Enter Budgeting Method Details
Explanation
This activity is used to enter the Budget Distribution Method. Budget
distribution type determines the way in which the salary review increments
are calculated. The budget distribution type can be entered in 3 ways:
- Total Budget - This method can be used if the total budget for the
review period is know in advance. Total Budget =
Salary Increment + Current Salary.
- Increment Percentage or Amount - Enter either the Increment
percentage from which the salary should be increased or the Salary
Increment Amount. When either is entered the other field will be filled.
- Equal Increment Amount for All Employees - Enter the equal increment
amount / flat increment amount that should be circulated among all the
employees.
When any of the fields are filled eg: Amount field (of the Total Budget
option is filled) the other option fields like Increment %, Increment Amount
and Amount fields will automatically get their calculated values.
Prerequisites
- Factors like Current Salary, Employees Considered for Review
(initially derived) are required for the internal calculations.
System Effects
- At the end of this process the New Salary Budget, Salary Increment
Budget and the Salary Increment % wil be obtained.