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Administrator Guide
Last Updated: 2024-11-01
Example: Set Up Allowance Plan for Health and Fitness Expenses

Example: Set Up Allowance Plan for Health and Fitness Expenses

This example illustrates how to configure an allowance plan to enable employees to claim monthly reimbursement for health and fitness expenses.
Your company is planning a health and fitness initiative for employees, starting on the first day of the next calendar month. You want to set up an allowance plan that enables U.S. employees to claim 50 USD monthly for health and fitness expenses, such as gym membership.
Set up:
  • Compensation components, grades, and rollout reasons.
  • Compensation eligibility rules for U.S. employees.
  • Segmented security groups for unrestricted expense items.
  • Spend categories.
Security:
  • Set Up: Expense Item Security Segments
     domain in the System functional area.
  • Set Up: Base and Plan
     domain in the Core Compensation functional area.
  • Set Up: Expense Item
     domain in the Expenses functional area.
  1. Access the
    Create Expense Item
     task.
    1. In the
      Summary
       section, enter these values:
      Option
      Description
      Item Name
      Health and Fitness (U.S.)
      Spend Category
      Select.
    2. In the
      Processing
       section, select
      Based on Allowance Plan
      .
    3. Click
      OK
      .
  2. Access the
    Edit Expense Item Security Segment
     task.
    1. On the
      Expense Item Security Segment
       prompt, select an unrestricted security segment.
    2. Click
      OK
      .
    3. On the
      Expense Item
       prompt, select
      Health and Fitness (U.S.)
      .
    4. Click
      OK
       and
      Done
      .
  3. Access the
    Create Allowance Plan
     task.
    1. On the
      Effective Date
       prompt, select the current date.
    2. Select the
      Reimbursable
       check box.
    3. Select
      Amount Based Plan
      .
    4. Click
      OK
      .
    5. In the
      Details
       section, enter these values:
      Option
      Description
      Plan Name
      Monthly Health and Fitness Expense (U.S.)
      Expense Item
      Health and Fitness (U.S.)
      Expense Accumulator
      Month with Custom Start Date
    6. In the
      Allowance Defaults
       section, enter these values:
      Option
      Description
      Amount
      50
      Currency
      USD
      Frequency
      Monthly
      No Override
      Select the check box.
    7. Click
      OK
       and
      Done
      .
  4. Access the
    Rollout Compensation Plans to Employees
     task.
    1. Enter these values:
      Option
      Description
      Process Name
      Monthly Health and Fitness Expense (U.S.)
      Effective Date
      Enter the current date.
      Reason
      Select.
      Compensation Plans
      Monthly Health and Fitness Expense (U.S.)
      Reimbursement Start Date
      Select the first date on the next calendar month.
      By Compensation Eligibility Rule
      Select a rule for all U.S. employees.
    2. Click
      OK
       and
      Done
      .
U.S. employees can submit expense reports that include the
Health and Fitness (U.S.)
 expense item.
  • Configure automatic approval for expense reports that include the
    Health and Fitness (U.S.)
     expense item.
  • Schedule an end date for the allowance plan.