Variable compensation plans (form)
Applies To: Microsoft Dynamics AX 2012 R3, Microsoft Dynamics AX 2012 R2, Microsoft Dynamics AX 2012 Feature Pack, Microsoft Dynamics AX 2012
Click Human resources > Periodic > Compensation > Variable compensation plans.
Use this form to set up variable compensation plans.
Task that uses this form
Navigating the form
The following tables provide descriptions for the controls in this form.
Button
Button |
Description |
---|---|
Levels |
Open the Levels form, where you can maintain the levels that apply only to this particular variable compensation plan. To do this, you must select the Enable levels, check box. |
Fields
Field |
Description |
---|---|
Plan |
Enter the plan name. |
Description |
Enter a description of the plan. |
Effective date |
Enter a starting date for the plan. |
Expiration date |
Enter an ending date for the plan. |
Variable compensation type |
Select the variable compensation plan type. The variable compensation plan type determines whether the plan awards non-cash or cash awards. |
Enable enrollment |
Select this check box to enable the plan for employee enrollment. |
Variable award basis |
Select one of the following options:
|
Number of units |
If the award is to be a set number of units for every participant in the plan, enter the number of units to award. This field is not available if the Enable levels check box is selected. Note If this is a cash award, select the 1:1 relationship check box. |
1:1 relationship |
Select this check box 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. Note When you select Number of units for a cash plan, this check box is automatically selected and you cannot modify it. |
Unit value |
If the value of the award is more or less than 1.00 of an employee’s fixed pay rate, enter the value here. For example, if this is a stock award, enter the value of the stock. If this is a cash award, select the 1:1 relationship check box. |
Unit currency |
Enter the currency in which the unit is valued. This is required for stock awards. Note Cash awards are based on the currency in which fixed compensation is paid. |
Vesting rule |
If this is a stock award, or another type of long-term award, select the vesting rule that controls the portion, also and the timing when a stock award will vest. Note The information in this field is for reporting only. |
Annualize the basis |
Select this check box to calculate the award amount based on pay for a full year, regardless if an employee is paid daily, weekly, semi-monthly, or monthly. |
Percent of 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. Note You can also use the Employee variable compensation enrollment form to enter the percentage of basis for an employee. |
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. |
Enable levels |
Select this check box to create a level progression that includes either a specific amount to award or a percentage amount (but not both), specifically for this plan. If you do this, the plan does not use the default levels that are defined for variable compensation plans. |
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. |
Calculation |
Select the calculation method to use:
|
Lowest allowable payout |
Enter the lowest percentage of target to award. This field value, the Tolerance level field value, and the guideline amount determine the amount of the bonus. Note For information about how the tolerance levels affect this amount, see the description for the Tolerance level fields. |
Per 1% under objective |
Specify the percentage of the target award to deduct for each percent that the department is below the objective. |
Payout at 100% |
Specify the percentage of target award to pay if the department reaches 100 percent of the objective. |
Per 1% over objective |
Specify the percentage of target award to pay for each percent that the department achieves that is above the objective. |
Highest allowable payout |
Specify the highest percentage of target award to pay in the plan. |
Tolerance level (Lowest allowable payout field) |
Select the tolerance level to apply to the value in the Lowest allowable payout field. For example, a tolerance level that is applied to the lowest allowable payout amount functions as follows:
|
Tolerance level (Highest allowable payout field) |
Select the tolerance level to apply to the value in the Highest allowable payout field. For example, a tolerance level applied to the highest allowable payout amount functions as follows:
|
See also
Announcements: To see known issues and recent fixes, use Issue search in Microsoft Dynamics Lifecycle Services (LCS).