2084543 - Working with Budget Assignment and Cascading Budget - Compensation

SAP SuccessFactors Compensation supports Budget Assignment in Employee Central-enabled plan templates, which are used for compensation planning. Budget Assignment allows managers to decide the budget for their direct reports, and get a visual view of how the allocations are being done. Administrators can also give permission to managers with two more levels below them, to enable them to cascade their budget to direct and indirect reports.

Note: If you are new to Compensation and you are unsure how the existing template is setup to assign budgets, please contact your implementation partner to have this checked.

Image/data in this KBA is from SAP internal systems, sample data, or demo systems. Any resemblance to real data is purely coincidental.

• SAP SuccessFactors HCM Suite
• SAP SuccessFactors Compensation

Notes:

• Budget grouping does not work when using a budget based on planner/directamount.
• Using directamount on planner mode, the budget is not calculated at user level but at planner level. Therefore in ADHOC the entries are not at user level. So, there is no way to map the worksheet or planner level budget to individual entries.

Permissions Required

• For Admins: Budget Assignment and Manage Compensation Budget, both under Manage Compensation in Role Based Pemission.
• For Planners: Budget Assignment under Manage Compensation Budget under Manage Compensation in Role Based Permission.

Setting up the Budget

1. Open the compensation template
2. Go to Plan Details > Budget
3. Select "Add Budget Calculation".
4. Here select the Mode to be "DirectAmount" and the Based On to be "planner". (Please refer to guide Budget Calculations and Rules for more details of what each feature within budget means.)
   
5. Once this is defined and saved, exit the plan and go back into it so the changes can take effect.
6. Under Manage Worksheets you will now see a new section labelled "Budget" with "Budget Assignment" as a hyperlink. Here is where you can cascade your budget.
   
   

 

Assigning and Cascading the Budget

Please note that the steps below show how the cascading can be done by someone with administrative rights to the system:

1. Go to the Budget Assignment link under Compensation Administration;
2. Pick the Template which you setup the cascading budget in;
3. Click on the "Add Head of Hierarchy" button and select the user to be the person at the top of the budget "chain" using the Find User capability;
4. Enter the % or Amount that person has to allocate;
5. Click Blue Arrow to Send Budget to head of hierarchy;
6. Click on the person's name;
7. Cascade Budget Check Box is a permission to allow a person to cascade the budget to their direct/indirect reports.
8. Only employees who have a 2 or more levels below will have the Cascade Budget checkbox available
9. You can put in a % or amount next to each manager's name and click on the save button to set the budget for those planners;
10. By Clicking on the Cascade Budget check box, and clicking on the Propagate button next to that planner's name, it will cascade the budget down to that planner where he/she can then determine the amount to be applied to his/her planners budgets.

 

Cascading Budget - Based on Custom Column

While using budget assignment you do have an option to use custom columns. Per current design the custom column being used for this budget type should adhere to the following:

• The field ID referenced in this formula could be standard fields or custom fields with import key only. Standard fields could be curSalary, unitsPerYear, lumpSumTarget and lumpSum2Target only
• The operators used in this formula could be (, ), +, -, * and / only. Other operators and functions are not supported

Please follow these steps to use this.

1. Create a custom column which you would like the budget to be based on
   
2. The next section can only be configured at XML level. You will therefore need permission to import XML which is available under Manage Compensation and Varpay permissions;
3. Add this tag <budget-assignment-base-custom-field>customField8</budget-assignment-base-custom-field> to your XML;
4. Below is a screenshot for this example. This should also be added just above the <final-pay-grade useFor="finalRatio"/> tag in the tenmplate XML
5. Once your template is imported go to Manage Worksheets> Budget Assignment and refresh your current budget or add your hierarchy. Below is an example of this
   
   
6. Launch a new worksheet and see the results. In the screenshot below we can see the overall budget allocated is a calculation which is coming from our custom column define in the template XML.

Note: You cannot currently use a custom column which is directly mapped to EC, reference this in a second column via a formula to then have this as part of the formula used for the directamount budget. Should you attempt to do this, you will get the following validation error:

A way around this would be to have an import key in this custom column for nonEC users or use one of the standard columns mentioned above mapped to a EC field of your choosing. For example, the formula for the budget in the above example is (curSalary)*lumpSumTarget. We had the lumpSumTarget mapped to an EC field which will work:

 

Cascading Stock

You are also able to use the cascading budget feature for stock:

1. This can be defined as follows within the budget screen
   
2. Under Manage Worksheets> Budget Assignments you will now see an option to cascade your stock budget based on units
   
3. Launch a worksheet and you will see this cascaded budget reflected
   

Notes:

• We DO NOT support stock factor tables within an EC integrated template. You will get the following error
  
• We DO support cascading budgets for EC integrated templates, however the template cannot be stock only.
• We recommend using an EC integrated template with salary tab rather than using stock-factors as this can be accomplished through custom columns and lookup tables to split planned units into different allocation types
• If the requirement is to have the stock tab only, then the following will be a workaround (this workaround is only valid for non EC templates):
  1. Firstly, configure the stock template will all configuration, standard fields, custom fields, lookup tables etc
  2. In the template xml via provisioning add the following fields.
  <comp-field-definition id="unitsPerYear" isCustomField="false" isVisible="true" useFor="salary" readOnly="false" hidePercentage="false" hideAmount="false" percentageReadOnly="false" reloadable="false" displayOrder="0">
  <comp-field-label><![CDATA[EC unitsPerYear]]></comp-field-label>
  <comp-ect-input-field-map componentType="payComponentRecurring"/>
  </comp-field-definition>
  <comp-field-definition id="localCurrencyCode" isCustomField="false" isVisible="true" useFor="salary" readOnly="false" hidePercentage="false" hideAmount="false" percentageReadOnly="false" reloadable="false" displayOrder="1"><comp-field-label><![CDATA[EC localCurrencyCode]]></comp-field-label>
  <comp-ect-input-field-map componentType="payComponentRecurring"/>
  </comp-field-definition>
  <comp-field-definition id="curSalary" isCustomField="false" isVisible="true" useFor="salary" readOnly="false" hidePercentage="false" hideAmount="false" percentageReadOnly="false" reloadable="true" displayOrder="19">
  <comp-field-label><![CDATA[EC curSalary]]></comp-field-label>
  <comp-ect-input-field-map componentType="payComponentRecurring"/>
  </comp-field-definition>
  3. In the template xml define the budget as follows;
  <budget-calc useFor="stock" budgetOn="stock" mode="DirectAmount" basedOn="template" includeIneligible="false" prorating="false" hidePercentage="false" useFinalPayoutForVPBudget="false" applyRounding="true">0.0</budget-calc>
  4. Next, go into the plan within the UI and go into Budget configuration and update the attribute to be based on "planner" and save;
  5. Refresh the template (exit the plan and go back into it) and you will see Budget Assignment under "Manage Worksheets";
  6. Click on Budget Assignment and this will trigger a refresh of data which will take a minute;
  7. Once this is completed define your budget as required and launch a worksheet.

Viewing the Budget on the Template

The following was configured in Budget Assignment:

Only Direct Reports are visible: 

Then on the form budget Total will be only the value edited by admin/planner:

In Executive Review when all levels below are included in the filter:

• If "Include holdback amount in planner budget." is enabled, then holdback will be included and Budget Total will be all the value from Budget and warning on hold back is added to the panel.
  
  
  
• If "Include holdback amount in planner budget." is disabled, then the budget total will be the 45k defined for planner Andrea plus the 15k for Juan and 15k for Ignacio. Please note that on Andrea page she assigned 40k for Juan, but that will not be counted since Juan allocated only 15k.
  

Notes: 

• Executive Review supports the directAmount budget based on Planner only when the "Executive review: enable team budget view." option is enabled in the template's Advanced Settings. When this option is enabled it allows the budget whenever Team View is selected in the Population. Otherwise, if Population is All Employees it will show N/A regardless of feature being enabled in Advanced Settings.
• The message of holdback amount in the budget panel reflects the Unallocated/Holdback value from Budget Assignment page. That message cannot be removed if include holdback is enabled.

More can be found on the guides below:

• Budget Assignment
• Setting Up Budget Assignments in Plan Templates
• Setting Up Cascading Budgets

• Budget Calculations and Rules
• Budget Assignment
• Setting Up Budget Assignments in Plan Templates
• Setting Up Cascading Budgets

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