Create A Supplemental Earning Element – I.E Sales Target Bonus

By /

Creating a supplemental earning element, such as a “Sales Target Bonus,” in Oracle HCM involves defining the earning element and configuring it for payroll processing. Here’s how you can set it up:

Step 1: Define the Supplemental Earning Element

  1. Navigate to Earning Elements:

    • Go to My Client Groups > Payroll > Elements.

  2. Create New Element:

    • Click Create and choose Earning as the element type.

  3. Set Element Details:

    • Element Name: Enter a descriptive name like “Sales Target Bonus.”
    • Primary Classification: Choose “Earnings.”
    • Secondary Classification: Select a relevant category, such as “Bonus.”
    • Processing Type: Choose “Nonrecurring” (since bonuses are typically one-time payments).

  4. Configure Input Values:

    • Oracle will generate some standard input values. You may need to add custom ones if required for bonus calculations (e.g., Target Achievement Rate).
    • Verify that Amount is an input value, as this is where the bonus amount will be entered.

  5. Specify Eligibility:

    • Define eligibility criteria if the bonus should apply only to certain employees or roles.
    • Go to Element Eligibility and add any conditions required.

  6. Save and Close:

    • Save your new element.

Step 2: Set Up Element Entries for Employees

  1. Navigate to Person Management:

    • Go to My Client Groups > Person Management.
    • Search for the employee to whom you want to assign the Sales Target Bonus.

  2. Add the Element Entry:

    • Within the employee record, go to Payroll.
    • Click on Element Entries.
    • Click Add and select “Sales Target Bonus” from the list.
    • Enter the bonus amount in the Amount field and any additional details needed (e.g., pay period, target achievement).

  3. Save and Close:

    • Once the details are entered, save the element entry.

Step 3: Verify Payroll Processing

  1. Run Payroll Calculation:
    • Process a payroll calculation to ensure that the Sales Target Bonus is correctly included in the employee’s pay for that period.
  2. Review Payroll Results:
    • Check the payroll results to confirm the bonus calculation and ensure the amount appears in the employee’s earnings.

Scroll to Top