As an Admin, you can now fix the scope of FBP components for the employees, by defining policies. Employees can choose from the various FBP components that are offered to them. But they can declare these components only based on the policies that you predefine as an Admin.
To define policies for the FBP components, perform the following steps:
Navigate to System Settings > Payroll > FBP Policy. The FBP Policy page appears. The existing FBP policies are displayed if any.
Figure 1: Creating a FBP Policy
Click Add Policy to create a new policy. A section appears displaying the Policy Name and Effective From text boxes.
In the Policy Name text box, type a name for the policy.
In the Effective From field, choose the effective date from the calendar that appears. Effective date can be a present day or a future day and the policy is considered effective from the day that you choose in the calendar.
Click Save. The policy is created and appears on the FBP Policy page with status In Progress and icons to edit the header, edit the policy and delete the policy.
To define the policies, click the Edit Policy icon (). The FBP Policy setup for <Policy name> page appears displaying the existing list of components.
Click any of the components and then select one of the following four check boxes to define a policy for the component:
Mutual Exclusion—When you define a component as mutually exclusive, then the related components that cannot be further declared must also be defined. For example, let us consider Driver Allowance and Conveyance Allowance as mutually exclusive components. Then while defining Driver Allowance, you must also define Conveyance Allowance. Based on this policy, employee can declare any one of the mutually exclusive components.
Quantity Based—While defining a component as quantity based, you also need to mention the base vaue for the component. Based on the base value that you set and the quantity that employee chooses, the declaration amount is determined. For example, let us assume you have defined Food Coupons as a quantity based component with a base value of Rs. 500. So, when employee chooses five booklets of food coupons, the declared amount is considered to be, Rs. 500 * 4 = Rs. 2000.
The declared amount has to fall within the entitled amount. If in case the declared amount goes past the entitled amount, then only the amount that falls within the entitled amount is considered as declared.
Opt In—You can mark a component as Opt In. If employee opts for a component, then the entitled amount for that component, is automatically considered as declared amount for the employee. Employee cannot modify this amount. For example, if the component, Food Coupons, has an entitlement of Rs. 1500 and you mark it as an Opt In component, then the complete entitlement, that is Rs. 1500 is considered the declared amount for the employee.
You can either define a component as Quantity Based or Opt In.
Dependant—When you define a component as dependant of as dependent on other components, then either all or any of its dependent dependant components must be declared. For example, if you define Driver Allowance as dependant of dependent on Car Maintenance Allowance, then while declaring Driver Allowance, employee must have already declared Car Maintenance Allowance.
Figure 2: Defining a Policy for a Component
Click Save. A message appears prompting you that the policy is successfully created.
To define policy for any other component, click that particular component.
To go back to the FBP Policy page, click Cancel.
Once you have created some policies, these policies appear on the FBP Policy page displaying the Effective From date, along with some options and icons. The following table, , explains the various status and actions associated with a policy.
TableTable 1: Status and Actions Associated with a Policy
Indicates that the effective date of the policy is yet to come
Indicates the current policy that is being implemented
Note: Once the active policy is paused, no policy is applied to the FBP components and the previous version of FBP gets applied.
Pause a policy
View a policy
Clone a policy
Indicates that the active policy has overtaken the particular policy based on the effective date