This article explains how to close an active compensation plan period and how the approved new salaries are written to the employees' wage records. Users with the COMPENSATION_MANAGE permission do this.
Before you start
Make sure the approval of the raise proposals is complete. Check the Approval Process and Waiting Data Entry counts in the status tabs of the Employees list.
Only proposals with the Approved or Revised and Approved status are written to wage records. Proposals left in draft or in approval are not applied.
Step by step
In the left menu, go to Pay and expenses > Compensation and select the plan in the Compensation Plans list on the left.
Check Total Budget, Total Employees, Average Salary, Average Raise and Pending Reviews in the summary cards at the top. Pending Reviews is the number of employees in the plan who have no proposal yet or whose proposal is Draft or Waiting Data Entry.
Choose Close Period from the plan's ⋮ menu.
Click Close Period in the window that opens.
Result
The plan's status becomes Closed and no changes can be made in the closed period. For each approved employee:
A new wage record is added to the employee's wage information (the Wage section of the employee card). The amount, currency and salary type are the new salary of the proposal; the change reason is Salary Increase.
The change date of the new record is the date the proposal was approved. The wage record valid until then ends on this date.
Number of children, spouse working status and IBAN are copied from the previous wage record.
Payroll reads the employee's salary from these wage records. The new salary therefore enters the calculation from the payroll period in which the change date falls (Payroll). Closing the period sends no email or notification.
Reopen the period
If you need to correct a closed plan, choose Reopen Period from the plan's ⋮ menu and click Reopen Period. The plan becomes Active again. It cannot be reopened if another plan is active for the same year.
When you make the correction and close the period again:
Wage records written earlier from this plan are updated with the current proposals.
For a proposal that is no longer approved, the wage record written at the previous close is deleted and the employee's previous wage record becomes valid again.
Common problems
Symptom: The period is closed but an employee's salary did not change.
Cause: The employee's proposal was not approved at the time of closing, or the new salary was empty.
Solution: Reopen the period, get the proposal approved and close the period again.
Symptom: Close Period is not in the menu.
Cause: The plan is not Active. Only active plans can be closed.
Solution: Complete a draft plan with Edit first to activate it.
Symptom: The new salary started in payroll in a different month than I expected.
Cause: The change date is the date the proposal was approved.
Solution: If you need a different start date, check the record in the employee's Wage section or create a salary change request.