“View Bonus Calculation”: A Quick and Easy Bonus Report
If you’ve ever had a hard time understanding how Workday is calculating the bonus of an employee, based on the proration rules, rounding rules, scorecard weightings, multiple factors, or more, you’ll be pleased to know that you don’t need to look far!
All Workday HCM clients have access to a delivered XpressO report called View Bonus Calculation which will display the breakdown of an employee’s bonus calculation. This report should be your first stop to understand how your bonus plans are configured and the bonus awards are calculated.
Why use the View Bonus Calculation report?
- It eliminates the need to perform calculations outside of Workday in an external sheet. These manual calculations may not be accurate because the bonus plan contained within Workday contains various proration rules, multiple scorecard weightings, etc.
- It helps users to understand where Workday applies the rounding rules
- It offers a place to find related fields that you can utilize in other reports, calculations, and compensation statements, versus attempting to find or build your own custom and complex calculated fields.
How do I run the View Bonus Calculation report?
Although there’s no configuration required for the report itself because it’s Workday-delivered, you’ll need to ensure the appropriate security groups are granted View access on the “Process: Compensation Management Events” domain.
Then users simply need to do the following in the Workday tenant:
- Search for and select “View Bonus Calculation” to view available report prompts
- Select a Compensation Review event. This can be an in-progress event, a completed event, or a bonus accrual estimate run*
- Search for and select the organization that the employee belongs to
- Select the employee from the drop-down
- Select the employee’s bonus plan from the drop-down
*This report can also be used to pull in Bonus Accrual Estimates. Bonus Accrual Estimates are used to estimate bonus costs using the same initiation parameters as a periodic compensation review and can be configured using the task “Maintain Bonus Accrual Estimates”.
Once the report is run, users will be able to see how Workday has calculated the following:
- Total Bonus Target Amount
- Bonus Actual Amount
- Discretionary Target Amount
- Nondiscretionary Target Amount
- Sum of Proration Segments
The View Bonus Calculation report is dynamic meaning that, if there is an in-progress compensation review event present, users will be able to obtain the Live data. For example, a Compensation Planner might be in the middle of making a change at the time it is run. If the report is refreshed for the employee being modified, the new bonus actuals will be displayed at the moment. Similarly, if Scorecard Results are edited and weightings are applied, the new or latest bonus calculations will be shown.
This report can also be extremely useful for validating proration or troubleshooting. For example: it will show the proration segment with start and end dates, for as many segments that are present, and will return one row per proration segment. If a user clicks into the “Proration Percent” hyperlink, it will show them which transaction is the driver behind the proration segment calculation.
For any organization using bonus plans in their Compensation Review Process or Bonus Accrual Estimates, this Workday-delivered report is definitely worth checking out! If you need support with this or any other Compensation report, Kognitiv would love to hear from you.
