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Knowledge @ Adaptive Insights LLC, a Workday Company

Circular reference error for a bonus calculation

Question

We are planning a bonus program which would contain an element of income (after bonus). For example, 50% of your periodic bonus is based upon the achievement of a net income number (after bonus expense). If you enter such a formula into Adaptive Insights (or even Excel), you would get a circular error. Is there a workaround for this?

Answer

You can create a Custom account called Net Income before Bonus. The Custom account then holds a formula with all of the components of Net Income except for the bonus account. You may have to create additional groupings under Salaries & Benefits, such as Salaries before Bonus, Benefits, and a separate line for Bonus. Your formula should NOT include the bonus account.

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