Dynamics Community Forum Thread Details

Hi Gaurav,

Assuming you have created a compensation plan already
Create compensation process
Setup compensation process; including your compensation plan
Run the process
Check the results and approve
Load employee compensation
View the results on employee level as a new entry within the Variable plan awards section

Below some additional information on the options you have when setting up your plan.

Hope this helps!

BR, Bas

www.clevhr.nl

To create variable compensation plans of the Grade, Band, and Step types, you will use the Variable compensation plans form in Compensation management. You can change or view details about a compensation plan by using the following fields in the General FastTab.

Effective date. In this field, enter the earliest date and time when the compensation plan is effective.
Expiration date. In this field, enter the date and time when the compensation plan is no longer effective.
Variable compensation type. In this field, select the variable compensation plan type. The variable compensation plan type determines whether the plan awards non-cash or cash awards. This information is maintained by using the Variable compensation type form.
Calculation. Select the calculation method to use:
Composite – Prorates all changes in compensation for the employee for the compensation cycle when calculating an award amount.
Point in time – Uses compensation information that is active at a specific time only.
Percent of basis radio button:
Percent basis. Enter a percentage of a base award to grant only if all plan participants receive the same percentage of their fixed pay. If plan participants at different compensation levels are awarded different percentages, select the Enable levels check box and then click the Levels button to enter the percentages. You can also use the Employee variable compensation enrollment form to enter the percentage of basis for an employee.
Variable award basis. Indicate whether to use the standard fixed pay rate or the control point of the employee’s fixed compensation plan when determining the amount of an award.
Number of units radio button:
Number of units – Specify a variable award amount. If the award is to be a set number of units for every participant in the plan, enter the number of units to award in this field.
1:1 relationship. Set this slider to Yes to indicate that one award unit is equal to the value of one unit of the currency that you use to pay the employee. If the unit value is 1.00, the currency will be the same as the employee's fixed pay rate.
Unit value. Enter the value of one unit of whatever non-cash award is represented. For example, if the compensation plan awards stock to employees, enter the value of the stock. If this is a bonus award, enter the amount of the award. To award a bonus of $1,000 United States dollars (USD), type 1000.
Unit currency. Enter the currency in which the unit is valued. This is required for non-bonus awards. Bonus awards are based on the currency in which fixed compensation is paid.
Enable enrollment. Set this slider to Yes to enable the plan for employee enrollment.
Recommendation. Select this check box to enable recommendations to be applied to this plan. This enables managers or a compensation administrator to suggest a pay amount that differs from the calculated amount that is specified by the plan.
Hire rule. Select the hire rule to control whether to award the full or a prorated amount for employees hired who are during the compensation cycle.
None – An employee receives a full merit increase, regardless of the hire period within the cycle period. The calculation is based on the full year.
Percent – An employee receives a merit increase based on the period from the hire date and up to the ending date used in the cycle setup for the calculation.
Vesting rule. If this is a stock award, or another type of long-term award, select the vesting rule that controls the portion, and when a stock award will vest. The information in this field is for reporting only.

Community site session details

How to calculate Variable Compensation Awards

Helpful resources

Quick Links

Announcing Our 2025 Season 1 Super Users!

Vahid Ghafarpour – Community Spotlight

Tip: Become a User Group leader!

Leaderboard

Featured topics

Product updates