Compensation Agreements Single Dialog Workspace
Use this workspace to set up compensation agreements with employees, board members, and others.
Compensation includes standard salaries, bonuses, and company cars. The compensation of each employee and board member in your system can include more than one of these forms. You can therefore set up multiple compensation agreements to calculate in various ways.
The Compensation Agreements tab displays information about the currently selected contact person. Use the Compensation Agreements sub-tab to create a line for each compensation agreement that you make with the contact person.
Before you create a compensation agreement in this workspace, create the person for whom this agreement is intended using the Contact Persons workspace in the Contact Management module. A contact person is any type of person who is related to the company, including employees, board members, partners, and so on.
- The number of a specific compensation type — Created in the Compensation Agreement Types workspace, the compensation type is a compensation agreement template from which Maconomy retrieves certain default information when creating agreements.
- The effective period of the agreement.
- The time unit to use.
- The frequency with which compensation is paid.
- The value of the agreement — For example, the amount offered as salary in the currency specified in the line.
When an agreement becomes invalid, for example, because it was renegotiated, add the lines for the new period but do not delete the existing lines. If necessary, change the ending date of the existing lines.
Maconomy uses the length of the period, the frequency, and the time unit to calculate a total agreement value, or the total amount that the agreement represents. If you enter a total agreement value for the whole period, Maconomy calculates the value per time unit. For more information, see the description of the Time Unit and Amount, Currency fields.
The value that you enter for a compensation agreement does not need to be a fixed amount. It can also depend on the value of another agreement. For example, a compensation package can consist of a fixed salary of 5,000 (in the monetary currency used) plus an additional 10% of the salary as a bonus. To prepare a template for this type of package, use the Compensation Types workspace to create a compensation type with one or more subordinate compensation types. When you enter this compensation type in a compensation agreement line, Maconomy automatically creates an agreement line for each subordinate compensation type and assigns each line to the agreement line that contains the main compensation type. All you need to do is enter the value for the agreement line with the main compensation type and the relevant percentages or values for the automatically created agreement lines. To continue the preceding example, the compensation agreement would consist of a line with the value 5000 in the Amount, Currency field, and another line whose value in the Parent Agreement field refers to the fixed salary line (that is, the agreement line that contains the main compensation type) and contains the value 10 in the % field. As an alternative, enter the target value of the dependent agreement (500) and have Maconomy calculate the percentage (10%) based on the target value and the fixed amount (5,000).
After you enter one or more compensation agreement types with subordinate compensation types in the Compensation Agreements sub-tab, add any number of additional agreements where you enter a subordinate type. Maconomy then automatically assigns the new line to the line that has the relevant main compensation type and calculates the value of the new line based on the value of the line that has the main compensation type. For more information about setting up compensation types, see the description of the Compensation Types workspace.
You can only delete a given line in this workspace if no other lines in the Compensation Agreements sub-tab refer to this line in the Parent Agreement No. field.