2213814 - Variable Pay- Bonus Plan Gates and Accelerators

SAP Knowledge Base Article - Public

2213814 - Variable Pay- Bonus Plan Gates and Accelerators

Symptom

  • Variable Pay Bonus Plan Gates and Accelerators
  • How do you set it up?
  • How does it work?

Environment

  • Successfactors Variable Pay

Resolution

Gates are defined as a minumum performance level that must be met in order to payout an associated goal, component section, or the entire plan.  Gates are often tied
to the incentive plan's funding mechanism, such as revenue goals, and are used to ensure a minimum level of funding is achieved before there is a payout. They are
commonly found in self-funded incentive programs.

Accelerators, on the other hand are used to increase the incentive opportunity when certain performance is met or exceeded. When a participant meets their respective accelerator performance criteria target(s), the accelerator may apply to the payout of the individual goal itself, other goals, other incentive components (section), or the
total plan payout.

It is now available for Variable Pay only (VRP-2634). 

We support the following gate scenarios:
Apply Gate on other business goals
Apply gate on section (Team/Individual/Business)
Apply gate on final Payout

We support the following accelerator scenario:
Business goal acts as an accelerator on other business goal(s).

COST: Free
IMPLEMENTED: This is enabled by opening a support ticket and may require implementation partner to set it up.

How to turn on Gate/Accelerator

1. You have to go to admin center -> variable pay -> compensation home -> your Variable Pay template -> Plan Setup -> Settings ->
then in calculation settings section select Yes for Apply gates for business goals and or apply accelerators for business goals

 acceleratorkba.png

Can also be set in provisioning by adding the following configuration after <apply-multiplier-for-section-calc> element:

<apply-gates><![CDATA[true]]></apply-gates>

<apply-accelerators><![CDATA[true]]></apply-accelerators>

How to setup up the import file
This file must be a comma delimited file (csv format) and no special characters in the number fields like $,# etc.  Here's an example of what the file looks like:

Gate sample file 1 based on business goals:

BONUS_PLAN_NAME

GATE_GOAL_NAME

GATE_METHOD

MULTIPLIER

GATE_LEVEL

TARGET_GOAL_NAME

TARGET_PAYOUT_PERCENT_CAP

Senior Manager Incentive Plan

BU EBITDA

performanceMax

0.6

business_goal

EBITDA

0

Senior Manager Incentive Plan

Revenue

performanceMax

0.8

business_goal

EBITDA

0.7

Senior Manager Incentive Plan

BU Revenue

performanceMax

0.9

business_goal

EBITDA

0.5

You can base the gate on Individual/Business/Team section.  Here's an example of the import file using Individual Section
Gate sample file 2:

BONUS_PLAN_NAME

GATE_GOAL_NAME

GATE_METHOD

MULTIPLIER

GATE_LEVEL

TARGET_GOAL_NAME

TARGET_PAYOUT_PERCENT_CAP

Senior Manager Incentive Plan

BU Revenue

performanceTarget

0.9

Individual_section

 

0

Here's an example using Final Payout as the gate. Gate sample file 3:

BONUS_PLAN_NAME

GATE_GOAL_NAME

GATE_METHOD

MULTIPLIER

GATE_LEVEL

TARGET_GOAL_NAME

TARGET_PAYOUT_PERCENT_CAP

Senior Manager Incentive Plan

EBITDA

performanceMax

0.9

final_payout

 

0.7

 

If you're using multiple goal plans you must add a column with header: GOAL_PLAN_TEMPLATE_ID and add the corresponding ID for that goal plan where these entries
are coming from. Gate sample file 4:

example2.jpg

How to import Gate/Accelerator file (csv file)

You have to go to Admin Tools > Variable Pay > Compensation Home > Your VP Template > Plan Setup > Plan Details > Import and Export Business Goal Weights and then select Goal Gates or Goal Accelerators in Import File Type pick list.
how2impfile.png

During the import the system will verify the following: 
Whether the Bonus Plan Name exists in the program
If a gate/accelerator goal name exists in the program
If the goal has relationship with the bonus plan
If Gate/Accelerator method is valid (performanceMin, performanceLow, performanceTarget, performanceHigh, performanceMax)
If Target Goal exists in the program and has relationship with the bonus plan
After running the import the user will receive an email notification.  The email notification will show how many records were imported successfully and how many failed.

Run the "Calculate Bonus Payout"

Create Manager Form

Keywords

Bonus Plans , KBA , LOD-SF-CMP-VAR , Compensation Integration Issues with Variable Pay , How To

Product

SAP SuccessFactors HCM Core all versions