SAP ABAP IMG Activity HR_ECM_00_AD_001 (Define Compensation Areas)
Hierarchy
EA-HRGXX (Software Component) Sub component EA-HRGXX of EA-HR
   PA-EC-AD (Application Component) Compensation Administration
     PAOC_ECM_ADM_BL (Package) Compensation Administration - Business Logic
IMG Activity
ID HR_ECM_00_AD_001 Define Compensation Areas  
Transaction Code S_ALN_01001496   (empty) 
Created on 20030219    
Customizing Attributes HR_ECM_00_AD_1_1   Compensation Administration - Mandatory - Critical 
Customizing Activity HR_ECM_00_AD_001   View V_T71ADM01 
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name HR_ECM_00_AD_001    

In this step, you define compensation areas. A compensation area is a key entity within the Compensation Administration component and is used throughout Customizing, thus affecting eligibility and guidelines. It enables you, via infotype Compensation Program (0758), to group employees belonging to different countries or organizational units but with similar or identical compensation processes, as described in the examples below. As a result, employees could belong to more than one compensation area.

Note

Compensation plans and reviews are defined regardless of the compensation area, whereas their attributes (such as eligibility, guidelines, processing and budgets), are area-dependent.

Example

You could define the following compensation areas:

  • Compensation area Worldwide, valid for all employees worldwide who meet the eligibility rules of a specific plan (for example, a global stock option plan).
  • Compensation area Germany, valid for all employees based in Germany (for example, the salary review of the German subsidiary).
  • Other compensation areas could refer to marketing, sales or other departments.

Requirements

Standard settings

The SAP System is shipped with a set of sample compensation areas that you can change to meet your company-specific needs.

Recommendation

Determine the compensation areas that are required in your organization. It is recommended that you keep them to a minimum as eligibility is mostly performed through eligibility and guideline groupings.

Activities

  1. Choose New entries.
  2. Enter a two-character code and a description.
  3. Save your entries.
  4. Repeat the previously mentioned steps for any further compensation areas.

Further notes

You can set a default area for a specific group of employees by means of feature Compensation Area (CARGP) in the step Define Compensation Area Feature.

Business Attributes
ASAP Roadmap ID 203   Establish Master Data 
Mandatory / Optional 1   Mandatory activity 
Critical / Non-Critical 1   Critical 
Country-Dependency A   Valid for all countries 
Maintenance Objects
Maintenance object type C   Customizing Object 
Assigned objects
Customizing Object Object Type Transaction Code Sub-object Do not Summarize Skip Subset Dialog Box Description for multiple selections
V_T71ADM01 V - View SM30  
History
Last changed by/on SAP  20030219 
SAP Release Created in 200