How to configure salary adjustments in oracle Fusion HCM Compensation

Friends ,in this article we will see, how to configure salary adjustments in oracle Fusion HCM Compensation. It will provide understanding to set up, use, and report on salary components, which allows you to
itemize salary adjustments into different types in oracle fusion

First, you see how to set up salary components using the Manage Salary Basis task. Then, you see how to allocate the adjustment amounts by components using the Manage Salary task. Finally, you see how these adjustments can be tracked in a repot

Be aware that Salary components in oracle Fusion HCM Compensation are not allowances or base pay constituents. Salary components enable you to categorize adjustment amounts. Configure salary components to itemize salary adjustments into one or more components that reflect different reasons for the change.

Manage Salary Basis: Setup in oracle Fusion HCM Compensation

Salary components are optional. You define salary components using the Manage Salary Basis task. You decide whether all of the components show when adjusting salary or only certain components.

This example configuration has six components that managers can use to track salary adjustments. You can add to the components delivered in the CMP_SALARY_COMPONENTS lookup type using the Manage lookups task in the Setup and Maintenance work area.

Manage Salary: Transaction

Salary components enable you to categorize adjustment amounts. Managers adjust salaries by entering an
adjustment percentage or amount for each applicable available component.

This example adjusts the salary amount using three components. The three component amounts sum to a total adjustment amount of 2000 USD. They do not sum to the total salary amount of 24,000USD.

Salary Adjustment Reports

You can report on worker salary adjustments using Oracle Transactional Business Intelligence. You can create
detailed reports for workers and various summaries for organizations.

Details report

Summary report

Conclusion

Salary Components are optional. They provide a way to track salary adjustments only, and are not to be confused with base pay definition mechanisms, such as rates of pay or multiple components of pay.