay Component Recurring actionId

allowDelete

calculated-amount

Compensation-id

createdOn

createdBy

effective-latest-change

end-date

formId

Item-id

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Compensation Data Structure Overview PUBLIC 21
HRIS Entity HRIS Field

lastModifiedOn

lastModifiedBy

notes

noChangesUntilDate

pay-component

pay-component-type

paymentEndDate

start-date

seq-number

templateId

wfConfig

3.10 Example Business Rules

Here are a few examples of how you can use business rules for compensation topics in your system.

General Information about Creating Rules

For all business rules, do the following:

1. Go to Admin Center Configure Business Rules .

2. Create a new rule by selected a rule scenario to meet your requirements.

 Note

Only use the Compensation Information Model base object to set visibility of fields or when you need to
compare/read previous and current values for fields.

3. Create a rule based on the examples shown.

If your rule does the same thing repeatedly, for example, calculating a value or reading the same field, then the
rule will be faster if you create a variable and re-use it. Refer to the Create/Adjust Pay Components Based on
Other Pay Components for the Same User section for an example.
4. Save your changes.
5. In the Business RulesUI, you can assign the rule directly to the HRIS element or else you can navigate to the
Business Configuration UI to add the rule to the data model.

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22 PUBLIC Compensation Data Structure Overview
General Information about Pay Components in Rules

When you change pay component fields (pay component, pay component type, amount, currency, frequency,
number) using business rules, this does not trigger the recalculation of Compensation Information fields (compa
ratio, range penetration, and pay component groups). During rule execution, the calculation of these fields happens
when one of these fields is checked by a rule. If some changes are done by other rules on pay components, when
another rule checks these fields, then the recalculation does not take place.

When executing rules for pay components of type percentage, the calculated amount is not always available at the
time of the execution of the rule. Therefore a pay component group should be used as a proxy.

For transient fields, there is no data stored in the database. This means that some values are not updated when the
business rule is executed. For example, if you use a custom field for Country/Region in Job Information, then that
field will not be updated. The solution is that the information should come from the legal entity information stored
in the system. This means that the country/region information for business rules should come from the legal entity
rather than from another source.

The decimal points of sums and calculations are based on the <maximumFractionDigits> HRIS attribute
defined in the Corporate Data Model. Depending on the number of decimal digits defined, the numbers displayed in
the system get rounded up or down. This property is only for HRIS fields with the data type DOUBLE, and can have
up to 5 decimal places. If you define a value higher than 5, the system uses the maximum value, which is 5. If you
define a negative value, for example, -1, the default value of 3 decimal places is used. The pay component value field
of the Pay Component foundation object is reused in Compensation Information. If you then choose to override this
field and the value of the maximumFractionDigits attribute is different for the fields, it leads to an error.

 Note

Do not mix global fields and fields from multiple country/region versions in one rule!

If you have a rule for a field in Country/Region-Specific Data Model, and the rule is attached to the global Job
Information data model, there may be problems. The possible solutions for this are:

• Move the field to the global data model

• Add the field to the global data model
• For all countries/regions that do not use the field, set the field to invisible in the Country/Region-
Specific Data Model
• Check the rule definition to ensure that the global field is set, not the Country/Region field
• Double-check the permission groups to ensure that the users who should be able to view and edit the
field can do so
• Move the rule to the Country/Region-Specific Data Model
If you do this, define two separate rules: one to set the field for one country/region and another to set the
field for another country/region, and then attach them to the corresponding country/region-specific data
models.

Using Pay Components in If Conditions

When using pay components for comparisons in business rules, ensure that the condition is the same for all fields
being compared.

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Compensation Data Structure Overview PUBLIC 23
This is a rule with the base object Job Information Model. It should be added as an onSave rule to Job Information
in Manage Business Configuration.

In this example, if the previous value of the base salary for an employee is different from the current value, then the
event should be set to Pay Rate Change.

Using Pay Component Group Sums in Rules

 Note

If you want to use a pay component group in business rules, then the external code can contain ONLY
alphanumerics, underscore, minus, @, %, and space. Other characters such as slash (/) are not allowed.

You can use pay component group sums in rules, for example, to perform calculations. To use pay component
group sums in business rules, you have to make sure the corresponding pay component groups are displayed on
the Configure Business Rules page.

For more information on how to set this up, refer to Setting Up the Application in the Implementing Business Rules
in SAP SuccessFactors guide.

Create a Warning Message

You can set up the system to send a warning message when an employee's compensation is outside of the pay
range for their pay grade. This is an onSave rule for compensation information.

If the range-penetration value is more than 100, then the annual salary is more than the pay range or if the
range-penetration value is less than 0, then the salary is less than the pay range. Therefore the system is set up to
display the warning message when the employee compensation information for annual salary is saved.

Prerequisites

• Enable the field <range-penetration> in compInfo in Manage Business Configuration.

• Configure a pay component group (for example, Annualized Salary) with the flag Use for Range Penetration =
Yes
• If needed, you can hide the field <range-penetration> in compInfo by adjusting the permission settings.
• Use Compensation Information as your base object.
• Configure the messages you will use in the rule.

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24 PUBLIC Compensation Data Structure Overview
Set Pay Component During Hire Process

You can set the default pay component in compensation information during hiring based on the pay scale level
selection in the Job Information.

It must be clear what pay component is associated with the pay scale level as well as which pay component
assignment needs to be configured at pay scale level.

This is a rule with the base object Employee Information. It should be added to the onInit event of
payComponentRecurring in Manage Business Configuration.

 Note

OnInit rules are only triggered in new hire process.

You can use rule functions, for example, Amount from Pay Scale Structure or Currency from Pay Scale Structure,
to get the value that was assigned at pay scale level & then based on the retrieved value, the values in the recurring
pay component are set.

 Caution

This example rule is correct for defaulting pay components during the hire process. In general, rules that
change pay components should obey the following two principles:

1. If a recurring pay component should be created, use the command Create and not the command Set to do
so

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Compensation Data Structure Overview PUBLIC 25
 If the employee already has the specified pay component, the Create command will overwrite the existing
values.
2. The Set command can be used when
• The rule has the base object recurringPayComponent OR
• The ‘Select’ section of the Set command is filled to specify which pay component should be processed.

Cross-Entity Rule for Compensation Information

You can create a cross-entity rule to make sure that changes made in the Compensation block to a pay component
also appear in MSS and History pages.

This is a rule with the base object Compensation Information. It should be added as an onSave rule to
compensation information in Manage Business Configuration.

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26 PUBLIC Compensation Data Structure Overview
Cross-Entity Rule for Showing Latest Employee Changes in Compensation

You can create a cross-entity rule to create or update recurring pay components when Job Information is changed.

This is a rule with the base object Job Information. It should be added as an onSave rule to Job Information in
Manage Business Configuration.

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Compensation Data Structure Overview PUBLIC 27
Update Effective Date

You can create a rule to update the effective date of event reasons or pay groups.

This is a rule with the base object Compensation Information Model. It should be added as an onSave rule to
Compensation Information in Manage Business Configuration.

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28 PUBLIC Compensation Data Structure Overview
Always Show Pay Range Name

You can create an onView rule that calls the Pay Range Name function.

This is a rule with the base object Job Information.

Prerequisites

• In the Succession Data Model, update <payRange> in compInfo

• In the Corporate Data Model, update the HRIS associations for <hris-field max-length="256" id="custom-
string1" visibility="view" type="payRange"> <label xml:lang="en-US">Pay Range Name</label> <label>Pay
Range Name</label> </hris-field><payRange>

 Sample Code

<hris-associations>
<association id="id" required="false" multiplicity="ONE_TO_ONE"
destination-entity="payGrade" />
<association id="id" required="false" multiplicity="ONE_TO_ONE"
destination-entity="geozone" />
<association id="id" required="false" multiplicity="ONE_TO_ONE"
destination-entity="company" />
</hris-associations>

Set the If condition to always true.

Set Field Visibility for Recurring Pay Components

In some cases, you may want to have fields set to read-only for users. You can create an onView rule for this.

This is a rule with the base object Compensation Model. For the If condition, you can create your own or select the
Always True checkbox.

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Compensation Data Structure Overview PUBLIC 29
Once the rule is created, assign it as onView in payComponentRecurring so that it is triggered whenever you edit
compensation details.

Create Workflow for Changes in Compensation

You can create an onChange rule for HR admins to create a workflow for changes to benefits and/or compensation.

This is a rule with the base object Compensation Information.

 Note

Although it is technically possible to configure workflow rules on Recurring Pay Components as the base object,
this is not recommended because if you configure a rule that returns different workflow configurations for the
separate pay components, the system will select one of those values for you.

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30 PUBLIC Compensation Data Structure Overview
The workflow will now be executed for all pay components that you have added in the If statement, so in our
example, that means the workflow will be triggered for Base Salary. The changes to the Compensation Information
and pay components will always be together in one workflow.

Raise Error Message if Salary is Reduced

You can create an onSave rule to check not only whether the value has been reduced, but should also include the
cases where the value and the previous value are null, which may occur when an employee has no recurring pay
components.

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Compensation Data Structure Overview PUBLIC 31
Raise Error Message for Salary Change

You can use the Compensation Model object to compare the value to ensure that changes of 10% or more are
limited. On the rule, you can use a Math Expression function and get the previous value to compare with the newly
entered value.

Create/Adjust Pay Components Based on Pay Scale Level Changes

You can use a cross-entity business rule to create and/or adjust pay components whenever there is a change in pay
scale for a user.

This is an OnSave rule for Job Information.

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32 PUBLIC Compensation Data Structure Overview
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Compensation Data Structure Overview PUBLIC 33
Create/Adjust Pay Components Based on Other Pay Components for the Same
User

You can use a cross-entity business rule to create or update additional pay components when the end user adds a
pay component.

If your rule does the same thing repeatedly, for example, calculating a value or reading the same field, then the rule
will be faster if you create a variable and re-use it.

This is an onSave rule for Compensation Information.

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34 PUBLIC Compensation Data Structure Overview
Create Recurring Pay Components

You can use a business rule to create additional pay components.

This is an onSave rule for Compensation Information.

For rules that use the Create function to create a new recurring pay component, the result is that the recurring pay
component is created.

For rules that use the Create function to update an existing recurring pay component, the result is that the
recurring pay component is updated with the rule result. The values of any fields that are not filled explicitly by the
rule are taken from the existing record.

Implementing Employee Compensation Data

Compensation Data Structure Overview PUBLIC 35
Change Previous Value

You can use a business rule to calculate the ratio between the previous value of a field and the current value of it, for
example, for the previous value of a salary “Salary Amount” and the current value of it.

This is an onSave rule for Compensation Information Model.

Implementing Employee Compensation Data

36 PUBLIC Compensation Data Structure Overview
3.10.1 Optional: Automatically Propagating Salary Structures
You can automatically default the salary structure of an employee where needed based on a standard
compensation structure in a company.

Context

Automation in the system means less manual effort and fewer errors. Compensation data for each employees can
be captured along with an employee's past record.

Reporting on a standard compensation structure also helps to understand the total cost in salary of a company.

Procedure

1. Create all required pay components for the structure.

a. Go to Admin Center Manage Organization,Pay and Job Structures Create New Pay Component .
b. Enter the required data.
c. Save your changes.
2. Assign View/Edit permissions for all the components.

a. Go to Admin Center Manage Permission Roles User Permissions Employee Data Pay
Components .
b. Select the View and/or Edit permissions for each pay component you created for the structure.
c. Save your changes.
3. Optional: Define a custom field for Compensation Information.

a. Go to Admin Center Manage Business Configuration .

b. In the Business Configuration UI, select Employee Central compInfo .
c. For Compensation Information, add a custom-doubled field and add a label. Ensure that the field is set to
Enabled.
d. Save your changes.
4. Assign permission for the new field - if you created one. If not, you can skip this step.

a. Go to Admin Center Manage Permission Roles User Permissions Employee Central Effective Dated
Entities Compensation Information .
b. Select the permissions for the new field you created.
c. Save your changes.
5. Create a rule to automatically propagate pay components.

a. Go to Admin Center Configure Business Rules Create Basic . The base object must be
Compensation Information.
b. Define the If condition. For example, when the current salary is greater than 20,000 or if the employee
belongs to certain pay grades, company, department, and so on.
c. Define the Then condition to create a Compensation Information block with data populated from all the
pay components defined in your structure.

Implementing Employee Compensation Data

Compensation Data Structure Overview PUBLIC 37
 d. Save your changes.
6. Assign the rule to the standard or custom field.

a. Go to Admin Center Manage Business Configuration .

b. In the Business Configuration UI, select Employee Central compInfo .
c. For the field, select Details.
d. In the Trigger Rules section, select your rule and set it to onChange.
e. Save your changes.

Results

Changes to your custom field result in updates shown in the Compensation Information block.

3.10.2 Optional: Defaulting Pay Components During Hire/

Rehire

You can default pay components to better automate the Hire/Rehire process.

Context

This may be helpful because the system could:

• Automatically create Compensation Information and recurring pay component while hiring based on Job
Information fields, for example, Company, Job Classification, and Pay Grade using an onSave rule
• Provide default recurring pay component values while hiring to add to the Compensation Information and
recurring pay component records in the UI using an onInit rule

Procedure

1. Create all required pay components.

a. Go to Admin Center Manage Organization,Pay and Job Structures Create New Pay Component .
b. Enter the required data.
c. Save your changes.
2. Create a pay component group.

a. Go to Admin Center Manage Organization,Pay and Job Structures Create New Pay Component
Group .
b. Add all the pay components required.
c. Save your changes.

Implementing Employee Compensation Data

38 PUBLIC Compensation Data Structure Overview
3. Optional: Define a custom field for Compensation Information.

a. Go to Admin Center Manage Business Configuration .

b. In the Business Configuration UI, select Employee Central compInfo .
c. For Compensation Information, add a custom-double field and add a label. Ensure that the field is set to
Enabled.
d. Save your changes.
4. Create a rule to default pay components.

a. Go to Admin Center Configure Business Rules Create Basic . Select Compensation Information
as the base object although you can also use Job Information Model where required .
b. Define the If condition. For example, for the Hire or Rehire event.
c. Define the Then condition to create recurring pay components with data populated from all the pay
components defined.
d. Save your changes.
5. Assign the rule to the standard or custom field.

a. Go to Admin Center Manage Business Configuration .

b. In the Business Configuration UI, select Employee Central compInfo .
c. For the field, select Details.
d. In the Trigger Rules section, select your rule and set it to onSave.
e. Save your changes.

Results

The pay components are defaulted for new or rehired employees.

Implementing Employee Compensation Data

Compensation Data Structure Overview PUBLIC 39
4 Prerequisites for Pay Components

Set up the data models and permissions for compensation objects in Employee Central.

For payments to work correctly, then all payments and deductions have to be entered in Employee Central.
Employee Central must be the core HR platform, where payroll is managed in SAP and other local platforms. Data
management must be standard and identical across all countries. That data in Employee Central needs to be easily
accessible for both employees and managers.

Pay components and wage types that are governed by HR policies and/or that impact global compensation
processes should be managed in Employee Central. This allows the Employee Central to drive the eligibility
elements for other processes, for example, benefits or overtime.

4.1 Enabling Compensation

Turn on settings for payments in Employee Central to work.

Context

 Remember

As a customer, you don't have access to Provisioning. To complete tasks in Provisioning, contact your
implementation partner or Account Executive. For any non-implementation tasks, contact Product Support.

Procedure

1. In Provisioning Company Settings , select the following:

• Employee Central
• Enable Foundation Objects
• Enable Generic Objects
• Effective Dated Data Platform
• Enable New Payment Information
2. Save your changes.

Implementing Employee Compensation Data

40 PUBLIC Prerequisites for Pay Components
Next Steps

Once the settings have been enabled in Provisioning, you can enable new features using the Employee Central
Settings in the Admin Center rather than having to create a support ticket to update Provisioning. To grant this
permission, go to Manage Permission Roles Manage System Properties to enable the Employee Central
Feature Settings.

4.2 Data Model Field Information for Compensation

Information

Here is some important information for fields needed for compensation information.

Succession Data Model

You can update the data models yourself in your system in the Business Configuration UI.

For more information about the Business Configuration UI, refer to the Setting Up and Using Business
Configuration UI (BCUI) found on the SAP Help Portal.

 Note

Do not add a picklist for the pay group field in the data model.

Employment Objects
• Compensation Information

4.3 Data Model Field Information for Pay Components

Here is some important information about fields that must be in the data models for pay components.

Corporate Data Model

To update the data models, create a support ticket by contacting SAP Product Support.

 Remember

As a customer, you don't have access to Provisioning. To complete tasks in Provisioning, contact your
implementation partner or Account Executive. For any non-implementation tasks, contact Product Support.

Implementing Employee Compensation Data

Prerequisites for Pay Components PUBLIC 41
Pay Components
The fields <isTarget>, <isEarning>, and <recurring> should always be enabled in order for the value help to
work correctly.

The field <canOverride> should always be enabled.

You can add the field <maxFractionDigits> if needed but it isn't required.

To use the pay component type Number, the fields <unit-of-measure>, <rate>, and <number> must first be
defined and set to visible in the Corporate Data Model.

 Sample Code

<hris-element id="payComponent">
<hris-field id="unit-of-measure" visibility="both" pii="false">
<label>Unit of Measure</label>
</hris-field>
<hris-field id="rate" visibility="both" pii="false">
<label>Rate</label>
</hris-field>
<hris-field id="number" visibility="both" pii="false">
<label>Number</label>
</hris-field>
</hris-element>

To use the pay component type Percentage, the field <basePayComponentGroup> must be enabled and editable.
The base pay component specifies which pay component group is used as the basis for the percentage calculation
and is a required field for pay components of type Percentage. In order to avoid data inconsistencies, the
<basePayComponentGroup> field is only visible for pay components of type percentage when defining pay
components.

 Sample Code

No additional fields for percentage are needed. Percentage is always available.

 Sample Code

<hris-element id="payComponent">
<hris-field id="basePayComponentGroup" visibility="both">
<label>Base Pay Component Group</label>
</hris-field>
</hris-element>

Employment Objects
• PayComponentRecurring
• PayComponentNonRecurring

Succession Data Model

You can update the Succession Data model using the Business Configuration UI. For more information about the
Business Configuration UI, refer to the Setting Up and Using Business Configuration UI (BCUI) found on the SAP
Help Portal.

Implementing Employee Compensation Data

42 PUBLIC Prerequisites for Pay Components
Pay Components
To use the payComponentType Number, the fields <unit-of-measure> and <number-of-units> must first be
defined in the Succession Data Model. They must be added in the hris-elements payComponentRecurring and
payComponentNonRecurring and set to visible.

 Sample Code

<hris-field max-length="256" id="number-of-units" visibility="both">

<label>Number of Units</label>
</hris-field>
<hris-field max-length="128" id="unit-of-measure" visibility="both">
<label>Unit of measure</label>
</hris-field>

For pay components of type Percentage, no additional fields are needed.

 Tip

The base-paycomponent field specifies which pay component group is used as the basis for the percentage
calculation. It is filled automatically by the system when the corresponding <basePayComponentGroup> field
is filled in the pay component definition.

It is not recommended to make this field editable and it is not recommended to use it for other purposes. If you
wish to associate recurring pay components to pay component groups for some other purpose, a custom field
should be used.

Calculated amounts
In order to ensure that the field <calculated-amount> is filled, it should also be added to the Succession Data
Model for both payComponentRecurring and payComponentNonRecurring.

The system determines the decimal places used in order of the following:

• If the decimal places are defined for the pay component, the system uses the definition.
• If the decimal places are defined in the data model, but not in the pay component, then the system uses the
definition from the data model.
• If nothing is specified at all, then the system uses 3 decimal places for the calculation.

 Sample Code

<hris-field max-length="256" id="calculated-amount" visibility="view">

<label>Calculated Amount</label>
</hris-field>

Foundation Objects

Foundation Objects are managed in the Manage Organization, Pay, and Job Structures UI.

• Frequency
• Pay Component

Implementing Employee Compensation Data

Prerequisites for Pay Components PUBLIC 43
• Pay Component Group
• Pay Grade
• Pay Range

MDF Foundation Objects are managed in Manage Data.

4.4 Data Model Field Information for Pay Scale

Here is some important information about the fields needed for pay scale.

Succession Data Model

You can update the data models yourself in your system in the Business Configuration UI.

For more information about the Business Configuration UI, refer to the Setting Up and Using Business
Configuration UI (BCUI) found on the SAP Help Portal.

Pay Scale
To ensure that the fields are automatically available in all countries/regions, SAP SuccessFactors recommends that
you add the following pay scale structure fields to the data model for Job Information:

• Pay scale type

• Pay scale area
• Pay scale group
• Pay scale level
• Country of company

These fields must be in the non-country/region-specific data model, although the visibility can be set to none, and
set to visible for specific countries. If you don't do this, the value help for pay scale group and level will not work.

You can hide pay scale structure fields for countries where you do not require pay scale structures.

 Note

Customers who are setting up these fields for the first time should always use the Metadata Framework (MDF)
objects. This means that the picklist should not be in the data model. For existing customers, we recommend
that you migrate to the MDF. MDF objects are updated using the Manage Data UI.

4.5 Data Model Field Information for Pay Range

Here is some important information about the field required for pay range.

You can update the data models in the Business Configuration UI.

Implementing Employee Compensation Data

44 PUBLIC Prerequisites for Pay Components
Corporate Data Model

The following fields are required in order to calculate compa ratio or range penetration based on the pay range and
should always be enabled.

• currency
• minimumPay
• maximumPay
• midPoint
• frequencyCode

 Sample Code

<hris-field max-length="45" id="currency" visibility="both">

<label>Currency</label>
</hris-field>
<hris-field id="minimumPay" visibility="both">
<label>Minimum Pay</label>
</hris-field>
<hris-field id="maximumPay" visibility="both">
<label>Maximum Pay</label>
</hris-field>
<hris-field id="midPoint" visibility="both">
<label>Mid Point</label>
</hris-field>
<hris-field id="frequencyCode" visibility="both">
<label>Frequency</label>
</hris-field>

The pay range for an employee is not entered into the system as a field in job or compensation information.
It is determined automatically depending on associated fields in the job information of the employee. These
associations must be defined in the Corporate Data Model for the pay range.

Example

If the employee pay range is determined by the Legal Entity and Pay Grade of the employee, the associations might
be created for legal entity, geo zone, and pay grade as one-to-one associations.

 Sample Code

<hris-associations>
<association id="id" multiplicity="ONE_TO_ONE" destination-entity="LegalEntity"
required="false" />
<association id="id" multiplicity="ONE_TO_ONE" destination-entity="geozone"
required="false" />
<association id="id" multiplicity="ONE_TO_ONE" destination-entity="payGrade"
required="false" />
</hris-associations>

ONE_TO_MANY associations are also possible, meaning that one pay range could be valid for a single legal entity
and geozone and several pay grades.

Implementing Employee Compensation Data

Prerequisites for Pay Components PUBLIC 45
  Note

Associations to geozone follow a special logic. The value of the associated field is not taken from a field with
type geozone in job info, but rather from the geozone assigned to the location of the employee.

4.6 Permissions for Employee Central Compensation

You can use role-based permissions (RBP) to control access to compensation areas. This may be important for
customers to separate duties to limit who has access to monetary information.

Permission Description

Compensation Information Actions Allows user to see Compensation Information in the Profile as
well as controls the visibility of buttons and links in the block:
User Permissions Employee Central Effective-Dated
• View Current: Visibility of Compensation Information in
Entities Compensation Information
Profile
Access to Compensation Information in Take Action does
not depend on this!
• View History: Visibility of History button in Profile Com-
pensation Information
• Edit/Insert: Clickability of Insert New Record button in
Compensation Information History
• Correct: Visibility of Edit button in Compensation Informa-
tion History
• Delete: Visibility of Delete button in Compensation Infor-
mation History

Compensation Information Edit Link Controls links:

User Permissions Employee Central Effective-Dated

• View Current: Not used

Entities Compensation Information

• View History: Not used

• Edit/Insert: Access to Take Action Change Job and

Compensation History and visibility of pencil button in

Compensation Information block
• Correct: Not used
• Delete: Not used

Implementing Employee Compensation Data

46 PUBLIC Prerequisites for Pay Components
Permission Description

Field-Level Permissions Allows user to see and/or edit fields in Compensation Informa-
tion UIs:
User Permissions Employee Central Effective-Dated
• View Current: Field visibility in Compensation Information
Entities Compensation Information
block
• View History: Field visibility in Compensation Information
History
• Edit/Insert: Field editability when creating a new record
• Correct: Field editability when Compensation Information
is edited from the History
• Delete: Not used for fields

The fields range penetration and compa ratio are calculated

fields and thus read-only; select only View Current and/or View
History.

Recurring Pay Components There are no specific permissions for the recurring pay compo-
nent object. Access to the UI is handled by the Compensation
Information permissions as well as permissions for the individ-
ual pay components. A user with permission for an action and
the corresponding pay component has permission for all fields
in the recurring pay component.

Spot Bonus and Spot Bonus Edit Action Controls:

User Permissions Employee Data HR Information

• Spot Bonus View: Visibility of block in profile
• Spot Bonus Edit: Visibility of Award Spot Bonus button
and visibility of Take Action entry
• Spot Bonus Edit Action View: Not used
• Spot Bonus Edit Action Edit: Visibility of Edit action in
block

Permissions are validated:

• On view of UIs
• On save in spot bonus UIs

Non-Recurring Pay Components There are no field-level permissions for the non-recurring pay
component object. Access to the Us is handled by the Spot
Bonus permissions as well as permissions for the individual
pay components. A user with permission for an action and the
corresponding pay component has permission for all fields in
the non-recurring pay component.

Implementing Employee Compensation Data

Prerequisites for Pay Components PUBLIC 47
Permission Description

Pay Components Allow users to view pay components on the user interface as
read-only.
User Permissions Employee Data Pay Components
Allow users to edit and delete a pay component on the Update

Employee Data page by clicking the Take Action Change

Job and Compensation Info .

• View Current: Visibility of Compensation Information in

Profile

Access to Take Action Change Job and Compensation

Info does not depend on this!

• View History: Visibility of History button in Compensation
Information Profile
• Edit/Insert: Selectability of Insert New Record button in
Compensation Information History
• Correct: Visibility of Edit button in Compensation Informa-
tion History
• Delete: Visibility of Delete button in Compensation Infor-
mation History

Permissions are validated:

• On view of UIs
• On delete
Only when a pay component is deleted, not when an entire
Compensation Information record is deleted in the History
UI.
• On Save (correct/insert)
• Specific business scenarios for Time, Benefits, Leave
Loading, and Compensation.

These permissions are not checked during imports.

Pay Components When selected, the system is able to create pay components
from business rules.
User Employee Data HR Information Create or Delete
Pay Components Using Business Rules Without Additional When not selected, the additional permission check prevents
Permission Check the system from being able to create pay components using
business rules.

Implementing Employee Compensation Data

48 PUBLIC Prerequisites for Pay Components
Permission Description

Pay Component Groups Allow users to view the pay component group in the system,
for example, on the Employment Information page.
User Permissions Employee Data Pay Component

Groups  Note
The pay component groups are only visible if the field
Display on Comp UI is set to Yes in the pay component
group definition.

The Edit permission does not work.

• View: Visibility of pay component groups in Compensation

Information
• Edit: Not used (pay component groups are not editable
fields in employee data)

Permissions are validated:

• On view of UIs

Pay Scale - Adjust Employees’ Compensation to Tariff Changes Allows users with this permission to both view and create pay
scale increase jobs.
Admin Permissions Manage Pay Scale
The corresponding MDF object for the job is not secured by
default. You can manually change this in the Configure Object
Defintion page.

Permissions are validated:

• On view of Admin Center

• On call of the UI for pay scale increases

Pay Scale - Manage Pay Scale Objects This permission controls access to Admin Center Manage

Admin Permissions Manage Pay Scale Pay Scale Objects for these objects:

• Pay Scale Area

• Pay Scale Type
• Pay Scale Group
• Pay Scale Level

It does not control access to the corresponding MDF objects

Pay Scale Area, Type, Group, Level, and Pay Increase Run in
Manage Data, as these objects are not secured by default.

It is recommended to secure these objects in Configure Object

Definitions and restrict permission to change this data to the
relevant admins.

Permission validations are run in MDF.

Implementing Employee Compensation Data

Prerequisites for Pay Components PUBLIC 49
Permission Description

Pay Targets Allow users to view and edit pay targets.

User Permissions Employee Data HR Information Pay • View: Visibility of the entire pay targets section (including
the header)
Targets
• Edit: Editability of the entire pay targets section

It is also possible to set permissions to show only specific pay

components.

This is available in Manager Self-Service and History, but not in

Hire.

There are 3 possible use cases:

• If a user doesn't have permission to see pay targets, then

the entire Pay Targets section of the Compensation block
is hidden.
• If a user has View permission, they can see the section,
but not edit it.
• If a user has both View and Edit permissions, then they
can see and update the section.

Permissions are validated:

• On view of UIs
This is not validated again on save, as the relevant permis-
sion for changing the employee data is the permission for
the recurring pay components.

Deductions Allow users to create, edit, and/or view one-time deductions.

Restrict access to the Recurring Deductions block by updating

the object definition.

Employee Widgets Allow user to display compensation data graphically in the UI

to users and managers.
• User Permissions Employee Central Effective Dated
Entities Compensation Information Permissions are validated:

• User Permissions Employee Central Effective • On view of UIs

Dated Entities Compensation Information Range
Penetration

• User Permissions Employee Central Effective Dated

Entities Compensation Information Compa Ratio

• User Permissions Employee Widgets

Implementing Employee Compensation Data

50 PUBLIC Prerequisites for Pay Components
Permission Description

Transactions Pending Approval Controls:

User Permissions Employee Data Transactions Pending • View: Visibility of pending request line in the block

Approval
• Edit: Selectable link as pending request line in the block

Permissions are validated:

• On view of UIs

View Workflow Approval History Controls:

User Permissions Employee Data View Workflow • View: Visibility of workflow history from History

Approval History
• Edit: Not used

Permissions are validated:

• On view of UIs

Allow Retroactive Employee Data Changes This permission is used to prevent users from making retro-
active changes to employee data, for example, because such
Administrator Permissions Manage User Allow changes will cause issues in payroll.
Retroactive Employee Data Changes
All changes to employee data are validated against the earli-
est retroactive change date in the pay group assigned to the
employee in compensation information. If the data change is
before that date, the system raises an error message UNLESS
the user has this permission, in which case a warning message
is raised and the user is allowed to make the change.

Permissions are validated:

• Whenever effective-dated employee data are changed/

saved (all UIs, imports, and so on)
• On delete

Foundation Object Types These permissions control the visibility (and editability) of ob-
jects in Manage Organization, Pay, and Job Structures.
Administrator Permissions Manage Foundation Object
• View: The admin can only view the corresponding founda-
Types
tion object type.
• Create: The admin can create a foundation object of the
selected type.
• Insert: The admin can create a new data record for a foun-
dation object type, by selecting Insert New Record.
• Correct: The admin can correct foundation objects by se-

lecting Take Action Make Correction in the History

page.
• Delete: The admin can delete foundation objects by se-

lecting Take Action Permanently delete record in

the History page.

Implementing Employee Compensation Data

Prerequisites for Pay Components PUBLIC 51
Related Information

List of Role-Based Permissions

4.7 Currency

Setting up currency in your system means that you need to decide whether you use your pay components locally or
globally.

For both local or global, you can have multiple currencies for one pay component. In that case, define the criteria
required for the currency, for example, geo zone, legal entity, and so on.

You can associate the currency with this object or to automate the currency with a business rule. In case you only
have one currency for a pay component, you can enter this directly into the object and default it using business
rule. If you have one or multiple leading currencies in your organization, you can show your salary in multiple
currencies. However, for that you need custom fields and exchange rates.

 Note

The following currency codes do not conform to the ISO 4217 norm and cannot be used in the system:

• RMB
RMB is sometimes used to denote Renminbi instead of the ISO code CNY. However, the system requires
that you use CNY.
• UYP
UYP was replaced in 1993 by the code UYU. Therefore, please use UYU.

4.7.1 Setting Up the Currency Exchange Rate

Set up the currency exchange rate to show pay component group values as well as to be able to calculate Compa
Ratio/Range Penetration.

Context

Procedure

1. Ensure the correct permissions are granted.

Implementing Employee Compensation Data

52 PUBLIC Prerequisites for Pay Components
 Permission Description

Metadata Framework Import Permission on Metadata Allows users to import the MDF object into the system.
Framework

MDF Foundation Objects Currency Exchange Rate Allows users to see and use the Currency Exchange Rate
MDF object.

2. Check the CurrencyExchangeRateType picklist.

If you are a new customer, check whether there is already an existing picklist with ID =
"CurrencyExchangeRateType" and a picklist value = "DEFAULT". If it is not available, create the picklist and
the default value.

a. Go to Admin Center Configure Object Definitions .

b. Select Create New Picklist .
c. Enter at least the following:
• Code: CurrencyExchangeRateType
• Effective Start Date: 01/01/1900
• External Code: DEFAULT
DEFAULT must be in capital letters.
d. Save your changes.
3. Check the currency exchange rates.

a. Go to Admin Center Manage Data .

b. In the Search field, select Currency Exchange Rate.
c. Update the default records for the currency exchange rates.

 Caution

Only exchange rates with the default exchange rate type, DEFAULT, are used in Employee Central
currency conversion.

For mass updates of currency exchange rates, you can use the standard import and export UI. For more
information, refer to Importing MDF Data topic in the Implementing the Metadata Framework (MDF) guide.
d. Save any changes.

Implementing Employee Compensation Data

Prerequisites for Pay Components PUBLIC 53
4.8 Setting Up Country/Region-Specific Picklists for Pay
Components

For customers operating in multiple countries that have several legal entities in one country or customers that have
a high number of country/region-specific pay components, country/region-specific picklists for pay components
filter the relevant values for admins and managers on all screens with a pay component field.

Prerequisites

• You use the generic object Country. For the prerequisites of using generic objects, refer to Generic Objects
Overview.
• You have downloaded the Country list.

 Note

All configuration files for Employee Central, for example, master data models, master picklists, as well as
country/region-specific files, have moved from the SAP Help Portal to the Software Download Center .

• You have created pay components in the system.

Context

Customers that operate in multiple countries tend to have pay components that are very specific for a country. For
example, the customer pays their German employees based on the pay agreements with the German Trade Unions.
This pay component would never be used for an employee based in the USA. However, the admin has to scroll
through the picklist containing all the pay components existing in the system for all countries when adding a new
employee, for example.

As the employee is always clearly assigned to one legal entity, and thus to one specific country, you can set
up country/region-specific picklists for pay components filtering the values to those that are relevant for that
employee.

Once the country/region-specific picklists for pay components are set up, administrators and managers can use
them on all screens that have a pay component field [Employment/Personal Information page; Update Employee
Records page; History pages (for example, Job History); Add New Employee page, and so on].

This feature is useful for:

• Large customers operating in multiple countries that have several legal entities in one country
• Customers that have a high number of country/region-specific event reasons or pay components

Implementing Employee Compensation Data

54 PUBLIC Prerequisites for Pay Components
Procedure

1. You create an association from the Country generic object to the foundation object pay component.
a. Create a wrapper generic object for a pay component:

1. Go to Admin Center Configure Object Definitions .

2. In the Create New: field, select Object Definition and create the wrapper generic object.
Fill out the following fields:
• Code: Enter the external code for this generic object to uniquely identify it in the system.
Note that the prefix cust_ is automatically added to the external code.
• Label: Enter a label for the wrapper generic object.
3. Save your changes.
b. Associate the generic object Country with the wrapper generic object.

1. From the Configure Object Definitions page, choose Object Definition Country .
2. Select Take Action Make Correction .
3. Under Associations, in the Destination Object field, select the wrapper generic object that you have
created in step 1.

4. Save your changes.

c. Link the wrapper generic object to the foundation object.
1. Go back to the wrapper generic object by selecting Object Definition in the Search field, and selecting
the wrapper generic object.
2. To edit the wrapper generic object, select Take Action Make Correction .
3. Select the Details link for the externalCode field and make the following entries:
• Data Type: Select Foundation Object.
• Valid Values Source: Enter the HRIS-element ID of the foundation object as defined in the
Corporate Data Model. For example, we want to have an association to the payComponent
foundation object.
4. Select Done and save your changes.
2. Import content for the Country generic object:
a. Download the Country file.
b. Go to Admin Center Import and Export Data .
c. Import the CSV file.
3. For each country, assign the pay component relevant for that country.

a. Go to Admin Center Employee Files .

b. In the Search: field, select the Country generic object.
c. In the field next to Country, select the corresponding country, for example, United States (USA).
d. Select Take Action Make Correction .
e. Under Pay Components, select the corresponding pay components accordingly.

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Prerequisites for Pay Components PUBLIC 55
  Note

• Assign the country/region-specific pay components to the relevant country only.

• Assign the globally-applicable pay components to all countries.

f. Save your changes.

Results

Check Tool for Pay Components

You can use the Check Tool to find any inconsistencies in your pay components or picklists. Any fix would result in
the update to your pay component data in Employee Central. We recommend selecting checks available under the
following sections:

• Check Tool System Health Tab Employee Central Core Compensation Area
• Check Tool System Health Tab Employee Central Core Invalid Effective End Date for FO/GOArea
• Check Tool System Health Tab Employee Central Core Object Relationship Area
• Check Tool System Health Tab Employee Central Core Picklist Area
• Check Tool System Health Tab Employee Central Core Associations Area

Next Steps

Repeat these steps for all relevant countries.

4.9 Displaying Compensation Widgets

Use widgets to display compensation data graphically in the UI.

Prerequisites

Admins must have permissions for

• User Permissions Employee Central Effective Dated Entities Compensation Information

• User Permissions Employee Central Effective Dated Entities Compensation Information Range
Penetration
• User Permissions Employee Central Effective Dated Entities Compensation Information Compa Ratio
• User Permissions Employee Widgets

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56 PUBLIC Prerequisites for Pay Components
 Select the widgets you want the managers or administrators to see (refer to the table below for the list of
available widgets).

For the Salary vs. Team Widget, there are a few more requirements:

• All exchange rates for every currency used by all employees must be available for the display date, otherwise
the currency for the employee is not converted.
• All employees in the team must use the same pay component group.
• The pay component group must have the Use for Range Penetration Yes setting. Without this setting, the
employee is not shown in the widget.

Context

Once the permissions are granted, the widgets are displayed automatically in the Compensation Information block.

These graphs can be viewed from the Employment Information page, the MSS page when changing Compensation
Information, and the History page.

Widget What it shows...

Total Compensation History This widget shows the wage progression for an employee.

Salary Positioning This widget shows the employee's salary in relation to the pay
range.

If the pay range is changed, the new pay range is only shown
once the record is saved.

The percent sign (%) is no longer displayed in the Salary Posi-

tioning widget.

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Prerequisites for Pay Components PUBLIC 57
Widget What it shows...

Salary vs. Team The 'Salary vs. Team' widget displays a comparison of the em-
ployee's salary with those of their immediate colleagues, for
example, annualized salaries. It is intended as information for
the manager, who usually has permission to view the salaries
of the team, and not for the individual employees, who usually
only have permission to view their own salary. This means that
individual employees can never access this widget to see how
they compare to their peers. Managers can only see the com-
parison of their direct reports and not see how they themselves
compare to their peers.

An employee’s peers are all employees who, on the date for

which the data is requested:

• Have the same manager in Job Information

• Whose employment has not ended based on the end date
in Employment Information

The Salary vs. Team widget is not shown at all if the the man-
ager has more than 30 direct reports.

If the manager has multiple employments, the system forms

separate groups of peers for each employment.

In cases where employees in the team are paid in different

currencies, the system shows the currency of the selected em-
ployee. This provides a better comparison since the employee
data is shown in one single currency.

The widget selects a target pay component group and displays

the salary values for all peers that have this group assigned.
If the pay component group used for range penetration exists
for the selected employee, this group is the target. If this pay
component group does not exist, then the first pay component
group found for the selected employee is the target pay com-
ponent group. If one of the peers does not have data for the
target pay component group, this person is not displayed.

Regardless of the way it is chosen, the widget always shows the

target pay component group for both the selected employee
and their peers.

If there is no pay component group for the selected employee,

then the widget is empty.

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58 PUBLIC Prerequisites for Pay Components
4.10 Changing Compensation Information with Job
Information Changes

With the People Profile, you can set up the system to automatically refresh Compensation Information when there
are changes to Job Information fields from a Manager Self-Service or Employee Self-Service. However, if the Job
Information field is changed using the History, there is no refresh of compensation data.

Context

The compa ratio and range penetration will also reflect the latest values. The field refresh ensures that annualized
salaries are recalculated when standard hours are updated.

Procedure

1. Go to Admin Center Manage Business Configuration .

2. Select Employee Central jobinfo .

3. In the HRIS Fields section, select the fields where the refresh should be enabled. Select the Details link.

 Note

This setting is not supported for the Company field.

4. For the Enable Compensation Refresh field, select Yes.

5. Save your changes.

Results

When a field that has the refresh option is updated and only Job Information is selected in the Take Action
Change Job and Compensation Info menu, then Compensation Information is automatically selected. This results
in the creation of a new Compensation Information record.

Next Steps

To make changes to Job Information based on Compensation Information event changes, you can create onChange
business rules to propagate the event reason to Job Information. Ensure that you use Compensation Information
as the base object.

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Prerequisites for Pay Components PUBLIC 59
4.11 Unit of Measure

Once you have added <unit-of-measure> to the data model, create objects in Manage Data for your required
units of measure.

Once the fields <unit-of-measure>, <rate> and <number> have been defined in the Corporate Data Model,
the Pay Component Type field will display Number as an option. Selecting Number displays additional fields for
Number, Unit of Measure, and Rate on the UI.

4.11.1 Creating Units of Measure

Add picklist values for the units of measure field that you added in the data model.

Procedure

1. Go to Admin Center Manage Data .

2. Select Create New Unit of Measure according to UN/CEFACT Recommendation 20/21 .

3. Add the values needed by your company.
4. Save your changes.

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60 PUBLIC Prerequisites for Pay Components
Results

For pay components of type Number, when you select the units of measure field, the values you create here are
visible in the dropdown list.

Related Information

Unit of Measure

4.12 Configuring Decimal Places for Pay Component Groups

The system default is set to 3 decimal places for pay component groups. However, this can be changed as needed.

Prerequisites

You have the User Permissions Employee Data Pay Component Groups permission.

You have the User Permissions Employee Central Effective-Dated Entities Compensation Information
permission.

You have the Administrator Permissons Manage Foundation Object Types Foundation Object Types - Pay
Component Group permission.

Context

Depending on the number of decimal places defined, the numbers displayed in the system get rounded up or down.
This property is only for HRIS fields with the data type DOUBLE, and can have up to 5 decimal places.

The system determines the decimal places used in order of the following:

• If the decimal places are defined for the pay component group, the system uses the definition.
• If noting is specified, then the system uses the default of 3 decimal places for the calculation.

Procedure

1. Navigate to the Manage Organization, Pay and Job Structures page. Select the required pay component group,
for example, Annualized Salary.

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Prerequisites for Pay Components PUBLIC 61
2. In the Maximum Decimal Places field, in the dropdown list, you can choose between 0 and 5 decimal places.

Any trailing zeros are automatically filled up by the system.

This is based on the attribute <showTrailingZeros> in the Succession Data Model.

3. Save your changes.

Results

Once configured, the decimal places are updated throughout the UI:

• Compensation Information in the Profile

• History
• Compa Ratio/Range Penetration
• Compensation Widgets

4.13 Configuring Decimal Places for Pay Components

The system default is set to 3 decimal places for pay components. However, this can be changed as needed.

Context

The decimal places of sums and calculations are based on the <maximumFractionDigits> the field attribute
<maximumFractionDigits> in the Succession Data Model and the pay component FO definition as explained below.
Depending on the number of decimal places defined, the numbers displayed in the system get rounded up or down.
This property is only for HRIS fields with the data type DOUBLE, and can have up to 5 decimal places.

If you define a value higher than 5, the system uses the maximum value, which is 5. If you define a negative value,
for example, -1, the default value of 3 decimal places is used.

The system determines the decimal places used in order of the following:

• If the decimal places are defined for the pay component, the system uses the definition.
• If the decimal places are defined in the data model, but not in the pay component, then the system uses the
definition from the data model.
• If nothing is specified at all, then the system uses the default of 3 decimal places for the calculation.

Procedure

1. In the Succession Data Model, set the <maximumFractionDigits> attribute of the pay component value field
to visible and editable. Then set the number of decimal places between 0 and 5.

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62 PUBLIC Prerequisites for Pay Components
2. Save your changes.
3. Optionally, you can also set the number of decimal places in the UI separately for each pay component rather
than in the data model. Navigate to the Manage Organization, Pay and Job Structures page. Select the required
pay component, for example, Base Salary.
4. In the Maximum Decimal Places field, in the dropdown list, you can choose between 0 and 5 decimal places.

Any trailing zeros are automatically filled up by the system.

This is based on the attribute <showTrailingZeros> in the Succession Data Model.

5. Save your changes.

Results

Once configured, the decimal places are updated throughout the UI:

• Compensation Information in the Profile

• History
• Compa Ratio/Range Penetration
• Compensation Widgets

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Prerequisites for Pay Components PUBLIC 63
5 Pay Components

5.1 Pay Component Types: Number or Percentage

This section describes how you can set up Number or Percentage as a Pay Component Type.

For Pay Components of Type Number

If the employee is assigned to a pay scale level that contains this pay component, the rate and currency are
read from the pay scale level. If not, the rate and currency are read from the pay component definition. The rate
obtained is converted from the currency from pay scale level/pay component to the currency of the employee pay
component.

Calculated amount = (rate converted to employee currency) * number-of-units

The field amount is set to the calculated amount

For Pay Components of Type Percentage

The annual amount of the corresponding base pay component is calculated. The percentage (field amount) of
the percentage pay component is used to find the annual amount of the percentage-based pay component. The
calculated amount is reduced from the annual amount using the frequency of the employee pay component.

If a pay component is with type Percentage and is a non-recurring pay component, the base pay component must
only be a recurring pay component or a pay component group. Calculation for the field calculated amount in a
percentage-type pay component will not take place if base pay component is created with a non-recurring pay
component.

 Note

When executing rules for pay components of type percentage, the calculated amount is not always available at
the time of the execution of the rule. Therefore a pay component group should be used as a proxy.

Example

Base pay component = ( 40105 EUR /Month ) * ( 12 Months /Year) = 481260 EUR /Year

Percent pay component = 12.5% * 481260 EUR /Year = 60157.50 EUR / Year

Where the calculated amount = 15039.37 EUR /Quarter

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64 PUBLIC Pay Components
Troubleshooting

 Tip

In cases where the calculated amount field for the percentage pay component is not calculated, check the
following configuration:

• Is the affected pay component (for example, PERC) of pay component type = percentage?
• Is the affected pay component linked against the relevant base pay component group (for example,
AnnualizedSalary)?
• Is the affected base pay component (for example, Base Salary) associated to the relevant pay component
group (for example, AnnualizedSalary)?
• Make sure that the relevant pay component, pay component groups, and relationship have one and only
one record with an end date of 31-Dec-9999 using the two check tool checks found in Admin Center
Check Tool System Health Tab Employee Central Core Invalid Effective End Date check for FO/GO
Area . If one of the relevant objects does not have a record with an end date of 31-Dec-9999 or if it has
multiple such records, please create a support ticket and provide the object type & external codes (or
provide the export of the results of the checks).
• Make sure that all exchange rates for every currency used by employees are available for the pay
component, otherwise the calculated amount is set to 0.

If the configuration set up is correct, then you have to check that the relationship between the base pay
component and the pay component group exists. Ensure that you have the relevant permission by checking the
Manage System Properties Data Inspector setting. Go to Admin Center Data Inspector and check
the following:

1. Check the affected base pay component "Base salary"

• Entity = Table_FO_PAY_COMPONENT_T
• Defined field criteria: Code equals 'Base Salary' (this is the external code of the relevant base pay
component)
• Write down the following information: Effective start date, Effective end date, Internal code
2. Check the affected pay component group "AnnualizedSalary"
• Entity = Table_FO_PAY_COMPONENT_GROUP_T
• Defined field criteria: Code equals "AnnualizedSalary" (this is the external code of the relevant pay
component group)
• Write down the following information: Effective start date, Effective end date, Internal code
3. Check the object relationship
• Entity = Table_FO_OBJECT_RELATIONSHIPS_T
• Defined field criteria:
• Source Object Code = internal code of the pay component group
• Destination Object Code = internal code of the base pay component
• Does the relationship exist? Does the relationship start date match the start date of the pay
component group (AnnualizedSalary)? If yes, take a screenshot.
• If not, create a support ticket and include this information.

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Pay Components PUBLIC 65
Pay Component Groups

For Pay Components of Type Number

The calculated amount is converted from the employee pay component frequency to annual for the pay
component group.

For Pay Components of Type Percentage

The annual amount of the corresponding base pay component is calculated. The percentage (field amount) of the
percentage pay component is used to find the annual amount of the percentage-based pay component.

Example

Base pay component = ( 40105 EUR /Month ) * ( 12 Months /Year) = 481260 EUR /Year

Percent pay component = 12.5% * 481260 EUR /Year = 60157.50 EUR / Year

5.2 Creating a Pay Component

Create pay components in the system to meet your company's requirements.

Context

When configuring pay components, you must specify the following 2 values in order for the system to determine
which pay component is available in which section or block:

• Recurring
• Target

These options can be set in different combinations, which allows the system to determine which block the pay
component is available in, for example, Compensation, Pay Targets, or Spot Bonus.

Settings for Pay Components Recurring Target

Display recurring pay component in Yes No

Compensation

Display recurring pay component in Pay Yes Yes

Targets

Display non-recurring pay component in No Yes

Spot Bonus

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66 PUBLIC Pay Components
Procedure

1. Go to Admin Center Manage Organization, Pay and Job Structures .

Optionally, you can create pay components in the system by importing the data. For more information, refer to
Related Information section.

2. Select Create New Pay Component .

3. Enter data into the mandatory fields as well as other standard fields as listed here:

Field Description

Effective as of Enter the date the pay component should be valid.

Pay Component ID Enter a name for the pay component

Name Enter a name for the pay component

Description Enter a description for the pay component

Status Select Active or Inactive.

Pay Component Type Select Amount, Percentage, or Number.

The default is Amount. This is for pay components that are

defined with an amount, for example, 100 USD.

You use Percentage for pay components that are calculated

based on others. If you select percentage, note that you do
not need to enter the percent (%) sign during calculations.

You use Number if you pay your employee based on a

number or pieces instead of a set amount. If you select
Number, three additional fields are displayed: Number, Unit
of Measure and Rate.

Is Earning For non-recurring pay components, select Yes..

For deductions, select No.

Recurring pay components do not use this field.

Currency Select the currency for the pay component.

This list is based on the downloaded picklist.

Pay Component Value Enter an amount.

Frequency Select how often the pay component should be paid, for
example, biweekly or annually.

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Pay Components PUBLIC 67
 Field Description

Recurring Select Yes if the pay component is to be paid regularly or No

if it is just a one-time payment.

Recurring determines whether a pay component is visible in

the Compensation Information (recurring pay components)
or the Spot Bonus (non-recurring pay components). If a pay
component has the setting where Recurring is No, it is not
visible in the drop-down for the Compensation Information
block.

Tax Treatment Select the taxation type.

Can Override Select Yes or No.

Self Service Description You can optionally add a description for the pay component
to show on the profile, if you select Yes for the Display on Self
Service field.

Display on Self Service Select Yes or No.

If you select Yes and assign the permissions, the pay com-
ponent is then visible in the Manager Self-Service and Em-
ployee Self-Service UIs.

Used for Comp Planning If you have integrated Employee Central with the SAP Suc-
cessFactors Compensation module, you can select one of
the options.

Target If the pay component is a target figure or percentage, select

Yes. Otherwise, select No.

Target determines whether a pay component is visible under

the Compensation section of the Compensation Information
block or under the Pay Targets section. When Target is set
to Yes, the pay component appears in the drop-down in
the Pay Targets section. When Target is set to No, the pay
component appears in drop-down list in the Compensation
section.

Maximum Decimal Places The system default is set to 3 decimal places, but you can
choose between 0 and 5 decimal places.

Enable End-Dated Payments Select Yes or No.

If you select yes, you can add a specific expiration date for
the pay component.

4. Save your changes.

Results

The pay component appears in the list and are ordered based on creation date.

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68 PUBLIC Pay Components
Check Tool for Pay Components

You can use the Check Tool to find any inconsistencies in your pay components. Any fix would result in the update
to your pay component data in Employee Central. We recommend selecting checks available under the following
sections:

• Check Tool System Health Tab Employee Central Core Compensation Area
• Check Tool System Health Tab Employee Central Core Invalid Effective End Date for FO/GO Area
• Check Tool System Health Tab Employee Central Core Object Relationship Area

Next Steps

Once the pay component is created, assign permissions for who can see and edit it.

Assign it to an employee. Some common ways to assign pay components to the employees:

• UI (hire/rehire wizard, Take Action menu in the employee profile, Compensation Information History)
• Imports
• Integration (Benefits, Compensation Planning, APIs)

Related Information

End-Dated Payments [page 78]

Adding an End Date to Recurring Pay Components [page 80]
Data Model Information for PayComponentRecurring

5.2.1 Showing Pay Components in Value Help

Control who can see pay components in self-service pages (Manager Self-Service pages and Employee Self-Service
pages).

Context

Showing pay components on the UI is a two-step process. You start by defining the pay component and then
granting permissions to access the pay component. Note that the recurring and non-recurring settings applied
here are only honored by the Manager Self-Service pages and not in the change history.

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Pay Components PUBLIC 69
Procedure

1. Define the Pay Component using the Manage Organization, Pay and Job Structures page. Make sure that you set
the Display on Self Service to Yes.

Example Definition for Recurring Pay Component

Example Definition for Non-Recurring Pay Component

2. Grant role-based access permissions for these pay components.

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70 PUBLIC Pay Components
Results

Manager Self-Service

Employee Self-Service

This example shows the page seen by an admin for non-recurring pay components. The Type drop-down shows
both recurring and non-recurring pay components.

5.3 Configuring Country/Region-Specific Pay Components

If your company operates in multiple countries, you may need to set up and manage country/region-specific pay
components. These pay components can then be assigned only to the employees of the specific country/region.
The assignment of pay components to countries/regions assists end users by removing irrelevant pay components
from the value lists. It does not prevent assigning these pay components to employees when no screen is used.

Prerequisites

• You use the object Country and have imported content for the Country/Region object.
• You have created the Pay Component foundation object in your system.
• The pay component wrapper (Pay Component Wrapper - (FOWPayComponent)) exists in your system.

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Context

For example, the customer pays their German employees based on the pay agreements with the German Trade
Unions. These pay components would never be used for an employee based in the USA.

As the employee is always clearly assigned to one legal entity, and thus to one specific country/region, you can
set up country/region-specific pay components filtering the values to those that are relevant for that employee.
Only those pay components that are assigned to the country/region corresponding to the employee’s legal entity
assignment are available in the value list.

Once the country/region-specific pay components are set up, administrators and managers can use them on
all screens with a pay component field [Update JobInfo/Compensation Employee Records; History pages (for
example, Job History); Add New Employee page, and so on].

This feature is useful for:

• Large customers operating in multiple countries that have several legal entities in one country/region
• Customers that have a high number of country/region-specific pay components

Procedure

1. Create an association from the Country/Region object to the foundation object pay component.
a. Associate the Country/Region object with the wrapper generic object:

1. From the Configure Object Definitions page, choose Object Definition Country/Region .
2. Select Take Action Make Correction .
3. Under Associations, in the Destination Object field, select the wrapper pay component generic object.
Note that the prefix cust_ is automatically added to the association name, which is used to assign
wrapper to the Country object (for example, cust_CountryToPayComponentWrapper).
Make sure that the Type field is set Composite and Multiplicity is set to One To Many.
4. Save your changes.
2. For each country/region, assign the pay component relevant for that country/region.

a. Go to Admin Center Manage Data .

b. In the Search field, select the Country/Region generic object.
c. In the field next to Country, select the corresponding country, for example: United States (USA).
d. Select Take Action Make Correction .
e. Under Pay Components, select the corresponding pay components accordingly.
f. Save your changes.
3. Repeat these steps for all relevant countries.

Pay components that should be visible for all countries must be added to every country that is used in a legal
entity.

Existing employee pay components are not affected (these are displayed in all screens and can still be edited or
deleted).

No validation of the country assignment is performed when employee pay components are imported or
changed using an API.

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72 PUBLIC Pay Components
Next Steps

You can set the decimal places needed for each country according your object definitions. Go to Manage Data
Currency and set the values required for each country.

5.4 Optional: Creating a Pay Component Group

Create a pay component group. A group is used to calculate and display annualized sums of recurring pay
components.

Context

A pay component group sum is the total amount (sum) of the recurring pay components that are part of a specific
pay component group. Pay component group sums are listed with other fields from Compensation Information.

You can use pay component group sums in rules, for example, to perform calculations. To use pay component
group sums in business rules, you have to make sure the corresponding pay component groups are displayed on
the Configure Business Rules page.

 Note

The external code of the pay component group can contain alphanumerics, underscore, minus, @, %, and
space. However, other characters such as back and forward slashes (/ and \) are not allowed.

Procedure

1. Go to Admin Center Manage Organization, Pay and Job Structures .

2. Select Create New Pay Component Group .

3. Select the Effective as of date.
4. Enter data into the mandatory fields as well as other standard fields.

Field Description

Pay Component Group ID You must give the group a unique ID.

Name You can name the group, so that's easier to search for.The
pay component group sum shows up on the Compensation
Information block and can also be used in rules.

Description You can add a description for the group if needed.

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 Field Description

Status Active for it to be used in the system.

Currency Select the currency for the group.

Display on Comp UI Select Yes to show on the Compensation Information block,

so that pay component group sums can be used for calcula-
tions in business rules.

 Note
You need to do this when using any rule scenario ex-
cept the Event Reason Derivation scenario. Event Rea-
son Derivation rule scenarios allow all pay component
groups.

Normally, the pay component group sums are not recal-

culated between rules (meaning, if you change a pay
component in a rule, the change will not be reflected in
the pay component group sum for the next rule). The
exception is that rules in the Event Reason Derivation
rule scenario are processed after all the other rules have
run, and the pay component group sums are recalcu-
lated if the event reason derivation rules need them.

If a pay component group sum should be used only in

rules and not visible on the UI, then this can be achieved
using permission settings.

Use for Comparatio Calculation Select Yes to use the group to calculate compa ratio and
range penetration.

Use for Range Penetration Select Yes to use the group to calculate compa ratio and
range penetration.

Sort Order The sort order influences the order in which the groups are
shown in the UIs.

In Hire UI, this is the order in which they are listed.

In MSS UI, the order is:

• First is the group marked for Range Penetration
• Then the one marked for Compa Ratio (if it is different
form the one for Range Penetration)
• The others in the order defined in the Sort Order field

Maximum Decimal Places Select the amount of decimal places from 0 to 5.

When the pay component group is displayed in the UI, the

specified number of decimal places is filled up with zeros as
required, meaning that 20.00 is displayed instead of 20 if
two decimal places are configured.

5. Add the pay components that you want to be included in the group.
6. Save your changes.

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74 PUBLIC Pay Components
Results

Business Rules

The pay component group sum shows up on the Compensation Information block and can also be used in rules.

Compa Ratio and Range Penetration

In the Compensation Information block, you can select the blue question mark icon next to the Compa Ratio and
Range Penetration fields to show the following information:

• The values from Job Information being used to identify the pay range used in the calculation
• The pay range derived by the UI based on the values from Job Information
• The calculation that is used to calculate the value
• The result of the calculation

Check Tool for Pay Component Groups

You can use the Check Tool to find any inconsistencies in your pay components groups. Any fix would result in the
update to your pay component group data in Employee Central. We recommend selecting checks available under
the following sections:

• Check Tool System Health Tab Employee Central Core Compensation Area
• Check Tool System Health Tab Employee Central Core Invalid Effective End Date for FO/GO Area
• Check Tool System Health Tab Employee Central Core Object Relationship Area

Related Information

Optional: Pay Component Groups and Pay Component Group Calculation [page 10]
Setting Up the Currency Exchange Rate [page 52]
Calculation of Annualized Values [page 12]
Event Reasons
Rule Scenarios for Employee Central Core

5.5 Preventing Changes to a Pay Component Already in Use

The system doesn't allow changes to assigned pay components to prevent the data inconsistencies.

From the Admin Center, you can navigate to Check Tool System Health Tab Employee Central Core
Compensation Area to get a list of where pay components are used as well as all possible dependencies for
the pay component. Note that the where-used list may list more dependencies than you need to delete. This check
is only applied when you attempt to make a change in the UI. These checks are not applied during import.

Once the pay components are in use, you are not allowed to change the following attributes:

• Base Pay Component Group

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• Pay Component Type
• Tax Treatment
• Is Target

The system validates these fields and displays an error message if attempts are made to them.

You can change the Can Override flag from No to Yes, but not the other way around. If the Can Override flag is set to
No, you are also not allowed to change any of the following attributes: Currency or Frequency.

For pay components of type Amount and Percentage, you cannot change the Pay Component Value attribute.

For pay components of type Number, you cannot change the Number attribute.

Once used, none of the pay components can be deleted or set to inactive. If a pay component is no longer used
after a specific date, it is possible to create a new record in which the pay component is inactive after that date.

The table summarizes the allowed behavior.

Pay Component Check and Behavior of Different Foundation Object Attributes

Pay Component is Pay Component is Pay Component Pay Component is Pay Component is
not assigned to an in use within the pe- is in use within in use outside the in use outside the
Pay Component employee or time riod * & Can Over- the period* & Can period & Can Over- period & Can Over-
Check Defined account type ride = true Override = false ride = true ride = false

Base Pay Compo- Change Allowed Change Prevented Change Prevented Change Prevented Change Prevented

nent Group (type =

Percentage only)

Pay Component Change Allowed Change Prevented Change Prevented Change Prevented Change Prevented

Type

Recurring Change Allowed Change Prevented Change Prevented Change Prevented Change Prevented

Is Target Change Allowed Change Prevented Change Prevented Change Prevented Change Prevented

Is Earning Change Allowed Change Prevented Change Prevented Change Prevented Change Prevented

Tax Treatment Change Allowed Change Prevented Change Prevented Change Allowed Change Allowed

Can Override Change Allowed Change Prevented Change Allowed Change Allowed Change Allowed

Currency Change Allowed Change Allowed Change Prevented Change Allowed Change Allowed

Frequency Change Allowed Change Allowed Change Prevented Change Allowed Change Allowed

Pay Component Change Allowed Change Allowed Change Prevented Change Allowed Change Allowed

Value

Name Change Allowed Change Allowed Change Allowed Change Allowed Change Allowed

Display on Self- Change Allowed Change Allowed Change Allowed Change Allowed Change Allowed
Service

Permanently Delete Deletion Allowed Deletion Prevented Deletion Prevented Deletion Prevented Deletion Prevented
Record

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*Within the period means the object referencing the pay component has a start date greater than or equal to the
pay component’s start date and lower or equal to the pay component’s end date.

 Note

If the change of the field is allowed only for the whole validity period of the pay component, for example, for the
Recurring field, you have to delete all assignments of pay component to execute the change. Don't select the
time period in the selection pop-up of the check tool to get the list of all assignments.

Related Information

Using the Check Tool

5.6 Controlling Visibility of Pay Components in the Employee

Profile

Control which pay components appear in the Compensation and Deduction blocks on the Employee Profile.

Context

These settings affect only the drop-down lists in the Employee Profile. Once a pay component exists in the system,
it is displayed in the Manage Organization, Pay and Job Structures screen independent of the settings.

Procedure

1. Go to Admin Center Manage Organization, Pay and Job Structures .

2. Search for the pay component.
3. Check the fields Recurring and Target.

Recurring determines whether a pay component is visible in the recurring pay components (comp info) or the
nonrecurring section (Spot Bonus). If a pay component has the setting where Recurring is No, it is not visible in
the drop-down for the Compensation Information block.

Target determines whether a pay component is visible under the Compensation section of the Compensation
Information block or under the Pay Targets section. When Target is set to Yes, the pay component appears in
the drop-down in the Pay Targets section. When Target is set to No, the pay component appears in drop-down
list in the Compensation section.

Non-recurring pay components are only visible for the following:

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 • Employment Information Take Action Spot Bonus
• Admin Center Add New Employee (New Hire)

All pay components are visible for Employment Information Spot Bonus Edit

4. To edit the settings, select Take Action Make Correction .

5. Save your changes.

5.7 End-Dated Payments

You may want to use recurring pay components that are limited in time, meaning you know the expiration date of
those payments. This end date can now be entered in the system when the recurring payment is created - in one
step.

This can be enabled using a new field in the Pay Component foundation object and is valid for recurring payments
and pay targets. Once enabled, a button appears in the Compensation Information in MSS and in the New Hire
screen to allow you to set an end date. You can also select additional pay components and set multiple end dates.
You can enter any end dates that are after the start date of this record.

End-dated payments can be used in the following processes:

• Manager Self-Service using the Take Action menu

• New Hire
• Rehire
• Internal Hire
• Pending Hires
• Global Assignment
• Concurrent Employment

 Note

If you set an end date for recurring payments or pay targets that don't have the same time periods as
the Compensation Information, then the existing Compensation Information record is split into two records.
The forward propagation of changes made to Compensation Information fields or to other recurring pay
components is not affected by the end date.

The end date does not appear in the History.

You cannot change the end date once it is saved in the system.

The end date option is updated only when the amount is given.

Prerequisites

People Profile and Compensation Information must be enabled in your Employee Central system.

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Event Reason

If new records are created in Compensation Information when an end-dated payment is saved, the new records
generally use the same event reason as the existing record on the same date. When this record has a Hire or Rehire
event reason, the new event reason is taken from the Hire/Rehire Configuration.

 Note

Do not select the Hire, Rehire, or Terminate event reasons.

Example: Example for Event Reason Derivation

The system uses the last event reason stored rather than actual event reason derived by the end-dated recurring
pay component.

An employee has the following compensation data:

• Hire record
• One or more Compensation Information records starting in the past (with the Data Change event reason)
• One or more Compensation Information records starting in the future (with the Future Data Change event
reason)

An end-dated payment is added with the start date 01 Jan 2020, and end date 31 Dec 2020 (with the event reason
Add End-Dated Payment).

The system must create a Compensation Information record starting on 01 Jan 2021. However, this record is
created for technical reasons, rather than anyone actively changing the data for this date. Therefore the event
reason derivation is not used. The event reason that was valid on 01 Jan 2021, before the end-dated payment was
inserted, is used for the new record. The result is listed with the Data Change event reason.

Another employee has the following compensation data:

• Hire record
• One or more compensation information records starting in the future (with the Future Data Change event
reason)

If an end-dated payment starting on 01 Jan 2020 and ending on 31 Dec. 2020 is inserted, the standard system
logic would mean that the record starting 01 Jan 2021 would get the event New Hire, is not correct, since the Hire
event did not happen on 01 Jan 2021. In this case, the system inserts the record starting on 01 Jan 2021 with the
event reason defined in the Hire/Rehire Configuration object in Manage Data (with the End-Dated Payment event
reason).

Workflows

If you have a workflow in place for changes in Compensation Information, then it is triggered. The end date is visible
in the workflow approval popup. It will show in a separate column in line with the pay components. If you try to edit
a workflow, you will jump to the normal MSS page.

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5.7.1 Adding an End Date to Recurring Pay Components

Add an end date when you create a recurring payment to delimit a pay component in your system.

Context

To use end-dated payments, you need to specify the following:

• Which event reason should be used if a new Compensation Informtion record must be created and the existing
event reason is assigned to the hire or rehire event
• Which pay components can be used for end-dated payments

Procedure

1. Specify the event reason

a. Go to the Admin Center Manage Data .

b. In the Search field, select the Hire/Rehire configuration. Edit the entry by hovering over the screen to select
Take Action Make Changes or create a new entry.
c. Select an event reason for end-dated payments.

This configuration tells the system which event reason to be used in case the system can't use the event
reason of the manual changes record, for example, in a Hire or Rehire scenario.
d. Save your changes.
2. Check the Enable End-Dated Payments field.

The field should be editable. If not, you will need to add this field to the payComponent element in the
Corporate Data Model.

 Sample Code

<hris-field id="isEndDatedPayment" visibility="both">

<label>Enable End Dated Payments</label>
</hris-field>

3. Specify the pay components that can be used for end-dated payments

a. Go to the Admin Center Manage Organization, Pay and Job Structures .

b. Select the object type Pay Component and the pay component that should be used for end-dated
payments.
c. Set the value of the field Enable End-Dated Payments to Yes.
d. Save your changes.

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Results

In the Compensation Information block, in the Recurring Payment section, when you now select a pay component
that is enabled for end date, you will see a blue link on top of this sub section. You can select it and provide the end
date. When you save your changes, you will have the changes based on the provided end date in your system.

Check Tool for Pay Components

You can use the Check Tool to find any inconsistencies in your pay components. Any fix would result in the update
to your pay component data in Employee Central. We recommend selecting checks available under the following
sections:

• Check Tool System Health Tab Employee Central Core Compensation Area
• Check Tool System Health Tab Employee Central Core Invalid Effective End Date for FO/GO Area
• Check Tool System Health Tab Employee Central Core Object Relationship Area

Related Information

Working with Corporate Data Model and Country/Region-Specific Corporate Data Model in Admin Center

5.8 Compensation Information

Here is a little more information about some of the features and functions in Employee Central blocks.

General

The data shown in the Compensation Information block is aggregated from several objects, such as Pay Group, Pay
Range, Pay Component, and Pay Component Group.

Only pay components with the field <Recurring> that are set to Yes for are available in the block, and those with
the field <Target> set to Yes will show in the Pay Targets section of the block.

If you do not want users to have access to Pay Targets information, you can update the permissions in User
Permissions Employee Data HR Information .

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The profile shows the Compensation Information data as of a specific selected date (defaulted to today) whereas
the History shows a list of the Compensation Information data as of the start dates of the relevant records. If
there are changes in Job Information or in configuration, this can lead to differences in the calculated fields (pay
component groups, compa ratio, and range penetration).

To correctly trigger workflows, create an onSave rule with Compensation Information as the base object. Do not
use Pay Component Recurring as the base object.

Displaying the Pay Range

In the Compensation Information block, you can see an icon for the compa ratio and range penetration fields.

If you select the icon, a pop-up opens that contains an explanation of how the values are calculated including which
pay range is used and why this pay range is selected as well as the calculation of the percentage of both compa
ratio and range penetration.

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  Note

This is currently only available in the Employment Information page and the Compensation Information
Manager Self-Service page.

No Changes Until This Date Field

You can add how long a pay component will be valid for, which allows admins to see whether the pay components
have an end date.

The system compares a pay component record with all future records for the same pay component. The pay
component is valid until there is either a gap in the pay component records or ANY field is changed in the pay
component data (including custom fields).

Since the <no-changes-until-date> is a calculated field, it is not available in reporting.

 Note

If you enable this opt-in feature, it takes longer for the blocks where this field is displayed to load. This is
because the <valid until this date> field is calculated by the system when the block is loaded and is not
stored on the database.

You can add the field in the data model in Manage Business Configuration. Ensure that the visibility setting for
the <no-changes-until-date> field is set to Yes.

The Notes field is also explicitly excluded from this calculation.

The field is visible in:

• Recurring Pay Component block of the employee profile for View and Edit
• History on the View and Edit page of each affected record as well as the Change History (in the left overview)

Effective Dating Impact on UI

The effective date determines which Job Information record is selected to derive the pay range.

Consider these steps to validate the derivation:

• Get the Effective Date from the UI

• People Profile UI: This is the As Of field in the People Profile UI
• History UI: If viewing Compensatoin Information History, this is the Effective Date of the record being
viewed
There can be several records, and the one selected for display can be different from the As Of date.
In the Compensation Information History UI, the calculation of range penetration and compa ratio is based
on the effective date of the selected record. In short, if the Compensation Information record is dated
01/01/2018, then it will derive the pay range needed to perform these calculations by the Job Information
record that is effective on 01/01/2018 and the matching pay range that is effective on 01/01/2018.
• Get the Job Information record that is effective on that date to determine the values used to then derive the
pay range value.

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• Search for the pay range.

Imports

Please refer to the Compensation Information Imports topic in the Employee Central Imports guide.

Notes and Attachments

The notes fields is always cleared when a new Compensation Information record is created. Unlike most other
fields, this value is never copied over into new records, since it generally refers to one particular record.

Attachments are not supported for Compensation Information.

5.9 Generating Compensation Insights

Managers can generate insights into an employee's compensation using generative AI capabilities as well as talking
points to guide discussions.

Prerequisites

You've purchased the SAP AI Units license. For more information about SAP AI Units license, please contact your
Account Executive.

You've enabled the AI Services Administration Assisted Person Insights feature.

Admins have the Administrator Manage AI Capabilities AI Services Administration permission.

Employees have the User AI Access Assisted Person Insights permission.

Once enabled, the Generate Compensation Insights icon appears in the Compensation Information block.

Context

To prepare for compensation talks with their direct reports, a manager needs relevant data, for example, from past
compensation data, organizational pay bands / defined ranges, and market data.

The AI-generated insights show:

• Compensation History: Showing year-on-year changes for

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 • Base Salary
• One-Time Payments
• Position within Existing Range
• Job Progression
• Tenure
• Promotions
• Role Changes
• Pay Band Position: Where their compensation falls within the pay range for their role

These insights can identify any general discrepancies or anomalies or patterns in an employee's compensation
and employment history as well as identify any specific discrepancies such as pay equity or equality gaps
based on gender or age or other criteria. Managers get insights into expiring long-term incentives, hiring trends,
and company policies, which may not be obvious as decision-making factors. The insights can help managers
understand how their employees' work aligns to the expectations of the pay bands or corporate goals, which can
then help them to make better decisions for their promotion/progression. Managers spend less time on manual
data compilation and more time making informed decisions.

Procedure

1. Navigate to the Compensation Information for the employee for whom you want generate insights.
2. Select Generate Insights.

The system generates insights based on, for example, past compensation data, organizational pay bands /
defined ranges, and job progression.

Related Information

Premium AI Features in SAP SuccessFactors

5.10 Data Validation for Compensation Information and

Recurring Pay Components (MSS and History UI)
With Centralized services enabled, data validations are enhanced to improve data quality.

All data validations are consistent in Imports, History UI, and MSS.

The following scenarios are validated:

• When editing the history, audit fields are set for the recurring pay component only when a change is made to
that specific pay component (including rules and calculations).
• To ensure that the new effective start date cannot be after the end date.
• To ensure that moving the start date as well as adding or deleting records can't be done together in one step.
The start date must be moved first and then the grid records can be changed afterwards.

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 This means that you can still change the pay component value, frequency, and/or currency for the existing pay
components, but you are not able to remove or add the same or another pay components.

Workflow Handling

With Centralized services, workflows are not supported on the History UI.

Related Information

Compensation Information Imports

Recurring Pay Component Imports

5.11 Record Suppression for Compensation Information and

Recurring Pay Components

On the History UI and Editing UI of Compensation Information and recurring pay components, if you update or
delete a record, it doesn't affect the "last modified date" and "last modified by" information of other records in the
block.

Compensation Information and recurring pay components have a parent-child relationship. Scenarios related to
the suppression are as follows:

• When you edit the parent entity, only the data of the parent entity is updated.
There is no change to the "last modified date" and "last modified by" information for the records of its child
entity.
• When you edit a record of child entity, the "last modified date" and "last modified by" information of this
record and its parent entity is updated.
There is no change to the "last modified date" and "last modified by" information for any other records of child
entity.
• When you delete a record of child entity, only the "last modified date" and "last modified by" information
of its parent entity is updated.
There is no change to the "last modified date" and "last modified by" information for any other records of child
entity.

Related Information

Identical Record Suppression with Data Imports

Use Cases: Identical Record Suppression

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6 Non-Recurring Pay Components

6.1 Non-Recurring Pay Components

Non-recurring pay components are basically like the recurring ones, except that they don’t recur.

This means, that there is no frequency, no end dates, just one-time payments. They can be of type amount,
percentage, or number, assuming the data models are set up to include the fields needed (unit-of-measure and
number-of-units).

It is possible to give an employee several non-recurring pay components of the same pay component on a single
day (for example, three spot bonus or whatever on one payment day). However, if you want to change these
records using import or an OData API, then the field sequence-number must be available for import (meaning, it
must be in the data model).

Non-Recurring Pay Components are only selectable under:

• People Profile Employment Information Award Spot Bonus

• Admin Center Add New Employee (New Hire)

Rounding of Values

For the value and calculated amount fields in non-recurring pay components, the system rounds the values as
follows:

• If the Maximum Fraction Digits are not specified anywhere, the default number of decimal places is 3.
• The Maximum Fraction Digits can be specified for the fields in Manage Business Configuration if the default
value doesn't meet customer requirements.
In this case, both the value and calculated amount fields are rounded using the value specified for the
respective value or calculated amount field. Please ensure that the number of digits specified for the calculated
amount is identical to that of the value field, as some UIs shorten the calculated amount according to the field
definition, which may confuse users.
• If the Maximum Fraction Digits are specified for the pay component in Manage Organisation, Pay, and Job
Structures, then that value is used to round all the fields listed above for the pay component.

The rounding is half-even; that is, if you enter 51.645 and you have two decimal places defined, you get 51.64.

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6.2 Spot Bonus Block

Here is a little more information about some of the features and functions in Employee Central blocks.

General

Non-recurring pay components are only visible for the following:

• Employment Information Take Action Spot Bonus

• Admin Center Add New Employee (New Hire)

All pay components are available for selection in Employment Information Spot Bonus Edit regardless of
target or recurring settings. This facilitates recording an actual payment for a target bonus pay component, which
may be different from the achievable target. The pay components can be added by selecting the Pencil icon and
selecting the desired pay component. You can then add, update, or delete spot bonuses.

When you edit the pay components, only the spot bonus payments viewed on the profile are shown. This means
that if the profile shows 2017, only the non-recurring pay components for 2017 can be edited on the popup.

Spot bonus payments are not shown in the Compensation block.

 Note

For customers using the Compensation module, the Take Action menu now includes Spot Bonus as well as
Reward and Recognition.

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7 Pay Range

7.1 Determining Pay Ranges in Calculations

Determine which pay range an employee is associated with and how the system calculates Compa Ratio and Range
Penetration values.

Prerequisites

• Configure the Pay Range foundation object in the Corporate Data Model
• Create associations between Legal Entity and Pay Grade from the Pay Range

 Note

If the pay range should depend on the country/region of the legal entity, it is not sufficient to add the
association to the Corporate Data Model.

 Sample Code

<association id="id" multiplicity="ONE_TO_MANY" destination-

entity="Country" required="false"/>

The reason for this is that there is no standard field of type Country/Region in the Job Information object,
since the field country-of-company is a picklist of type ISOCountryList, and picklists cannot be used in the
pay range determination.

In order to use the country/region as an association for the pay range, it is necessary to:
1. Add a custom field of type country/region (this means that it needs the tag type Country/Region) to
the jobInfo object in the data model.
2. Fill this field using a business rule based on the country/region defined in the legal entity.

 Note

This is so that when the system calculates the Compa Ratio and Range Penetration values, it will look up what,
for example, Legal Entity and Pay Grade values the employee has set in their current Job Information record.

Context

The system looks for a pay range that matches all of the configured objects associated with it. If one exact match
is found, that is used. If several matches are found, the first one found is used. If nothing is found, the last selection
criteria (the last association for payRange) is removed from the search, and the search repeated, and so on.

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The Compa Ratio and Range Penetration values are calculated based on Pay Component Groups. You must define
which Pay Component Group is used to calculate both Compa Ratio and Range Penetration. You can use 2 separate
Pay Component Groups for each of the calculations.

Procedure

1. Go to the Admin Center Manage Organization, Pay, and Job Structures .

2. Search for the Pay Component Group you want to use.
3. Set the value to Yes for these fields:

• Use for Compa Ratio Calculation

• Use for Range Penetration
4. Save your changes.

Results

Check Tool for Pay Ranges

You can use the Check Tool to find any inconsistencies in your pay ranges. Any fix would result in the update to your
pay range data in Employee Central. We recommend selecting checks available under the following sections:

• Check Tool System Health Tab Employee Central Core Invalid Effective End Date for FO/GO Area
• Check Tool System Health Tab Employee Central Core Object Relationship Area
• Check Tool Validation Tab Compensation Template Configuration Area

7.1.1 Examples for Pay Range Calculations

Here are some examples for calculations for pay ranges.

Example

Using the Annual Salary Pay Component Group, we can look at the calculations used for Compa Ratio and Range
Penetration for a regular full-time employee (FTE = 1)

Compa Ratio: AnnualizedSalary / (Pay Range Mid Point * FTE) * 100 = X%

430,000 / (425,000 *1) * 100 = 101.176%

Range Penetration: (AnnualizedSalary – (Pay Range Minimum Pay * FTE))/((Pay Range Maximum Pay - Pay Range
Minimum Pay) * FTE) * 100 = X%

430,000 - (400,000 * 1))/ ((450,000 -400,000) * 1)* 100 = 60%

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Example

Using the Annual Salary Pay Component Group, we can look at the calculations used for Compa Ratio and Range
Penetration for a regular part-time employee (FTE = 0.5). If the employee has FTE < 1 set in Job Information (for
example FTE = 0.5), the Compa Ratio and Range Penetration calculations take this information into account.

For example, an employee in the same Pay Range with an FTE of 0.5 and an annualized salary of 215,000 has
the same Compa Ratio and Range Penetration as the full-time employee (FTE = 1) with an Annualized salary of
430,000.

Compa Ratio: AnnualizedSalary / (Pay Range Mid Point * FTE) * 100 = X%

215,000 / (425,000 * 0.5) * 100 = 101.176%

Range Penetration: AnnualizedSalary – (Pay Range Minimum Pay * FTE))/((Pay Range Maximum Pay - Pay Range
Minimum Pay) * FTE) * 100 = X%

215,000 - (400,000 * 0.5))/((450,000 -400,000) * 0.5) * 100 = 60%

7.1.2 Troubleshooting Pay Ranges in Calculations

Here is some information to help correct the calculations.

Usually the reason why the Compa Ratio and Range Penetration values are not correct is due to the Pay Range
not being correctly identified due to missing criteria in the employee’s Job Information data or because a Pay
Range does not exist with the associated combination of Foundation Objects to match against the employees Job
Information data.

Try the following to help correct the calculations:

• Check that the employee has data in their current Job Information record to satisfy the Pay Range associations
defined in the Corporate Data Model
• Check that the Pay Range exists and has matching values to satisfy the Pay Range associated data defined in
the employees Job Information data

 Note

Otherwise, you may have to manually add a new pay range.

• If you have geoZone configured as one of the associations, only the geozone of the selected "Location" is used
(any custom-string fields configured as type="geoZone" will be ignored).

 Note

This configuration requires you to set up an association on Location (ONE_TO_ONE) with the geoZone
Foundation Object. When checking the Locations Geo Zone, the system will look only for the association
and again, not a custom-string field with type="geoZone"

• Job Family association = You need to have configured a custom-string in the jobInfo element, with
type="jobFunction" for this to be considered.

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7.2 Showing the Pay Range in Job Information

Set up Job Information to display the current pay range that the system is using for the calculations.

Context

In the Compensation Information block, you are now able to see an icon for the compa ratio and range penetration
fields. If you select the icon, a pop-up opens that contains an explanation of how the values are calculated including
which pay range is used and why this pay range is selected as well as the calculation of the percentage of both
compa ratio and range penetration.

 Note

Calculated fields in the People Profile and in the history differ in the date used for calculating the fields.

When you view Compensation Information History, the calculated fields (for example, compa ratio) are based
on:

• The compensation data as shown

• The Job Information of the employee on the start date of the Compensation Information record
• The pay range and pay component group configuration on the start date of the Compensation Information
record

In the People Profile, the calculated fields are based on:

• The compensation data as shown

• The Job Information of the employee on the as-of date at the top of the profile (default is current date but
the user can switch it)
• The pay range and pay component group configuration on the as-of date at the top of the profile

To be able to display the pay range that the system is currently using for the Compa Ratio and Range Penetration
calculations for an employee, you will need to create a new custom field as well as a business rule.

Procedure

1. Update the business configuration.

a. Go to Admin Center Manage Business Configuration .

b. Select Employee Central jobInfo .
c. On the right, scroll to the bottom of the list.
d. Add a custom field and enter Pay Range for the label.
e. Use the arrows to the far right of the row to move the field higher in the list.
f. Select Details. Set the following fields as given:
• Type of Reference Object: Foundation Object

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 • Reference Object: payRange

 Note

It must be exactly like this or you will receive an error message.

• Visibility: View
This means that users will only be able to view the field without being able to add data to it.
g. Once completed, select Finished and save your changes.
2. Now you have to create the business rule.

a. Go to Admin Center Configure Business Rules .

b. In the Configure Business Rules page, select Create New Rule.
c. Enter the name and ID for the rule. For Base Object, select Job Information (NOT Job Information Model).
Then select Continue.
d. Define the rule criteria.

If condition: Since you want to see the field every time the block loads, hover over the If line and select the
Always True checkbox.

Then condition: choose Edit, then select Set as the Output Type and then select the custom-string field
you created from the list of available Job Info fields (in this case, it is labeled Pay Range). Leave the "to be
equal to" part as it is. For the last field, select the Pay Range from Job Information() rule function. In the
Job Information field, select Job Information.

e. Save your changes.

3. You have to assign the rule as an onView rule to Job Information.

a. Go to Admin Center Manage Business Configuration .

b. Select Employee Central jobInfo .
c. On the right, scroll all the way to the bottom. In the Trigger Rules section, add a new row.

Enter the following:

• Rules: select the Pay Range rule you just created

• Event Type: onView

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 • Base Object: Job Information
d. Save your changes.

 Note

Since this field is set using an onView rule, we recommend that you add an onSave rule that sets the value
to null in order to clear the value. The field should behave as a transient field so that it isn't saved to the
database. If you do not create the onSave rule, the value would be saved to the database and the saved
value would not be automatically updated if the pay ranges are changed.

4. Set permission for users to see the new field.

a. Go to Admin Center Manage Permission Roles. .

b. Select the role. Under Permission Settings, select Permission...
c. Under User Permissions, select Employee Central Effective Dated Entities. Scroll until you find your custom
field and then select the box for View permission.
d. Save your changes.

Next Steps

You can check an employee's Job Information data, and see the Pay Range that the system is using to calculate
Compa Ratio and Range Penetration. If the Pay Range displayed is incorrect, it likely means that a Pay Range
matching the employees data set does not exist in the system, and the closest match was selected.

7.3 Exporting Pay Ranges

Export all of the pay ranges from the system to check whether a pay range with a specific combination of
associated values actually exists in the system.

Context

When trying to determine whether a pay range exists for a particular combination of values, it is difficult to
determine this quickly on the UI. This is because you have to search by the pay range value rather than the
associated data that is used by the system to determine which pay range is used in Compensation Information
calculations.

The approach here is to run a Foundation Objects Ad Hoc Report on pay range, and export all pay ranges from the
system. You can then filter specific value combinations to see whether they exist, and if not, create them.

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Procedure

1. Go to Analytics.

2. Select Reporting Ad Hoc Reports and then select Create New Report.
3. From the drop-down menu, select Foundation Objects.
4. Click Create.
5. In the General Info section, enter a name and a description for the report.

In the Columns section, select Select Columns.

In the pop-up, in the far left panel, select Pay Range. In the middle panel, select Select All.

Then deselect the following:

• formatted-end-date
• formatted-start-date
• last-modified-on
• created-on
• created-by
• last-modified-by
Select Done when you are finished.
6. Select Save and then Generate for the system to generate the report. You can select which format you would
like to receive the data.
7. If you download the data to a spreadsheet program, you can add filters to the rows. Any columns that end
in externalCode are the association values. By filtering these columns, you can determine, for example, which
companies use which pay grades or see which geo zones have which pay ranges.

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8 Pay Scale

8.1 Pay Scale Structure

You can define your pay scale structure centrally and assign employees to it.

Non-exempt employees can then be assigned to the defined pay scale structure by entering pay scale area, pay
scale type, pay scale group, and pay scale level in the Job Information block.

For each pay scale level you can assign one or more pay components. Once an employee is assigned to the
pay scale structure, pay components assigned to the pay scale level can be transferred to the compensation
information of the employee using rules. This is called indirect/automatic valuation.

 Note

It is not required for you to use pay scale group and pay scale level. If you already run Employee Central Payroll
based on pay scale area and type, you can stick to this configuration. You will only need pay scale group and
level if you want to be able to assign an employee to the whole pay scale structure for indirect valuation. Pay
scale group and pay scale level are not part of standard employee master data replication. You can include
these fields in standard replication by using custom fields.

Once the pay scale structure is set up in your system, you can see everything in the Job Information block in the
profile.

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8.1.1 Migrating Pay Scale Type and Pay Scale Area Fields
Since standard MDF objects exist for Pay Scale Type and Pay Scale Area, we recommend that you migrate from the
pay scale picklists of the Job Information fields for Pay Scale Type and Pay Scale Area to MDF using a scheduled job
which helps to avoid double data maintenance.

 Note

New customers should set up pay scale without the picklists.

The Pay Scale Type and Pay Scale Area fields have been configured using the picklists pay-scale-type and pay-scale-
area; ensure that the code and legacy picklist ID of your picklist is pay-scale-type and pay-scale-area.

make sure

In the example below, the field Pay Scale Area uses the picklist pay-scale-area. Likewise, the field Pay Scale Type
uses the picklist pay-scale-type.

If you remove the picklists from their respective fields in Job Information in the Succession Data Model and the
Country/Region-Specific Succession Data Model, the fields will refer to the respective objects in MDF.

However, if you create a Job Information record as before by using the old picklist configuration and change the
data model to use GO for these fields, the Job Information will display only the option ID since it is no longer a
picklist.

 Note

Make sure that the field <country-of-company> is included in the pay scale area picklist and pay scale type
picklist. Make sure that this field comes before the pay scale area and pay scale type fields. You can check the
field order in the Business Configuration UI.

If this field is missing, add the field to the jobInfo HRIS element, change the order of the field, and update the
details for the picklist info.

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You can now schedule the Initialize migration of picklist fields payscale area and type to mdf objects job in the
Scheduled Job Manager in the Admin Center.

What happens once the scheduled job runs?

If MDF objects already exist in the system, the system will now update the internal ID of the existing GOs Pay Scale
Area and Pay Scale Type with the option ID from the picklist. This ensures that the reference in the job Info still
work without any disturbance. If Pay Scale Area and Pay Scale Type are referenced in a Pay Scale Group, the key is
replaced with the internal ID of the reference pay scale area or pay scale type.

If the MDF objects do not exist in the system, the system will create a new one and update all references in the Pay
Scale Group GO. If the internal ID is already in use for the respective object type (Pay Scale Area or Pay Scale Type),
an error is displayed in the log file. This happens only if you run the job more than once.

When migrating picklist values for pay-scale-are and pay-scale-type to the GO, the external code of the GO will
differ from the external code of the picklist value (external code of GO is a combination of <3-digit country code>/
<external code of picklist value>). If you transfer pay scale area and type to other systems using an API, you will
need to adjust the relevant mappings.

 Note

• If you want the fields to start behaving like picklist fields again, simply add the picklists again in the data
model.
• When using Pay Scale Area and Pay Scale Type only in the Country/Region-Specific Succession Data
Model, it is important that you configure the same fields in the Succession Data Model.
• The picklist entries are matched using the external_code of the picklist and the externalCode of the MDF
object. Since the MDF externalCode includes the 3-digit country/region code, the picklist external code
is converted to similar format using the ISO country/region association which can be retrieved using the
parent option ID.

Related Information

Monitoring Scheduled Jobs in Admin Center

Notes on Some Common Job Types

8.1.2 Creating Pay Scale Area

Create a new pay scale area to add the physical location.

Procedure

1. Go to Admin Center Manage Data .

2. Select Create New Pay Scale Area .

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3. Add information for the required fields.
4. Save your changes.

8.1.3 Creating Pay Scale Type

Create a new pay scale type to add the type of industry.

Procedure

1. Go to Admin Center Manage Data .

2. Select Create New Pay Scale Type .

3. Add information for the required fields.
4. Save your changes.

8.1.4 Creating Pay Scale Groups

Define pay scale groups.

Procedure

1. Go to Admin Center Manage Data .

2. Select Create New Pay Scale Group .

3. Add information for the required fields.

Code is generated automatically by the system. It is a combination of what you enter for Pay Scale Group,
Country, Pay Scale Area, and Pay Scale Type. Therefore, existing pay scale groups can't be changed.
4. Save your changes.

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8.1.5 Creating Pay Scale Levels

Create pay scale levels and assign them to a pay scale group.

Context

Pay scale levels are time dependent, so you need to set the effective date. You can also assign pay components
to pay scale levels, for which you have to define frequency, currency, and salary amount. These aren't taken
automatically from the pay component.

Procedure

1. Go to Admin Center Manage Data .

2. Select Create New Pay Scale Level .

3. Add information for the required fields.

The <Amount> field is required if you assign a pay component of type "Amount“.

Code is generated automatically by the system. It is a combination of the Pay Scale Group Code and the Pay
Scale Level Code. Therefore, they can't be changed.
4. Save your changes.

8.1.6 Changing the Pay Scale (Mass Changes)

Make pay scale changes for a large number of employees.

Context

There are cases, for example the periodical renegotiation of pay scales, that will lead to the situation where you
have to make pay scale changes for a large number of employees. Since it is not possible to manage this volume
manually, you can schedule runs that will pick out the employees affected by the change and make the relevant
updates to the employees' compensation files for you.

 Note

This change run will update recurring and non-recurring payments as well as recurring and non-recurring
deductions. For recurring and non-recurring payments, you need to at least configure the Indirect Valuation for
Pay Scale Level Changes or Mass Change rule. For recurring and non-recurring deductions, there is no need to
create rules.

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  Note

This change run is an extension to the Pay Scale functionality and not applicable to pay increases in general.

Procedure

1. Go to Admin Center Adjust Employees' Compensation to Tariff Changes .

On the Manage Pay Increases page, you can see any pay scale change runs that have already been executed or
saved as draft.
2. Select Create New.
3. On the selection screen, you can enter all the information needed to determine which group of employees you
want to update with the pay scale change run.

Pay Scale The tool will start updating compensation files of this date and onwards. This is not the
Changes from start date of the change run itself.

Employee Group You can define a specific group of employees you want to include in the run. This can come
in handy when testing, or if you want to break the run up into smaller chunks, for example
departments, to keep data traffic low. However, the other criteria applies to this group
nonetheless.

4. Select Submit.

Under Employee Selection, you can now see how many employees are affected by the criteria.
5. Select Simulate or Update to start the respective run.
The simulation run will not create new compensation files. It creates a list of all the changes an update would
trigger.
6. After selecting Simulate or Update, a confirmation pop-up opens and you are asked to enter an Event Reason.
This event reason is the same event reason used in the IF-Statements of the business rules for indirect
valuation. To schedule the job, you can uncheck Start Immediately. To generate a CSV log file for all changes
performed in that job, you can check the relevant box.

Generating a CSV log file has negative effect on the job runtime.
7. Select Simulation or Update.

Results

Go to the Manage Pay Increases page to view the results of the run. Here you can see the status of the runs and
download the CSV file.

8.1.7 Business Rules for Indirect Valuation

Use rules to realize indirect valuation based on the employee’s assignment to the pay scale structure.

Pay components are assigned to pay scale levels. For each pay scale level amount, you can specify currency and
frequency. Once the employee is assigned to a specific pay scale level in the Job Information, the pay component

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Pay Scale PUBLIC 101
defined at this pay scale level is transferred to the employee’s compensation information. The amount, currency,
and frequency defined for the pay component at this pay scale level is transferred to the employee’s compensation
information as well.

If you have one pay component for example Basic Pay that is used for indirect valuation you need 2 rules.

1. One rule that transfers the pay components from pay scale level to the Compensation Information block in
case of a New Hire.
2. One rule that runs in case the pay scale assignment changes or a Pay Scale Mass Change is run. This rule
is needed to conduct indirect valuation based on the new pay scale assignment of the employee. This rule
transfers a defined pay component (including amount, currency, and frequency) from the pay scale structure
to the employee’s Compensation Information block.

 Note

For these rules, you have two choices in how to set them up. You can have one rule for each pay component
used in pay scale. However, this can lead to a lot effort to keep them up to date and lots of rules may lead to
performance problems. The other option is to have one rule to process all pay scale pay components in the
level. These options are an either/or scenario - do not combine them!

8.1.7.1 Option 1 Rule 1: Indirect Valuation for New Hire with

Multiple Rules

Use the rule needed for indirect valuation for new employees. This onInit rule automatically generates pay
components for new hires in compensation information.

The base object must be Employee Information. The rule must be triggered as an onInit rule for the
payComponentRecurring object.

This rule is triggered in the case of a New Hire. In addition, the employee must be assigned to a pay scale level and
the rule-function Amount from Pay Scale Structure must return value >0. This is the case if the pay component
(CC2 Monthly Salary Tariff in the example below) is assigned to the pay scale level with an amount >0 on the
effective date.

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The Then statement sets the pay component (CC2 Monthly Salary) on the event date. Here 3 different rule
functions are used in order to read the values for amount, currency, and frequency from the pay scale structure and
transfer them to the Compensation Information block of the employee.

The rule functions you use are the following:

• Amount from Pay Scale Structure

• Currency from Pay Scale Structure
• Frequency from Pay Scale Structure

In the following example, the amount for CC2 Monthly Salary is taken from the pay scale structure and is rounded
as well as calculated based on the employee’s FTE. Both settings can be skipped if you don’t need it.

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This example of a rule is based on a pay component of type 'amount’. When creating those rules for pay
components of type ‘percentage’ or ‘number’ following rule functions can be considered in addition:

• Percentage from Pay Scale Structure

• Number from Pay Scale Structure
• Unit from Pay Scale Structure
• Rate from Pay Scale Structure

 Note

You need a separate rule for each individual pay component that you want to transfer from pay scale level to the
Compensation Information block.

8.1.7.2 Option 1 Rule 2: Indirect Valuation for Pay Scale Level

Changes or Mass Change with Multiple Rules

Use the rule needed for indirect valuation for changes in the pay scale assignment. This rule is needed to create
a new pay component in the employee’s Compensation Information block and transfer amount, frequency, and
currency for the pay scale level to which the employee is newly assigned.

If the pay scale assignment changes for an employee or a Pay Scale Mass Change is run, the pay components
and/or its values can be changed using a rule.

The base object for this rule must be Job Information Model, and the rule must be triggered as an onSave rule
for the Job Information object. Create an onSave rule for job information in order to transfer a pay component

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from the pay scale level (to which the employee is newly assigned) to Compensation Information. Amount,
currency, and frequency are also transferred.

The rule only gets triggered in case a Pay Scale Mass Change was initiated with the event reason defined in the rule
or the pay scale level or FTE of an employee has changed but not in the case of a new hire. The amount of the pay
scale pay component must be > 0.

The Then statement transfers the pay component (CC2 Monthly Salary in the example) including amount,
frequency, and currency from the pay scale level to the employee’s Compensation Information block on the
effective date. The amount is rounded as well as calculated based on employee’s FTE. Both settings can be skipped
if it is not required.

In order to transfer amount, frequency, and currency from pay scale level to compensation information you have to
include the following rule functions into the rule:

• Amount from Pay Scale Structure

• Currency from Pay Scale Structure
• Frequency from Pay Scale Structure

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The Else If and corresponding Then statements delete the selected pay component from the employee’s
compensation information in case the amount of the pay scale pay component is equal 0 but not in the case
of a new hire.

For example, the Else If and corresponding Then statements could look like this:

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This example is based on a pay component of type ‘amount’. When creating those rules for pay components of type
‘percentage’ or ‘number’ following rule functions can be considered in addition:

• Percentage from Pay Scale Structure

• Number from Pay Scale Structure
• Unit from Pay Scale Structure
• Rate from Pay Scale Structure

 Tip

Since pay components are deleted and the Else If statement doesn’t distinguish whether the pay component
was assigned by indirect valuation or by the user, it is highly recommended to use unique pay components for
pay scale and separate rules for salaried employees.

 Note

The created rule must be available for each pay component used for indirect valuation.

 Note

A similar rule can be created to adjust the non-recurring pay components during a Pay Scale Mass Change
runs. These rules must use Spot Bonus as base object and are called at the onChange event of the Spot Bonus
field pay-component-code.

8.1.7.3 Option 2: Indirect Valuation with One Rule

For large pay scale structures, it may be beneficial to simply have one rule for the pay components rather than one
rule for each pay component. One advantage is that this rule can accommodate for any future additions of Pay
Components to Pay Scale Level or addition of new Pay Scales Levels to the Pay Structure.

Update the MDF Objects

You need to add a sequence number to the Pay Component and Pay Scale Level objects.

1. Navigate to the Admin Center Configure Object Definition .

2. Search for the object definition for PayScalePayComponent.
3. Edit the object definition to add a custom field called Sequence that has the type Number. Select Details to add
a Help Text and Label.
4. Save your changes.
5. Repeat for PayScaleLevel. Edit the object definition to add a custom field called
NumberRecurringPayComponents that has the type Number. Select Details to add a Help Text and Label.
6. Save your changes.

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Update the Pay Scale Levels

Once the objects are updated, you have to update the actual pay scale levels in your system.

1. Navigate to Admin Center Manage Data .

2. Search for the PayScaleLevel.
3. Enter a sequence number for each recurring pay component and enter the total number of Recurring Pay
Components.

 Caution

DO NOT add a sequence number for non-recurring pay components or deductions.

 Note

Make sure that the numbers stay in the correct order of the sequence. The rule will check the pay
components in the order given in the sequence. If the sequence is out of order, this will lead to errors.

Create the Rule

Create a rule that updates the pay components when employee data is changed.

1. Navigate to the Admin Center Configure Business Rules .

2. Select Create New Rule.
3. Select a basic rule. The base object for this rule must be Job Information Model, and the rule must be triggered
as an onSave rule for the Job Information object.
4. Create the If condition.

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5. Create the Then condition.

6. Create the Else If condition. There must be one Else If condition for each pay component.

7. Create the next Then condition.

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8. Create the next Else If condition.

9. Create the next Then condition.

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10. Continue until all pay components in the sequence are contained in the rule.
11. Save your changes.

8.1.7.4 Adding the Business Rule to Adjust Pay Components

Add a business rule for the Job Information block to adjust the pay components.

Procedure

1. Go to Admin Center Manage Business Configuration

2. Select Employee Central jobInfo .

3. Scroll to the Trigger Rules section.
4. For Job Information Model, add the business rule as an onSave rule.
5. Save your changes.

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8.1.7.5 Rule Assignments in the Data Model for
Compensation, Job Information, and Spot Bonus

Assign the previously created rules to the correct objects in Employee Central in order for the system to use the
rules.

Once the rules for indirect valuation are created, they must be assigned to the corresponding Employee Central
objects Compensation and Job Information, and Spot Bonus. These rules create the recurring pay components
when you step from Job Information to Compensation Information in the new hire process.

The following lines must be added to the data model for Compensation Information:

<hris-element id=" payComponentRecurring">

<label>Compensation</label>
<trigger-rule event="onInit" rule="CC2_Hire_MonthlySalary"/>
</hris-element>

The following lines must be added to the data model for Job Information:

<hris-element id="jobInfo">
<label>Job Information</label>
<trigger-rule event="onSave" rule="CC2_Create_MonthlySalary"/>
</hris-element>

The following lines must be added to the data model for Spot Bonus

 Code Syntax

<hris-element id="payComponentNonRecurring">
<label>Spot Bonus</label>
<hris-field id="pay-component-code" visibility="both" required="true">
<label>Type</label>
<trigger-rule event="onChange" rule="CC2_Adjust_SpotBonus"/>
</hris-field>
</hris-element>

For more information on how to assign rules to Employee Central objects, refer to Assigning a Rule to a Non-MDF
EC Object in the Business Rules in SAP SuccessFactors guide on the SAP Help Portal.

8.2 Tariff Change Effects on Employee Compensation (Pay

Scale Increase)

After new collective bargaining, you increase values for pay scale levels and structures for employee compensation.

Many companies adhere to a collective bargaining agreement that governs the payment of their employees. For
example, after annual collective bargaining in the chemical industry in Germany, the recently changed rates for
each pay scale group and level need to be adjusted and updated on the People Profile for pay components and one
time payments.

Collective agreement governing payment of your employees is represented in pay scale structures consisting of
pay scale type, pay scale area, pay scale group and level.

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  Note

Beware that the Employee Central processes for Organizational Change and New Hire do not consider future
dates. In cases where you hire an employee and assign a pay scale structure with values that will increase in the
near future, this will result in incorrect data after pay increase date. To correct the data, initiate a pay scale pay
increase update for this employee. The same applies after performing an organizational change.

Prerequisites

• You have already created pay scale structures and assigned pay scales to your employees.
• Permissions for the pay scale adjustments are in place for the admins.

Process

1. Export the previous pay structure.

2. Add the new values for each pay component and pay scale structure based on tariff agreements and import
back into the system.
3. Configure all business rules required for adopting pay component and values in the Compensation Information
block required for the Pay Scale Pay Increase process. Ensure that all the business rules start with the event
reason change to trigger them in the system.
4. Using the Adjust Employees' Compensation to Tariff Changes UI to ensure that the pay scale adjustment is
effective for each employee .

Result

Once you have completed the process steps as outlined here, your employees compensation reflects the tariff
changes.

Related Information

List of Role-Based Permissions

Assigning Permissions to a Role

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Pay Scale PUBLIC 113
8.2.1 Exporting the Pay Scale Structure

Export the existing pay scale structure from the system to prepare for changes.

Procedure

1. Go to Admin Center Import and Export Data .

2. In the Import and Export Data screen, in the field Select the action to perform, select Export Data.
3. In the Export Data section, set the export parameters as required.

Field Description

Select Generic Object Select Pay Scale-Pay Component Assignment.

Include dependencies Select one the following:

• Yes
This means that the system generates a zip file of all
CSV files corresponding to the parent object and related
child objects.

 Note
An Import_Sequence.csv file is also generated, con-
taining information such as the name of the file
and the sequence in which the CSV files are to be
imported.

• No

Include immutable IDs Select one the following:

• Yes
This means that the entity ID and the record ID are
exported.
• No
This means that the entity ID and the record ID are not
exported.

Exclude reference objects Select one the following:

• Yes
This means that the reference objects are not exported
in the .zip file.
• No
This means that the reference objects are exported in
the .zip file.

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 Field Description

Select all data records Choose Yes.

If you choose No, an additional Select objects field appears,

where you can select the data records of your choice.

4. Select Export.

Results

The pay scale structure is generated as a CSV file.

Next Steps

Download the result:

1. Go to Admin Center Monitor Jobs .

2. On the Monitor Jobs page, search for your job (the name starts with PayScaleLeveltoPayScalePayComponent).
3. Select Download to download the result.

If there were errors, the job monitor generates error reports with error messages indicating why a particular record
was not exported. An e-mail mentioning the status is also sent to the logged-on user.

The Pay Scale Pay Increase job also ensures data consistencies. Usually values from the pay scale table are not be
overwritten in the Compensation block and the job corrects accidentally overwritten values. This is also relevant for
the Deductions block.

8.2.2 Importing the New Pay Scale Structure

Import the CSV file with the new values to the system after you have added the new values for each pay component
and pay scale.

Procedure

1. Go to Admin Center Import and Export Data .

2. In the Import and Export Data screen, in the field Select the action to perform, select Import Data.
3. In the Import Data section, select Pay Scale and then set the export parameters as required.

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 Field Description

Select Generic Object Select Pay Scale-Pay Component Assignment.

File Browse and choose the file that you want to upload.

File Encoding Choose the correct file encoding for your data.

Purge Type Choose the required purge type:

• To delete all existing data for the given external codes in
the import CSV file, choose Full Purge.
• To import new records without deleting other effective-
dated rows of data, choose Incremental Load.

Key Preference The key preference option is added to ensure backward

compatibility when a new record is added the same external-
Code and a different business key from an existing record.

Select on of the following:

• External Code
Choose this to update the business key.
• Business Key
The import will fail since the new business key is consid-
ered a new record - and for this record, there is already
an externalCode.

Use Locale Format Select one of the following:

• Yes
Choose this to set dates and numbers to specific locale
formats. Another field appears for you to choose the
locale.
• No

Date Format MM/DD/YYYY

4. To validate the data before importing it, select Validate; otherwise, select Import.

Next Steps

You can verify the imported data by checking one of pay scale level objects.

1. Go to Admin Center Manage Pay Scale Objects .

2. In the Manage Pay Scale Objects screen, in the Search field, select Pay Scale Level. Then select a pay scale level
from the list in the next search field.
3. If there are any errors, you will have reimport the data into the system.

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8.2.3 Adjusting Employee Compensation Data Based on Tariff
Changes

Update employee data with the new pay scale changes. Admins can start an adjustment of the compensation by
simulating and then updating the data or by directly updating the data. The UI shows a list of pay increases in the
system with their status. Workflows are not supported.

Prerequisites

You have the following permissions enabled:

• Admin Permissions Manage Pay Scale Adjust Employees' Compensation to Tariff Changes
• Admin Permissions Manage Pay Scale Manage Pay Scale Objects

Procedure

1. Go to Admin Center Adjust Employees’ Compensation to Tariff Changes .

2. In the Manage Pay Increases screen, choose Create New to initiate a pay scale increase.
3. In the New Pay Scale Change screen, enter the relevant data:

Field Description

Name of Pay Change Name or reason for the change.

Pay Scale Changes From Date from which the pay scale change is effective.

Employee Group Employee group affected, for example, division or depart-

ment.

 Note
If any of the rules used for pay scale are in the Coun-
try/Region-Specific Data Model, then the pay scale in-
crease run must be started for groups of employees who
are all in the same country/region.

Pay Scale Type Choose the affected pay scale type.

Pay Scale Area Choose the affected pay scale area.

Pay Scale Group Choose the affected pay scale group.

 Note

The program processes business rules for multiple records for all selected employees, so we recommend
splitting up the process into separate runs for different groups of employees.

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 Only the rules for the Pay Scale Pay Increase Run are processed.

4. You can save your changes or choose Submit.

5. Choose one of the following:

Field Description

Simulate The simulation creates a list of all the changes an update

would trigger.

 Note
You can also simulate a pay increase for single employ-
ees or group of employees and check the results in a
CSV file containing both the old values and new values.
This enables you to correct values before updating. No
changes are made to the employee data when this op-
tion is used.

Update This starts the job in the system to update the employee
data.

6. After selecting Simulate or Update, a confirmation pop-up opens.

Provide the following information:

• Event Reason: This event reason must be the same event reason used in the If-Statements of the business
rules for indirect valuation to ensure that the indirect valuation is triggered.
• Select whether the job should Start Immediately or at a different point in time.
• Select whether a CSV file with the collected results should be generated.

 Tip

Generating a CSV log file has negative effect on the job runtime.

If many employees are processed, this file may be extremely large, and a great deal of additional data
will be read to provide texts.

It is therefore recommended that this option ONLY be used when simulating the pay scale change for
select employees.

Results

The system schedules a job that performs the actual processing of the employees. You can see the job status in the
Manage Pay Increases UI or in the Scheduled Job Monitor. You can check the results of the update as well as find
out when the job started and finished. You can check the status of the runs and download the CSV file, if one was
generated. If errors occurred during processing, then you also get a link to the error log. The error log lists what
errors were found for which employees.

The results show the total number of employees process, the total number of employees for whom data was
updated, as well as the total number of skipped employees. Employees are counted as skipped if processing was
successful for the employee but no changes to the data were required.

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Related Information

Pay Scale Pay Increase Run [page 119]

Business Rules for Indirect Valuation [page 101]

8.2.3.1 Pay Scale Pay Increase Run

The Pay Scale Pay Increase Run background job supports compensation admins with mass changes to employee
compensation data.

The job selects all employees in the specified group who have a pay scale level value selected in the Job Information
record matching the job’s date (value inserted in the field ‘Pay Scale Changes From’). For these employees,
it collects all Job Information records that match the pay scale area, type, and group provided. For each Job
Information record, it finds the time period defined by the start date entered in the pay scale increase definition, the
Job Information validity period, and any changes in the pay scale level.

It is not possible to define end dates for Pay Scale Pay Increase updates. Future reords are added during Pay Scale
Pay Increase.

Rule Processing

The pay scale increase processes ONLY two groups of rules:

• onSave rules on Job Information (with Job Information Model as the base object)
If these rules change any recurring pay components, then the result (meaning, the updated pay component
and Compensation Information) are saved.
• onChange rules on the pay component field of non-recurring pay component
If these rules change the non-recurring pay component, then the result is saved.

No other rules are triggered! If rules have been added to Compensation Information and/or the recurring pay
components, they are not triggered by the pay scale increase.

How the Data is Processed

Processing Compensation Information

The job finds the records defined by the Compensation Information validity dates along with the job / pay scale
level / start date information.

For each start date of a combined time period, the job calls all onSave rules for Job Information using the event
reason specified when submitting the pay scale increase run.

If any recurring pay components were changed, the results are saved.

If the recurring pay components were not changed, nothing is saved.

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Processing Spot Bonus
The job finds all spot bonus during each job / pay scale level time period.

The job processes onChange rules attached to the pay component field.

If any data is changed by the rules, the results are saved.

Processing Recurring Deductions

The job finds all recurring deductions for each job / pay scale level time period.

The job collects all recurring deductions overlapping the time perios (the same as for Compensation Information).

The job compares the values of the recurring deductions to the pay scale data.

If there are differences, the system updates the recurring deductions.

Processing One-Time Deductions

The job finds all one-time deductions for each job / pay scale level time period.

The job collects all one-time deductions during the time period (the same as for spot bonus)

The job compares the values of the one-time deductions to the pay scale data.

If there are differences, the system updates the one-time deductions.

Results

When the adjustments are done, the pay scale increase provides the following information:

• The total number of employees processed

• The number of employees for whom data was updated
• The number of employees skipped
Employees are counted as skipped if processing was successful for the employee but no changes to the data
were required.
• If errors occurred, the system provides the number of employees for whom errors occurred and an error log
that indicates what errors were found.
• If a CSV file with the collected results was generated, this is also available.
If a CSV file is generated. it is later purged according to the logic for purging scheduled jobs.

 Note

Since the Pay Scale Pay Increase Run is an MDF object, it can be deleted using an import or the Manage Data
page. This removes the information about when the job ran and how many employees were processed as well
as the error message attachment.

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8.3 Adjust Pay Scale Level

This rule function can be used to adjust pay scale levels up or down.

It checks the Job Information History and checks every record for a pay scale level to see what needs to be
adjusted. It can be used, for example, in grade step progression processes, as well as for scenarios where
employees return from assignments or receive an adjustment based on seniority.

The calculation checks in the Job Information History and searches for the first record with a Pay Scale Level. As a
second step, the data is given in the rule to compare with that date in the pay scale level time period. Assuming the
employee was hired with a first pay scale level, the rule function checks how often the frequency (given in the rule
function) fits into the time period and writes the correct pay scale level for the new record.

Input Parameters

For this parameter... Make this entry...

Seniority Date Enter the date to start the calculation from, for example, entry
date.
(or any other date field)

Frequency How often the pay scale level was adjusted for the employee

8.4 Grade Step Progression

This section explains grade step progression in Employee Central.

Grade step progression is the automatic movement of employees to the next higher pay level. This is common in
industries with a unionized workforce. Based on the requirements, HR departments can define how often the pay
progression program runs, for example, yearly.

As an HR admin, you can automate pay progressions for individuals by configuring filter conditions and associated
rules to capture only those records that meet the desired criteria, such as seniority, time on the job, or age. This
also enables you to define exceptions if certain conditions are met, for example, you can suspend a progression if
an employee is on a global assignment. Actions that can be taken on the identified records include a progression to
the next pay scale level, eligibility for a company car, or other non-monetary elements associated with a pay scale.

The progression is done technically in the system using off cycle event batches. The tasks in the following topics are
focused on what is needed for compensation. However, for more information about off cycle event batches, refer to
Using Batch Rules Processing with the Off Cycle Event Batch in SAP SuccessFactors .

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8.4.1 Prerequisites for Grade Step Progression

Here is a list of what is needed for grade step progression in Employee Central to work.

Ensure the following are complete:

• In Provisioning, the Off Cycle Event Batch Processing Job job has been created.

 Remember

As a customer, you don't have access to Provisioning. To complete tasks in Provisioning, contact
your implementation partner or Account Executive. For any non-implementation tasks, contact Product
Support.

You can check this here: Managing Job Scheduler Manage Scheduled Jobs , then find it in the list.
• Pay scale structure is set up
For more information, refer to Pay Scale Structure [page 96].
• Business rules are enabled
• Permissions are enabled

Related Information

Monitoring Scheduled Jobs in Provisioning

8.4.2 Creating an Off Cycle Event Batch Object

Before you schedule a job to execute on a periodic basis, you must have an instance of Off Cycle Event Batch
configured in place.

Prerequisites

A business rule applicable to the process is created. For more information about creating a business rule, refer to
the Related Information section.

Context

The primary requirement to schedule a rule processing job in Provisioning is to have an Off Cycle Event Batch
object. This helps the system to identify the batch and execute it according to schedule. It will pick all the records
that match the filter criteria defined in the Off Cycle object.

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  Remember

As a customer, you don't have access to Provisioning. To complete tasks in Provisioning, contact your
implementation partner or Account Executive. For any non-implementation tasks, contact Product Support.

Procedure

1. Go to Admin Center Manage Data .

2. Select Off Cycle Event Batch from the Create New dropdown.
3. Fill out the form with details as appropriate.

Field Action

Code Enter a label to identify your Off Cycle Event Batch job.

Associated Rule Select the business rule from the dropdown.

Base Object Select a target base object or HRIS element from the drop-
down.

 Note
If you create an Off Cycle job for the base object Job
Information, the job considers only the current active
records of employees to prevent creation of duplicate
records.

• To execute batch rules, either choose Job Information

and Employment Details.

 Note
For executing rules on job information or employ-
ment information, you are required to enable
Administrator Permissions Employee Central
Import Settings Enable Business Rules for
selected entities .

Off Cycle Event Batch User Group (Applicable for Job Select a user group from the dropdown to specify a target
Information and Employment Details base objects.) population.

 Remember
Select a user group only if you want to run the off cycle
batch for a particular group of employees. To include all
employees, skip this field.

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 Field Action

Include All Matched Records in Every Run (Applicable for Select Yes if you want to update user records with recurring
Job Information, Employment Details, and Work Order base event information. To update non recurring event informa-
objects.) tion, select No.

 Example
• Events like changes to an employee's pay scale
are recurring and happen periodically. Select Yes in
such cases.
• Events like employee eligibility for company assets
like a car are non recurring and happen only once.
Select No in such cases.

Include Inactive Records (Applicable for Job Information and Select Yes, if you want to process inactive user records.
Employment Details base objects.)

Status Select Active from the dropdown.

Frequency Select a value from the dropdown to define the frequency of

the batch.
• No Selection
• Daily (default selection)
• Weekly
• Monthly

 Note
This schedule will take precedence over the schedule
defined in Provisioning.

Day of Execution (Appears when Frequency is selected as Select the preferred day of the week or month, as applicable,
Weekly or Monthly) for executing the job.

4. OPTIONAL: Set a filter criteria to further streamline the list of user records to process.

If you create multiple filters, the system will filter records matching each filter criteria, and add them to the final
list of matching records.

Field Description

Filter Field Select the field from the dropdown. Example: Start Date.

 Note
Applicable for Job Information and Employment Details
base objects.

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 Field Description

Operator Select an operator.

Offset Enter a number appropriate for the offset unit. This means,
how much time after the begin date should the batch run.

Offset Unit Depending on the selected base object, the offset may differ
or may not be supported at all.

For the Filter field, you can filter all the configured date fields for both standard and custom fields in Business
Configuration for the selected base object in the Off Cycle Event Batch.

The filter lists all the active date fields for jobInfo (Job Information base object) and employmentInfo
(Employment Detail base object). The type of HRIS Field should be Date and enabled Yes in the Business
Configuration. Additionally the filter also lists fields that are preconfigured for jobInfo (Job Information base
object) and employmentInfo (EmploymentDetail base object) that don’t need to be configured in Business
Configuration.

The preconfigured fields for jobInfo and employmentInfo are:

Job Information Employment Detail

startDate startDate

positionEntryDate serviceDate

jobEntryDate seniorityDate

companyEntryDate benefitsEligibilityStartDate

locationEntryDate

departmentEntryDate

payScaleLevelEntryDate

hireDate

terinationDatem

leaveOfAbsenceStartDate

leaveOfAbsenceReturnDate

 Note

If the date field isn’t part of the Business Configuration and the additional filters list, you can’t save
the Off Cycle Object. We’ve included a validation message to notify you to either update the Business
Configuration or delete the filter fields in Off Cycle Event Batch.

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  Example

Result when batch runs

Filter Field Operator Offset Offset Unit on 01/01/2019

hireDate is equal to 1 Year(s) The batch will pick up

all records which have
a hireDate equal to
01/01/2018.

hireDate is before 1 Year(s) The batch will pick up

all records which have
a hireDate before
01/01/2018.

hireDate is on or before 1 Year(s) The batch will pick

up all records which
have a hireDate on or
before 01/01/2018.

hireDate is after 1 Year(s) The batch will pick

up all records which
have a hireDate after
01/01/2018.

hireDate is on or after 1 Year(s) The batch will pick up

all records which have
a hireDate on or after
01/01/2018.

The Off Cycle Event Batch also filters records by Last successful run date, which is configured in job details
and is recommended for jobs meant for daily execution. The Off Cycle Event batch will only filter records whose
[last successful run date minus offset]< date field. The last successful run date could be the last successful job
run date or a specified date.

5. Save your changes.

Results

You have successfully created an Off Cycle Event Batch object.

To check the progress of the job, go to Admin Center Monitor Jobs page.

Next Steps

Set up a schedule job in Provisioning.

 Remember

As a customer, you don't have access to Provisioning. To complete tasks in Provisioning, contact your
implementation partner or Account Executive. For any non-implementation tasks, contact Product Support.

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Related Information

Optimize Offcycle Event Batch Object Configuration

8.4.3 Creating the Business Rule for Grade Step Progression

Create the rules that are then executed in the batch.

Context

You can create as many rules as needed for the scenarios required, for example, automatic upgrade to the next
level every year on April 1.

Procedure

1. In the Configure Business Rules UI, select Basic.

2. Enter the information for the required fields and select Create:

Field Description

Rule Name Enter a name for the rule.

Rule ID The system defaults the Rule Name you enter as the Rule ID,
but you can overwrite it.

Start Date Default is 01/01/1900. Leave as is.

Base Object The base object defines which fields and related objects you
can select when creating the rule.

Make sure to set it to the same base object as the off cycle
event batch.

3. The If condition lists the prerequisites that must be fulfilled. The Then condition tells the system to upgrade to
the next pay scale level.

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4. Save the rule.
5. Back in Manage Data, you can assign the new rule to the batch.

8.4.4 (Optional) Monitoring the Grade Step Progression Job

Check the result of the batch job to see the status of each job and any potential errors.

Procedure

1. Navigate back to the Admin Center.

2. In the Tools search field, type Monitor Jobs.
3. On the Monitor Jobs page, you can check the status of the Off Cycle Event Batch Processing Job.

This job will pick all active Off Cycle Event Batch records and execute them. You cannot select which off cycle
events batches should be picked up by the job - they are all picked up and run in the order of creation. The
system will trigger the rule for each Off Cycle Event Batch record, and log the last successful run for each rule
triggered.

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Related Information

Monitoring Scheduled Jobs in Admin Center

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9 Compensation Structure

In SAP SuccessFactors Employee Central, we are working to improve setting up and managing complex pay
structures. This allows companies to specify pay structures for different locations, legal entities, as well as for
different types of workers.

 Note

Compensation Information and recurring pay components are validated against the Compensation Structure
settings for all channels. However, it is only available on the UI in the Compensation Information History UI and
Manager Self-Service.

9.1 Configuring the Compensation Structure Object

Create a Compensation Structure object to set up a pay structure.

Prerequisites

• You have standard MDF permissions

• You have the required Compensation Information permissions
• You have the Compensation Structure permissions:
• You have the Administrator Manage Compensation Structure Objects Compensation Structure
permission. You also have permission to edit/view the Compensation Structure item.
You have the Administrator Manage Compensation Structure Objects Compensation Structure.Pay
Components permission.
• You have added the new fields to the data model in Manage Business Configuration:
• To use the new Compensation Structure field, add it to the Compensation Information element, ensure
that the field is visible, and grant permissions for its use.
• To use the new Proration Factor field, you can add it to the Compensation Information element, ensure that
the field is visible, and grant permissions for its use.
• For proration, you can enable the Admin Center Company Settings Calculate Range Penetration and
Compa Ratio even if one or more of these fields (FTE, Proration Factor, or Standard Weekly Hours) are not set or
are zero setting to control whether proration is performed even if certain data is missing or not used for some
employees.
• You must use the Pay Scale Type and Pay Scale Area MDF objects

 Note

Since standard MDF objects exist for Pay Scale Type and Pay Scale Area, we recommend that you migrate
from the pay scale picklists of the Job Information fields for Pay Scale Type and Pay Scale Area to MDF to

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 avoid double data maintenance. For more information, refer to the Deprecation of Pay Scale Picklist Fields
topic in the What's New Viewer.

Context

Using the Compensation Structure object in Compensation Information allows you to:

• Define a sort order of how pay components are displayed in the Profile, Manager Self-Service, and
Compensation Information History UIs

 Note

This sort order is not considered in APIs, imports, analytics, or any other channel other than what is listed
above.

• Select only those pay components that are assigned to the compensation structure

 Note

You can't assign other pay components to the employee using other channels (such as imports or APIs).
Doing so results in validation errors.

• Prevent mandatory pay components from being removed from an employee's compensation
• Prorate compa ratio and range penetration more flexibly
We have added configuration for proration to allow you to choose between FTE, a proration factor, or no
proration.

Procedure

1. Go to Admin Center Manage Data .

2. Select Create New Compensation Structure .

3. Add the required basic information.

Field Description

External Code Enter a name for the compensation structure.

External Name The name is defaulted from the code name.

Effective Start Date Select the date for the compensation structure to become
effective in the system.

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 Field Description

Currency Select the currency for the compensation structure.

If this is changed on the UI, the system does not allow the
changes to be saved.

Frequency Select the frequency.

If this is changed on the UI, the system does not allow the
changes to be saved.

Proration Source Select the source to be used for the proration, this means
the location of the factor used for proration of an employee's
salary and pay ranges.

This may be the FTE from the employee’s Job Information

or the proration factor from the employee’s Compensation
Information.

Use Proration in Compa Ratio and Range Penetration Calcu- Select Yes or No to decide whether the system should use
lations proration when calculating compa ratio and range penetra-
tion based on the proration source.

Enable Auto Calculation The system defaults this setting to No. You can't change this
field.

The field is currently only enabled for Beta testing.

4. Select one or more country/regions for which the compensation structure is valid. If no specific country/region
is defined, then the Compensation Structure is valid for all countries/regions.
5. Select the recurring pay components required for the structure, decide whether they should be mandatory,
and set their sort order.

Field Description

Pay Component Select a recurring pay component.

Mandatory If the recurring pay component is mandatory for the com-

pensation structure, select Yes.

If set to Yes, the system does not let a user delete the
pay component and you can't save the changes to Com-
pensation Information without having that pay component
included.

Propose Automatically The system defaults this setting to No.

The field is currently only enabled for Beta testers.

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 Field Description

Source for Recurring Pay Component Data The system defaults this setting to User Input.

The value can be set by the user or business rules.

The field is currently only enabled for Beta testers.

Proration Option The system defaults this setting to No Proration.

The field is currently only enabled for Beta testers.

You can use the up or down arrows to set the sort order of the pay components. The system displays them in
this order in the History, People Profile, and Manager Self-Service (MSS) UIs.

The system validates that all fields are filled. Otherwise, it prevents the user from saving.

6. Save your changes.

Next Steps

Once the compensation structure is created, administrators can assign a compensation structure to employees
using the MSS UI.

Use Case - Data Exists in the System

1. Set up the Compensation Structure according to your requirements.
2. Identify employees who will be assigned to this Compensation Structure.
3. Check that all identified employees have all pay components marked as mandatory in the Compensation
Structure in their compensation data.
4. Check that all identified employees only have pay components that are assigned in the Compensation
Structure.
5. Update the Compensation Information for the identified employees with the Compensation Structure and the
proration factor (if required).

Use Case - Data Does Not Exist in the System

1. Set up the Compensation Structure according to your requirements.
2. Import employee Compensation Information and recurring pay components without setting the Compensation
Structure field. The proration factor can already be set in this step.
3. Check that all identified employees have all pay components marked as mandatory in the Compensation
Structure in their compensation data.
4. Check that all identified employees only have pay components that are assigned in the Compensation
Structure.
5. Update the Compensation Information for the identified employees with the Compensation Structure.

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10 Implementing Location-Based Payments

In many countries, certain payments are made to employees based on the location they are working in. To handle
this, Employee Central offers the Location Based Payments function. This guide will take you through the steps
needed to implement this function.

10.1 Prerequisites

Before implementing the function, you first need to make some settings in your system. You need to:

• Enable Intelligent Services in Provisioning

 Remember

As a customer, you don't have access to Provisioning. To complete tasks in Provisioning, contact
your implementation partner or Account Executive. For any non-implementation tasks, contact Product
Support.

• Switch on Location Based Payments in the Admin Center

• Enable the relevant role-based permissions (RBP) in the Admin Center

10.1.1 Enabling Intelligent Services

Find out how to enable intelligent services.

Procedure

1. Log onto Provisioning and choose your company.

2. Choose Enable Intelligent Services.

 Remember

As a customer, you don't have access to Provisioning. To complete tasks in Provisioning, contact
your implementation partner or Account Executive. For any non-implementation tasks, contact Product
Support.

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10.1.2 Enabling Location-Based Payments Settings

Find out how to enable location-based payments settings.

Procedure

1. Go to Admin Center Manage Employee Central Settings .

2. Navigate to the Others section.
3. Switch the Location Based Payments button to On, then select Save.

10.1.3 Enabling Role-Based Permissions

Find out how to enable role-based permissions.

Procedure

1. Go to Admin Center Manage Permission Roles .

2. On the Manage Permission Roles screen, choose Admin Roles.
3. In the Permission Settings section, choose the Permission button.
4. Choose Miscellaneous Permissions from the scroll-down menu.
5. Search for Legal Entity - Rule Configuration and Location - Coefficient Configuration Lookup sections.
6. Enable both visibility options (View Current,View History) and all five actions options
(Create,Insert,Correct,Delete, Import/Export)in both sections.
7. Choose Done.

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10.2 Configuring Pre-Delivered Business Rules

Your next step is to configure pre-delivered business rules. There are two scenarios, both of which are outlined in
this section. One is a location change for an existing employee, the other is for new hires.

10.2.1 Changing the Location for an Existing Employee

Find out how to change the location for an existing employee.

Procedure

1. Go to Admin Center Configure Business Rules .

2. Choose EVENT_JOBLOCCHNG (SAP_EVENT_JOBLOCCHNG) in the search menu.

3. When you have made your changes, choose Save.
4. Go to the Standard Data Model (SDM) and associate the rule to job information as shown below.

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10.2.2 Changing the Location for a New Hire

If an employee is hired and their job location is configured in the location configuration object with a coefficient
entered for that particular location, you can update the coefficient in the location configuration object.

Procedure

1. Go to Admin Center.
2. Choose Company Settings, then choose Configure Business Rules.

This takes you to the Configure Business Rules screen.

3. Choose "EVENT_NEWHIRE" (SAP_EVENT_NEWHIRE).
4. To make changes to the business rule, choose Take Action, then choose Make Changes.
a. Choose the relevant pencil icon to change the Basic Information and/or the Parameters.
5. When you have made your changes, choose Save.
6. Go to the Standard Data Model (SDM) and associate the rule to job information as shown below.

10.3 Configuring New Business Rules

Find out how to configure new business rules.

Procedure

1. Go to Admin Center Configure Business Rules .

2. Choose the Create New Rule button.
3. On the New Rule portlet, choose Configure Location Based Payments.
4. Enter your rule name, rule ID and start date. Then choose Continue.

On the next screen, you can see your basic information and predefined parameters.
5. Create your rule. When you have finished, choose Save.

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 Implementing Employee Compensation Data
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10.4 Configuring the Rule for Legal Entity

Find out how to configure the relevant rule for your legal entity.

Context

This rule receives data from the lookup object and stores it in the compensation base object. The rule ID you have
already created will be available in the Rule ID drop down menu.

Procedure

1. Go to Admin Center Manage Data .

2. Go to the Create New menu and choose Legal Entity - Rule Configuration.
3. Choose your country, legal entity, effective start date and rule ID, then choose Save.

10.5 Enabling the Location - Coefficient Configuration Lookup

Find out how to enable the Location - Coefficient Configuration Lookup.

Procedure

1. Go to Admin Center Manage Data .

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2. Go to the Create New menu and choose Location - Coefficient Configuration Lookup.
3. Enter your Configuration ID and choose your Legal Entity and Location.
4. Enter your Coefficient Value and choose your Coefficient Pay Component.
5. Set the Coefficient Pay Component Type to percentage.
6. Set the is Earning and Recurring fields to Yes.
7. Choose Save.

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  Note

To ensure the unambiguous identification of the coefficient associated with certain combination of criteria
via a lookup, you must restrict the creation of entries in the lookup object with values in the fields
used as lookup criteria that duplicate an already existing record of this object. Legal Entity and Location
are selected as the business key for the lookup object. If you need a more detailed break-down of the
coefficient values (for example, the age and gender of employee as well as the legal entity and location),
you can enhance the lookup object with the respective custom fields for the additional criteria values and
add these custom fields to the pre-delivered business key.

10.5.1 Troubleshooting

10.5.1.1 Coefficient Value Field

In some cases the system shows an error message for the coefficient value field.

• If you enter a negative number in the Coefficient Value field that the system does not allow, you will see the
following error message:
Negative values are not permitted for the Coefficient Value field
• If you enter 0 in the Coefficient Value field, you will see the following warning message:
The percentage value you have entered in the Coefficient Value field is 0. To continue, select Yes. To make
changes, select No

10.5.1.2 Delimiting an Entry in the Lookup Object

As an administrator, you delimit one of the following lookup records:

• Permanently Delete Record

• Change Status to Inactive

When you save your entries, you will see the following warning message:

• Employee compensation data could be affected by the change. To continue, select Yes. To make changes,
select No

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10.6 Changing the Location

Find out how to change the employee's location in the location field.

Procedure

1. Go to the employee's homepage and choose Employment Information.

2. Go to the Job Information block, and choose the pencil icon to make changes.
3. Under Organisational Information, change the employee's location in the Location field. Choose Save.

4. Go to the employee's Compensation Information block.

Under Compensation, you will see the employee's compensation rate updated for the new location.

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11 Implementing and Managing Deductions

11.1 Deductions

In Employee Central, you can make deductions from an employee's salary.

Deductions are classified as items deducted from gross income that reduce the amount of income subject to
taxation. These deductions can be done on a one-off basis or as recurring items.

Deductions fall under the these categories:

• Various expenditures, investments, or payments

• Voluntary deductions declared by an employee
• Advances or loans

Examples of deductions include contributions to pension accounts, medical insurance, charity donations, and
interest on loans for higher studies.

 Caution

Deductions are allowed only after an employee is hired. You can't add or update deductions at the time of a new
hire using either the standard hire template or a custom template.

Both one-time and recurring deductions are MDF objects. They can be updated in the object definition. For
example, if you need the delegate, send back, and approve options in one-time deduction workflows, you can set
the Pending Data field to Yes.

11.1.1 Enabling Deductions

Enable deductions for them to work in Employee Central.

Prerequisites

In Provisioning ensure the following settings are enabled for the company:

 Remember

As a customer, you don't have access to Provisioning. To complete tasks in Provisioning, contact your
implementation partner or Account Executive. For any non-implementation tasks, contact Product Support.

• Enable Generic Objects

• Enable the Attachment Manager

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Procedure

1. Go to Admin Center Manage Employee Central Settings .

2. Select Deductions Management.
3. Save your changes.

Results

Deductions are now enabled in your system.

11.1.2 Permissions for Deductions

You can use role-based permissions (RBP) for both one time and recurring deductions to control who has access.

This means you can restrict the options that certain users have, based on the roles assigned to them.

For recurring deductions, RBP is not enabled by default, which means that the Recurring Deduction block is visible
to all users on their Employment Information page. To restrict access to the Recurring Deduction block to certain
roles, then update the permission settings in RBP.

Permissions for MDF Objects

All permissions settings for MDF objects for deductions must be aligned. If permissions are not set and objects are
not secured, one would have no permissions to the object. Using secured objects is recommended. This means, in
the object definition, in the Security section, the Secured field must be set to Yes and the Permission Category set
to Miscellaneous. Once the object definition is updated, the permissions must be set in Manage Permission Roles
User Permissions Miscellaneous Permissions .

• Recurring Deduction
• Recurring Deduction Item
• One Time Deduction
• One Time Deduction Item
• One Time Deduction User

If you choose not to use secured objects, then you must set the Manage Permission Roles Admin Permissions
Metadata Framework Access to non-secured objects setting.

Recommended Settings for Recurring Deductions - Full Permissions

These are the all recommended settings to create, edit and delete Recurring Deduction Items.

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144 PUBLIC Implementing and Managing Deductions
Object\Permis-
sions View View History Create Insert Correct Delete

Recurring De- Yes Yes (Optional) Yes Yes Yes Yes

duction

Recurring De- Yes - Yes - Yes Yes

duction Item

Recommended Settings for Recurring Deductions - Edit Permissions

These are the all recommended settings to correct Recurring Deduction Items.

Object\Permis-
sions View View History Create Insert Correct Delete

Recurring De- Yes Yes Yes Yes Yes -

duction

Recurring De- Yes - - - Yes -

duction Item

Recommended Settings for Recurring Deductions - View Permissions

These are the all recommended settings to view Recurring Deduction Items.

Object\Permis-
sions View View History Create Insert Correct Delete

Recurring De- Yes Yes - - - -

duction

Recurring De- Yes - - - - -

duction Item

Recommended Settings for One Time Deductions - Full Permissions

These are the all recommended settings to create, edit and delete One-Time Deduction Items.

Object\Permissions View Create Correct/Edit Delete

One Time Deduction Yes - Yes -

One Time Deduction Yes Yes Yes Yes

Item

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Object\Permissions View Create Correct/Edit Delete

One Time Deduction Yes - - -

User

 Note

For One Time Deductions, it is we recommended only giving Full or View Permissions. We do recommend giving
only Edit permissions as is possible for Recurring Deductions.

Recommended Settings for One Time Deductions - View Permissions

These are the all recommended settings to create, edit and delete One Time Deductions.

Object\Permissions View Create Correct/Edit Delete

One Time Deduction Yes - - -

One Time Deduction Yes - - -

Item

One Time Deduction Yes - - -

User

11.1.3 UI Configuration

You can configure the UI for both one-time and recurring deductions manually.

11.1.3.1 Creating Recurring Deduction Configuration UI

Recurring Deduction has only one base object, so only one configuration UI is needed.

Context

You want to create the UI for recurring deductions.

 Caution

Deductions are allowed only after an employee is hired. You can't add or update deductions at the time of a new
hire using either the standard hire template or a custom template.

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Procedure

1. Go to Admin Center Manage Configuration UI .

2. In the Manage Configuration UI screen, select Create New.
3. Enter a screen ID.
4. Open the Select Base Object dropdown menu, and select Recurring Deduction.
5. Enter the relevant deduction details, then select OK .

 Note

You can rearrange the fields as you wish by dragging and dropping them in the Recurring Items section.

You can set the number of visible fields to be shown in the block. Select the properties of Recurring
Deduction Items and set the visible field count.

 Note

The end user should not see the Has Permission field on their screen. To ensure this, edit the Has
Permission field properties, and set the Visibility field to No, then select OK. This field should also be
the last field in your configuration UI.

6. Save your changes.

Results

The configuration UI is created in the system.

Next Steps

After the Recurring Deduction UI has been configured, it must be assigned to the People Profile.

11.1.3.2 Creating One Time Deduction Configuration UI

Create the UI for one-time deductions.

Context

A one-time deduction has three objects: One Time Deduction, One Time Deduction Items, and One Time Deduction
User. This means, three configuration UIs are required for the three objects.

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Procedure

1. Go to Admin Center Manage Configuration UI .

2. In the Manage Configuration UI screen, select Create New.
3. Enter a screen ID.
4. Open the Select Base Object dropdown menu, and select One Time Deduction.

We recommend the following configuration:

• One Time Deduction Object (Base Object > One Time Deduction User)
• One Time Deduction Items Object (Base Object > One Time Deduction User)
• One Time Deduction User Object (Base Object > One Time Deduction User)
5. Ignore the first field (the ID field) from the configuration UI. This will be automatically filled by the system.
6. Enter the relevant details in the following fields:
• Deduction Date
• Pay Component
• Amount / Percentage / Number of units
• Currency
• Unit of Measure
• Advance (Optional)

 Note

You can rearrange the order of the fields on the screen by dragging and dropping them as required.

7. Select OK to save your changes.

8. Repeat these steps to create the One Time Deductions Items Configuration UI.

Results

The configuration UI is created in the system.

Next Steps

You must create the One Time Deduction User for admins and employees.

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11.1.3.3 Creating the One Time Deduction User for
Administrator and Employee

Manually set up the user for the UI for one-time deductions.

Context

The process for configuring one time deductions for administrators and employees is very similar, with one
difference for an employee deduction.

Procedure

1. Go to Admin Center Manage Configuration UI .

2. In the Manage Configuration UI screen, select Create New.
3. Enter a screen ID.
4. In the Base Object dropdown menu, select One Time Deduction User.
5. Position the cursor over the one-time deductions block, and select Add Field. This adds an Input field to the
block.
6. Hover over the first added input field, select the pencil icon, then select Edit Properties. In the pop-up menu
that appears, go to the Value Type dropdown menu, and select Resolver.

7. In the Value Type Resolver menu, select One Time Deduction Item One Time Deduction Deduction
Date .
8. In the Label Override field, enter the label you want to appear on the UI. Select OK.

You can follow the same process from steps 5 -8 in the other input fields for the following attributes:

 Note

You can only have 1 editable field.

• Currency
When you set the currency attributes, go to the Value Type Resolver drop-down menu, expand the Currency
option, and select currency.code.
• Unit of Measure
When you set the unit of measure attributes, go to the Value Type Resolver drop-down menu , expand the
Unit Of Measure option and select Common Code.
• Pay Component
When you set the attributes for Pay Component, select the highlighted Pay Component option listed on
the Value Type Resolver drop-down menu. By default, you can see four fields in a row on the block. Any
additional fields are included as part of Details.
If you wish to see more than four fields in a row:
1. Hover over the left-hand side of the One Time Deduction Items section, then select Edit Properties.

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 2. In the resulting pop up, enter your preferred number of visible fields in Visible Fields Count. Select OK.
• Amount
• Frequency
• Reference ID
• Additional Information

 Note

You can also add rules by hovering over the One Time Deduction block, then selecting Manage UI Rules.

In the Title section, you can add fields, links, or groups, as well as editing the properties of the title, and
deleting the title, by selecting the relevant option.

9. Save your changes.

11.1.4 Assigning Screen IDs

You can assign screen IDs to the Configure Deduction Screen IDs object, so that when an Employment Information
or Take Action page is loaded, the system reads the object containing the screen IDs and displays your deductions
on-screen.

You can assign both new and previously existing screen IDs.

11.1.4.1 Assigning New Screen IDs

Assign screen IDs so that the system reads the object containing the screen IDs and displays your deductions
on-screen.

Context

Typically, when Deductions are enabled, the Configure Deduction Screen ID object is created. It is only possible to
have one object associated with the Deduction Screen ID. If there is no existing Deduction Screen ID, you can create
a new one.

Procedure

1. Go to Admin Center Manage Data .

2. In the Manage Data screen, open the Create New dropdown menu, and select Configure Deduction Screen IDs.
3. In each row, select the screen IDs for the configuration UIs that you previously created from each dropdown
menu.

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 System Name Example Name Base Object Where it Appears

Code DeductionScreenID - -

 Note
This is a technical field,
meaning that the Deduc-
tionScreenID object is
automatically generated.

onetimeDeductionId OneTimeDeductionTakeAc- One Time Deduction

• Take Action One
tionConfigUI
Time Deduction
• Add One Time Deduction
button
• Plus icon on One Time
Deduction User screen

onetimeDeductionUser- OneTimeDeductionEmpIn- One Time Deduction User One Time Deduction Items
GoEmployeeId foUserConfigUI

onetimeDeductionUser- OneTimeDeductionEmpIn- One Time Deduction User Edit (pencil) icon on One
GoEmployeeEditId foUserConfigUI Time Deduction User screen.

 Note
The fields in pop-up are
read-only. To make any
of the fields editable, up-
date the One Time De-
duction object.

4. Save your changes.

Results

The screens have assigned IDs.

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11.1.4.2 Changing Existing Screen IDs

Update existing screen IDs so that the system reads the object containing the screen IDs and displays your
deductions on-screen.

Procedure

1. Go to Admin Center Manage Data .

2. In the Manage Data screen, open the Search drop-down menu, and select Configure Deduction Screen IDs.
3. Open the adjacent dropdown menu, and select your screen ID.
4. From the Take Action drop-down menu, select Make Correction.
5. Make your changes.
6. Save your changes.

Results

The screen IDs are updated in the system.

11.1.5 Business Rules

11.1.5.1 Creating the Rule to Hide User

Create a rule to hide the user in the Recurring Deduction block.

Procedure

1. Go to Admin Center Manage Configuration UI .

2. In the Manage Configuration UI screen, search for the Recurring Deduction Config UI.
3. Position the cursor over the Recurring Deduction heading and select the Manage UI Rules link that appears.
4. Select Add Rules from the pop-up menu that appears.
5. In the Rule Name field, enter HideUser.
6. Position the cursor next to If and select the Always True checkbox that appears.

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7. Select the pencil icon under Then.
8. From the dropdown menu that appears, select Set.
9. Select the relevant expression, for example, User, and enter the relevant settings to set the visibility to null.

10. Save your settings.

Results

The rule is created in the system and assigned to the config UI.

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11.1.5.2 Creating the Rule to Make Fields Read-Only for Pay
Components

Create a rule to make some fields in the pay component read-only for users without permissions.

Context

This rule will set all fields to read-only if the hasPermission field is set to No.

Example

The user does not have edit permission for the Monthly Car pay component. Therefore, all fields are read-only.

Procedure

1. Go to Admin Center Manage Configuration UI .

2. In the Manage Configuration UI screen, search for the Recurring Deduction Config UI.
3. Position the cursor over the Recurring Deduction heading and select the Manage UI Rules link that appears.
4. Select Add Rules from the pop-up menu that appears.
5. In the Rule Field Name field, enter MakeFieldsReadOnlyForNoPerm.

6. For the If expression, select Recurring Items Has Permission Value , then select is equal to Text, then
type No in the last field.
7. Save your settings.

Results

The rule is created in the system and assigned to the config UI.

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11.1.5.3 Creating the Rule to Make a Pay Component Read-Only
During Edit Mode for Existing Recurring Items

Create a rule to make some fields read-only so that existing recurring deduction items cannot be changed in edit
mode.

Procedure

1. Go to Admin Center Manage Configuration UI .

2. In the Manage Configuration UI screen, search for the Recurring Deduction Config UI.
3. Position the cursor over the Recurring Deduction heading and select the Manage UI Rules link that appears.
4. Select Add Rules from the pop-up menu that appears.
5. Select the rule name PayCompIdReadOnly from the pop-up menu that appears.

6. For the If expression, select Recurring Items Pay Component Value , then select is not equal to Null.
7. Save your settings.

Results

The rule is created in the system and assigned to the config UI.

11.1.5.4 Creating the Rule to Show the Equivalent Amount Field

Create a rule to set the Equivalent Amount field to visible for pay components of types Number and Percentage.

Context

The calculated amount for the pay components is contained in the Equivalent Amount field. By default, this field is
hidden in the object definition for recurring deduction item and one time deduction.

Procedure

1. Go to Admin Center Configure Object Definition .

2. In the Configure Object Definition screen, select Object Definition, and in the adjacent menu select Recurring
Deduction Item.

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3. Select Take Action, and select Make Correction to edit the object definition.
4. For the equivalent amount field, select the Details link.
5. Change the Visibility property of equivalent amount from Not Visible to Read Only.

6. Now that the field is visible, you have to update the config UI. Go to Admin Center Manage Configuration
UI .
7. In the Manage Configuration UI screen, search for the Recurring Deduction Config UI.
8. Position the cursor over the Recurring Deduction heading and select the Manage UI Rules link that appears.
9. In the pop-up menu, select the MakeFieldsReadOnlyForNoPerm rule that you previously created.
10. In the Edit Rule pop-up, ensure that the permissions are set correctly.

 Note

Please make sure that the hasPermission field is always the last field/column in your configuration UI.

11. Select OK, then save your settings.

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Results

The rule is created in the system and assigned to the config UI.

Next Steps

You can follow the same steps for a One Time Deduction Definition and its respective configuration UIs. The
process for adding new fields in configuration UIs is documented in Adding Custom or New Fields [page 158].

11.1.5.5 Assigning Rules for Recurring Deductions

Assign the rules you have just created for recurring deductions.

Context

 Note

Rules are not mandatory for deductions. However, if you use them, you need to assign the deduction to the
employee before assigning the rule to the deduction.

Procedure

1. Go to Admin Center Manage Configuration UI .

2. In the Manage Configuration UI screen, search for the Recurring Deduction Config UI.
3. Position the cursor over the Recurring Deduction heading, and select Edit Properties.
4. Go to the onInitUI Rules and onInsertUI Rules sections, and select the rules you created from the Select Rule
dropdown menu.

 Note

The Hide User rule only needs to be assigned in the onInitUI Rules section.

5. Select OK.
6. Save your changes.

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11.1.6 Configuring People Profile for Deduction Blocks

To avoid errors in the People Profile, configure the Recurring Deduction block as a Live Profile MDF Information
custom block with MDF Screen ID Recurring Deduction Configuration UI. Then configure the One Time Deduction
block as a standard block and not as Live Profile MDF Information block. This is because you can only assign one
screen to the Live Profile MDF information, and since 3 screens are needed for the One Time Deduction, then we
use the One Time Deduction block.

Procedure

1. Go to Admin Center Configure People Profile .

2. In the Available Blocks search field, search for MDF.

In the Custom Blocks section, the Live Profile MDF Information appears.
3. Drag the Live Profile MDF Information block over to the One Time Deduction row and drop it in.

 Note

The default section name is One Time Deduction. You can add the MDF Block in every section or create a
custom section for the recurring deduction.

4. Add the MDF Screen ID, which is Recurring Deduction Configuration UI.
5. In the Available Blocks search field, search for One Time Deduction, which is listed under Compensation
Information.
6. Drag the One Time Deduction block over to the One Time Deduction row and drop it in.
7. Save your changes.

11.1.7 Adding Custom or New Fields

Add fields to the existing object definition for the deduction where needed.

Context

If you choose to add custom or new fields to the object definition of a one time or recurring deduction, you also
need to update the configuration UI.

Procedure

1. Go to Admin Center Manage Configuration UI .

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2. In the Search field, enter the relevant configuration UI details .
3. Once the relevant deduction details are displayed, position your cursor over the Deduction block, and select
Add Field.
4. Once you have entered the new field details, map the UI field to the relevant field using the value type resolver.
For more information about this, refer Creating the One Time Deduction User for Administrator and Employee
[page 149].
5. Save your changes.

11.1.7.1 Enabling the End Date Field

Enable the end date field to end a recurring deduction item automatically at a future date.

Procedure

1. Go to Admin Center Configure Object Definition .

2. In the Search drop-down menu, select Object Definition.
3. In the adjacent drop-down menu, select Recurring Deduction Item.
4. Select Take Action, then select Make Correction.
5. In the endDate field row, choose Details, and change the visibility to Editable.
6. Select Done to save your changes.

Results

You can now add the field to the configuration UI. For more information about how to do this, refer to Adding
Custom or New Fields [page 158].

Once you have made the field visible and added it to the configuration UI, you can use the end date function to end
recurring deduction items automatically.

Example

On January 1, 2014, you define a recurring deduction associated with a pay component, and with a defined end
date.

Pay Component Amount Currency Frequency End Date

EXP-GBR 1000 INR Monthly April 14, 2014

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Since you specified the end date, the item EXP-GBR was automatically ended on April 15. You can see the item
deleted with a strikethrough in the History.

11.1.8 Forward Propagation in Employee Central Recurring

Deductions

Forward propagation means that a change in the value of a field in an object is also made (“propagated”) to future
records for the same object. Forward propagation is only triggered if the amount that was changed is the same for
the future record. That can be the amount or any other field.

The forward propagation of this field change stops as soon as one of the future records for a recurring deduction
has a field value that is different than the original field value. When changes are propagated, the time stamp and
user of the last change to the record is updated.

Forward propagation works for pay components of all type, amount, percentage, and number for recurring
deductions, one-time deductions, and recurring pay components. The field values for frequency, amount, currency,
unit of measure, and rate are all propagated. Attachments and equivalent amounts are not propagated.

Changes are propagated based on:

• Changes made on History screen (Insert only)

• Changes made from the Take Action Manage Recurring Deductions

11.1.8.1 Examples for Forward Propagation for Deductions

Here are some examples for forward propagation for deductions in Employee Central.

A recurring deduction of 100 USD from Jan 1, 2019 is the basis for the examples used here.

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Forward Propagation Doesn't End

For the existing recurring deduction, when you change the amount from 100 to 200, the forward propagation is
triggered. All amount fields with the value 100 will be updated and changed to 200. Forward propagation stops if
the amount is not 100 or at the last entry.

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Forward Propagation Ends Due to Different Values

For the existing recurring deduction, when you add a new entry between February and March and change the
reference ID, the forward propagation stops since the reference ID is different than expected.

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Forward Propagation Not Triggered

For the existing recurring deductions, when you add a new entry between February and March and add a value
in the Additional Information field, the forward propagation is not triggered because the old value is null and it is
different than the future value.

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Forward Propagation with Multiple Changes and Different End Points

For an existing recurring deduction, when you add another recurring deduction and make other changes, the
system propagates the changes to different end points.

Here is the starting point with the Change History as follows:

• Jan/01/2019: Record started

• Feb/01/2019: No changes
• Mar/01/2019: Additional Information field changed
• Apr/01/2019: Reference ID added

Here's what happens when you add a new recurring deduction between Jan/01/2019 and Feb/01/2019 and
change the following:

• Amount from 200 to 300

Propagation changes all amount fields to 300
• Additional Information from – to 1
Propagation stops at Mar/01/2019
• Reference ID from – to 3 |
Propagation stops at Apr/01/2019

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11.1.9 Importing a Recurring Deduction

Import data for a recurring deduction to an employee's salary.

Procedure

1. Download the template.

a. Go to the Admin Center Import and Export Data .

b. For the Select the action to perform field, choose Download Template.
c. In the Select Generic Object, choose Recurring Deduction and for Include dependencies, choose Yes to
include the Recurring Items.
d. Select Download.
2. Prepare the data.
a. You'll need these files from the downloaded template:
• import.properties
Set the import settings (full purge or incremental, suppress data, key preference, and file name).
• import_sequence.csv
Set the file name and sequence of import files to be included in the zip file.
• Recurring Deduction.csv
Set the userId and effective date of the deduction
Include a header for the date after the last end date (for example, 01/01/2030 so that it will not
include any item as at this date, since the deduction is already ended or deleted).
• Recurring Deduction-Recurring Items.csv
For the deduction details, set the userId, effective date, pay component, amount/percentage/number
of units, currency, and frequency.

 Note

Do not include the end date field in the import as it is intended for the UI only.

b. Save the files as a zip file.

3. Import the records.

a. Go to Admin Center Import and Export Data .

b. For the Select the action to perform field, choose Import Data.
c. Select the ZIP File tab.
d. Browse to find the zip file you created for the recurring deduction data.
e. Select Validate to check for any errors in the file.
f. If the file is correct, select Import.

Results

The recurring deduction record is successfully created.

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11.1.10 Importing a One Time Deduction

Import data for a single deduction to an employee's salary.

Procedure

1. Download the template.

a. Go to Admin Center Import and Export Data .

b. For the Select the action to perform field, choose Download Template.
c. In the Select Generic Object, choose One Time Deduction and for Include dependencies, choose No to
include the Recurring Items.
d. Select Download.
2. Prepare the data.
a. In the downloaded template, enter the correct values for each column.
The externalCode is AutoNumber. Therefore, use "hash sign+number". For example, #1
b. Save the files as a CSV file.
3. Import the records.

a. Go to the Admin Center Import and Export Data .

b. For the Select the action to perform field, choose Import Data.
c. Select the CSV File tab.
d. For Select Generic Object, choose One Time Deduction.
e. Browse to find the zip file you created for the one-time deduction data.
f. Select Validate to check for any errors in the file.
g. If the file is correct, select Import.

Results

The one-time deduction record is successfully created.

11.2 Managing Deductions

Once deductions have been configured in your system, you can create them for employees and see the workflows
that follow.

There are two types of deduction:

• One Time: a one-off deduction from an employee's salary

• Recurring: a deduction from the employee's salary that occurs periodically, for example, monthly.

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11.2.1 Creating a One Time Deduction

Create a one-time deduction, for example, for an advance, from the employee profile.

Procedure

1. Go to the employee's profile page.

2. Select Employment Information.

3. Select Take Action One Time Deduction .

4. On the One Time Deduction screen, enter values in the following fields:
• Deduction Date
• Pay Component, for example Charity Donation
• Amount / Percentage
If you enter your pay component as a percentage, ensure that the max value doesn't exceed a value of 100
to avoid errors in the system.
• Currency
You can change the currency by selecting the Plus Sign icon next to the Currency field and entering the
relevant details.
• Advance
If the deduction is a salary advance, you can specify the type of advance in the Advance field.

 Note

Ensure that the effective start date is after the hire date to avoid errors in the system.

5. Save your changes.

Results

Now, in your profile page, you can see all current and previous deductions under One Time Deduction.

11.2.2 Editing a One Time Deduction

Change the details of the one-time deduction where needed.

Procedure

1. On the profile page for the employee, under One Time Deduction, select the icon next to the relevant One Time
Deduction ID.

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2. Select Edit. You can now change the details of an existing deduction, as well as create one.
3. Make your changes.
4. Save your changes.

Results

The changes are visible in the employee profile.

11.2.3 Creating a Recurring Deduction

Create a recurring deduction for an employee from the employee profile.

Procedure

1. Go to the employee's profile page.

2. Select Employment Information.

3. Select Take Action Manage Recurring Deductions .

4. Select an effective start date for the deduction, then select Proceed.
5. On the Manage Recurring Deductions screen, enter values in the following fields:
• Deduction Date
• Pay Component
• Amount / Percentage
If you enter your pay component as a percentage, ensure that the max value doesn't exceed a value of 100
to avoid errors in the system.
• Currency
You can change the currency by selecting the Plus Sign icon next to the Currency field and entering the
relevant details.
• Advance
If the deduction is a salary advance, you can specify the type of advance in the Advance field.
• Planned End Date
You can also enter a planned end date for your recurring deductions. This allows the system to remove the
relevant deduction from the list the day after the planned end date.

 Note

Ensure that the effective start date is after the hire date to avoid errors in the system.

You can also create a recurring deduction in the Employment Information section of an employee profile. Go to
the Recurring Deduction block, select Edit, and then create the deduction.
6. Save your changes.

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Results

Now, in the employee profile page, you can see all current and previous deductions under Recurring Deduction.

You can also view the history of the recurring deduction by clicking on the History link in the block.

11.2.4 Editing a Recurring Deduction

Edit the details of a recurring deduction where needed.

Procedure

1. On the employee's profile page, under Recurring Deduction, select Edit.

2. You can edit the details of a current deduction, as well as create one.
3. Make your changes.

You can delete a deduction by selecting the Trash icon.

4. Save your changes.

Results

The changes are visible in the employee profile.

11.2.5 Example Business Rules for Deductions

Here is an example of a business rule for deductions in your system.

General

For all business rules, follow these steps:

1. Navigate to the Admin Center.

2. In the Tools search field, enter Configure Business Rules.
3. Create a rule by selecting the rule scenario that best fits your needs.
4. Create a rule based on the examples shown.
5. Save your changes.
6. In the Business Configuration UI, add the rule to the data model.

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7. Save your changes.

Delete Recurring Deduction on Termination of Employment

Using the Trigger Cross-Entity Rules scenario, you can create a business rule to remove a recurring deduction when
an employment is terminated.

This rule has Job Information Model as the base object and is added to the jobInfo (Manage Business
Configuration) HRIS Element.

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12 Change History

Learn about changes to the documentation for Implementing Employee Compensation Data in Employee Central in
recent releases.

1H 2024

Type of Change Description More Info

New We have added information on the new Generating Compensation Insights

feature to generate insights using artificial [page 84]
intelligence.

Changed We have added information about the new Configuring the Compensation Structure
Compensation Structure feature. Object [page 130]

2H 2023

Type of Change Description More Info

Changed We have moved the Change History to the Prerequisites for Pay Components [page
end of the guide. 40]

New We have added information about the new Compensation Structure [page 130]
Compensation Structure feature.
Configuring the Compensation Structure
Object [page 130]

Added We have added more information about Data Validation for Compensation Infor-
data validation for Compensation Infor- mation and Recurring Pay Components
mation and Recurring Pay Components in (MSS and History UI) [page 85]
MSS and the History UI.

Added We have added more information about Record Suppression for Compensation
identical record suppression. Information and Recurring Pay Compo-
nents [page 86]

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Bias-Free Language
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Implementing Employee Compensation Data

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Implementing Employee Compensation Data
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