Using KPI For Increment & Bonus Payment

Dear Friends
I am new to KPI and intend to implement it as a performance management tool for my company.
I would like to know if KPI can be used for both increment / promotion exercise and bonus? If so, do you set different KPIs?
It will be great if you could share with me on how the KPI would be used as a weightage to assess an employee.
Thanks and best rgds
Babyboomer

I am sorry for my acid but fair comment that tools like KPI etc are an eye wash.
Increments are given based on likes and dislikes of the Superiors; the KPI and other tools are used to aid these decisions. They do not judge a person's productivity or contribution.
HR dept may invest a lot in all such tools, but it is impossible to eliminate subjectivity from such assessments.
On the whole, use of such tools turns out to be banner-raiser exercise for HR and nothing else.