To configure the budget overview in Oracle Fusion for compensation plans, you will set up how budgets are defined, allocated, and managed within the compensation process. This allows managers and HR professionals to track compensation expenses, ensure compliance with budget limits, and make informed decisions during compensation cycles.
Here’s a step-by-step guide to configuring the budget overview in Oracle Fusion:
1. Navigate to Setup and Maintenance
- From the Home Page, click on the Navigator icon (hamburger menu) in the top-left corner.
- Select Setup and Maintenance.
2. Search for Budgeting Task
- In the Setup and Maintenance page, search for Manage Compensation Budgets.
- Click on the Manage Compensation Budgets task from the search results.
3. Select or Create a Budget
- You will see a list of existing compensation budgets.
- To modify an existing budget, select the budget from the list and click Edit.
- To create a new budget, click the Create or + button.
4. Enter Basic Budget Details
- Fill in the essential details for the budget overview:
- Budget Name: Provide a descriptive name for the budget (e.g., “Annual Merit Increase Budget”).
- Budget Type: Specify the budget type (e.g., merit increase, bonus, equity adjustment).
- Effective Date: Set the date from which the budget will be effective.
5. Set Budget Parameters
- In the Budget Parameters section, define how the budget will be allocated and managed:
- Budget Pools: Specify the total amount or percentage allocated for the budget pool. This can be a fixed amount or a percentage of total compensation.
- Allocation Method: Define how the budget will be allocated across different units or managers (e.g., percentage of salary, percentage of eligible payroll, or fixed amount).
- Currency: Select the currency in which the budget will be managed.
6. Define Budget Allocation Rules
- Set rules for how the budget will be distributed across departments, managers, or employee groups:
- Distribution by Manager: Allocate budget based on manager responsibilities, allowing managers to allocate budget to their teams.
- Distribution by Department or Business Unit: Allocate budget at the department or business unit level to track spending for specific areas.
- Eligibility: Define eligibility rules for employees included in the budget. You can base this on job roles, grades, locations, or performance ratings.
7. Configure Budget Controls
- Set up controls to ensure that managers stay within budget limits:
- Budget Cap: Establish a cap to prevent managers from exceeding their budget allocations.
- Notifications: Configure notifications for when budget limits are close to being reached or exceeded.
- Budget Variance: Allow a certain percentage of variance or flexibility in the budget.
8. Review Budget Summary
- Once you’ve configured the budget rules and allocations, review the budget summary to see the overall distribution.
- Ensure that the total budget matches organizational expectations and that the allocation methods are appropriate for the compensation cycle.
9. Save the Budget Setup
- After verifying all the settings, click Save or Submit to apply the budget setup.
10. Test the Budget Overview
- To ensure that the budget functions correctly during compensation cycles, you can run a test using a sample employee or group of employees.
- Confirm that the budget allocations and controls are being applied properly.
11. Monitor and Adjust the Budget
- Throughout the compensation cycle, monitor the usage of the budget to ensure that managers stay within allocated limits.
- Adjust the budget if necessary, based on spending trends or organizational changes.
12. Communicate the Budget to Managers
- Ensure that managers responsible for administering compensation understand their budget allocations and any rules or limits applied to their spending.
- Provide managers with access to reports or dashboards to track their budget utilization.
Key Considerations:
- Budget Variance: Ensure that there is some flexibility for managers, but also enforce necessary controls to prevent overspending.
- Reporting: Ensure that budget reports are configured to give real-time visibility into budget usage for HR, finance, and department managers.
- Performance and Eligibility Criteria: When defining the budget, align it with performance goals and criteria to ensure the right employees benefit from compensation adjustments.
By following these steps, you can configure a comprehensive budget overview in Oracle Fusion, ensuring that your organization can efficiently manage compensation budgets and stay within allocated limits during compensation cycles.
Comp Plan Setups- Configure Budget Overview