SAP ABAP IMG Activity MGE_00_PO_CPI (Define Compensation Package Items)
Hierarchy
☛ EA-HRRXX (Software Component) Sub component EA-HRRXX of EA-HR
   ⤷ PA-GE (Application Component) Management of Global Employees
     ⤷ PAOC_PAD_MGE (Package) Management Of Global Employees
IMG Activity
ID MGE_00_PO_CPI Define Compensation Package Items  
Transaction Code S_ALN_01000306   (empty) 
Created on 20011129    
Customizing Attributes MGE_00_PO_CPI   Define Compensation Package Items 
Customizing Activity MGE_00_PO_CPI   Compensation Package items 
Document
Document Class SIMG   Hypertext: Object Class - Class to which a document belongs.
Document Name MGE_00_PO_CPI    

In this step, you maintain the generic definitions of the compensation package items (CPIs) used in infotype Compensation Package Offer (0706) according to processor.

Note

You only need to convert those CPIs - upon transfer of the employee to the host country - required for payroll, while others are exclusively used during the CPI calculation. For this purpose, you must maintain a mapping table in the relevant activity (Maintain Mapping Table for Activation).

Example

A compensation package for a Middle East assignment could look like this:

  • Relocation allowance
  • Base salary (tax-free)
  • Expatriate premium
  • Housing allowance
  • Education allowance
  • Location Allowance (If the global employee is transferred to a location that is considered as a remote location by the employer.)
  • Annual home leave (paid holiday to return to your home country, usually on an annual basis and with eligible dependants)
  • Repatriation Allowance

Requirements

Identify the CPIs that have to be mapped to wage types according the company's global transfer policy.

Maintain calculation factors in Define Calculation Factors if required.

Standard settings

The SAP system is shipped with the most common CPIs. Click Details to view the characteristics. You are free, however, to add your own company-specific items.

  • Base Salary
  • Hypotax
  • SI Home
  • Base Net Home
  • Foreign Service Premium
  • Net spendable Home
  • Net spendable Host
  • Housing Allowance
  • COLA Host
  • Net Host pay
  • Tax/SI Host

Recommendation

Make a list of all the CPIs you need for your compensation package offer(s).

Activities

  1. Click New entries.
  2. Enter a 4-character code to uniquely identify the compensation package item and delimit the record.
  3. Enter a description.
  4. Either select an evaluation method or enter a fixed amount. If you enter an amount, you can also specify a minimum and a maximum amount to be checked against.
  5. Select the applicable currency.
  6. Select the country type for which the CPI is valid (home or host) and the frequency of payment.
  7. Set the indicator Worldwide Eligible if you want the compensation package item to be valid for any country.
  8. Set the indicator Overwritable if you want to eventually change the compensation package item in infotype Compensation Package Offer (0706).
  9. Depending on the CPI, set the payment type either to '+' or '-', which refer to payments and deductions, respectively.
  10. Save your entries.
  11. To define a calculation method for the CPI, go to Calculation Details in the dialog structure and click New entries.
  12. If the CPI is a simple combination of other CPIs, go to Calculation Details and click New entries. To perform more complex evaluations, implement your own evaluation method.
  13. Specify the operator. A '+' sign stands for a payment, a '-' sign for a deduction. Note, however, that although a deduction is marked as such in the compensation package, it is actually added to the original gross amount, as described below:
    • Gross salary (H1, positive)
    • Social insurance (H2, negative)
    • Net salary (H3, positive), consisting of H1(positive) and H2 (positive)
  14. Specify a calculation method, the applicable percentage and the compensation package item to be processed. For example, to calculate a cost-of-living allowance, you could specify that it should correspond to 10% of the net spendable income in the host country and that the standard calculation method COLI should be used.
  15. Delimit the record.
  16. Save your entries.
  17. To determine the validity of the CPI on the basis of assignment type, family status, country grouping and country, go to Eligibility: Home Country and Eligibility: Sending Country in the dialog structure and click New entries.
  18. Save your entries.

Further notes

Build up your company-specific CPIs in the following activities:

Define Evaluation Methods (if needed)

Once you have been through the above-mentioned steps, you must map the CPIs to the relevant wage types in the activity Maintain Mapping Table for Activation to ensure that the global employee gets paid correctly.

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 
Assigned Application Components
Documentation Object Class Documentation Object Name Current line number Application Component Application Component Name
SIMG MGE_00_PO_CPI 0 ALN0000081 Management of Global Employees 
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
VC_T76MGE_CPI C - View cluster SM34  
History
Last changed by/on SAP  20030312 
SAP Release Created in 110