SAP ABAP IMG Activity HR_ECM_00_AD_002 (Define Compensation Plans)
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_002 Define Compensation Plans  
Transaction Code S_ALN_01001498   (empty) 
Created on 20030219    
Customizing Attributes HR_ECM_00_AD_1_1   Compensation Administration - Mandatory - Critical 
Customizing Activity HR_ECM_00_AD_002   View V_T71ADM02 
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name HR_ECM_00_AD_002    

In this step, you define compensation plans.

A compensation plan is a key entity within the Compensation Administration component and is used for calculating the new amount or percent increase for a salary component following a review. From a technical point of view, a compensation plan is used to link guideline, rounding rule and eligibility rule to the compensation process. It also helps you determine in which wage type and infotype the compensation amount or number should be stored, as described below.

Compensation plans can be assigned one of the following fixed compensation categories:

  • Salary Adjustment
    If selected, infotype Basic Pay (0008) is updated accordingly on activation of infotype Compensation Process (0759).
    Example
    Annual merit-based or hourly wage increase.
  • Regular bonus
    If selected, infotype Additional Payments (0015) is updated accordingly.
    Example
    Individual performance-based bonus or profit-sharing bonus.
  • Off-cycle bonus
    The off-cycle payments functionality enables you to perform one-time payments without having to wait until the next payroll period. If selected, infotype One-Time Payments Off-Cycle (0267) is updated accordingly.
    Example
    Spot bonus for outstanding performance.
  • LTI grant
    If selected, the plan is copied to infotype LTI Grant (0761).
    Example
    1000 granted stock options.

Example

Requirements

Standard settings

Recommendation

Determine the compensation plans that are required in your organization.

Activities

  1. Choose New entries.
  2. Enter a 4-character code and a description.
  3. Select the relevant compensation category.
  4. Save your entries.
  5. Repeat the previously mentioned steps for any further compensation plans.

Further notes

Compensation plans are country-independent and can therefore be used in more than one country. The attributes of compensation plans, however, are country-specific. For more information, see Assign Compensation Review Item Attributes.

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_T71ADM02 V - View SM30  
History
Last changed by/on SAP  20030219 
SAP Release Created in 200