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EPBCS: Workforce - Impact of Simplified Merit Increase on Merit Rate Calculations (Doc ID 2392269.1)

Last updated on SEPTEMBER 13, 2019

Applies to:

Oracle Enterprise Planning and Budgeting Cloud Service - Version 18.04.62 and later
Information in this document applies to any platform.

Purpose

This article contains important information regarding changes to Merit Rate calculations that will impact using the out-of-box Merit functionality, and potentially even modified logic, as a result of the introduction of the Simplified Merit Increase enhancement in the April (18.04) monthly patch update.

Here is the text for Simplified Merit-Based Planning from the April 2018 What’s New document:
In the Workforce business process, you can now set default percentage rates for merit increases and apply them to other entities. The merit increase for the year is included in the base salary calculations of that year and carried forward into the base salary for subsequent years. Planning merit rates by entities enables you to calculate salaries that include merit increases when performance ratings aren’t available. This capability also lets you plan merit rates at a more generic level than basing the merit rates on performance ratings.

To plan merit rates at the entity level, select Compensation Planning, then the the Assumptions tab, and then the Merit Rates form. Select the entity, and then enter the merit rate percentage into the new Default Merit member.

A new business rule—Copy Merit Rates— enables you to copy merit rates from one entity to other level 0 entities based on the members selected in the rule prompt. Access the rule from the Action menu on the Merit Rates form, and in the rule prompt, select the parent or child entity member whose merit rate you want to copy and the target level 0 member to copy the rate to. Selecting a source parent member enables you to easily push merit rates.

Also here is an important “Note” from the User’s Guide for Planning Merit Rates:
Note: Merit rates must be set at the level 0 entity level, whether they're based on performance rating or the Default Merit member. If managers enter merit rates at the company Assumptions (No Entity) member, the rates aren't effective until they're copied or added to specific level 0 child members of Total Entity. Individual entity owners can use the rule Copy Merit Rates and then modify the rates if needed.

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