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Enterprise Compensation Management
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Date created:
August 26, 2013
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Enterprise Compensation Management
Purpose
Enterprise Compensation Management (PA-EC) is a comprehensive solution, combining both SAP backend and web-based technologies, that helps you:
Plan remuneration policies effectively and keep costs under control while remaining competitive.
Motivate and retain your employees, allowing them to contribute to the success of your company.
Create and allocate budgets.
Handle job pricing with the salary survey tool.
You can either implement the current component, Enterprise Compensation Management (PA-EC), or migrate the old component, Compensation Management
(PA-CM). However, you cannot execute the old and new components at the same time.
Note
SAP does not provide a standard migration tool. You can, however, perform a migration on a customer-specific basis. The details of such a migration process
should nonetheless be worked out in cooperation with consulting resources. For more information, see also the related section in the release note for Enterprise
Compensation Management.
Implementation Considerations
Enterprise Compensation Management enables individual Customizing and thoroughly explains how you can configure your system. Example entries show you
which changes you can make to make suitable adjustments for your requirements. For more information, refer to the Customizing for Enterprise Compensation
Management (PA-EC).
To implement this component, you must first activate it in your system. To this end, in Customizing for Enterprise Compensation Management (PA-EC), choose
Global Settings Activate Enterprise Compensation Management. By doing so, you grant users access to the related functionality and ensure that the correct
interfaces for other components for example, Objective Setting and Appraisals are called.
Integration
To use Enterprise Compensation Management, you are required to have implemented the following components:
Personnel Administration
You can call and update employee master data.
Organizational Management
You can set up an organizational structure for budgeting, determining line managers and selecting employees.
Payroll
You implement and configure payroll on a country-specific basis to ensure that compensation data and LTI (tax-)relevant information is written to the correct
wage types.
Also, you can benefit from:
Manager Self-Service
Line managers are taken through the entire compensation process. Similarly, employees can view their Total Compensation Statement (TCS) in Employee
Self-Service whenever required.
Personnel Cost Planning and Simulation
You can generate compensation budgets based on results from Personnel Cost Planning and use compensation guidelines for Personnel Cost Planning.
Personnel Development Appraisal Systems (previous component: PA-PD-AP) or Objective Settings and Appraisals (new component: PA-PD-PM).
You can use appraisal results to measure employee performance.
Data Extraction
Use SAP Business Information Warehouse or the SAP Query functionality to perform queries on the various compensation infotypes.
Features
Enterprise Compensation Management covers the following areas:
Compensation Administration
Use this component to handle compensation reviews effectively, whether they are for fixed/variable pay or for long-term incentives. Extensive customizing
capabilities allows you a great deal of flexibility with regard to guidelines, proration and eligibility.
Long-Term Incentives
Use this component to:
Set up equity compensation plans.
Define vesting and exercising rules.
Grant awards to your employees.
Cancel LTI plans.
Export LTI grant and participant data to the bank or broker via a custom interface, if desired.
Import up-to-date exercising data from the bank or broker via the same interface.
Transfer tax-relevant exercising data to Payroll.
Budgeting
Create and maintain budget structures that reflect the organizational structure for different budget types and periods.
Create, delete and rename individual budget units in the budget structure.
Assign, re-assign and move budgets within the budget structure.
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Perform top-down budgeting.
Perform bottom-up budgeting
Change or update budget values, including mass percentage changes.
Import data from Personnel Cost Planning (PCP)
Manage budgeting of Long Term Incentives (LTIs)
Check and release budgets.
Job pricing
Export company compensation data to salary survey providers.
Import and store survey data from multiple salary surveys into the SAP System.
Match internal jobs against survey jobs from multiple salary surveys.
Age and weight market data.
Determine composite market results.
Compare internal salaries against survey market data.
Adjust internal salary structures.

Compensation Administration
With Compensation Administration, you can plan and process changes to compensation.
Integration
To use this compensation administration, you must have implemented the following:
Personnel Administration
You can access and update personnel data.
Organizational Management
You can define an organizational structure for determining line managers and selecting employees.
Payroll
You can disburse compensation.
Prerequisites
You have made all the necessary Customizing settings for Enterprise Compensation Management under Compensation Administration.
Additionally, you must have implemented the relevant Business Package and performed the necessary customizing for Manager Self-Service.
Features
Compensation Administration consists of a number of functions, including:
Preparation of the compensation planning process
In Customizing under Settings for User Interface and Process and in the SAP menu, you can do the following:
Customizing: Determine details about your compensation process (for example: process type)
SAP menu: Prepare planning process (see Administer Org. Units and Budgets for Comp. Planning Process) and determine the relevant budgets
If you want to use budgets for compensation planning, you must make the required Customizing settings.
Budgeting
For more information, see Budgeting in Enterprise Compensation Management.
Go to Comepensation Administration Compensation Plans and Reviews Assign Attributes to Compensation Review Items.
If neither a budget type nor a budget period are entered, no budget is used for this compensation plan and no budget is displayed in the Web applicationn.
SAP Menu: Inform managers of the start of compensation planning (see Notify Managers)
Web Dynpro applications for compensation planning and compensation approval
You make the settings for the user interface and the process in Customizing.
You start the Web Dynpro application in Manager Self-Service to perform compensation adjustments.
Managers can use the following applications:
Compensation Planning
Compensation Approval
Compensation Planning for Individual Employees
Employee Compensation Profile
Planning Overview
Compensation Comparison
Compensation Information
For more information, see the documentation.
Reports for monitoring
In the SAP menu, you get an overview of the current process status in compensation planning as well as an overview of changes to the data in the system.
For more information, see the documentation for Monitoring Reports in Compensation Administration.
Reports for follow-up activities
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You can activate, adjust, or print an overview of the planned compensation adjustments in the SAP menu.
For more detailed information, see the documentation:
Activate Compensation Reviews
After the compensation reviews have been activated, the compensation adjustments can flow into payroll.
Adjust Compensation Process Records (RHECM_ADJUST_0759)
Change Compensation Process Status (RHECM_CHANGE_PROC_STATUS)
Update Basic Pay from Planned Compensation (RHECM_UPD_link_0001_0001_0001)
Compensation Review Statement (RHECM_PRINT_CRS)
Delete Comp. Planning History Data (RHECM_DELETE_HISTORY_DATA)

Objects in Compensation Administration
The following objects are significant:
Compensation Areas
Compensation Plans and Categories
Compensation Reviews
Compensation Review Items
Compensation Programs
Eligibility
Guidelines
Process Status
Process Type

Compensation Areas
A compensation area is a key entity that allows you to group employees belonging to different countries or organizational units but with similar or identical
compensation processes. It describes a geographical and/or a logical set of employees and organizational units in which the compensation process is similar or
identical. It can be assigned to one or more countries, a country can be assigned to one or more compensation areas; employees can be assigned to more than
one compensation area at the same time.
In the SAP System, compensation areas are used in the infotypes Compensation Programs (0758), Compensation Process (0759) and Compensation Eligibility
Override (0760).
Example
Compensation area Worldwide, valid for all employees worldwide who meet the eligibility rules of 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.
Compensation Plans and Categories
A compensation plan is a key entity that allows you to calculate the new amount or quantity of a salary component following a review.
Compensation plans are assigned to compensation categories, which help you determine which master data records are updated/generated on activation of
infotype Compensation Process (0759):
Salary Adjustment
If selected, infotype Basic Pay (0008) is generated accordingly.
Example
Annual merit-based or hourly wage increase.
Regular bonus
If selected, infotype Additional Payments (0015) is generated 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
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Additional Off-Cycle Payments (0267) is generated accordingly.
Example
Spot bonus for outstanding performance.
LTI grant
If selected, infotype LTI Granting (0761) is generated.
Example
1000 granted stock options.
Compensation Review Processing
Determines which group of compensation plans is processed within a certain period (the compensation review period).
A compensation review may include salary adjustments, various bonuses, and long-term incentives (LTIs). In addition to period-dependent reviews, you can also
define spot reviews to reward employees for outstanding performance. Spot reviews can be processed anytime and as often as required.
For each compensation review, you can define:
A review period, that is, the period during which the line manager is allowed to process a compensation plan in Manager Self-Service , for example, from
January until February of each year. If not specified, no restrictions apply.
A selection period to retrieve a group of employees for compensation processing.
A key date used to uniquely define the organizational assignment of the employee for the compensation review.
Example
You have planned the yearly comepensation review for employees between January and March on a common date. The compensation review contains the
following plans:
Annual merit-based salary.
Annual Incentive Plan.
Awards.

Compensation Review Items
Compensation review items are unique combinations of compensation plans and reviews, defined as subtypes of infotype Compensation Process (0759).
Example
Salary review 2003
Profit-sharing bonus 2003
LTI grant 2003
Compensation Programs
A compensation program is a set of compensation plans assigned to a combination of first and second compensation program groupings in infotype
Compensation Programs (0758). Groupings help you differentiate employees for compensation purposes on the basis of various attributes. By doing so, you
control macro eligibility and determine whether or not employees belonging to different combinations are eligible for different compensation plans.
Example (first compensation program grouping)
Executive / Non-executive
Salaried / Hourly paid
Example (second compensation program grouping)
Full-time / Part-time
Active / Retiree
Eligibility
Two new concepts have been introduced with Enterprise Compensation Management regarding eligibility: macro eligibility, which refers to the high-level criteria
an employee needs to fulfill in order to participate in a compensation plan (An employee is macro eligible for a compensation plan if the plan is part of his/her
compensation program at least one day of the evaluation period.), and micro eligibility, that is, the criteria an employee needs to fulfill in addition to macro eligibility
in order to participate in a compensation plan.
For this purpose, you can define:
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Eligibility groupings for grouping employees with common characteristics, for example, Managers, All employees, Salaried employees only and Hourly paid
workers only.
Eligibility rules for determining whether employees are eligible for a compensation plan on the basis of various criteria.
Note
You can also override eligibility criteria at the employee level by maintaining infotype Compensation Eligibility Override (0760).
Example
Macro eligibility: an employee has moved to a new position and is consequently eligible for new compensation plans.
Micro eligibility: an employee must have reached his/her performance goals.

Guidelines
A guideline is a calculation rule that helps you determine the default amount, percentage or number suggested in Manager Self-Service. Additionally, you can
use guidelines to establish minimum and/or maximum limits to be checked against and to instruct the system how to proceed when you exceed these limits.
Guidelines can be assigned to one or more compensation plans. Guideline results depend on various employee criteria, as, for example, when you use a matrix
guideline.
Suppose you wish to set a default percentage for salary adjustments or bonuses. To ensure that the Line Manager does not exceed the allocated budget, you
also specify a minimum limit of 2.5% and a maximum limit of 10%. For LTI grants, the same procedure is applicable, only the unit changes a number is
applied, rather than a percentage.
Guidelines can be prorated, if necessary, in cases where employees fulfill the eligibility requirements of a particular compensation plan only during a portion of
the evaluation period for example, due to job-related events, such as a recent hiring or change in position. This part of the evaluation period is called the
program period. The Compensation Program infotype (0758) is used to determine the compensation program groupings and whether the infotype record validity
corresponds to the program period.
Proration can be based on either days or months.
To calculate the proration factor for days, the following formula is used:
Proration factor = number of days of program period / number of days of evaluation period
To calculate the proration factor for months, the following formula is used:
Proration factor = number of months of program period / number of months of evaluation period
Rounding rules apply to prorations based on months. For example, if the evaluation period is three months and five days, it would make sense to round the period
up or down. In the first case, the period would be rounded up to four months, while in the second case it would be rounded down to three months.
The final result is calculated with the following formula:
Rounding (proration factor x guideline)
If you have held two different jobs and you are eligible for compensation according to the Compensation Program infotype (0758), the total guideline value would
be the sum of the prorated values.
You may modify existing compensation matrices, if desired, by adjusting their guideline values as of a specified key date. Where applicable, you may adjust,
by a percentage of your choosing, any of the following guideline values.
the default, minimum or maximum guideline amount.
the default, minimum or maximum guideline percent.
the default, minimum or maximum guideline number.
To do so, in Customizing for Enterprise Compensation Management (PA-EC), choose Compensation Administration Guidelines Matrix Assign
Matrix Values, then choose the Adjust values function button in the resultant activity.
Process Status

The status of the organizational unit in the compensation process.

An organizational unit can have one of the following statuses:
Not Relevant
Neither the organizational unit nor the subordinate organizational units have employees who are eligible for the compensation review.
The organizational unit is not displayed in the planning overview.
In Planning
Compensation adjustments have not been requested for this organizational unit. The responsible manager must finish the planning and make the request.
Since the responsible manager must still process the compensation adjustments, the organizational unit is indicated on the planning overview in red.
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Open Subordinate Organizational Unit
Compensation adjustments have been requested for this organizational unit.
However, compensation adjustments have not yet been requested for at least one subordinate organizational unit. The manager responsible for the subordinate
organizational unit must finish the planning and make the request.
Since the process for this organizational unit is not yet complete, it is indicated on the planning overview in yellow.
Approval Required for Subordinate Organizational Units
Compensation adjustments have been requested for this organizational unit and all subordinate organizational units.
At least one subordinate organizational unit has compensation adjustments that still need approval. The approving manager for these subordinate organizational
units must approve the compensation adjustments.
Since the process for the organizational unit is not yet complete, it is indicated on the planning overview in yellow.
Approval Required
Compensation adjustments have been requested for this organizational unit, but not yet approved. The approving manager for these organizational units must
approve the compensation adjustments.
Since the process for the organizational unit is not yet complete, it is indicated on the planning overview in yellow.
Process Complete
If no approval is required for the compensation review, this status means that the compensation adjustments for this organizational unit and all subordinate
organizational units have already been requested. The responsible compensation specialist must activate the compensation adjustments.
If approval is required for the compensation review, this means that this organizational unit has no eligible employees and that compensation adjustments have
been approved for all subordinate organizational units. The responsible compensation specialist must activate the compensation adjustments for the
subordinate organizational units.
Since all that remains to be done is an activation by the administrator, the organizational unit is indicated in green.
Approved
Compensation adjustments have been approved for this organizational unit and all subordinate organizational units. The responsible compensation specialist
must activate the compensation adjustments.
Since the activation is all that remains to be done, the organizational unit is indicated in green.
Active
Compensation adjustments have been activated for this organizational unit. Compensation adjustments have been approved for all subordinate organizational
units.
The organizational unit is indicated in green on the planning overview.
Locked Due to Errors
Due to an error in the organizational unit's budgets, the Administer Org. Units and Budgets for Comp. Planning Process report
(HRECM_PROCESS_SUPPORT_FOR_PLANNING) could not be executed error-free. The compensation specialist must use the error log from the above-
mentioned report to resolve the errors and then re-execute the report. Compensation adjustments cannot be processed for the organizational unit until the error
has been resolved.
The organizational unit is indicated on the planning overview with a symbol (padlock).
Process Type

Controls the compensation planning process and compensation approval process.

The following process types are available in Enterprise Compensation Management:
Organizational unit-based compensation process
For a compensation process based on the organizational unit, the status of the process is stored in the system per organizational unit and not per employee.
Compensation adjustments are only submitted, approved, or rejected for complete organizational units. Notifications (for example, via workflow) are sent per
organizational unit. The process status is not saved in the Compensation Process infotype (0759) because it does not have any employee-related information.
Organizational unit-based process types are ideal for compensation reviews in which all employees receive a compensation adjustment. These process types
differ in their approval processes (for example, single-level or multilevel). This includes the following
Multilevel, Organizational Unit-Based Approval Process
Single-Level, Organizational Unit-Based Approval Process
Organizational Unit-Based Process Without Approval
Employee-based compensation process
For a compensation process based on the employee, the status of the compensation planning is stored in the system per employee.
Compensation adjustments can be submitted, approved, or rejected per employee. Notifications (for example, via workflow) are sent per employee. The process
status is saved per employee in the Compensation Process infotype (0759). The process status displayed for an organizational unit in the planning overview is
generated using the status in the Compensation Process infotype (0759) for all relevant employees.
Employee-based process types are ideal for compensation reviews in which not all eligible employees receive a compensation adjustment or in which the
employees are processed individually over a long period of time. They are intended for compensation processes that are processed multiple times. These
process types differ in their approval processes (for example, single-level or none). This includes the following
Single-Level, Employee-Based Approval Process
Employee-Based Process Without Approval
More Information
Process Status
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Multilevel, Organizational Unit-Based Approval Process

You can use this process type to perform compensation planning and compensation approval based on organizational unit. Compensation planning is approved
in multiple levels. "Multilevel" means that all higher-level managers are involved in the approval of compensation planning.
Manager Miller performs compensation planning for the organizational unit Sales. The next-level manager, Braun, approves the compensation planning
requested by Miller. After Manager Braun has requested planning for his or her own organizational unit and has approved the planning for all subordinate
managers, his or her manager, Howe, can approve Braun's planning. This way, Howe implicitly approves all compensation adjustments planned by Miller.
In the application, you cannot select and edit individual employees for compensation planning and compensation approval. Approval is always given based on
organizational unit.
Process
The planning manager plans compensation for the organizational unit.
When compensation planning is complete, he or she sends the planning to the approving manager.
The approval does not apply for direct reports in an organizational unit. It only applies for subordinate organizational units. The planning for an organizaitonal unit
can therefore only be approved once compensation adjustments for the direct reports are requested and all subordinate organizational units have been approved.
More Information
Process Status
Single-Level, Organizational Unit-Based Approval Process

You can use this process type to perform compensation planning and compensation approval based on organizational unit. Compensation planning is approved
in one level.
Manager Miller performs compensation planning for the organizational unit Sales. His or her supervisor, Braun then approves the planning for all employees in
the organizational unit.
In the application, you cannot select and edit individual employees for compensation planning and compensation approval. Approval is always given based on
organizational unit.
Process
When compensation planning is complete, he or she sends the planning to the approving manager.
Approval only applies to direct reports in an organizational unit. The planning for an organizaitonal unit can therefore be approved after compensation adjustments
for the direct reports are requested, regardless the process status of the subordinate organizational.
More Information
Process Status
Organizational Unit-Based Process Without Approval

You can use this process type to perform compensation planning based on organizational unit. Compensation planning is done without approval.
Manager Miller performs compensation planning for the organizational unit Sales. No approval is required.
In the application, you cannot select and edit individual employees for compensation planning and compensation approval. No approval is required.
Example
Example
Example
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Process
When compensation planning is complete, he or she requests the planning. No explicit approval takes place.
More Information
Process Status
Single-Level, Employee-Based Approval Process

You can use this process type to perform compensation planning and compensation approval based on the employee. Compensation planning is approved in
one level.
Manager Miller performs planning for some of the emloyees of the Sales organizational unit. He or she submits compensation adjustments for three
employees. The compensation adjustments of the remaining employees retain the status In Planning. The next-level manager, Braun, can approve or reject
the planning for these three employees.
In the application, you can select and edit individual employees for compensation planning and compensation approval. Approval is always given based on the
employee.
Process
The planning manager plans compensation employees subordinate to him or her.
Compensation adjustments are approved or rejected individually (for each employee), regardless of the status of other employees in the organizational unit and
regardless of the process status of subordinate organizational units.
More Information
Process Status
Employee-Based Process Without Approval

You can use this process type to perform compensation planning based on the employee. Compensation planning is done without approval.
Manager Miller performs planning for some of the emloyees of the Sales organizational unit. He or she submits compensation adjustments for three
employees. The compensation adjustments of the remaining employees retain the status In Planning. No approval is required.
In the application, you can select and edit individual employees for compensation planning.
Process
The planning manager plans compensation for employees subordinate to him or her.
When compensation planning is complete, he or she submits the planning. No explicit approval takes place.
More Information
Process Status
Organization-Related Objects in the Compensation Process
Example
Example
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Various organization-related objects are used in the compensation process. To gain an understanding of this process and its fundamental requirements, you
should first familiarize yourself with these objects and their significance in the overall process.
Manager of an organizational unit
Planning unit
Planning manager of an organizational unit
Planning manager of an employee
Approval manager
Relevance of an organizational unit
Manager of an Organizational Unit
Definition
The manager of an organizational unit can only be understood to be a manager for compensation planning purposes if a corresponding user is assigned to
him or her in the system.
A manager without a corresponding user thus cannot access compensation planning functionality via Manager Self-Service, and therefore cannot submit
compensation data for his or her employees, nor participate in the Compensation Process.
Therefore, an organizational unit whose manager does not have a user in the system is processed in the same manner as an organizational unit that lacks a
manager entirely.

Planning Unit
Definition
The planning unit is the organizational unit to which an employee is assigned.
If an employee is a manager, then his or her planning unit is understood to be the next higher-level organizational unit, since the compensation planning data for
that manager is to be entered by the manager at that level above.
The status of this planning unit will be updated as changes to the Compensation Process infotype (0759) records of the corresponding employees are processed.
Example
In the following diagram, Planning Unit C is the planning unit of Manager D, meaning Manager D is planned together with the employees assigned to
Organizational Unit C. Since Organizational Unit C does not have a manager, these employees are planned by Manager B, the manager at the next level.
Manager B is therefore directly responsible for two planning units (B and C). Manager A must approve planning for both of these planning units.

Planning Manager of an Organizational Unit
Definition
The planning manager of an organizational unit is the manager responsible for submitting compensation planning data for employees in this unit.
Example
Under normal circumstances, the planning manager of an organizational unit is synonymous with the manager of that unit provided that a corresponding user is
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assigned to that manager in the system. Thus, in the diagram displayed below, Manager D is the planning manager for Organizational D.
However, if an organizational unit has no manager, or if the manager of that organizational unit has no user in the system, then the next higher-level manager who
has a user in the system becomes the planning manager for that organizational unit. Thus, in the diagram, Manager B would become the planning manager for
Organizational Unit C. If no corresponding system user were assigned to Manager B, then Manager A would serve as the planning manager for Organizational
Units B and C.

Planning Manager of an Employee
Definition
The planning manager of an employee is understood, under most circumstances, to be the planning manager of the organizational unit to which the employee
is assigned. However, while the planning manager of an organizational unit is determined in relation to the employees of that unit who are not managers
themselves, the planning manager of an employee will differ in relation to whether that employee is a manager in his own right, as illustrated in the following
example.
Example
In the following diagram, no manager is assigned to organizational unit F. This means that manager E is the planning manager for this organizational unit. When the
enhancement is made, manager E also takes on the role of planning manager for the employees of organizational unit F.
Manager E, who serves as the planning manager for Organizational Unit E, does not serve as his or her own planning manager for his or her capacity as an
employee. Instead, manager B functions as the planning manger for manager E.

Approving Manager
Definition
The term approving manager refers to a manager responsible for the approval of compensation planning data, such as in the following example.
Example
In the following diagram, manager A serves as the approving manager for the compensation planning data submitted for planning unit B. Manager A also serves
as the approving manager for the compensation planning data that manager B submitted for planning unit C.
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Manager B serves as the approving manager for planning units D, E, and F.

Relevance of an Organizational Unit
The relevance of an organizational unit for a specific compensation review varies in relation to the presence of eligible employees who are assigned to that
unit and the relevance of subordinate organizational units for the same compensation review.
Example
In the diagram displayed below, suppose that Organizational Unit F has at least one employee who is eligible for at least one compensation plan that is part of the
current compensation review. Consequently, Organizational Unit F will be understood to be relevant for compensation planning and would be displayed for that
compensation review within the Compensation Planning iView of Manager Self-Service.
First Scenario
Suppose that Manager D is not eligible for this compensation review, and that no employees assigned to Organizational Unit D are eligible for it, either. In this
case, Organizational Unit D also would not be relevant for the compensation review at hand, nor, by extension, would Organizational Unit C be relevant.
Consequently, neither of these organizational units would be displayed for this compensation review in the Planning Overview iView of Manager Self-Service.
Second Scenario
Now suppose that Manager D is eligible for this compensation review after all, but that still no employees assigned to Organizational Unit D are eligible. If this
were the case, then Organizational Unit C would be relevant for this compensation review, since Manager D is assigned to the next higher-level planning unit.
Organizational Unit D, in contrast, would remain irrelevant for this compensation review, since no eligible employees would be assigned to it.
Third Scenario
Suppose that Manager D is not eligible for this compensation review, but that employees assigned to Organizational Unit D are eligible after all. In this case,
Organizational Unit D would be relevant for this compensation review, in light of its eligible employees.
At first glance, an administrator might consider Organizational Unit C to be irrelevant for this compensation review, since no employees assigned to Organizational
Unit C are eligible for it. Nonetheless, Organizational Unit C would become relevant for this review, despite its lack of eligible employees, because Organizational
Unit D has become relevant for the review at hand. Therefore, Organizational Unit C must become relevant as well, in order to guarantee the consistency of the
organizational structure.

Compensation Process

The compensation process in Enterprise Compensation Management is divided into the following steps:
Compensation preparation
Compensation planning and compensation approval
Follow up
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Preparation for the Compensation Process

Preparatory tasks for the compensation process consist of the following:
Settings in Customizing for the Compensation Process
Process Override for Management of Global Employees
Create Compensation Program Records (RHECM_CREATE_0758)
Administer Org. Units and Budgets for Comp. Planning Process (RHECM_PROCESS_SUPPORT_FOR_PLNG)
Create Compensation Process Records (RHECM_CREATE_COMP_PROCESS)
Notify Managers (RHECM_NOTIFY_MANAGERS)
Settings in Customizing for the Compensation Process

You make all the settings that are required for the compensation process.
Features
For example, you determine the following in Customizing for Enterprise Compensation Management under Compensation Administration:
Which compensation reviews are used and the details of these compensation reviews, for example:
You define the compensation reviews.
You define the compensation plans and connect them to the corresponding compensation reviews.
You use compensation programs and flexible eligibility rules to determine which employee groups are eligible for certain compensation plans.
You use guidelines to determine standard values as well as the upper and lower limits to be checked for compensation adjustments. You also define rules for
employees that are only eligible for a compensation plan during a certain time period.
You determine which process type is to be used for the compensation reviews and configure the planning overview.
For more detailed information about the Web applications, see the documentation.
You can adjust the user interface for compensation planning to suit the customer's requirements.
You can adjust the employee compensation profile to suit the customer's requirements.
If you want to use budgets for compensation planning, you must make the required settings in Customizing:
Budgeting
Unter Compensation Administration Compensation Plans and Reviews Assign Compensation Review Item Attributes .
If neither a budget type nor a budget period is entered, no budget is used for this compensation plan and no budget is displayed in the Web application.
Process Override for Management of Global Employees

In the Enterprise Compensation Management component, you can use global employees as a part of global employment along with the relevant functions from
the Management of Global Employees application component (PA-GE).
Prerequisites
You have made all the required central settings for global employees in Customizing under Management of Global Employees.
You have made the following settings in Customizing for Enterprise Compensation Management under Compensation Administration Process Override for
Management of Global Employees .
Select Process Override for Management of Global Employees
BAdI: Determination PERNR/CAREA for Aspects of Global Assignments
For more information about using global employees, see SAP Library under SAP ERP Central Component Human Resources Personnel Management
Management of Global Employees .
You must be familiar with the technical mapping of global employees in the system, since detailed knowledge of employee data (example: changes to
compensation data) in the home country and host country is required.
Note that we do not support the following scenario: The employee is transferred from the home country to one or more host countries with multiple personnel
assignments at the same time.
Features
You use this function for global employees if you want to consider the following aspects from the home country in the host country, or vice-versa.
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An employee is transferred from their home country (for example, Germany) to a host country (for example, USA). The employee works in the host country,
but his or her compensation-relevant data is to be calculated using the guidelines and data from the home country.
To do this, you can perform the compensation process in Enterprise Compensation Management for global employees with one employment relationship while
taking another employment relationship into account.
You can override the following aspects:
Calculation Base
Eligibility
If you use this aspect, you must also implement the method DETERMINE_PROCESS_CAREA of the BAdI Determination PERNR/CAREA for Aspects of
Global Assignments (BADI_HRECM00_GE_HANDLING) if more than one compensation area exists for a compensation review item. The system uses the
relevant compensation program to determine whether one or more compensation areas exist. This method makes a unique assignment to the compensation
area.
Effective date
Guidelines
Individual methods of a guideline matrix
This aspect overrides the aspect from the compensation area of dependent parameters. The methods must be the same for all dimensions. If the methods
are to be overwritten, the segments must be defined for all countries.
Activation
When this aspect is ovewritten, this also affects information shown on the user interface, such as the compa-ratio or the reference salary, or salary data and
organizational data of the personnel numbers that have been overwritten.
The relevant data is shown per employee in the compensation profile. Examples:
Information on the emloyee assignment in the host country
Organizational data and organizational assignment for the employee assignment in the host country
Compensation-relevant data in the host country
Information on the home country
Organizational data and organizational assignment in the home country
Compensation-relevant data in the home country
In global employment, an employee has two personnel assignments: one in the home country and one in the host country. Normally, the compensation
process is conducted for one of the two personnel assignments. For example, the compensation process for the personnel assignment in the host country. The
employee's eligibilty for the compensation process must be checked with the personnel assignment data from the home country.
Note the following executions:
The following enhancements are contained in Customizing under Compensation Administration:
Under Guidelines in BAdI: Determine Rule (HRECM00_GUIDELINE), the interface of the methods has Replace complete guideline evaluation
(EVALUATE_GUIDELINE) and Manipulate guideline contribution result (EVALUATE_GDL_CONTRIB) as well as the optional parameters
OVR_MET_CAREA, OVR_MET_PERNR, and OVR_METHODS.
Under Other Settings in BAdI: Replace Activations Routines (HRECM00_ACTIVATION), the interface of the method has Replace creation/update of
secondary infotype (ACTIVATE_PROCESS) as well as the optional parameters ACTIVATION_PERNR and ACTIVATION_CAREA.
For an international employee assignment, you must execute the report Administer Org. Units and Budgets for Comp. Planning Process
(RHECM_PROCESS_SUPPORT_FOR_PLNG) in the same way as an organizational change.
Create Compensation Program Records
(RHECM_CREATE_0758)
Use
Execute this program to create records on infotype Compensation Program (0758) for a group of employees and make them macro eligible for a compensation
plan by assigning them to a compensation program containing this plan. This infotype must be maintained for further compensation processing in Manager Self-
Service.
You can run this program when you first use Enterprise Compensation Management to maintain infotype 0758 for a large number of employees or on a regular
basis for new employees. Personnel actions instead are recommended for handling individual cases.
Prerequisites
Depending on the context, you must have been through the following activities in the Implementation Guide for Enterprise Compensation Management:
Define Compensation areas
Define Compensation Area Feature
Define First Compensation Program Groupings
Define First Compensation Program Grouping Feature
Business Add-In: Determine First Compensation Program Grouping
Example
Example
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Define Second Compensation Program Groupings
Define Second Compensation Program Grouping Feature
Business Add-In: Determine Second Compensation Program Grouping
Selection
In addition to the standard time-dependent and organizational criteria, you can specify a range of compensation-relevant criteria to be processed, as further
described.
Field Values for Infotype 0758 Records
The compensation area and first/second compensation program groupings you enter here are written to infotype 0758 when you execute this program. If not filled,
the corresponding features and/or Business Add-In will provide default values.
Earliest Begin Date / Latest End Date
You can restrict the validity of the records by choosing a combination of either hire and leaving dates, date types or fixed dates. You can specify that:
The begin date cannot be earlier than the hire date (default), the date assigned to the date type or the fixed date you have specified. The hire date and the
date type are read from the infotypes Actions (0000) and Date Specifications (0041), respectively. If more than one indicator is set, the system reads the
most recent begin date.
The end date cannot be later than the leaving date (default), the date assigned to the date type or the fixed date you have specified. If more than one indicator
is set, the system reads the earliest end date.
Note
If no date is selected, the high date or low date is retrieved.
Processing Options
Split at Master Data Changes
The newly created records on infotype 0758 are split to reflect changes on the infotypes Organizational Assignment (0001) and Basic Pay (0008). If you
want to consider splits on other infotypes, copy this program and use it as a template to create your own enhanced version. Per default, this indicator is set.
Test Run (No Update)
It is strongly recommended that you perform a test run to detect and correct possible errors before updating the database. Per default, this indicator is set.
Output
A list of messages is displayed, sorted by employee. The following message types can be generated:
Success message
For each record that has been successfully generated, a success message is displayed.
Warning message
For each record that existed before running the program and that has been deleted or delimited, a warning message is displayed.
Error message
Error messages are generated for errors that have occurred during processing and that prevented the records from being created.

Administer Org. Units and Budgets for Comp. Planning Process

With this program (RHECM_PROCESS_SUPPORT_FOR_PLNG), you can manage the data and employee budgets required for the compensation planning process
(short form: planning process) in the Enterprise Compensation Management component. During the planning process, the program executes the following
functions:
Prepare and save data for the planning process and employee budgets
Check which data, if any, has been changed
Update any data and employee budgets that have been changed
The report processes the following tables:
Compensation History for Process (T71ADM_PROCESS)
This table contains administrative information about the compensation reviews, such as which organizational units are relevant for planning and which status
these organizational units have in the planning process. The program saves or updates this administrative information. The table also contains archived data
about the compensation review, such as when compensation adjustments were approved and by whom. This archived data is not changed by the program.
Compensation History: Employee Assignments (T71ADM_PROC_EE)
This table contains organizational information about the employees in a compensation review, such as the organizational unit the employees are planned with
and whether the employees are processed as global employees. The table is only filled if process support contains the value Full Process Support.
You can make the process support settings in Customizing for Enterprise Compensation Management by choosing Compensation Administration
Settings for User Interface and Process Planning Process and Planning Overview Configure Planning Process and Planning Overview .
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Compensation History: Eligibility Data (T71ADM_PROC_ELIG)
This table contains detailed information about employees' eligibility for each compensation plan. The table is only filled if process support contains the value
Full Process Support.
After this data is generated, the program makes the relevant changes to the employee budgets.
The program is executed for all employees and organizational units participating in the compensation review. Since extensive calculations (such as
determining employee eligibility or calculating employee budget) are performed for each employee, program runtime might be prolonged and large amounts of
memory may be used. It may therefore be necessary to process the organizational structure in multiple parts. For more information, see Process
Organizational Structure in Multiple Parts.
Prerequisites
You have made the required settings in Customizing for Enterprise Compensation Management under Budgeting.
You have made the required settings in Customizing for Enterprise Compensation Management for the compensation review.
Employee data is available for the Compensation Program (0758) and Compensation Eligibility Override (0760) infotypes. However, no data exists for the
Compensation Process infotype (0759).
Features
The program consists of the following functions, which are required for administering the planning process:
Initialize Planning and Budgets
The program first processes the selected organizational unit and all subordinate organizational units. Subordinate organizational units that have already been
initialized are not processed again:
The program searches for all employees assigned to this organizational unit for the compensation review and fills the tables listed above with the
administration information described there.
If you choose the process support level Full Process Support, employee budgets are generated and calculated as necessary.
Afterwards, the program processes the organizational units in the hierarchy above the selected organizational unit. The following apply:
Since these organizational units were not selected, the program does not search for employees. If it has already been indicated in the aforementioned table
that these organizational units have employees, this information is transferred.
The program thus does not generate any employee budgets for these organizational units.
Update Planning and Budgets
We recommend that you first run this function in test mode. This enables you to check the planning process for discrepancies and correct any errors before
you actually update the data and recalculate budgets.
The program first determines the current system status for the selected organizational unit. It compares the current data with the data in the aforementioned
tables. If there are any discrepancies, it updates the tables with the newly generated data. Afterwards, the program checks the process status of all
organizational units in the hierarchy above the selected organizational unit.
The program recognizes and takes note of the following changes:
An employee changes to another organizational unit. The manager of the new organizational unit must perform compensation planning for the employee. The
employee's budget must be reassigned from the old organizational unit to the new one.
An employee's eligibility changes (for example, the employee becomes eligible or ineligible for a compensation plan). The employee's budget must be
regenerated or deleted.
An organizational unit's process status changes due to an employee change. For example, if the last employee leaves the company or becomes ineligible,
this can render the organizational unit irrelevant for planning.
A higher-level organizational unit changes its process status following a status change of subordinate units. For example, if an organizational unit that is
irrelevant for planning becomes relevant because an eligible employee has been assigned to it, the status of the higher-level organizational unit is also
changed.
The program evaluates the organizational structure using the start date of the planning period (T71ADM08-RVBEG). The program therefore does not take
changes to the organizational structure (by creating, deleting, or moving organizational units) into account if these changes are not valid until after the start date.
Changes to the stucture that become valid before the planning period can be taken into account depending on the time at which the change occured in the
system.
If the changes are made before the budget structure is generated, the program automatically takes the changes into account depending on the start of the
validity period.
If the changes are made after the budget structure is generated but are valid before the start of the planning period, you must regenerate the budget structure
if you want to take these changes into account.
If the changes are made after the start of the planning period but are valid before the start of the planning period, you must make substantial manual
corrections after the change if you want to take the changes into account.
Retroactive changes made after the start of the planning period can result in a substantial number of inconsistencies that cannot be corrected automatically.
You should therefore avoid such changes whenever possible.
For more information about the consequences of changes to the organizational structure as well as about manually correcting inconsistencies and generating the
budget structure, see SAP Notes 1674264 and 1645410.
The following applies in this function for the process support levels:
Use Full Change Support
This program generates detailed information about employee assignments and eligibility and also updates the aforementioned table as well as the budgets (if
Note
Recommendation
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necessary). The program also removes locks on any organizational units that were locked due to budget errors as long as the errors that caused them to be
locked have been fixed by an adminstrator. Note that the program only makes reassignments according to organizational changes and does not
regenerate budget values.
Use Only Process Initialization and Update
The program only updates organizational unit data saved in the table Compensation Tracking for Process (T71ADM_PROCESS). On this process support
level, the program cannot recognize changes made to individual employees. It can only check if the number of employees and their status have changed.
No Intialization (All Organizational Units Have Eligible Employees)
The program only updates organizational unit data saved in the table Compensation Tracking for Process (T71ADM_PROCESS). On this process support
level, the program cannot recognize changes made to individual employees. It can only check if the number of employees and their status have changed.
Recalculate Budgets
Budget values are recalculated for existing employee budgets. The following applies for the process support levels:
Use Full Change Support
The program reads the employee assignment and employee eligibility for the selected organizational unit and all subordinate organizational units. For the
selected budget types, it recalculates any unsaved employee budgets. Organizational units that are above the selected organizational unit in the hierarchy
are not processed.
In this step, the program does not check if organizational changes have been made or if the employees are still eligible.
Use Only Process Initialization and Update
The program does not perform any functions because the automatic calculation of employee budgets is not possible with this setting.
No Intialization (All Organizational Units Have Eligible Employees)
The program does not perform any functions because the automatic calculation of employee budgets is not possible with this setting.
Selection
On the selection screen you select the data for the compensation review and organizational unit. The selected organizational unit can be processed with or without
taking subordinate organizational units into account, depending on the function. Choose one of the following functions:
For this function, all subordinate units must always be taken into account. Therefore, use the OrgUnit with Subordinate OrgUnit field to select the organizational
unit.
For this function, subordinate organizational units can be taken into account. Use the OrgUnit with Subordinate OrgUnit field or the OrgUnit w/o Subordinate
OrgUnit field to select the organizational unit.
Recalculate Budgets
For this function, subordinate organizational units can be taken into account. Use the OrgUnit with Subordinate OrgUnit field or the OrgUnit w/o Subordinate
OrgUnit field to select the organizational unit.
You can also select the following functions:
Parameter Update: Repoen Organizational Unit
The parameter is only useful in the context of the Update Planning and Budgets function. If the program determines that changes have been made to an
organizational unit whose status is already approved, the program sets the status of this organizational unit back to In Planning. This can lead to the responsible
manager having to change and resubmit the compensation adjustments.
If you deselect this checkbox, the status of the approved organizational unit is not reset and remains Approved. The administrator must consult with the
managers involved and then check this status. In this case, changes must be carefully checked in test mode before execution.
An employee changes from an organizational unit with status Approved to another organizational unit with the same status. No budget violations or other
errors occur. Since the multilevel process is already far along, multiple managers would have to recheck and approve any compensation adjustments if
these organizational units were to be changed back to status In Planning. To avoid this, the checkbox can be deselected and the changes made without
having to reopen the entire process.
Create Notifications
The program logs data changes. The report output contains a detailed list with change notifications and error messages. If you deselect the Create Notifications
checkbox, the report output only contains error messages.
Test Run
The program performs a test run without making any changes to the database.
Locking Objects
To avoid inconsistencies, the program locks objects that have had changes made to them. It releases the objects onces all the changes have been saved. If
you deselect this checkbox, the program does not lock the objects. This may be useful, for example, if you want to execute the program for the entire
organizational structure.
If you deactive the lock, it is absolutely necessary that you ensure that the budget objects used by the program are not being processed somewhere else
at the same time. Parallel processing of objects can result in errors in the budgets. We therefore recommend that you only deselect this checkbox in
exceptional cases.
Output
You receive a log that lists errors, warnings, and success messages.
Activities
You can do the following, assuming the prerequisites have been met:
1. You can execute the program for preparing planning and budgets.
This step is mandatory if you have activated process support to the Use Full Process Support or Use Only Process Support and Process Update levels for
the current planning round. If you do not use process support, this step is optional. In this case, the required data is generated when compensation
adjustments are saved.
2. You can execute the program for updating planning and budgets.
Example
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This step can be executed to update the prepared data at a later point in time. The organizational changes that are relevant for planning are defined in the
settings for the compensation review that you make in Customizing for Enterprise Compensation Management under Compensation Administration
Compensation Plans and Reviews Define Compensation Review . When changing employee assignments (full process support), the key date that you
have entered for determining organizational assignments is of particular importance. For examples of how you can use the program and key date to take
account of such changes, see Examples: Taking Changed Employee Assignments into Account.
3. You can execute the program for recalculating budgets.
You can only execute this step if you have activated process support to the Use Full Process Support level.
Process Organizational Structure in Multiple Parts

If you are executing the program Administer Organizational Units and Budgets for Compensation Planning process (RHECM_PROCESS_SUPPORT_FOR_PLNG)
for larger organizational structures, longer runtimes and excessive memory consumption may result depending on the number of assigned employees. To avoid
this, you can subdivide organizational structures and process them in multiple steps. In this case, you execute the program multiple times to prepare the various
parts of the structure for compensation planning.
Prerequisites
You have determined how you want to subdivide the organizational structure to be processed. For example, you can divide it by a certain level. You then execute
the program once for each organizational unit on this level.
Procedure
1. Execute the Prepare Planning and Budgets function for each organizational unit of the level you have used to subdivide the organizational structure (for
example, all third-level organizational units). To select the organizational unit, use the OrgUnit with Subordinate OrgUnit field.
In this step, the program determines the data for all employees assigned to the organizational unit as well as all subordinate organizational units. It does not
determine any data for the superordinate organizational units.
2. Execute the Update Planning and Budgets function for all organizational units located in the structure above the organizational units that have already been
processed. Use the OrgUnit w/o Subordinate OrgUnit field to select the organizational unit. In this field, you can use multiple selection to enter all relevant
organizational units. Therefore, you only have to perform this step once.
In this step, the program determines and updates the data for all employees assigned to the superordinate organizational unit.
3. To update the employee data at a later time, execute the Update Planning and Budgets or Recalculate Budgets function in one of the following ways:
Execute the functions for each organizational unit on the level you used to subdivide the organizational structure. Use the OrgUnit with Subordinate OrgUnit
field to select the organizational unit.
Execute the functions for all superordinate organizational units. Use the OrgUnit w/o Subordinate OrgUnit field to select the organizational unit.
Examples:Inclusion of Changed Employee Assignments in the
Planning Process

A key date is set in Customizing for every compensation review. The program Administer Organizational Units and Budgets for Compensation Planning Process
(RHECM_PROCESS_SUPPORT_FOR_PLNG) uses this date to determine whether the changes to an employee assignment are relevant for compensation planning.
The following examples explain how the program can be used together with the key date to determine whether changed employee assignments are taken into
account in the planning process.
Planning for an organizational unit is always done by the manager responsible for this organizational unit at the beginning of the planning process. The
program does not take changes to managerial assignments into account.
Example 1
You want to plan an employee using the organizational assignment that he or she is assigned to at the beginning of the planning process. You do not want to take
any changes into account that are made after the start of the compensation review.
In this case, you proceed as follows:
Customizing
Set the key date to the start date of the compensation review.
Before the start of the compensation review
Start the program in initialization mode. Later, you can start it regularly in update mode. To use the most current data during the compensation review, you must re-
execute the program just before the start of the compensation review.
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After the start of the compensation review
Do not start the program anymore. Planning is conducted with the data that is valid at the beginning of the compensation review.
Example 2
You want to plan an employee using the organizational assignment that he or she is assigned to at the end of the planning process. You want to take any changes
into account that are made after the start of the compensation review.
Customizing
Set the key date to the end date of the compensation review.
Start the program in initialization mode. Later, you can start it as often as you want in update mode.
Start this program regularly in update mode. Throughout the process, planning is conducted using current data.
If you start the program before the beginning of the compensation review, changes made after an update can also affect the planning process itself. In this
case, the process does not remain stable.
Example 3
You want to plan an employee using the organizational assignment that he or she is assigned to at the end of the planning process. You do not want to take any
changes into account that are made after the start of the compensation review.
Customizing
Set the key date to the end date of the compensation review.
Start this program in initialization mode. Later, you can start it regularly in update mode.
Do not start this program anymore. Planning is conducted with the data that is up-to-date at the beginning of the compensation review.
Create Compensation Process Records
(RHECM_CREATE_COMP_PROCESS)
Use
Execute this program to create records in infotype Compensation Process (0759) if you have not implemented Manager Self-Service or as an alternative to it. The
compensation values are based on either the default guidelines values or the minimum limit of the salary range to which the employees belong.
Note
This program is meant for mass processing. It is therefore recommended that you execute it in background via Program -> Execute -> Background.
Integration
Use the program Change Compensation Process Status to either approve the line manager's changes on behalf of the higher manager or activate the
compensation records. By doing so, the system generates/updates the secondary infotypes accordingly (0008, 0015, 0267 and 0761).
Prerequisites
You have made the necessary Customizing settings for Enterprise Compensation Management under Compensation Administration.
You have performed the following programs:
Create Compensation Program Records (RHECM_CREATE_0758)
Administer Org. Units and Budgets for Comp. Planning Process
Selection
In addition to the standard time-dependent and organizational criteria, you must specify the compensation plan and review to be processed.
Select either Apply Guidelines to apply the guidelines you have defined in Customizing, or Bring to Minimum to replace the current compensation amount with the
minimum amount of the salary range the employee belongs to as of the effective date, provided that the current value is lower. (Note that this option is restricted to
compensation plans defined as salary adjustments.)
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compensation plans defined as salary adjustments.)
It is also strongly recommended that you perform a test run to detect and correct possible errors before updating the database.
Output
The output is a list of the compensation records that have been generated successfully for the selected employees, containing either the adjustment amount and
the currency, or the number of awards.
In case of errors, the personnel number is skipped and an error is displayed.

Notify Managers (RHECM_NOTIFY_MANAGERS)
Use
Execute this program to notify planning managers that the compensation planning cycle has commenced, meaning that they may begin to enter data during the
selected compensation review for their organizational unit and, where applicable, subordinate units.
For additional information, review the organizational elements Planning Manager of an Organizational Unit and Planning Manager of an Employee.
Integration
Upon execution, this program triggers the Initialize workflow template. In technical terms, it is by means of this workflow template that notifications are sent.
In Customizing for Enterprise Compensation Management (PA-EC), choose Compensation Administration Workflow Settings and execute the activities
located therein to establish the corresponding Workflow settings, if desired.
Once notifications have been sent to the appropriate planning managers, the system records the fact, in the Process History Table (T71ADM_PROCESS), that
notification took place for the affected organizational units.
Prerequisites
Notifications may be sent or received via this program only when the following conditions are fulfilled.
Notifications may be sent only if the corresponding process is active for the selected compensation review in Customizing for Enterprise Compensation
Management (PA-EC). For the compensation review to be processed, choose the following in Customizing: Compensation Administration User Interface
Settings Planning Process and Planning Overview Configure Planning Process and Planning Overview.
Within the corresponding compensation review, on the subsequent screen, the following checkbox is active by default:
Send Notification
In short, notifications are sent by default to planning managers of the specified compensation review, unless you choose the Customizing activity named
above and de-select the corresponding checkbox.
Notifications only may be received by planning managers, that is, employees who fulfill various system criteria, described below.
To be considered a planning manager, the employee must occupy a particular chief position within an organizational structure.
Moreover, within the Communication infotype (0105), corresponding records must exist for the user and e-mail address of the planning manager.
Furthermore, notifications only may be received by those planning managers to whom other employees report directly, provided that these directly reporting
employees are eligible for the selected review.
The planning manager of the organizational unit has not yet received notification for this compensation review. For more information, see the next section.
You have performed the following programs:
Create Compensation Program Records (RHECM_CREATE_0758)sapurl_link_0001_0003_0005
Administer Org. Units and Budgets for Comp. Planning Processsapurl_link_0001_0004_0005
Features
Notifications may only once be sent to the planning managers of a selected organizational unit during a given compensation review. Subsequent attempts to
execute the program for a selected unit during a given review will not result in repeated notification. We therefore recommend that you exercise caution before
executing this program in productive mode.
By the same token, this program cannot be executed again at a later date to send reminders to those managers who have not yet finalized their planning.
If you wish to send reminders to such managers despite this constraint, then perform the following procedure.
Execute the Display Compensation Planning Progresssapurl_link_0001_0005_0005 program.
On the subsequent screen, specify the applicable compensation review, organizational unit and evaluation period.
Select the Display Current Status Only checkbox, then choose Execute.
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In the resultant program output screen, sort the entries in accordance with the Status column.
For all planning managers whose current status does not correspond to Completed, send a reminder in the communication method of your preference.
Actions
In the SAP menu, choose Human Resources Personnel Management Compensation Management Enterprise Compensation Management
Compensation Planning Preparation Notify Managers to access this program.
To execute this program, specify one compensation review and one organizational unit. You can select the Create Notifications checkbox to allow notifications to
be generated in the program output.
Furthermore, you may select the corresponding checkbox to perform test notification runs, in accordance with the recommendation above. Such test runs will not
serve to update the process history table entries of your system.
Both of the checkboxes named above are selected by default.
In response, the system will send notifications to the planning manager(s) of that organizational unit for the selected compensation review. If subordinate
organizational units are assigned to the selected organizational unit, then the planning manager(s) of the subordinate units also will receive notifications.
When executed in productive mode, this program generates entries in the process history table for the selected compensation review and organizational unit, as
well as subordinate units, where applicable. Managers are then notified that the planning process has begun for the selected compensation review.
In the resultant output screen, if no errors occurred, then the following message is displayed:
The planning managers of organizational unit (n) were successfully notified
In contrast, if notification errors took place, then any of the following error messages may be displayed:
An error occurred in sending the notification
No notification was sent, because the org. unit has no eligible employees
No eligible employees, due to configuration error for the specified unit
The planning managers of the specified unit were already notified
An error occurred in selecting the subordinate units of (n)
The specified compensation review does not exist
The specified organizational unit is invalid
Notifications cannot be sent for the selected compensation review
Planning for the selected compensation review already has been completed

Compensation Plan and Compensation Approval in the
Compensation Process

In the compensation process, Web Dynpro applications are available to managers for compensation planning and compensation approval.
Features
Web Dynpro applications in ABAP are available to the Manager role:
In the portal version for the Manager role as iViews in the Business Package for Manager Self-Service.
As services in the version for SAP NetWeaver Business Client (NWBC) for the Manager role.
Managers can use the following Web Dynpro applications:
Planning Overview
Reports are available to administrators or compensation specialists for monitoring the compensation process. For more detailed information, see the documentation.
More Information
For more information, see the SAP Library under:
Manager Self-Service in SAP NetWeaver Business Client
Business Package for Manager Self-Service (SAP ERP)
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Managers can use this application to plan compensation for the managers and employees assigned to them in the company.
Integration
They can use the integration of the Objective Setting and Appraisals component (PA-PD-PM) to, for example, include employee performance and potential in
compensation planning.
Prerequisites
You have made the required settings in Customizing for Enterprise Compensation Management under Compensation Administration.
The features of this application comply with the selected settings in Customizing. The selected process type plays a central role.
Features
Manager
Managers can display compensation plans as follows:
One compensation plan (for example Bonus) per tab
For example, display all compensation plans on one tab in a table with the compensation-relevant data (for example, Bonus and Fixed Salary together on one
tab)
The display on the tab depends on the Customizing settings.
Compensation planning comprises the following steps:
Select Employee
A number of options per compensation review and employee selection are available to managers in this step. Only those compensation reviews in which the
logged on manager has employees eligible for compensation planning can be selected.
Plan compensation data
Functions available to managers in this step include the following:
Save Draft
Managers can save the draft of compensation planning.
Show Progress
For example, the planning manager can display the planning progress (process status, for example, In Planning; action, for example Submit for Approval)
for the organizational unit.
Display Currency
Managers select the required currency for displaying values in the planning table (examples: EUR, USD).
Planning table
One or more tabs are available to managers for each compensation review, depending on the selected employee selection. Depending on the Customizing
settings, one compensation plan or, for example, an overview of all compensation plans including compensation-relevant data can be displayed.
If system messages exist for a manager, this is displayed with a symbol directly on the tab. A traffic light symbol appears in the relevant column table for
the affected employee. When the manager clicks on the traffic light symbol, the system opens a dialog box where messages are listed in order of priority and
can be processed.
Functions that managers can perform from the planning table include the following:
Budget
Managers can display the relevant budget for the compensation plans on the current tab. The budget can be displayed in a graphic, with colors, or,
depending on Customizing settings, in a table. The display shows whether the budged is within the permitted range or if it has been exceeded.
Analyses
Managers can use interactive analytical functions, for example, to display the evaluations of the following topics as graphs:
Compensation
Show the current compensation for each employee in a color graph.
History
Show the compensation history for each employee in a color graph.
Areas
Managers can compare and display in a graph either the guidelines or salary ranges for selected employees.
Calibration
Managers can select, compare, and compare the following in a graph for selected employees:
Performance
Employee compensation and employee performance
Compa-ratio
Employee compensation and employee compa-ratio
Seniority
Employee seniority and employee compa-ratio
Managers can also call and/or execute the following:
Adjust compensation
Compensation values can be adjusted for the employee. For example, you want the guidelines or a certain percentage for the compensation amounts to
be applied to the employee's compensation values.
Reopen rejection
It is possible to reprocess a rejection of an employee's compensation. This function is only available if you use an employee-based process type.
Compensation Profile
The employee compensation profile can be displayed in a separate window per employee or for multiple employees.
Compensation planning of individual employees
Show selected analyses
Notes
The manager responsible for compensation planning can, for example, write a note for each employee about why he or she wants to grant the employee
an especially high bonus or none at all. The approving manager can also write a note for each employee about, for example, why a planned
compensation adjustment was rejected.
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Review and Submit
Mangers can review compensation data in the results table and submit them for approval when they cannot perform the approval themselves.
The manager can also call an application directly from this application depending on the selected Customizing settings. For example, following application:
Administrator
Administrators can use this application to help managers in a timely manner with any technical problems with the Compensation Planning application that may
arise. The administrator calls the application in the ABAP Workbench (SE80) using the technical name HCM_ECM_PLANNING_UI_GAF and application
parameter POWERUSER_MODE=X. He or she selects the affected manager and can then resolve the technical problems from the displayed view of the application.
The following application parameters are also of use:
MSG_MODE
If you use the POWERUSER_MODE=X application parameter, the system automatically uses the ADMIN message category to handle messages with the
Message Mapper in Floorplan Manager for Web Dynpro ABAP.
If you do not use the POWERUSER_MODE application parameter, the system automatically uses the MANAGER message category. You can use the MSG_MODE
application parameter to enter a customer-specific message category. These customer-specific settings override standard system behavior.
SHOW_ADDITIONAL_MSG_INFO
You can use this application parameter to activate an additional display of technical information for the messages. If you set the application parameter to X, the
message class and message number are added to each message in parentheses.
Employee Selection in Compensation Planning

The following options are available for selecting employees for planning:
Employees for compensation planning
All employees for whose compensation planning the manager is responsible are available to the manager. This also includes employees from subordinate
organizational units.
Direct reports
All employees in the manager's own organizational unit as well as all of that manager's reporting managers are available. Employees for whose compensation
planning the manager is responsible but who are assigned to a subordinate organizational unit are not available.
Employees from organizational units
Employees from one or more organizational units are available to the manager.
Employees from organizational tree structure
Employees from one or more organizational units are available to the manager in a tree structure.
Employee search
The manager can search for an employee in the company directly.
Filter employees
The manager can filter employees according to various default criteria or customer criteria.
Customer-specific employee selection via OADP view
The manager can use a customer-specific employee selection.
To do this, make the required settings in Customizing for Manager Self-Service (SAP ERP) under Object and Data Provider .
You can see an example of a customer-specific employee selection in Customizing for Enterprise Compensation Management under Compensation
Administration Settings for the User Interface and Process User Interfaces for Compensation Planning Settings Overview .
Depending on the process type selected in Customizing, it is either possible to select individual employees in the aforementioned emloyee selection or it is
prevented by the system. If the system does not allow selection, employees can onle be processed together as a group in compensation planning.

You can perform compensation planning as follows:
Tabular view of all employees
Form-like view, tailored to the individual employee
If you call the view for compensation planning of individual employees, you leave the tabular view and are taken to a form-like view where you can process the
data for an individual employee. All functions available in the tabular view are available in this view.
Prerequisites
Features
You can review and adjust compensation data per employee. For the selected tab, the system shows the employee's compensation-relevant data in a manner
resembling a form. The system also lists the historical compensation data for each employee.
The same features are available in both views. This includes:
Save Draft
Show Progress
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Display Currency
Display of compensation plans on one or more tabs
Budgets
Graphic and colorful display of the employee budget.
Analyses
Adjust compensation
Compensation Profile
Planning table
You can call the planning table for all employees from the compensation planning for one employee at any time. This can give you an overview of all
compensation-relevant changes.
More Information
For more information, see Compensation Planning.

Managers can use this application to approve compensation for the managers and employees assigned to them.
Prerequisites
Compensation reviews for which an organizational unit-based process type has been selected in Customizing are not available for approval in this application.
Features
Manager
The manager can do the following for compensation planning in this application:
Review
Approve
Reject
Compensation approval comprises the following steps:
Employee selection
Employees for approval
All employees for whose compensation approval you are responsible are available to you.
Approve Compensation Planning
The approving manager can, for example, process existing system messages for each employee, write a note, or answer existing notes, such as for what
reason a compensation adjustment was rejected.
Review and Submit
The approving manager can approve or reject the employees assigned to him or her.
The manager can also call an application directly from this application depending on the selected Customizing settings. For example, following application:
Higher-level managers can navigate from the Compensation Approval application directly to the Compensation Planning application to make changes there.
They can go directly back to the Compensation Approval application assuming one of the following settings for access to the planning application by higher-level
managers has been set in the Customizing activity Configure Planning Process and Planning Overview under Edit Planning:
Always Allowed
Allowed If Submitted
Allowed Until Approved
To do this, go to Customizing for Enterprise Compensation Management and choose Compensation Administration Settings for User Interface and Process
Planning Process and Planning Overview Configure Planning Process and Planning Overview .
Administrator
Administrators can use this application to help managers in a timely manner with any technical problems with the Compensation Approval application that may
MSG_MODE
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You can use thsi application to display the employee compensation profile. The compensation profile contains, information such as compensation-relevant data:
Personal data
Compensation data (examples: salary, employment fraction, pay scale group, compa-ratio)
Organizational assignment (examples: organizational unit, position)
Contact data (examples: telephone, e-mail)
Additional data (examples: performance, potential)
Display of the salary group graphic and compa-ratio information in the employee salary group
Overview
Salary data
Eligibility and guideline data
The result of the eligibility check for compensation planning is displayed for each employee.
For the employee, the guidelines values are displayed for each compensation plan (examples: minimum value, maximum value, default value, matrix
dimension).
Graphic for total compensation history
Graphic for performance history
Employee data (examples: pay scale structure, salary data, contract data)
Eligibility and guideline data
History
Various interactive graphics for the employee's compensation
Talent profile (examples: performance, potential, core competencies, job experience)
Prerequisites
You have made all required settings in Customizing for Enterprise Compensation Management under Compensation Administration Settings for the User
Interface and Process Employee Compensation Profile . The features of this application comply with the selected settings in Customizing. The selected
process type plays a central role.
If you want to allow customer-specific messages in this application, you must make the required settings in Customizing under Compensation Administration
Settings for User Interfaces and Process . In the ABAP Workbench transaction (SE80), you must also change MSG_MODE application parameter for the
administrator for the configuration of the HCM_ECM_PROFILE to the value ADMIN. Otherwise, the customer-specific changes to the messages apply to the
manager.
Planning Overview

Managers can use this application to display an overview of the current status of the planning process in Compensation.
Prerequisites
Features
Manager
Functions available to managers include the following:
Compare
Managers can call the Compensation Planning application to compare employees. They can select employees regardless of the selected process type.
Managers can compare and change compensation data for these employees, but the compensation data cannot be submitted.
When you choose Compare, your are not taken to the Compensation Comparison application. Instead, you are taken to another compensation planning view.
Plan
From this application, managers can call the
Compensation Planning application and process compensation data.
Show planning progress
Managers can find out the current compensation planning situation at any time. This include the name of the employee's planning manager, compensatoin
amounts, and the current planning status. The amounts are displayed in the selected currency, such as EUR or USD.
Approve
Managers can approve compensation planning for organizational units assigned to them and the employees and compensation data contained therein.
This pushbutton is only available if an organizational unit-based process type is used for the compensation review.
Reject
Managers can reject compensation planning for organizational units assigned to them and the employees and compensation data contained therein.
This pushbutton is only available if an organizational unit-based process type is used for the compensation review.
Approve/Reject
Note
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If you use an employee-based process type for the selected compensation reveiw, you cannot approve or reject the compensation planning directly in this
application because approval or rejection must be done on the level of the employee. Managers can click on this pushbutton and open the Compensaton
Approval application to approve or reject compensation planning for individual employees.
Display For: and Display In:
The display is done for the selected employees in the selected currency.
If you choose All Employees for the display, the amounts are displayed to the planning manager for all direct and indirect reports.
If you choose Only Direct Reports for the display, the amounts are displayed to the planning manager for all direct reports.
Administrator
Administrators can use this application to help managers in a timely manner with any technical problems with the Compensation Planning application that may
MSG_MODE

Managers can use this application to compare compensation of multiple employees. The comparison of compensation is for display purposes only. The data from
the comparison is displayed clearly and can therefore be reviewed quickly. Depending on the selected Customizing setting, the information can be as follows:
Compensation data
Organizational assignment
Communication Data
Additional data
You can call the following application from this application:
Prerequisites
You have made all required settings in Customizing for Enterprise Compensation Management under Compensation Administration Settings for the User
Interface and Process Employee Compensation Profile Define Short Profile .
Features
The compensation comparison is available to managers in the Compensation Information application.
You can select two employees for a comparison and execute the comparison. The two employees' data are displayed side-by-side.
You can select multiple employees at one for a comparison and execute the comparison. The employees' data are displayed side-by-side.
You can specify which data is to be included in the short profiles of the employees that you use for the compensation comparison.

This application shows managers a table with the managers and employees assigned to them (selected according to the compensation review and employee
selection) with detailed compensation information.
Prerequisites
You have made the required settings in Customizing for Enterprise Compensation Management under Compensation Statements Different Forms . The
features of this application comply with the selected settings in Customizing. The selected process type plays a central role.
The data in the PDF form for compensation review statements is only displayed for one active Compensation Process infotype (0759).
If you want to allow customer-specific messages in this application, you must make the required settings in Customizing under Compensation Administration
Settings for User Interfaces and Process . In the ABAP Workbench transaction (SE80), you must also change MEG_MODE application parameter for the
administrator for the configuration of the HCM_ECM_TEAMVIEWER to the value ADMIN. Otherwise, the customer-specific changes to the messages apply to the
manager.
Features
Managers can call various functions from the application. This includes:
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You can display multiple compensation profiles in separate windows at the same time.
You can display the compensation comparison between employees.
Total Compensation Statement
You can display the PDF form for the total compensation statement of the selected employees.
Compensation Review Statement
You can display the PDF form for the compensation review statement of the selected employees.
Table
The table contains employee-related information. You can click on the name of the emloyee and get a short compensation profile with employee information.
Monitoring Reports in Compensation Administration
The following reports are available in Compensation Administration:
Display Compensation Planning Progress (RHECM_DISPLAY_PROGRESS)
Display Compensation Planning Changes (RHECM_DISPLAY_CHANGES)
Administer Status for Compensation Process(RHECM_STATUS_CHANGE)
Summarize Compensation Planning Changes (RHECM_SUMMARIZE_CHANGES)

Display Compensation Planning Progress
(RHECM_DISPLAY_PROGRESS)
Use
Execute this program to display the progress of the compensation planning cycle for one or more organizational units during a selected compensation review. By
displaying the progress of the compensation review, this program fulfills a fourfold purpose.
To begin with, the output of this program can be used by compensation administrators to send manual reminders to managers who have not completed
compensation planning for eligible employees during the selected review. For more information, see the procedure below this section.
Moreover, this program enables compensation administrators to monitor current compensation reviews closely, in accordance with standard selection criteria,
and to apprise themselves at any moment of the status of organizational units for a particular review. To this end, compensation administrators can regularly
run this program to determine whether a selected compensation review is ready to be activated.
This program equally enables compensation administrators to examine, within current or completed compensation reviews, the history of changes in great
detail.
Finally, because the output of this program is analogous to the information that is displayed to managers in the Planning Overview iView, this program
also enables compensation administrators and managers to communicate with one another more easily.
Integration
Upon execution, this program evaluates the contents of the Process History table (T71ADM_PROCESS) for the selected organizational unit(s) during that
compensation review, then displays the contents of that table in the program output.
Actions
Compensation Planning Monitoring Display Compensation Planning Progress to access this program.
To execute this program, you must specify one compensation review and one organizational unit. If desired, you may narrow the output of the program by
specifying an evaluation start and end date, or by entering the name(s) of the person(s) who last changed the corresponding data. A maximum number of records
may also be specified, as well as a layout, if desired.
Moreover, if desired, you can narrow the program output greatly by selecting the Display Current Status Only checkbox. When this checkbox is selected, the
program output will solely display the current status of the selected organizational unit for that review. When this checkbox is not selected, the program output will
display the cumulative progress of the entire organizational unit for that review. If this checkbox is selected, then the system will ignore the evaluation start and end
date, as well as the name of the person who last changed the corresponding data, even if such entries are specified on the selection screen.
When you execute the program, the system displays the content of the Process History table (T71ADM_PROCESS). The columns shown in the standard system
depend on the selected process type.
If you wish to employ the output of this program to send manual reminders to managers who have not yet finalized their planning, then perform the following
procedure.
Run the program.
On the subsequent screen, specify the applicable compensation review, organizational unit and evaluation period.
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Select the Display Current Status Only checkbox, then choose Execute.
In the resultant program output screen, sort the entries in accordance with the Status column.
For all planning managers whose current status does not correspond to Completed, send a reminder in the communication method of your preference.

Display Compensation Planning Changes
(RHECM_DISPLAY_CHANGES)
Use
Execute this program to display an overview of all changes that have occurred during the specified evaluation period to compensation planning data within
employee Compensation Process infotype (0759) records.
Integration
Upon execution, this program evaluates the contents of the Employee History table (T71ADM_EE_HIST) for the selected employees, compensation plan(s) and
review(s), then displays the contents of that table in the program output.
Actions
Compensation Planning Monitoring Display Compensation Planning Changes to access this program.
To execute this program, specify the employees and the compensation plan(s) and review(s) which should be evaluated. If desired, you may narrow the output of
the program by specifying an evaluation start and end date, or by entering the name(s) of the person(s) who last changed the corresponding data. A maximum
number of records may also be specified, as well as a layout, if desired.
Moreover, if desired, you can narrow the program output greatly by selecting the Display Current Status Only checkbox. When this checkbox is selected, the
program output will solely display the current status of the selected planning records for that review. When this checkbox is not selected, the program output will
display the cumulative progress of the selected planning records for that review. If this checkbox is selected, then the system will ignore the evaluation start and
end date, as well as the name of the person who last changed the corresponding data, even if such entries are specified on the selection screen.
As delivered in the standard system, within its output, this program displays the contents of the Employee History table (T71ADM_EE_HIST) in the following
columns.
Display Group
The display group is a technical field which is used to group the historical entries for a single infotype record; that is, its only purpose is to sort the table
output. It is reassigned each time the program is started, and may therefore change if the program is restarted after data changes or with different selection
criteria.
Employee Name
Personnel Number
Organizational Unit for Planning
Status
Last Change On
Changed by
Activity
Note Exists
This column is marked when a note was attached to the compensation planning record. This note can be displayed by selecting the record and pressing the
button Notes.
Effective Date
Infotype record number
Compensation Area
Compensation item
Calculation base
Amount
Percent
Number
Currency
Hourly
Three function buttons are also displayed in the program output, which can be used to obtain additional information:
Messages
Choose this option to display errors or warnings that may have been issued when the data was read.
Note
Choose this option to display any notes that have been attached to the selected record.
Display Planning Process
Choose this option to display the progress of the compensation planning cycle for the organizational unit of the selected record.
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Administer Compensation Process Status
(RHECM_STATUS_CHANGE)

With this program, you can manage the status of organizational units for the compensation planning process (short form: planning process) in the Enterprise
Compensation Management component. The following are examples of what the program does during the planning process:
Check and correct the status of organizational units
Recalculate employee budgets for an organizational unit, including subordinate organizational units
Request or approve compensation planning for an organizational unit
Reset the status of an organizational unit to In Planning or Approval Required
Activate compensation adjustment for one organizational unit
Prerequisites
You have made the required settings in Customizing for Enterprise Compensation Management under Budgeting.
Under Compensation Administration, you have made the required settings in Customizing for Enterprise Compensation Management for the compensation
review.
Employee data must be available for the Compensation Program (0758) and Compensation Eligibility Override (0760) infotypes.
You have already planned compensation with the report Administer Org. Units and Budgets for Comp. Planning Process
(RHECM_PROCESS_SUPPORT_FOR_PLNG).
Features
The program reads process administration information in the system for the following:
Organizational unit
All subordinate organizational units
All organizational units that are above the selected organizational unit in the hierarchy
The following are examples of functions available for the selected organizational unit and subordinate organizational units:
Update planning and budgets
The administration information saved in the system for the planning process is compared with the current system status and updated when necessary.
For more details on administration information and the changes the system recognizes, see the documentation for the report Manage Organizational Units and
Budgets for Compensation Planning Process.
Recalculate budgets
Budget values are recalculated for existing employee budgets.
For more details on this function, see the documentation for the report Manage Organizational Units and Budgets for Compensation Planning Process.
Set status to "In Planning"
The status of the organizational unit is set to In Planning. The responsible manager can make additional changes to compensation adjustments.
This function is only available for process types based on the organizational unit.
Set status to "Approval Required"
The status of the organizational unit is set to Approval Required. The approving manager can once again approve or reject compensation adjustments.
Submit planning
The organizational unit's compensation adjustments are submitted to the responsible manager. The approving manager can once again approve or reject
compensation adjustments.
Approve planning
The organizational unit's compensation adjustments are approved.
Activate planning
The organizational unit's compensation adjustments are activated. For more information, see Activate Compensation Reviews.
Show planning progress
The progress of the compensation review is displayed.
Organizational units that are above the selected organizational unit in the hierarchy cannot be changed directly. These organizational units are only displayed
because their status could be changed when changes are made to their subordinate organizational units.
Note that the following functions in the system conduct comprehensive checks or change infotypes:
Update planning and budgets
Recalculate budgets
Activate planning
When editing multiple organizational units, we recommend you use either the report Administer Org. Units and Budgets for Comp. Planning Process or the
report Change Compensation Process Status. This is because the report Manage Compensation Process Status (RHECM_STATUS_CHANGE) cannot be
run in the background.
Note
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Selection
On the selection screen you select the data for the compensation review and organizational unit.
Output
The organization unit entered under Selection and all subordinate organizational units with their statuses are displayed in a tree structure. You can select and edit
these organizational units in the tree structure. All superordinate organizational units are displayed, but they cannot be edited.
Activities
1. Enter the compensation review and organizational unit. Then run the report.
The system displays the organization unit and all subordinate organizational units with their statuses in a tree structure. You can select and edit these
organizational units.
All superordinate organizational units are displayed, but they cannot be edited.
2. Select an organizational unit and the relevant function.
For some functions, you can enter or select relevant data in a dialog box. For example, you can select whether you want changes to be tested or saved in the
system immediately. The system displays an additional dialog box containing the log with the changes. These changes are then applied to the tree structure
with the organizational units.
Summarize Comp. Planning Changes
(RHECM_SUMMARIZE_CHANGES)
Use
Execute this program to evaluate employee data, as of a reporting period of your choosing, for a selected compensation plan during a compensation review. Upon
execution, in accordance with your selection, the program evaluates data stored in the Employee History table (T71ADM_EE_HIST) for the compensation plan
and review. When evaluation of this data is complete, the output of this program summarizes compensation planning changes that have occurred as of that
reporting period for employees in the selected compensation plan during the course of the compensation review.
Actions
Compensation Planning Monitoring Summarize Comp. Planning Changes to access this program.
To execute this program, specify the employees and the compensation plan(s) and review(s) which should be evaluated.
If desired, you also may specify various standard selection criteria - for example, personnel number - to narrow the range of data that the program will evaluate. By
the same token, you may specify a maximum number of output records, as well as a layout, to limit the display of data within the program output. The default
maximum number of output records is 500.
Upon execution, on the subsequent screen, the program output displays a corresponding Summary of Compensation Planning Changes. The header of the
program output indicates the compensation plan, compensation review and compensation review item. In the body of the program output, a row is displayed for
each employee for whom the program evaluated data in the selected compensation plan during the compensation review.

Follow-Up Activities in Compensation Administration

Once compensation planning and compensation approval are completed by the manager, these final activities follow:
Activate Compensation Reviews
Adjust Compensation Process Records (RHECM_ADJUST_0759)
Change Compensation Process Status (RHECM_CHANGE_PROC_STATUS)
Update Basic Pay from Planned Compensation (RHECM_UPD_0008_FROM_1005)
Delete Data from Compensation Planning History (RHECM_DELETE_HISTORY_DATA)
Activate Reviews
Purpose
Once the compensation changes have been approved, you must activate the changes for subsequent processing in Payroll and LTI. With the Appraisal Process
infotype (0759), stored personnel master records are set to status Active. Secondary infotypes are generated and updated as necessary. One of the following
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infotypes is generally processed (depending on the category): Basic Pay (0008), Additional Payments (0015), Additional Off-Cycle Payments (0267) or LTI
Granting (0761).
Activation is the final step of the compensation process and is performed within the system. To this end, the Change Compensation Process Status report is
executed at the appropriate time.
Prerequisites
You are required to have configured your compensation plans and reviews in Customizing for Enterprise Compensation Management (PA-EC).
To ensure that the compensation changes are processed correctly, you must also have configured all relevant payroll wage types.
If your company uses an organizational unit-based appraisal process for compensation reviews, the process must be complete for the organizational units of
the selected employees. The program checks that the status of the process permits activation for the organizational unit.
Alternatively, if your enterprise uses an employee-based approval process for its compensation reviews, then the Compensation Process infotype (0759)
employee records must exist, with the status set to Approved, regardless of whether such records were created in Manager Self-Service or via the Create
Compensation Process Records report.
Process Flow
1. The approved changes made to the Compensation Process infotype (0759) are displayed.
2. To make the approved changes effective, you must execute report Change Compensation Process Status (RHECM_CHANGE_PROC_STATUS).
Result
The status of the infotype records of the selected employees is set to Active and secondary infotype records are either generated or updated. Depending on the
compensation categories, the following infotypes are processed, provided that the compensation amount, percentage or number is greater than zero:
Basic Pay (0008) for salary adjustments
Additional Payments (0015) for bonuses.
Additional Off-Cycle Payments (0267) for off-cycle payments,
LTI Granting (0761) for awards.
Subsequent Steps
Run payroll to process and pay out the various compensation components. Eventually, you can mass-print and distribute compensation review statements to the
relevant employees.

Adjust Compensation Process Records
(RHECM_ADJUST_0759)
Use
Execute this program to perform changes to compensation data in existing Compensation Process infotype (0759) records for selected employee groups, or entire
compensation plans or reviews. Because this program is intended to process infotype records for large employee populations, it is recommended that you
execute it in the background. To this end, choose Program Execute Background.
This program is specifically intended for use in changing compensation data alone that is, data in the fields Compensation Amount (CPAMT), Compensation
Percent (CPPCT) and Compensation Number (CPNUM) within existing Compensation Process infotype (0759) records. It cannot be use to change other fields
on that infotype such as the Effective Date or Status, nor can it change Compensation Process infotype (0759) records that have already been activated.
Actions
You can call the program in the SAP menu via the following path: Personnel Personnel Management Compensation Management Enterprise
Compensation Management Compensation Planning Follow-Up Activits Adjust Compensation Process Records.
To execute this program, specify the desired range of compensation plans and reviews, along with standard organizational and selection period criteria, where
applicable. Then specify one of the following three options.
Where appropriate, specify an adjustment percentage between -100 and 999 in the Adjust Compensation (%) field for the corresponding employee
population. For example, if you want to raise compensation data by 2%, enter 2 in this field. If you want to decrease compensation data by 3%, enter -3 in
this field.
For salary adjustment or bonus plans, the Compensation Amount is increased by the specified percentage and rounded as defined for the compensation
plan. The Compensation Percent is also recalculated, based on the new amount.
If the compensation plan is an LTI Grant, the Compensation Number is increased by the specified percentage.
Alternatively, by choosing Apply Guidelines to execute the program, you instruct it to reset compensation data in accordance with the amounts specified in
the corresponding guidelines.
Otherwise, choose Delete Records if you wish to remove the corresponding infotype records from the database.
Upon execution, the program adjusts Compensation Process infotype (0759) records as instructed for the specified population and displays a detailed list of the
adjustments that were performed, along with processing errors that may have occurred. Where such errors occur, the corresponding personnel numbers are
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omitted, permitting users to review the error log and correct employee data accordingly.

Change Compensation Process Status
(RHECM_CHANGE_PROC_STATUS)
Use
Execute this program to change the status of Compensation Process infotype (0759) records for one or more employees. The most important status change for
these records is when you set the status to Active. This is known as activation. It is described under Activate Compensation Review. If this program is executed
to change the status of such records to Active, then additional secondary infotypes are generated or updated accordingly. The secondary infotypes most commonly
processed in this case are the infotypes Basic Pay (0008), Additional Payments (0015), Additional Off-Cycle Payments (0267) or LTI Granting (0761).
Once this program has been executed for selected employee infotype records, it is not possible to revert those records to their original status for example,
back from Active to Approved.
Moreover, because this program is intended to process infotype records for large employee populations, it is recommended that you execute it in the
background. To this end, choose Program Execute Background.
Prerequisites
You are required to have performed all corresponding settings in Customizing for Enterprise Compensation Management (PA-EC).
You are equally obligated to have performed the compensation reviews that you wish to activate.
Records in the Compensation Process infotype (0759) must be present for the corresponding employees. If you have not implemented Manager Self-
Service, then you may execute the Create Compensation Process Records program to create the necessary records, and then execute this program to
perform the necessary status changes.
For compensation reviews that use an organizational unit-based process type, the status of the compensation process is not saved in the Compensation
Process infotype (0759). Therefore, only use the program to activate the infotype records. The program checks whether the compensation process status
permits activation.
Selection
In addition to standard selection period and organizational criteria, you may specify a range of compensation plans and reviews to be processed, as well as the
status change that you wish to perform.
It is also strongly recommended that you perform a test run to detect and correct possible errors before updating the database.
Output
If you have chosen the status change Approved Active, then the program performs a two-step update for the selected group of employees:
The status in the Compensation Process infotype (0759) is changed in accordance with the selection you made before executing the program.
When the status is set to Active, the secondary infotypes are generated or updated.
If no errors occur, the process is completed. However, if errors have occurred, then the process is interrupted and the personnel number is omitted. In this
case, we recommend that you review the error log, check and correct the corresponding HR Master Data entries for example, in the Basic Pay infotype
(0008) and then execute the report anew. Secondary infotypes are only generated if the compensation amount, percentage or number is greater than
zero. To retrieve the correct wage type, the system reads the employee's country grouping as of the effective date and determines the wage type from the
Compensation Plan Payroll Data table (T71ADM04), which is only valid for non-LTI categories. If no wage type is found, then the status will remain
unchanged and an error message will be issued.
If you have chosen any other status change, then the status of the selected Compensation Process infotype (0759) records will be modified accordingly.

Update Basic Pay from Planned Comp.
(RHECM_UPD_0008_FROM_1005)
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Use
Execute this program to update fields in infotype 0008 for all employees assigned to a job or position, when the assignment of jobs and positions to pay grades in
infotype 1005 has been changed.
Note
This program is meant for mass processing. It is therefore recommended that you execute it in background via Program Execute Background.
Prerequisites
The following infotypes must be maintained:
The Basic Pay infotype (0008) for the relevant employees
The Planned Compensation infotype (1005) for the jobs or positions held by the employees.
Selection
Selection criteria include job, position and remuneration type. By default, only salaried employees are selected. Required parameters are key date and reason for
change of infotype 0008.
The logical database selects the infotypes 0001 and 0008 of the employee. All base pay records with subtype 0 valid on the key date or later are checked for
possible changes. The selection date for reading the infotypes 0001 and 1005 is the program key date if the infotype 0008 record is valid on this date, otherwise
on the begin date of infotype 0008.
Once the system has retrieved the job and position from infotype 0001, it selects the infotype 1005 record. If the pay scale/grade type or pay scale/grade area in
infotype 0008 is different from the one in infotype 1005, or the pay scale group/grade and pay scale/grade level in infotype 0008 is not in the range specified in
infotype 1005, the infotype 0008 record is updated.
Output
The Pay Scale Type, Pay Scale Area, and Pay Scale Level fields in infotype 0008 are adjusted according to the values in infotype 1005. If infotype 1005
contains an area of pay scale groups and pay scale levels, the lower limit of this area is written to infotype 0008. The wage types and amounts remain
unchanged. If the result contradicts the salary range, the business logic of infotype 0008 issues an error message or warning message depending on the settings
in the Pay Scales table (T710A). Data records whose validity starts before the key date are split on the key date, while the other records remain unchanged. If a
personnel number is locked, the system generates a message in the error log and processes the following personnel number.
The final changes are displayed in the message log.

Use
Execute this program to generate an overview of the compensation granted to a group of employees. Typically, the Compensation Review Statement (CRS) is
sent by the personnel department after the annual merit review. Contrary to the Total Compensation Statement, however, you cannot define the pay categories to
be displayed, neither can you determine the order in which you want them to be displayed. Instead, the compensation information is directly read from infotype
Compensation Process (0759).
Prerequisites
You must have:
Maintained the following infotypes for the selected employees. Otherwise no overview is generated:
Organizational Assignment (0001), Personal Data (0002), Addresses (0006), Planned Working Time (0007) and Basic Pay (0008) for the header information.
Compensation Process (0759).
Activated the relevant salary review by means of report Change Compensation Process Status.
Selection
In addition to the standard time-dependent and organizational criteria, you can specify a range of compensation areas, plans, categories and reviews to be
evaluated, as well as the date on which you want to evaluate the records of infotype Compensation Process (0759).
Output
For each review, the program generates a ready-to-send overview of the compensation components to be paid out:
Salary adjustment
The following data is displayed: compensation plan, effective date, current salary, increase percentage and amount, time unit.
Regular bonus
The following data is displayed: compensation plan, effective date, amount and time unit.
Off-cycle bonus
The following data is displayed: compensation plan, effective date, amount and time unit.
LTI grant
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The following data is displayed: compensation plan, effective date, number of granted awards and stock unit.

At the bottom of the section, the new salary and the effective date are displayed.

Delete Comp. Planning History Data
(RHECM_DELETE_HISTORY_DATA)
Use
Run this optional program when a compensation review is completed and you no longer need your planning history data. The program deletes all data for this
compensation review from the following tables:
Employee History(T71ADM_EE_HIST)
Process History (T71ADM_PROCESS)
In addition, the program deletes all entries from the following tables:
Compensation History: Employee Assignments (T71ADM_PROC_EE)
Compensation Tracking: Eligibility Information (T71ADM_PROC_ELIG)
Compensation Tracking of Employee Notes (T71ADM_EE_NOTE)
Notes for Compensation Process Tracking(T71ADM_PROC_NOTE)
Compensation Planning: Spent Amounts (T71ADM_SPENT_AMT)
These tables contain information such as the following:
Employee assignments
Employee eligibility information
Employee notes
Compensation review notes
Amounts used for the selected compensation review
Although this program is entirely optional, some enterprises may find it to be useful in cases where unnecessary data for completed compensation reviews
adversely affects storage capacity.
Because these history tables also store actual data that is associated with the compensation approval process as it is currently reflected within the system,
we recommend that you exercise caution before executing this program in productive mode. Any data stored in these tables for the selected compensation
review will be irrevocably deleted once you execute this program productively. Therefore, after you execute this program in productive mode, you cannot later
refer to data for the selected compensation review for example, upon initiating next years compensation review. For most enterprises, it is sufficient to
execute this program once every two to three years.
Although this program deletes table entries associated with the administration, history, and progress of Compensation Planning, it does not affect the records of
the Compensation Process infotype (0759) in any way. However, the program is used to delete data from the Employee History table (T71ADM_EE_HIST)
that is associated with the entries for the Compensation Process infotype (0759).

Note that the program deletes the history of the compensation process as well as the budget (organizational unit budget and employee budget).
If an error occurs that is related to the used budgets that exist in the system, you must first fix these fields with the program Adjust Compensation Process
Records (RHECM_ADJUST_0759). Afterwards, start the program Delete Budget Units (Including Employee Budgets) (RHECM_BUDGET_DELETE) for all
affected budget types (examples: bonus and LTI) in the relevant compensation review (example: Salary 2010).
Integration
It is recommended that you execute this program only after you have completed all associated monitoring tasks for the selected compensation review by running
all of the Monitoring Programs in Compensation Administration.
Prerequisites
This program can only be executed for a compensation review after the end date of the corresponding review period has elapsed. To determine this end date, in
Customizing for Enterprise Compensation Management (PA-EC), choose Compensation Administration Compensation Plans and Reviews Define
Compensation Reviews.
If you attempt to execute this program for a compensation review that does not meet this prerequisite, the system will issue the following error message:
The selected compensation review has not been completed
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Actions
Compensation Planning Follow-up Delete Comp. Planning History Data to access this program.
To execute this program, specify a compensation review that has been completed, for which you now wish to delete associated data from the employee history
tables and process history tables. Because this action often necessitates the deletion of large amounts of data from these tables, you may select the Create
Messages checkbox, if desired, which instructs the program to create messages within the program output. Furthermore, you may select the corresponding
checkbox to perform test deletion runs.
Both of the checkboxes named above are selected by default.
Upon execution, this program displays a summary of data it has deleted (if executed in productive mode) or would delete (if executed in test mode). The output of
the program is structured in the following manner.
Selection
Compensation Review (by name)
Begin Date (by date)
End Date (by date)
Summary: Employee History
Deleted Entries (by number)
First Deleted Entry (by date and time)
Last Deleted Entry (by date and time)
Summary: Process History
Deleted Entries (by number)
First Deleted Entry (by date and time)
Last Deleted Entry (by date and time)
Furthermore, from within the program output, you may select one of two function buttons displayed - Messages for Employee History or Messages for Process
History - to review any messages that the program may have generated for the associated history table.

Infotypes in Compensation Administration

Compensation Program (0758)
Definition
This infotype is used for macro eligibility purposes and help you differentiate employees for compensation purposes. Macro eligibility refers to a set of high-level
criteria that help you determine whether a group of employees is eligible for a compensation plan, as shown in the example below.
You can create/update records on hiring or when an employee changes position, an event that is likely to move the employees to different compensation program
groupings.
This infotype enables you to:
Assign employees to compensation areas.
Determine the set of compensation plans for which an employee may be eligible.
Example
First compensation program grouping:
Executive / Non-executive
Salaried / Hourly paid
Second compensation program grouping:
Full-time / Part-time
Active / Retiree
Use
Typically, this infotype is maintained manually by the HR administrator or the compensation specialist. However, you can also run the program Create
Compensation Program Records when you first use Enterprise Compensation Management to maintain this infotype for a large number of employees or on a
regular basis for new employees.
You can provide default values for the compensation area and the first/second compensation program groupings by means of the features mentioned below.
An employee can have one record per compensation area but more than one record with different compensation areas. Consequently, an employee can be
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assigned to more than one compensation area at the same time.
Preliminary Steps
You must have executed the Hiring personnel action and maintained the relevant infotypes.
For more information on the related implementation issues, see the following activities under the section Compensation Administration of the Implementation Guide
for Enterprise Compensation Management:
Define Compensation Area Feature
Compensation Programs -> Define First Compensation Program Groupings
Compensation Programs -> Define First Compensation Program Grouping Feature
Compensation Programs -> Define Second Compensation Program Grouping
Compensation Programs -> Define Second Compensation Program Grouping Feature

Compensation Process (0759)
Definition
Use this infotype to keep track of the compensation process for all categories, including LTI plans.
This infotype is generated/updated when the suggested compensation is saved by the Line Manager in Manager Self-Service in the form of either salary, bonus,
or LTI awards. However, it can also be maintained manually by the HR Administrator/Compensation Specialist to handle single cases or by means of the program
Create Compensation Process Records. Depending on the compensation category, either amount/percentage (salary/bonus) or number fields (awards) are
displayed.
Note that the status field of the infotype is evaluated depending on the process type of the compensation review.
For employee-based compensation reviews, the planning status is saved in the Status field.
For organizational unit-based compensation reviews, the status of the organizational unit is not saved in the infotype because this is not employee-related
information.n You must not manually change the infotype status for these compensation reviews.
To make the changes effective and consolidate the salary review, you must execute the program Change Compensation Process Status. This performs the
following steps:
Set the status of the infotype records to Active.
Trigger the update/generation of secondary infotype records, that is Basic Pay (0008) for salary adjustments, Additional Payments (0015) for regular
bonuses, Additional Off-Cycle Payments (0267) for off-cycle bonuses and LTI Granting (0761) for awards. Note that the compensation amounts and
numbers are written to the correct wage types for further processing in Payroll (See also the IMG activity Assign Compensation Plan Payroll Data).
Activation cannot be performed manually. Once activated by means of the program Change Compensation Process Status, no changes should be allowed.
You can change the status manually however (for example to Approved), but the changes in the secondary infotypes are not reverted.
Use
Normally, line mangers perform compensation reviews in Manager Self-Service and the proposed changes are eventually written to this infotype with the status In
Planning. However, the HR administrator or compensation specialist can maintain this infotype manually in HR Master Data. This is done via the program Create
Compensation Process Records.
You can handle both salaried employees and hourly paid workers within the same compensation plan. No time conversion is necessary after activation. The
adjustment amount per hour is added to the Basic Pay infotype (0008).
Specific Functions
In addition to changing the data manually, the HR Administrator/Compensation Specialist can also use the following functions:
Round amount
Round the amount of the salary adjustment up or down according to the customizing you have defined in Global Settings Define Stock Unit Conversion
Rules. Note that the percentage remains unchanged.
Apply Percentage
Applies the entered percentage
Apply Guidelines
Applies the default guideline values you have set in Customizing.
Bring to minimum
Replaces the current compensation amount with the minimum amount of the salary range the employee belongs to as of the effective date, provided that the
current value is lower.
Recalculate calculation base
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Recalculates the calculation base on the effective date. If the result is different from the current value, the percentage is recalculated.
Display planning progress
Displayes a list of changes to the planning unit assigned to the employee for planning. The current process status of this planning unit is saved in the list.
Preliminary Steps
Although not required, it is recommended that you implement Manager Self-Service for line managers to perform salary reviews, since it allows you to mass
process employees. Direct maintenance via HR Master Data is for handling exceptions.
For more information on the related implementation issues, see the following activities in Customizing for Enterprise Compensation Management under
Compensation Administration:
Compensation Plans and Reviews > Define Compensation Reviews
Compensation Plans and Reviews > Define Compensation Review Items
Compensation Plans and Reviews > Assign Compensation Review Item Attributes
Structure
This infotype consists of subtypes you have defined in Customizing by performing the activity Define Compensation Review Items.

Eligibility Override (0760)
Definition
This infotype controls an employees micro eligibility by overriding his/her eligibility criteria as defined in Customizing.
Use
Typically, this infotype is used to handle individual and exceptional cases. You can specify whether or not an employee is eligible for a specific compensation
plan.
If you create a record and make the employee eligible, he/she is micro eligible and you can enter the date on which his/her eligibility becomes effective. If left
empty, the employee is eligible during the whole validity period of this infotype.
If you do not make the employee eligible, you cannot enter a date and he/she is not micro eligible.
If no record exists, micro eligibility is checked against on the basis of the eligibility rules defined in Customizing.
Preliminary Steps
You must have defined compensation plans in Customizing.
For more information on the related implementation issues, see the following activities under the section Compensation Administration -> Eligibility of the
Implementation Guide for Enterprise Compensation Management.

Employee Self-Service
Employee Self-Service (ESS) provides an intuitive interface for employees based on the SAP Enterprise Portal (SAP EP) technology. In the area of
Compensation Administration, a single scenario will help employees to view and print their Total Compensation Statement (TCS) whenever required.
Total Compensation Statement (TCS)
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Use
The Total Compensation Statement is an online statement in PDF format containing a list of all the compensation elements and benefits paid by the company to
an employee within a specific timeframe, typically one year. It can be generated by either the employee himself in Employee Self-Service, the HR Administrator
or the Compensation Specialist for mass printing. For this purpose, two reports are available in the SAP System to generate the statement either on an individual
or on a collective basis (mass-printing).
Preliminary Steps
Total Compensation Statement Form
The standard form shipped with the SAP System (HR_CMP_TCS) consists of various categories and subcategories, which you can customize to meet your
business needs:
PAY Pay
Salary and bonus
CMP - Other Compensation
Miscellaneous compensation elements, including long-term incentives.
BEN Benefits
Benefits plans in which the employee has participated/is participating.
PDV - Personnel Development
Individual development plans, education and training.
If you want to add your own categories and subcategories, perform the IMG activities under the section Total Compensation Statement > Country-Specific
Enhancements of the Implementation Guide for Enterprise Compensation Management.
For the Bonus and Salary subcategories of the Pay category, you can specify which wage types have to be used. By doing so, you allow the system to calculate
a total amount for the relevant category from the payroll results.
HR Master Data
Maintain the following infotypes to retrieve the header information (personnel number, personnel area and subarea, personnel group and subgroup, etc.):
Organizational Assignment (0001)
Personal Data (0002)
Feature ADDR
Maintain this feature to determine the employee's address displayed in the header of the Total Compensation Statement. Per default, the employee's permanent
residence (subtype 1) of the Address infotype (0006) is used.
See Also
Viewing and Printing a Total Compensation Statement in ESS
Printing a Total Compensation Statement in the SAP System
Mass-Printing a Total Compensation Statement in the SAP System
Viewing and Printing the Total Compensation Statement in ESS
Procedure
1. Logon to Employee Self-Service.
2. Choose My ESS > Benefits and Payment.
3. In the list of available documents on the left-hand side of the screen, choose Display Total Compensation Statement.
Result
The Total Compensation Statement is displayed in Portable Document Format (PDF).
To print it, click the corresponding button in the Adobe Acrobat frame.
To view a Total Compensation Statement of another period, specify a new period and choose Refresh.
Printing a Total Compensation Statement in the SAP System
Procedure
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Execute the Total Compensation Statement transaction. For more information, see also Total Compensation Statement.
Result
The report displays the employees Total Compensation Statement.

Mass-Printing a Total Compensation Statement in the SAP
System
Procedure
Execute report Total Compensation Statement Mass Printing (RHCMPTCS_PRINT). For more information, see also Total Compensation Statement - Mass
Printing.
Result
The report displays the employees Total Compensation Statement.

Technical Information

Authorizations in Manager Self-Service and in the SAP System
Use
To create or change records on infotype Compensation Process (0759), two new authorization levels have been added for authorization object P_ORGIN:
P, for planning and submitting compensation processes,
A, for approving or rejecting compensation processes.
Additionally, the authorization levels R (read) and W (write) are required for line and higher managers.
Note
The new authorization levels are checked only in case of changes in Manager Self-Service or by means of program Create Compensation Process Records. In
case of changes in HR Master Data, no checks are performed.
Actions
Use the Authorization Level field of the authorization object to determine which actions a user is allowed to perform on infotype 0759.

Consistency Checks in Manager Self-Service and in the SAP
System
In Manager Self-Service, various consistency checks are performed automatically after data entry to determine whether or not:
An employee is eligible for a compensation plan. The system actually performs a preliminary selection and employees that are not eligible are displayed as
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such.
The guideline criteria are fulfilled.
The budgeted amount is exceeded.
In HR Master Data, however, the above-mentioned consistency checks are not performed automatically. The reason for this is that Manager Self-Service and HR
Master Data address two different target audiences: while data entry in Manager Self-Service is mainly intended for managers and therefore more restricted, HR
Master Data is for advanced users such as Compensation Specialists or HR Administrators to handle exceptions.
The checks are performed per employee and compensation plan except for budgeting, which applies to all employees.
Consistency Checks in Manager Self-Service
The following data is automatically checked in Manager Self-Service on data entry:
Stock unit
Is the current stock unit used? The system checks whether it can be converted according to the rule defined in the IMG activity Define Stock Unit
Conversion Rules.
Effective date
Is the effective date between the effective begin date and the effective end date?
Waiting period
Has the employee completed his/her waiting period?
Guideline limits
Has the compensation exceeded the guideline limit? You can define the message type by performing the IMG activity Assign Compensation Review Item
Attributes.
Salary range
Is the salary within the salary range? You can set the relevant indicator in table Pay Grade (T710A).
Employee status
Is the employee active? The Employment Group field is checked in infotype Actions (0000).
Authorizations
Is the Line Manager allowed to plan/approve reviews in Manager Self-Service?
Budget
Has the budget been exceeded? You can define the message type by performing the IMG activity Assign Compensation Review Item Attributes.
Business Add-In for customer-specific checks
If the Business Add-In has been implemented, has the condition been fulfilled?
Consistency Checks in HR Master Data
The data can also be checked manually in infotype Compensation Status (0759) if required (Eligibility can be checked, whereas authorizations are not checked.).
To do so, choose Check. Contrary to Manager Self-Service, you can save your changes despite any errors that may have occurred.

Long-Term Incentives
Purpose
Use this component to set up your companys long-term incentive (LTI) plans and describe how equity compensation should be granted and handled.
Long-Term Incentives is a comprehensive toolkit for:
Administering awards, the focus being stock options (Incentive Stock Options, Non-Qualifying Stock Options).
Handling vesting schedules and life events.
Cancelling LTI plans.
You must have performed the activities under the sections Budgeting, to define budgets for distributing awards (You must have implemented Compensation
Administration in this case), and Long-Term Incentives of the Implementation Guide for Enterprise Compensation Management.
Integration
To use this component, you are required to have implemented:
The Personnel Administration component so that you can access employee data and update employee records.
Further integration is provided to:
Generate/update infotype LTI Granting (0761) on activation of infotype Compensation Process (0759).
Transfer tax-relevant data to Payroll.
Moreover, if desired, custom interfaces may be employed for the following purposes:
LTI grant and participant data can be exported to the bank or broker for exercising purposes via a custom interface of your choice.
LTI exercising data can be imported from the bank or broker via a custom interface of your choice and stored in infotype LTI Exercising (0762) for further
processing and taxation in Payroll.
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Long-Term Incentives Process
Purpose
Although business processes can greatly vary from one company to another, the following can be used as an example by your companys compensation team to
plan and award long-term incentives.
Process Flow
1. The company sets up a long-term incentive plan for its employees.
2. Awards are budgeted per group of employees.
3. The line manager grants awards to his/her employees in Manager Self-Service.
4. Infotype LTI Granting (0761) must then be updated by means of report Change Compensation Process Status.
5. Because in-house exercising is not supported, specify a custom interface of your choice to transfer the grant and participant information to the bank or broker,
and to eventually import the required exercising information. Prior to this, the bank sets up accounts for the selected employees.
6. The bank sends the exercise confirmation information to the company, which eventually stores the information on infotype LTI Exercising (0762).
Result
The employees can exercise their awards and the company uses the exercising information for further processing in Payroll, for example, to calculate the
imputed income.

Core Concepts in Long-Term Incentives

Exercise Windows
An exercise window is a period during which your employees are allowed to exercise their awards, in other words to purchase stock at a predetermined price. To
determine an exercise window, you must define an exercise window rule, for example for all non-executive employees (exercising allowed) or for insiders
(exercising allowed only during certain periods or not allowed during blackout periods).
In the standard system, exercise window rules are stored on infotype LTI Granting (0761) and retrieved by a custom program of your choice.

Granting
Granting refers to the process of issuing long-term incentive awards such as stock options to let employees share the success of your company. The number of
granted awards can depend on the group to which an employee belongs (executive, manager, and so on).
In the standard system, granted awards are stored on infotype LTI Granting (0761) and retrieved by a custom program of your choice.
Example
Your company issues 1,000 awards at USD 25.00 each, an amount close to their fair market value. After granting, employees must wait until their awards are
vested. Afterwards, they can exercise their awards.

Vesting
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Vesting refers to the process by which awards become exercisable, that is, when an employee is allowed to purchase stock at the grant price after a predefined
period. Unvested awards are awards that are not yet available for exercise, for example, when awards vest gradually.
Related Concepts
Vesting date
Date on which awards become exercisable. Employees can exercise their awards during the whole period between the vesting date and the expiry date.
Vesting period
Period between the vesting date and the expiry date, during which employees are allowed to exercise all or a portion of their awards.
Vesting Schedule
A schedule of dates on which a portion of awards is issued as part of the vested awards. For example, you have been granted 600 awards on February 1,
2000. Your vesting schedule may look like this: 200 of the awards are due to vest on February 1, 2004, another 200 on February 1, 2005, and another
200 on February 1, 2006.
Vesting types
SAP supports the following:
Graduated vesting
Graduated vesting is a form of vesting that implies that employees are allowed to exercise their awards gradually on a year-to-year basis, for example, 20% in
year 1, 40% in year 2, and the final 40% in year 3.
Cliff vesting
Cliff vesting implies that for example all awards vest at once after two years.

In the SAP System, the vesting rule is stored on infotype LTI Granting (0761).
Exercising
Exercising typically refers to stock options. Employees exercise their awards when they purchase stock at a predetermined price, that is, the price set on the
grant date, irrespective of the stock price at the time they exercise their awards.
In the standard system, exercising data is imported by a custom program of your choice and eventually stored on infotype LTI Exercising (0762).
Example
Number of granted awards: 1000
Exercise price: 25 USD
Fair market value: 50 USD
Spread: 25 USD
Awards vest on January 1 and the employee decides to exercise them. The value of the stock on exercising is 50 USD. The spread is the difference between the
value of the stock and the exercise price. If the value of the stock is 50 USD and the exercise price 25 USD, the spread is 25 USD. When the spread is a
positive number, the option is in the money. If not, it is under water or out of the money.
The awards would cost 25,000 USD (1000 x 25), payable to the company. The shares are transferred to the employees stock account.
The employee can then either wait or sell the shares immediately. Suppose he/she sells them at 50 USD, he/she would then be entitled to 50,000 USD (1000x
50).
Related Concepts
Types of exercising
A cashless exercise allows you to exercise your awards and immediately sell the stock to cover the exercise cost and the brokerage fees. In a cash
exercise, by contrast, you must pay to exercise your awards.
Unexercised awards
Refer to awards that have vested, but that have not been exercised yet.

Forfeiting & Expiry
Forfeiting occurs when an employee gives up his/her right to exercise awards due to life events such as termination, retirement, death or disability. Awards that
have been cancelled following a life event can also go back to the pool or be redistributed.
Expiry typically refers to stock options. Awards are said to have expired when an employee fails to exercise them before the expiration date.

Cancellation
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Awards are usually cancelled when a life event occurs, new awards are issued, when the company undergoes a merger or when under certain conditions awards
that have been granted to the employee can be taken back by the company.
In the SAP System, you can cancel awards by means of the program Process Event for LTI Grants.

Stock Split
A stock split is an increase in the number of shares of a company's stock (and a corresponding decrease in the share price) decided by the board of directors
and the shareholders to make them more attractive for investors. This is usually the case the stock price when has increased significantly.

Life Events
An event at the employee level such as marriage, retirement or termination, that affects the administration of LTI data, particularly the number of awards, the
expiry date and the way vesting is handled.

Processes in Long-Term Incentives

Grant Long-Term Incentives
Purpose
The granting of awards is an integral part of the Manager Self-Service scenario described in Perform Reviews.
Perform Stock Splits
Purpose
This process is only relevant if a stock split is planned or has already taken place within your organization. If so, you must define a pre-split and a post-split
stock unit to uniquely identify awards.
Stock splits also affect the Compensation Administration and Budgeting components. It is therefore imperative that you:
Convert infotype LTI Granting (0761) by means of report Convert Stock Units.
Convert the corresponding budgets by means of report Convert Budget Stock Unit.
Update your guidelines settings accordingly by performing the IMG activity Define Guidelines.
Prerequisites
You must have:
Defined LTI plans in the IMG activity Define Compensation Plans under the section Compensation Administration > Compensation Plans and Reviews.
Defined the relevant stock units in the IMG activity Define Stock Units. An outgoing stock unit is always required for all awards. In case of a stock split, you
must also define a post-split unit.
Maintained infotype LTI Granting (0761).
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Process Flow
The stock split is triggered on the date the company decides to increase/decrease the number of shares.
Result
The number of shares is split according to the ratio you have specified, for example, 1:3. In this case, three shares are made available instead of one.
Example
Following a significant increase in the company's stock price, the board of directors and the shareholders have decided to increase the number of shares by
performing a one-for-three split (1:3) to make them more attractive for investors.
See also
Convert Stock Units

Cancel Long-Term Incentive Plans
Purpose
Awards are usually cancelled by the compensation specialist when:
New awards are issued or exchanged.
The company undergoes a merger or makes an acquisition. In this case the awards of the target company are cancelled and replaced with the awards of
other LTI plans issued by the successor company.
Cancellations are performed by means of program Process Event for LTI Plan Grant.
Prerequisites
You must have:
Been through the Implementation Guide for Enterprise Compensation Management.
Process Flow
Execute program Process Event for LTI Plan Grant for the relevant LTI plan on the cancellation date.
Result
The existing data records in the LTI Grants infotype (0761) are delimited on the processing date and the value of the Granted Awards field is copied to the
Forfeited Awards field of the newly created records. The number of unvested awards is filled in the field Forfeited Awards.

Export Participant and Grant Data to the Bank
Purpose
Once awards have vested, the eligible employees are allowed to exercise them via a bank or broker, that is, to buy the stock to which they are entitled at a
predetermined price. To do so, you must send the required data to the bank or broker, which then stores it in its own information system.
Prerequisites
The following prerequisites must be met:
Set up a custom interface of your choice with the bank or broker.
Maintained the following data on infotype LTI Granting (0761) and performed the underlying customizing activities:
Granted Awards
Expiration Date
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Exercise price
Vesting rule
Life event
Process Flow
1. Extract grant and participant data from the respective infotype via a custom program of your choice.
2. Send the grant and participant data to the bank or broker via a custom interface of your choice.
3. The bank or broker receives the required information via the custom interface and stores it in its information system and eventually sets up accounts to allow
your employees to exercise their awards.
Result
Once the bank or broker has set up the accounts, your employees can exercise their awards. Upon completing this process, infotype LTI Exercising (0762) must
be updated accordingly.

Set Up Accounts
Purpose
Typically, the bank or broker is suggested by the company and sets up an account for all eligible employees to allow them to exercise their awards and buy or
sell their stocks online.
Employees can view the number of granted and vested awards before exercising. Once they have finished exercising, all transactions are deposited into the
account.
Prerequisites
Since this process lies beyond the scope of Enterprise Compensation Management, no action is required from your side. The bank or broker, however, must
receive the participant data before the accounts can be set up.
Process Flow
The bank or broker sets up the accounts for the eligible employees.
Result
The employees can exercise their awards once they have vested.
Exercise Long-Term Incentives
Purpose
In-house exercising is not supported by Enterprise Compensation Management and is typically delegated to banks or brokers. Once awards have vested, the
eligible employees can exercise them. Eventually, all transactions are deposited into their accounts. At this stage, the bank or broker must send the exercising
information to the company so that it can update infotype LTI Exercising (0762). This is done via a custom interface with the bank or broker.
Prerequisites
You are required to have:
Set up accounts for the eligible employees, as described in Set Up Accounts.
Sent the grant and participant data to the bank or broker via a custom interface of your choice.
Process Flow
1. The employees exercise their awards online.
2. The result of their transactions are deposited into their accounts.
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Import Exercising Data
Purpose
Once your employees have exercised their awards online and all transactions have been deposited into their accounts, the bank or broker sends the up-to-date
exercising information via a custom interface of your choice, which updates infotype LTI Exercising (0762) accordingly.
Prerequisites
Your employees must have exercised their awards and the bank must have updated the exercising data in its information system.
Process Flow
Via a custom interface of your choice, import exercising data from the bank or broker and update infotype LTI Exercising (0762) accordingly, via a custom report
of your choice.
Result
Infotype LTI Exercising (0762) is updated. You can now perform payroll and accounting tasks, as described under the section Subsequent Activities.

Subsequent Activities
Payroll
Purpose
Before running payroll, you must perform the necessary customizing on a country-specific basis to make sure that the information stored on infotype LTI Exercising
(0762) is written to the correct wage types.
Prerequisites
You must have:
Activated the international payroll function Process Awards (XLTI) in the standard personnel calculation schema for Payroll. This functionality is mainly used
for taxation purposes. It enables you to write the imputed income resulting from exercising to the corresponding wage type. Currently, it is only available for
Germany and the US.
Performed the IMG activity Assign LTI Plan Payroll Data in the Implementation Guide for Enterprise Compensation Management.
Imported the exercising data from the bank or broker.
Updated infotype LTI Exercising (0762).
Process Flow
1. Run payroll.
2. The function reads the exercise amounts from infotype LTI Exercising (0762), creates the wage types with country-specific wage type and WPBP splits and
finally transfers them to table IT for further processing.
Example
To store the exercise price, the fair market value, the imputed income and the tax advance for the US country version, you would use the following wage types,
respectively:
Exercise price LTI S (M550)
Market price exercise (M554)
Imputed Income LTI S (M551)
Withheld amount (M557)
Note that the exercise price and the fair market value are for information purposes only, while the imputed income and the withheld amount are further processed.
See Also
Function Process Awards (XLTI)
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Accounting
Purpose
To cover exercising costs, you must make provisions available in mySAP Financials in a timely manner. A two-step process is triggered in mySAP Financials to
transfer the information from mySAP HR to the Accrual Engine in mySAP Financials and to calculate the provisions based on this information by means of one of
the two available accrual methods. Eventually, the provisions are posted.
For this purpose, the following reports are used:
Transfer of Granting of Awards from HR System(ACE_SOP_HR_DATA_TRANSFER)
Calculate and Post Provisions for Award Grants (ACE_SOP_PERIODIC_POSTING)
Prerequisites
You must have maintained infotype LTI Exercising (0762).
Process Flow
1. The process is triggered on the grant date from mySAP Financials. For awards that have already been exercised, no further provisions are needed.
2. The data is stored in the Accrual Engine.
3. The provisions are calculated and eventually posted.

Reports in Long-Term Incentives

Process Events for LTI Grants (RHECM_PROCESS_EVENT)
Use
Execute this report to process LTI-related events and update infotype LTI Granting (0761) accordingly.
Note
This program is meant for mass processing. It is therefore recommended that you execute it in background via Program > Execute > Background.
Prerequisites
You must have:
Been through the Implementation Guide for Enterprise Compensation Management.
Maintained infotype LTI Granting (0761) for the selected personnel numbers.
Selection
You can make various selections according to time-dependent and organizational needs.
In addition, you must specify the LTI plan to be processed, the processing date or date of event (Per default, the system date is displayed.) and the desired
processing option. The processing date is the date as of the changes become effective.
Processing Options
Cancel All
Select this option if you want to cancel all awards. LTI plan cancellations are usually performed by the Compensation Specialist when:
New options are issued or exchanged.
A company undergoes a merger or makes an acquisition. In this case the options of the target company are cancelled and replaced with the options of other LTI
plans issued by the successor company.
Cancel Unvested
Select this option if you want to cancel all unvested awards.
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Vest Pct. of Granted
Select this option and enter a percentage if you want to vest a percentage of the granted awards.
Vest Pct. of Unvested
Select this option and enter a percentage if you want to vest a percentage of the unvested awards.
Override Vesting Rule
Select this option if you want to use vesting rule other than the one you have specified in Customizing for the LTI plan.
Before updating the database, it is strongly recommended that you:
Perform a test run to detect possible errors.{}
Go through the error log and correct the errors.
Output
The report processes the LTI plan for the selected personnel numbers as follows:
Process Life Event
The awards are processed on the basis of the life event you have defined in your customizing settings.
Cancel All
For example, if you have granted 1000 awards and 100 have already been exercised, only 900 awards are cancelled.
Cancel Unvested
The existing record is delimited on the processing date and the number of unvested awards is filled in the Forfeited Awards field.
Vest Pct. of Granted
The existing record is delimited on the processing date and the value of the field Additionally Vested Awards of the newly created record is updated
according to the specified percentage.
Vest Pct. of Unvested
The existing record is delimited on the processing date and the value of the field Additionally Vested Awards of the newly created record is updated
according to the specified percentage.
Override Vest. Rule
The new vesting rule is written to infotype LTI Granting (0761).

Convert Stock Units (RHECM_CONVERT_STOCK_UNIT)
Use
Execute this program to perform stock splits and reflect pre-split and post-split situations within your organization.
Depending on the validity period of the records, the LTI data stored on infotype LTI Granting (0761) is:
Either converted if the validity start date of the records is equal to or later than the split date.
Or delimited on the split date if the validity start date of the records is earlier than the split date. In this case, new records are created containing the updated
numbers of granted, additionally vested and forfeited awards, as well as the new exercise price and stock unit. (A stock unit determines whether it is a pre-
split or post-split stock.)
Since stock splits also affect the Compensation Administration and Budgeting components, you must:
Convert the corresponding budgets by means of the program Convert Budget Stock Unit (RHECM_CONV_BUDGET).
Update your guidelines settings accordingly by performing the IMG activity Define Guidelines.
Note
This program is meant for mass processing. It is therefore recommended that either the HR administrator or the compensation specialist - depending on the size of
the company - execute it in background via Program -> Execute -> Background.
Prerequisites
You must have:
Been through the Implementation Guide for Enterprise Compensation Management, especially the following activities:
Define Stock Units
Define Stock Units & Conversion Rules
Assign Time-Dependent LTI Attributes
Selection
In addition to the standard time-dependent and organizational criteria, you must specify the LTI plan to be processed, as well as the date on which you want to
perform the stock split. It is also strongly recommended that you perform a test run to detect and correct possible errors before updating the database.
Output
The program generates an overview of the changes made to infotype 0761, sorted by personnel number:
Number of awards prior to the stock split,
Number of awards after the stock split.
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Evaluate Long-Term Incentive Data
(RHECM_EVALUATE_LTIDATA)
Use
Execute this program to generate a list of all employees who have been granted long-term incentives (LTIs).
This program can, for example, be used to keep track of the number of awards that have been granted to or exercised by either a single employee or a group of
employees.
Prerequisites
You must have maintained infotype LTI Granting (0761) for the selected employees, otherwise no overview is generated.
Selection
In addition to the standard time-dependent and organizational criteria, you can specify a report of LTI plans and/or grant numbers to be evaluated, as well as the
date on which you want to evaluate the records of infotype 0761, the applicable currency (required) and the ALV layout.
Output
The program generates a detailed overview of the LTI grants for the selected employees containing the following information:
Grant Number
Granting date
Expiration Date
Number of granted awards
Number of Forfeited Awards
Number of Vested Awards
Number of unvested awards
Number of outstanding awards
Number of Exercised Awards
Number of exercisable awards
Gross gain on exercising
In addition, the Advanced List Viewer (ALV) provides you with a set of tools that give you insight into the reported data and allow you to set different views and
options for filtering and selecting data, displaying subtotals and totals, exporting data to MS Excel and MS Word, sending data as an attachment, or displaying
data graphically.

Infotypes in Long-Term Incentives

LTI Granting (0761)
Definition
This infotype is generated/updated on activation of infotype Compensation Process (0759).
However, it can also be maintained:
Manually by the HR administrator/compensation specialist to handle single and exceptional cases.
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By means of report Create Compensation Process Records when Manager Self-Service has not been implemented.
When the Compensation Administration component (PA-CM-AD) has not been implemented.
Use
This infotype is used to store an employees grant data. The LTI plan, the grant date - which corresponds to the start date of the infotype record, whereas the expiry
date corresponds to the end date of the infotype record - and the number of granted awards are retrieved from infotype Compensation Process (0759) on
activation.
Additionally, when employees decide to exercise their awards, the data is retrieved by a custom report of your choice and transferred to the bank or broker, along
with the participant data. For more information, see Export Participant and Grant Data to the Bank.
Preliminary Steps
You must have performed the activities in the Implementation Guide for Enterprise Compensation Management regarding:
Compensation areas
Compensation plans
Compensation Review Processing
Compensation review items
Stock units
Structure
This infotype consists of subtypes you have defined in Customizing.
See also
Compensation Process (0759)
LTI Exercising (0762)
Change Compensation Process Status

Definition
This infotype is either updated by a custom report of your choice or maintained manually by the HR Administrator/Compensation Specialist, either to process
single cases, or when the Banking Interface has not been implemented.
Use
This infotype is used to store employee exercising data, as described below:
Exercised Awards
Fair Market Value on Exercising Date
Exercise price
Number of sold awards (for information purposes only),
Tax advance (used as a deduction in payroll).
Imputed income, provided that you have not set the No Imputed Income indicator
The exercise date corresponds to the start and end date of the infotype record.
For more information, see Import Exercising Data.
Preliminary Steps
The following prerequisites must be met:
Executed the Hiring personnel action and maintained the relevant infotypes.
Sent the grant and participant data to the bank or broker via a custom interface of your choice.
Also, the bank or broker must have exercised the awards on behalf of the employee.
Structure
This infotype consists of subtypes you have defined in Customizing.
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See also
LTI Granting (0761)
LTI Participant Data (0763)

LTI Participant Data (0763)
Definition
This infotype is used to specify whether or not an employee is an insider or a director and how many shares he or she owns. Note that all fields are for information
purposes only.
See Also
LTI Granting (0761)
Technical Information

Function Process Awards (XLTI)
Use
This function enables you to process LTI awards for both the Compensation Management (PA-CM) and Enterprise Compensation Management (PA-EC)
components. In this chapter, however, only the enhanced version is described. For more information on the old version, see the related function documentation.
Note
Function XLTI is available for Germany and the US.
Prerequisites
In the activity LTI Plan Payroll Data of the IMG structure Enterprise Compensation Management, you can specify the wage types used for storing the following
information from infotype LTI Exercising (0762):
Exercise price
Fair market value
Imputed Income
Withheld amount
Note that the exercise price and the fair market value are for information purposes only, while the imputed income and the withheld amount are further processed.
Process Flow
The function reads the exercise amounts from infotype LTI Exercising (0762) and, on the basis of these amounts, creates wage types with country-specific wage
type and WPBP splits.
In addition, it creates a V0 split with type V for the wage types. In the table V0, it stores a key from the grant date, the award, that is, the subtype of the infotype,
and the exercise date. With this key you can always trace the infotype record the wage types were created from.
If the amounts from the above-mentioned infotype are in a currency that does not match the payroll currency, the function converts the amounts to the payroll
currency.
The function finally transfers the wage types to table IT for further processing.
Procedure
For Germany and the US, the function is contained in the standard personnel calculation schema for Payroll. It is, however, deactivated.
If you want to insert the function in a different place in the personnel calculation schema, you must check whether you have to change the customizing settings for
the created wage types.
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Budgeting in Enterprise Compensation Management

With budgeting, you can create, change, and monitor budgets in your company. You have the following options available for budgeting:
Top-down budgeting
Bottom-up budgeting
Top-Down Budgeting.
With Top-Down-Budgeting you can create, change, and monitor budgets in your company.
Note that top-down budgeting is used from the standard system in the Business Server Pages (BSP) applications of the Enteprise Compensation Management
component.
Features
Budgeting provides the control mechanism for compensation administration within the SAP system. The system provides budgeting and modeling tools, flexible
and dynamic functionality, and integration with Compensation Administration. With top-down budgetingn, you can do the following:
Develop detailed budgets based on organizational hierarchy data
Monitor budgets: Amount Budgeted vs. Amount spent
Move budget allocations when an employee transfers to a different organizational unit
Integrate your budgeting with the overall Compensation Administration functionality
Improve your internal approval process
Integrate budgeting of long-term incentives (LTIs)
Use the Manager Self Service (MSS) interface
Top-down budgeting is divided into three worksets:
Budget Maintenance
Check and Release Budgets
Budget Reassignment

Overview
The top-down budgeting screen consists of the following worksets:
Budget Maintenance
Check and Release Budgets
Budget Reassignment
Budget Maintenance
In this workset, you can:
Create a budget structure that mirrors the organizational structure with different budget types and periods
Create individual budget units in the budget hierarchy
Create/delete financing relationships between budget units and organizational units
Assign/ budget unit or organizational unit to budget structure
Delete individual budget units, budget unit assignment or organizational unit assignment
Rename a budget unit
Change/update budget values (including a mass percentage change)
Import data from Personnel Cost Planning (PCP)
Custom import budget data using the Business Add-In (BAdI)
Roll up values from the sub-budget to the superior budget (bottom-up budgeting)
Manage budgeting of Long-Term Incentives (LTI).
Check & Release Budgets.
Check budget values (for the presence of negative values)
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Release budgets
Reset status to "Planning".
Reassign Budget Values
Reassign budget values between organizational units.
These values can be either currency amounts or stock units.
For example, you may wish to transfer some or all of the budgeted and/or spent amount from one organizational unit to another organizational unit, as a result of a
restructuring within your enterprise.
Spent budget values are assigned to organizational units. Therefore, in this process, you do not reassign values from budget units; you reassign values from the
organizational unit. Organizational units are linked to the parent budget unit.

Budget Maintenance
Use
In the Budget Maintenance workset, you can:
Create new budget structures
Search for a specific budget structure
Once you have displayed or created the structure, you can:
Copy a budget structure
Create a budget unit within the structure (Creating a Sub-Budget)
Change budget values
Make a mass percentage change for all budget units
Import values from the Personnel Cost Planning component
Set up a custom import of customer-specific budget values
Roll up budget values
Assign existing budget units to a specific part of the budget
Delete a budget unit
Delete the assignment of a budget/organizational units to the structure.
Creating a New Budget Structure
Use
In this section, you can create a new budget structure for an organizational hierarchy, and define its attributes.
Alternatively, you can create/add a budget unit to an existing budget structure.
Alternatively, you can use Generate Budget Structure.
Prerequisites
You have defined your budget type(s) in Customizing for the SAP back-end system. To do this, use the path Enterprise Compensation Management
Budgeting Define Budget Type.
You must have defined a reference currency under the path: Enterprise Compensation Management Budgeting Define Reference Currency for Budgeting.
You must have defined your budget period(s) under the path: Enterprise Compensation Management Budgeting Define Budget Periods.
Procedure
1. Choose Create.
2. Select the budget type, period (for example, 01.01.2005 12.31.2005) and organizational unit.
3. Select the organizational structure depth (that is, the level down to which you wish to assign budget values). The system default value is 0, which means that
the budget will be created for all levels of the organizational structure.
4. Save your entries.
The field Stock Unit is only relevant if you wish to create budgets for Long Term Incentives (LTIs).
Go back to Budget Maintenance.

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Copying a Budget Structure
Use
This section outlines how you can copy an existing budget structure.
Procedure
1. Select the budget you wish to copy.
2. Select Copy.
3. Select the new budget type and budget period.
4. Select the organizational structure depth (that is, the level down to which you wish to assign budget values).
5. If you wish to copy the values from an existing budget, select the option, Copy Values.
6. Save your changes.
Result
Once you have copied the budget, it will have the status Planned.
Back to Budget Maintenance
Changing Budget Values
Procedure
To change the values of a budget:
1. Select the budget structure.
2. Overwrite the budget amount in the Total Budget field.
Making a Percentage Change
Use
This function allows you to change the amounts within a given budget by a specified percentage.
Procedure
1. Go to the Budget Maintenance screen, select the budget you wish to change and select the Budget Details tab.
2. Select the budget unit that you wish to update.
3. Select Percentage Change.
4. In the subsequent Percentage change fields, enter the percentage by which you want to increase or decrease the budget. You can decrease the budget
amount by putting a minus sign in front of the percentage number.
5. Further selection options are:
a. Mass percentage change, which applies the specified percentage change to all budget units below the selected budget unit.
b. Update superior budget values, which rolls up the percentage change to the highest level of the budget.
6. Select Apply percentage change.
Result
Your budget amounts are increased/decreased by the amount specified.
Return to Budget Maintenance
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Upload Budget Values from Personnel Cost Planning
Use
In this step, you can import budget values from the Personnel Cost Planning & Simulation component (PA-PC)of your SAP system.
Prerequisites
Personnel Cost Planning & Simulation component (PA-PC) must have been installed.
You must have created a cost plan.
Procedure
1. Select Import PCP data.
For more information on importing PCP data, go to the SAP Library under the path: Human Resources Personnel management Organizational
Management Enterprise Compensation Management Compensation Budgeting using PCP Tools.
2. In the subsequent fields, enter the Budget Determination, Cost Plan and Cost Item.
Note: You can enter up to 10 cost items by selecting the Enter More Cost Items option.
3. Select Import PCP data.

Custom Import of Budget Values
Use
This function allows you to upload your enterprise's initial budget values from another source (for example, spreadsheet or database), into the Budget Values
infotype (1520). The values can be amounts for monetary budgets or numbers for stock based budgets.
Prerequisites
You must have implemented the Business Add-In (BAdI) Initialize Budget Values (HRECM00_BDG0001) in the R/3 Implementation Guide under the path:
Enterprise Compensation Management Budgeting Business Add-In: Initialize Budget Values.
Procedure
For specific information, see the documentation for the IMG step outlined above.

Roll up Values
Use
You can use this function to roll up budget values from subordinate budgets to the most superior budget.
Normally, the budget value entered for each budget unit is a total value that includes that individual budget unit and all subordinate budget units; that is, top-down
budgeting. However, if you want to load budget values for individual budget units without considering superior budgets (bottom-up budgeting), it is possible to
subsequently roll up budget values with the Roll up value option.
Procedure
1. Select the budget structure that you wish to update.
2. Enter the values, either manually or through Custom Import.
3. Select Roll-up value (once only).

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It is possible to roll up values so that the distributable amount of the superior budget is negative. However, you must balance this budget before you can release it
(that is, set the budget status to Released) in the Check & Release Budget workset.
Note: If you select Roll-up value more than once, the values will be exponentially increased again by the value you specified in step 2.
Example
Consider the budget structure displayed below:
Budget Name Budget Name Budget Name Total Budget Currency Distributable
Superior Budget 10,000 USD 0
Parent of: Budget A 10,000 USD -10,000
Parent of: Budget A1 10,000 USD 10,000
Budget A2 10,000 USD 10,000
In this example, you wish to have each budget to have a distributable budget of $10,000. Therefore, you enter this amount in the total budget column. However,
as total budget is supposed to contain a rolled-up value, the available budget will be exceeded by subordinate budgets for budget A.
Subsequently, you wish to balance the total budget column and move the values from the total budget column to the distributable column. To do so, select Roll-
up value.Your new budget structure will be as displayed below:
Budget Name Budget Name Budget Name Total Budget Currency Distributable
Superior Budget 40,000 USD 10,000
Parent of: Budget A 30,000 USD 10,000
Parent of: Budget A1 10,000 USD 10,000
Budget A2 10,000 USD 10,000

Result
The distributable amount for all individual budgets is now $10,000. The total budget column is modified to be the total of its own distributable budget and its
subordinate budgets.

Creating a Sub-Budget
Use
Use this function to add a new budget unit to the budget structure. Select the specific budget unit under which you wish to create a new budget unit.
Procedure
1. In the Budget Structure tab, select the budget structure you wish to append.
2. Select Create Budget.
3. Enter the budget abbreviation and the budget name.
4. Select Create Sub Budget
Result
The new budget unit is displayed within the budget structure.
Deleting Budget Units
Use
Use this function to delete a budget unit from the budget structure.
Procedure
1. Within the budget structure tab, select the budget you wish to delete.
2. Select Delete Budget/s.
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This function also deletes all subordinate budgets within the structure. To avoid this, use the Delete Assignment function.
Result
The budget is deleted

Assigning a Budget Unit
Use
Use this function to assign existing budget units to your budget structure.
Procedure
1. In the budget structure tab, select the node under which you wish to assign the budget unit.
2. Select Assign Budget.
3. Enter the Budget Unit ID.
You can also search for the budget unit by selecting the input help for the Budget Unit ID field. In the subsequent dialog box, you can search for the budget unit
and validity period.
4. Select the budget and choose OK.
The system automatically populates the Budget Unit ID field with your selected budget.
If you wish to roll up the budget value, select the Update superior budget values option.
5. Select Assign.
Result
The budget unit will be assigned to the designated location in the budget structure.
Return to Budget Maintenance
Assigning an Organizational Unit
Use
Use this function to assign an existing organizational units to your budget structure.
Prerequisites
You must have turned on the option Org. Unit On, otherwise the option Assign Org. Unit will be inactive.
Procedure
1. In the budget structure, select the node under which you wish to assign the organizational unit.
2. Select Assign Org. Unit.
3. Enter the Org. Unit ID.
You can also search for the organizational unit by selecting the input help for the Financed Org. Unit ID field. In the subsequent dialog box, you can search
for the org. unit and validity period.
4. Select the org. unit and choose OK.
The system automatically populates the Financed Org. Unit field with the selected org. unit ID.
5. Select Assign.
Result
You have assigned the organizational unit to the budget structure.
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Deleting Assignment of a Budget or Organizational Unit
Use
Use this function to delete the assignment of a budget unit or an organizational unit from your budget structure.
Procedure
1. In the budget structure, select the unit you wish to delete.
2. Select Delete Assignment.
Result
Assignment of a budget unit or organizational unit is deleted from the budget structure.
Check & Release Budgets
Purpose
Within this workset, you can:
Check the accuracy of the budgets you have created
Release/finalize your budgets.
Reset the status of released budgets.
Process Flow
When you select the Check & Release Budgets workset, you can display the desired budgets by using the Search function. You can search by Budget Unit
Name, Budget Unit ID, Budget Type, Budget Period, Organization Unit ID or Organization Unit Name.
Once you have selected your budget, you can:
Check for consistency.
When you select the Check Values option, the system checks for inconsistencies and errors within the budget (for example, if a subordinate budget unit
contains a amount greater than the superior budget). Any problems or errors are subsequently displayed as a message on your screen.
Change the status of the budget from Planning to Released.
Revert the status of the budget from Released to Planning.
Check Budget Consistency
The system checks that there is enough (amount or value) in each budget unit to cover the sum of the subordinate budgets (that is, there are no negative budgets)
in the structure. The system checks the whole budget structure. If the system detects any inconsistencies, a message is displayed on the screen. You can
manually rectify any subsequent inconsistencies in the budget.
Change Budget Status
Change status from planning to released:
Here, you can change the status of a budget with status Planning to status Released.
Change status from released to planning:
Here, you can change the status of a released budget back to Planning.
Once a budget has been released, the system only allows you the option of resetting the status; that is, only the Reset to Planning option is active on the
screen.
You can only change the status of a budget from Released to Planning if none of the budget has been spent.
Budget Reassignment
Purpose
In this workset, you can reassign budget values between organizational units.
These values can be either currency amounts or stock units.
For example, you may wish to transfer some or all of the budgeted and/or spent amount from one organizational unit to another organizational unit, as a result of a
restructuring within your enterprise.
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Spent budget values are assigned to organizational units. Therefore, in this process, you do not reassign values from budget units; you reassign values from
the organizational unit. Organizational units are linked to the parent budget unit.
Process Flow
Reassigning budget values between organizational units is a four-step process.
1. Choose Sending Organizational Unit
a. Select the step Choose Sending Org. Unit.
b. Select the organizational unit that you wish to reassign values from (not the budget unit)
c. Select Next Step.
2. Choose Receiving Organizational Unit
a. Select the organizational unit that is to receive the value of the Sending Organizational Unit you selected in step 1.
b. Select Next Step.
3. Enter Values
a. In this step, the system displays the selected organizational units (sending and receiving) and allows you to select the amount that you wish to transfer
between units.
b. Select Reassign.
c. Select Next Step.
4. Review Results
This final step displays the changes you have made.
Save your changes.
Bottom-Up Budgeting

With bottom-up budgeting, you can always make the most recent budget available to managers in Compensation Planning and Compensation Approval, even if,
for example, an employee changes organizational units and the budget assigned to him or her gets assigned to the new organizational unit. You can do the
following with budgets:
Create
Change
Monitor.
You can use the following calculation methods for budgets:
Use guidelines
Import from Personnel Cost Planning
Customer-specific enhancements.
The employee's budget is generated using the aforementioned calculation methods and added to the organizational unit. The employee budgets always remains
assigned to exactly this employee and is not lost (for example, the budget is not distributed to other employees in the organizational unit).
The employee changes organizational units. The complete budget for this employee is assigned to the new organizational unit.
Prerequisites
You have made the required settings in Customizing for Enterprise Compensation Management under Budgeting. This includes the following
Define Budget Types
Define Budget Periods
Specify Attributes for Each Budget Type and Year
If requried: BAdI:Calculation of Budget Amount for Each Employee
Define Cost Items for PCP Import for Each Budget Type and Year
You created the necessary cost items under Create Cost Items in Customizing for Personnel Cost Planning and Simulation.
Activities
To perform bottom-up budgeting, proceed as follows:
1. Generate budget
In the SAP menu for Enterprise Compensation Management, choose Budgeting Generate Budget from Organizational Hierarchy .
2. Prepare, update, or recalculate budgets for compensation planning
The Administer Org. Units and Budgets for Comp. Planning Process program (RHECM_PROCESS_SUPPORT_FOR_PLNG) calculates the budgets for the
organizational unit using employee-related budgets. The following functions are available:
Recalculate Budgets
For more detailed information about the program, see the documentation.
3. Budget overview
The program Audit Report for Budgets (RHECM_BUDGET_RPT) displays the budget structure. The program consists of the following functions:
A list of the budget structure (including financed objects, such as the assigned organizational unit and employee budgets)
Change employee budgets
Example
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If the budget structure, including employee budgets, is recalculated, the locked employee budgets are not recalculated. Instead, the employee budget
values at the time the budget was locked are applied to the budget structure.
Lock employee budgets
4. Delete budget
The program Delete Budget Units (including Employee Budgets) (RHECM_BUDGET_DELETE)
Generating a Budget Structure
Use
It is best to generate the budget structure as close as possible to the time of the compensation process, since the budget structure does not need to be modified if
there is a change in the organizational hierarchy.
Procedure
To generate the budget, go to Human Resources Personnel Management Compensation Management Enterprise Compensation Management
Budgeting and select Generate Budget from Organizational Hierarchy (or run the program RHECM_BUDGET_GENERATE from transaction SE38).
1. Select the budget type and period you wish to create the budget for.
2. Enter the org unit id that is the top organizational unit for the compensation process.
Enter a number for Number of Levels only if you do not want to generate a budget for each org unit in the system otherwise leave blank.
3. Enter a stock unit only if you are generating an LTI budget.
4. Run the report. The system displays the object id of the top budget unit that was generated.
Generate as many different budget types as necessary.
Result
The system generates the budget structure.
You can run the program Display Budgets (RHECM_BUDGET_RPT) to see the budget structure created. At this point, there will be no amount or number for
the budgets.

PCP Tools for Budgeting
Purpose
The Compensation Budgeting module provides the control mechanism for the compensation review process within SAP.
This section describes how to set up and administer the budgeting structures from Personnel Cost Planning (PCP) results, without using the Budgeting web user
interface.
Features
The Budgeting module offers a comprehensive set of tools to create and administer the budget hierarchy and budget values.
With this module, you can set up a hierarchy of budget units and assign budget values to each unit. These values are used in the compensation administration
process to delimit output values.
In addition, you can use the results of the Personnel Cost Planning (PCP) module to create budget values. This can be particularly useful if you want to use
compensation guidelines as the base for the budget values and/or if the standard user interface of the Budgeting modules is not used.

Overview
Purpose
This section outlines the process used in budgeting for compensation.
Firstly, you need to configure the Compensation Administration, Compensation Budgeting and Personnel Cost Planning modules. When this setup is complete, the
PCP data collection step is run. Data collection uses employee master data (for example, compensation information) and the guidelines and eligibility rules from
compensation management to calculate a value for each employee. This data is stored in the Planning of Personnel Costs infotype (0666) for each employee.
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After the data has been collected, cost plans are created that sum up employee data into budgets for organizational units. This information is stored in a cluster
within Personnel Cost Planning.
After you have reviewed and finalized PCP cost plans, budgets can be generated from the organizational hierarchy within the Budgeting module. You can do this
either online or in batch mode. Subsequently, you can use the interface between PCP and budgeting to import cost items from the PCP cost plans into budgeting.
You can display compensation budgets using the Display Budgets report (RHECM_BUDGET_RPT). After verifying the values, you must release the budgets, so
they can be used in the compensation process.
Prerequisites
To use Compensation Guidelines and Eligibility rules for creating budget values, you must complete the Budgeting and Compensation Administration
configuration, as described in the IMG under the path: Personnel Management Enterprise Compensation Management. In addition, you must carry out
minimal configuration for the PCP module. For more information, see Configuring Personnel Cost Planning.
Process Flow

Configuration
This section outlines the system configuration you need to implement in order to use Personnel Cost Planning to calculate and store employee budgets.

Budgeting & Compensation Administration
Use
This section outlines how to configure your Compensation Budgeting and Compensation Administration modules.
Prerequisites
You must have configured Personnel Cost Planning, and then enter the cost items from PCP in the IMG step: EnterpriseCompensation Management
Compensation Administration Plan Attributes Assign compensation plan attributes.
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All employees to be evaluated in this process must have a Compensation Program infotype (0758) record.
Procedure
You must fully configure Compensation Budgeting and Compensation Administration modules as described in the IMG documentation.
Configuring Personnel Cost Planning
This section outlines how to calculate and store employee budgets.
Prior to running Personnel Cost Planning to calculate and store employee budgets, you must carry out some minimum configuration for PCP within the IMG
structure: Personnel Cost Planning and Simulation.
This section outlines the procedures for:
Planning Preparation
Defining a new planning context:
Defining a new scenario for budgeting
Data collection
Creating a new Data Basis per compensation review
Cost Planning Runs
Specifying organizational grouping for cost objects
Assigning an employee grouping for cost items
Assigning an organizational object grouping for cost items.
Planning Preparation
Use
In this section, you:
Define a new planning context
Define a new planning scenario
Procedure
Define a new planning context:
1. Go to the IMG step: Personnel Cost Planning and Simulation Planning Preparation Create Planning Contexts.
2. Create a new planning context entry, for example BU: Budget creation.
3. Save your data.
Define a new planning scenario:
1. Go to the IMG step: Personnel Cost Planning and Simulation Planning Preparation Create Planning Scenarios.
2. Enter the newly-created entry, for example, BU: Budget creation.
3. Save your data.
Data Collection
Procedure
Create a new data basis per compensation review:
Copy existing Data Basis in the system to new names (for example, B001). When copying, the system asks whether you want to copy the parent entry only or
the parent entry and dependents. Select Copy all.
Data basis is used as the subtype for Planning of Personnel Costs infotype (0666) records.
Create cost items per plan:
For example:
BONS: Bonus
SADJ: Salary Adjustment
LTIS: LTI Stock options
Designate money-related cost items as Not CO-Relevant.
Designate the number-related cost items (for example. LTI stocks) as Statistical Key Figure.
Decide if the cost items are to be processed during the Detail Planning period.
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Cost Planning Runs
Procedure
Specify organizational grouping for cost objects:
Define a new org grouping ALL for all employees
Assign employee grouping for cost items:
Change feature HCP01 and add a new line that assigns ALL for new context BU
For example:
BU &HCP01=ALL,
Save and activate the feature.
Assign organizational object grouping for cost items:
Change feature HCP02 and add a new line that assigns ALL for new context BU
For example:
BU &HCP01=ALL,
Save and activate the feature.
Result
This is all the set-up that should be necessary to operate PCP at the minimum level to harvest the budget values.
Go back to Compensation Administration IMG and enter corresponding cost items in step Assign compensation plan attributes.
Collecting PCP Data
Use
You can run the Personnel Cost Planning module to calculate the actual budget values as cost items.
In this step, you actually calculate the employee budgets and store them as planned input in the Planning of Personnel Costs infotype (0666).
Prerequisites
You must have completed the configuration for Budgeting, Compensation Administration and Personnel Cost Planning.
Procedure
1. From the SAP menu, select Human Resources Personnel Management Personnel Cost Planning Data Collection Employee (or run the
program RHHCP_DC_EMPLOYEE from transaction sa38).
2. Select the personnel numbers or whole organizational structures (using the Org. structure option).
3. Choose Data Collection Methods and select Compensation Guidelines Enterprise.
4. Select Additional Parameters
a. Select the compensation review that was set up for guidelines and eligibility rules leave compensation plan blank.
b. Enter X for Budget Generation.
5. Enter the period of the data collection
6. Select the data basis to match the compensation review. If required, run the program in test mode with the data record log selected.
IMPORTANT: Leave the Compensation plan field blank. If you re-run the data collection step with a single compensation plan, all of the Infotype 666 records
created for the review (data basis) will be overwritten.
Result
This program creates Infotype 666 records for the employees. If you need to change this data, use the Edit Data option on the menu or make the changes in
transaction PA30 for infotype 0666.
If the system displays an error message Check the message list in the generated results list, select the Messages option. If necessary, correct the problem as
outlined and run the program again.

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PCP Cost Plan Run
Use
In this step, the individual employee data is consolidated into a cost plan with different cost items for organizational units. The information is stored in a cluster and
can be modified by managers if necessary. The required steps are in the menu for PCP.
Procedure
1. In the SAP menu, go to Human Resources Personnel Management Personnel Cost Planning Cost Plans Manage (or run transaction
PHCPADMN).
2. From the menu, select Plan Data Personnel Cost Plan Create Plan.
a. Select Current Plan.
b. Give the cost plan a name/id (4 characters) and a long name.
c. Choose defaulted view of Organizational Unit and select the budget context that was created in the configuration.
d. Select the appropriate scenario and planning period. The planning period must match the budgeting period.
e. Select Including Employee Data. Select the Data Basis for org objects and employees that matches the compensation plan. If required, enter a date for
Detailed planning possible until.
f. Save your selection.
3. The newly created plan will appear on the screen. It is possible to run it now. From the menu, select Plan Data Execute Planning Run.
a. Select the top organizational unit to start from (in field Object ID).
b. Enter a Planning Run Text and choose a currency.
c. Run the report.
Result
The system calculates the values for each org unit. These values are then stored in the cluster. Review your results. If the system displays an error message
Check the message list, please select the Messages button at the top right to see the error messages. If necessary, correct the problems and run the program
again.

Importing Data from Personnel Cost Planning
Use
After you have successfully generated the budget structure, you can import the cost items from PCP that hold budget values.
Procedure
1. In the SAP menu, go to Human Resources Personnel Management Compensation Management Enterprise Compensation Management
Budgeting. Select Upload Budget Values from Personnel Cost Planning (or run report RHECM_BUDGET_INIT via transaction SE38).
2. Select the budget type, period and the top budget unit id.
3. Select the Parameters option at the bottom of the screen. The system then displays another selection screen:
a. Select the cost plan id, and cost items that contain budget values.
b. Choose Execute Planning.
The system displays the message that the plan is not released for Accounting. Ignore this message by pressing Enter.
4. Run the report. Budget values will be imported.
5. Run Display Budgets (or report RHECM_BUDGET_RPT) to see the budget values.

Job Pricing
Purpose
Retaining and attracting employees is of primary concern for any company.
The foundation of developing a compensation strategy is Job Pricing the practice of analyzing pay practices, focused on internal strategy and on a specific
market environment.
Market analysis is vital to maintain a competitive position against competitors and similar companies that might try to attract employees away.
Internal analysis is important to make sure one department or line of business is not over-compensated or lagging behind the other groups.
The Job Pricing component allows you to analyze, evaluate and determine the compensation level for specific jobs, based on the current market rate. This
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enables you to offer competitive compensation packages that attract the best possible pool of applicants, thereby enabling you to hire the best possible
employees for your organization.
Collecting and analyzing all this data can be very labor- and time-intensive. The SAP Job Pricing function streamlines the entire process.
Integration
To use this component, you must install:
The Personnel Administration component so that you can access and update employee records.
The Organizational Management component so that you can define an organizational structure and create jobs and positions.

Overview

With this Job Pricing component, you can:
Import survey market data for specific jobs
Match the survey jobs to the job within your enterprise
Age the survey market data to show realistic trends within the job market
Build a composite picture of the market data
Adjust your salary structure to match the market
The component is divided into the following worksets:
Provider Data
Import Data
Job Matching
Aging
Composite Result by Internal Job
Create Mass Composite Result
Salary Structure Adjustment
Best Practices
While these worksets are broadly and logically sequential in nature, it is nevertheless advisable to carry out your job pricing tasks in the following order:
1. Provider Data: Create the names and enter the URL links for the survey providers you wish to use. Until you have imported salary survey data, the Survey
Job Catalog, Survey and Market Criteria tabs will be empty for this provider.
2. Go to the Import Data workset and select the name of the salary survey provider you set up in the previous step, and specify your import parameters and
upload the file from the survey provider.
3. Go back to the Provider Data workset to review the Survey Job Catalog, Survey and Market Criteria information you have uploaded.
4. Repeat this data transfer process for every survey provider you want to use.
5. Start creating composite results for the jobs in your company.

Provider Data
Purpose
In this workset, you can review the imported data of the salary surveys for your survey providers. In addition, you can make manual changes to the imported data.
There are a multitude of salary survey providers; these group of providers differentiate themselves by how they analyze the data, what aspects of compensation
they focus on, and what industries they review.
Your company should scrutinize in which salary surveys it will participate. Companies generally agree to participate in salary surveys that are representative of
their industries, have similar companies or competitors participating and have strong job matches.
This data is more valuable if several of your competitors are participating. Companies may participate in 10 - 20 different salary surveys each year.
In this section, you can
Create salary survey providers and obtain an overview of the imported job catalog and market data for your survey providers.
Adapt your job catalog by adding new jobs, deleting existing jobs, and creating or changing job descriptions
Delete complete salary surveys or remove a salary survey provider from the system
Structure
In this workset, there are three tabs: Survey Job Catalog; Survey; Market Criteria.
Survey Job Catalog
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On this tab, you can create, edit or delete jobs within the catalog.
When you select a job in this tab, the system displays additional information:
Market Data: The system default settings display the Survey Name, Survey Data, Pay Category, Simple Average. Percentiles and Currency columns. You
can view all columns by selecting Show All Columns. This data is for display only.
Aged Market Data: This data is for display only and cannot be edited here.
Job Description: Here, you can enter the description, Line of Reporting and Experience for the job.
Survey
This tab contains the survey data you have imported. It will remain empty until you have imported the data. You can remove a survey along with dependent
market data from the system.
Market Criteria
This tab contains information on market criteria you consider important for your organization. For example, after you have imported the market data, you can
choose to display the data by region, company size etc. The text for the market data is imported in the language that you selected in the Import Data
workset. However, you can edit and translate the texts here.
Creating a Survey Provider
Use
In this section, you create entries for Salary Survey Providers within your system.
Procedure
1. Select Create Provider.
2. Enter a unique Provider Code (for example, WW for Watson Wyatt), a Provider Name and a URL link to the providers web site.
(Note: You do not need to enter the http:// prefix for the URL.)
3. Select Save Provider.
Result
You have created a survey provider in your system.
You should now go to the Import Data workset.
Back to Provider Data documentation.
Viewing a Survey Provider's Job Catalog
Use
You can review the survey job catalog of a survey provider and look at the imported market data for each job. In addition, you can adapt the imported job catalog,
delete jobs or change the names of jobs.
Procedure
1. Select Provider
2. Go to the tab Job Catalog and select a specific job
3. Review the Market data for the selected job.
4. Review the aged market data for a job.
5. Review or change the job descriptions.

Back to Provider Data documentation.
Import Data
Purpose
In this workset, you upload job-related data from the survey provider.
The job survey data is provided by the survey providers. Salary surveys are collections of salary market data for similar jobs. You can use this data to make
external salary comparisons between what your organization is offering and that of other similar companies.
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In this section, you can:
Upload survey job catalogs from survey providers
Upload job descriptions for a set of uploaded jobs
Upload survey market data for the surveys that you want to use.
Prerequisites
You must have received the survey data file from your survey provider(s). This file must be a tab delimited txt ASCII file, which can be easily created from an
Excel File, by exporting the table as a .txt file.
Process Flow
Once you have received the survey job file from the survey provider, you can store this file in a local folder.
Subsequently, you can select this file to upload to your system, and specify other parameters such as survey provider, language etc.
The system then imports the first line of the file and displays the data so that you can map these survey data fields to the available SAP system fields.
Once you have matched the fields, the system extracts the data from the file and sends it to the designated SAP tables.
After uploading a job catalog from a survey provider, you can upload job descriptions for each of the imported survey jobs. Subsequently, you can import surveys
with market data information for the survey jobs imported.
Importing Survey Data
Use
Here, you can import job survey data (job catalog, job descriptions and market data) from the desired survey provider. Once you have imported the data, you will
be able to:
Search, view and edit the job catalog for specific job data
Search and view market data for a specific job.
Prerequisites
You must have received survey data from one or more providers
You must have defined your survey providers
To successfully import the data, the file must be in a tab-delimited txt ASCII format
Procedure
1. Select one of the survey providers you entered in the Provider Data workset.
2. Select the data type you want to import from one of the following: Survey Job Catalog, Survey Job Descriptions, Survey Market Data, then choose the number
of header lines of your file and the corresponding language.
3. Use the Browse function to select the file with the survey data and choose Upload.
4. Select Next Step or select Step 2.
5. Match the fields from the imported file (Provider Field Name) to the SAP System Field Name.
6. Go to the next step to import the data. Subsequently, you can review the data and save it to your systems database tables.
Follow the same procedure to import survey market data. However, when you select this option, additional fields are displayed. If you have previously
imported survey market data, these fields will be filled with this information; if not, these fields will be empty. You must enter a Survey Name and Survey Date.
This date will subsequently be used in aging your survey data. In addition, you must enter the currency of the imported amount fields.
Result
The survey data is uploaded into your system.
Back to Import Data
Matching Fields
Use
You can map the job data supplied by the survey provider(s) to the internal tables of your SAP system and hence to your database. You need to match these
fields in order to import survey job information and survey market data for multiple survey providers.
Prerequisites
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You must have received the data file from at least one survey provider.
The input source files to be imported must be in .TXT (Tab delimited) ASCII format.
You must have imported the survey data.
Restrictions
The following key fields must be matched in order to utilize the survey data:
Job Code
Job Level (if this field is present in the survey)
These two values uniquely identify a survey job from a particular provider.
Field Definitions
The survey providers data fields are mapped to the SAP internal table fields, which are described in the table below. Not all the fields are available for each
import option job catalog, job description and market data.
Key:
CHAR = Character
DATS = Date (YYYYMMDD)
DEC = Decimal
NUMC = Alphanumeric characters
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Field Name Data Type Field Length Definition/Example
10th Percentile (10% of Employees
are below value)
CURR 15 Note: You can use these percentile
fields to map to a different percentile
of your choice. However, the name of
the field must remain unchanged.
are below value)
CURR 15 Self-explanatory
are below value)
are below value)
are below value)
are below value)
Aging factor % DEC 5 Aging factor as a percentage to be
used at the survey level.
Average of Salary Weighted by
Incumbents
Average of Salary Weighted by
Companies
Average Salary/Actual Bonus
Expressed as Percentage of Base
Salary
DEC 5 Self-explanatory
Country ISO code CHAR 2 You must use the ISO code, e.g. US,
not USA. The text is then taken from
the SAP country table.
Experience STRING Description of the work experience for
this survey job.
Job Match indicator CHAR 1 This indicates the degree of job match
from the survey provider. Typically,
the values for the indicator are -' =' or
'+'.
Lower Limit of Survey Job Grade
Range
CHAR 8 This field is used to store the lower
end of the grade range for the job, as
determined by the survey provider.
Sometimes, the provider indicates its
job evaluation with this field
Number of Companies Contributing to
Survey Job Data
Number of Incumbents Contributing to
Survey Job Data
Other Adjustment Factor % DEC 5
Pay Category CHAR 2
Type of market statistics (Base,
Total Cash Compensation,
Bonus).
Possible values:
01: Base Salary
02: Total Cash Compensation
03: Total Bonus
You can add your own types to this
list in Customizing.
This field is required to fill with
all amount fields, e.g. average,
10th percentile etc.
Percentage of Employees Eligible for
Short Term Incentives
Percentage of Employees receiving
Short Term Incentives
Reporting to STRING Line of reporting for this survey job
Short Term Incentive Actual
Percentage of Base
Short Term Incentive Percentage of
eligible employees
Short Term Incentive Target DEC 5 Self-explanatory
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Percentage of Base
Simple Average of Salary CURR 15 Self-explanatory
Company Size Text CHAR 60 Market data criteria. Sometimes the
survey provider analyses market data
according to different criteria.
Survey Date
(YYYYMMDD)
DATS 8 Effective Date of Survey as
transmitted by the Survey Provider
Industry Text CHAR 60 Market data criteria. Sometimes the
Job code CHAR 8 The job code as supplied by the
survey provider
Job Description STRING Description of the survey job and its
responsibilities.
Job Family CHAR 8 A group of jobs having the same
nature of work (e.g., engineering) but
requiring different levels of skill, effort,
responsibility, or working conditions
(e.g., entry-level vs. senior engineer).
Note: This field will be generated by
the system if you simply match Text
of Job Family.
Job Level CHAR 2 Some survey providers divide jobs
into levels within the survey. You can
use the level to indicate the level of
skills.
Job Matching Percent DEC 5 This field is used to indicate the
confidence level of the survey
provider regarding their job match,
displayed as a percentage.
Job Status according to FLSA
Indicator
CHAR 1 This indicator field is used to store the
exempt/non-exempt job indicator from
the survey provider, according to the
FLSA (Fair Labor Standards Act).
Job Weight Factor DEC 4 The weighting factor to be applied at
the job level in order to adjust the
market data.
Length of Service Text CHAR 60 Market data criteria. Sometimes the
Region Text CHAR 60 Market data criteria. Sometimes the
Revenue Size Text CHAR 60 Market data criteria. Sometimes the
Salary Range Maximum CURR 15 Self-explanatory
Salary Range Midpoint CURR 15 Self-explanatory
Salary Range Maximum CURR 15 Self-explanatory
Target Bonus Expressed as
Percentage of Base Salary
Text of Survey Job CHAR 60 Job Title
Text of Survey Job Family CHAR 60 Job Family Name (If only this field is
used, the Survey Job Family is
generated)
Unit of Time NUMC 2 Unit of time for which the amounts are
valid.
Yearly values are the default if this
field is not matched
01 = monthly
02 = semi-monthly
03 = weekly
04 = 2 weekly
05 = 4 weekly
06 = yearly
07 = quarterly
08 = half yearly
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Upper Limit of Survey Job Grade
Range
CHAR 8 This field is used to store the upper
end of the grade range for the job, as
determined by the survey provider.
Sometimes the provider indicates its
own job evaluation with this field

Back to Import Data
Job Matching
Purpose
In this workset, you can match your companys internal jobs with those of the survey provider, in order to facilitate a meaningful analysis.
Each salary survey has a list of jobs. In order to ascertain whether your job descriptions and the salaries for these jobs are set at a competitive level within the job
market, you need to match each job within your company to a job listed in the providers survey. This can be a complex process for a company for several
reasons:
Your company may have created new jobs since the last time you imported salary survey data
The salary survey provider may have created new job descriptions for jobs requiring a re-match of jobs used from a prior year.
This part of the process requires a high attention to detail and can be time consuming when your company works with a new survey provider.
Prerequisites
You must have imported survey data.
Process Flow
1. When you select this workset, the system displays the Create Job Matches screen with two lists: Internal Jobs and Survey Jobs. Select a specific
internal job you wish to match to a survey job. If you have already created a job match for a specific internal job, the system displays the data for this job and any
existing job matches.
2. To create a new job match, you can use the search function to select the two jobs you wish to match and select Match selected jobs.
You can only match one survey job of one survey provider to one internal job for the same validity period. However, you can match as many external jobs
from different providers to your internal job as required.
3. Determine how closely the survey job matched your internal job by adding the matching percentage and the weighting factor in the appropriate fields. The
field matching percentage and the matching degree are simply for your information purposes. The weighting factor is used to calculate a market composite result.
Note: Changing the weighting factor changes the weighting percentage automatically.
4. Save your entries and continue to match all internal jobs in this manner.
Aging
Purpose
In this workset, you can age your data to reflect changes in the market. Aging the data you have received from a survey provider is especially useful if the data
is several months old and you perceive that the market has changed significantly since this data was compiled.
For example, you can age your data either by:
Market movement rate: This is an annual percentage rate that is prorated according to the age date. The actual age factor is calculated from the survey date,
the age date and the market movement rate.
An aging factor, which is applied to the data without any date considerations. The aging date is still required for identification purposes later in the process.
You can select/age specific jobs or select all jobs (from one survey).
Procedure
1. Select the survey that you wish to age.
2. Select the survey job/jobs that you wish to update.
3. Enter the aging criteria in the appropriate fields. You can age the data by:
Market movement rate and age date, or
Aging factor (percentage) and age date.
If you enter a value in both fields, the system asks you to remove one of the values and decide on one aging method.
4. Select your preferred filter criteria, by selecting the market data criteria for example, country, region or industry. This enables you to age data for a specific
region or industry and apply a different aging factor for other regions or industries.
5. Select Age Market Data.
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6. Review your changes and subsequently save the data.
Result
The system displays the following three tabs:
Market Data: This data never changes. It is the survey data you imported in the Import Data step.
Results of Aging: The system displays the updated (aged) market data for your selected survey jobs. The survey salaries have been updated to display a
range of salaries, including the average salary and the percentile values.
Existing Aged Data: You will not see any data in this tab unless you have previously aged and saved the selected job data to the database.
This updated aged data is only written to your database if you select Save.
Creating a Composite Result by Internal Job
Purpose
In this section, you can create a composite result by job, and compare these results to your internal payment at the employee, job or position level.
A market composite is a compilation of market data from different survey providers. The matched jobs and their market data are weighted and averaged into one
result for your internal job. This is then considered to be the market price of this job.
At any time, you can have different market composite results for different countries, regions, industries etc. The information of the composite result is available as
an attribute of the job after this process and can be used in other applications, for example, Managers Self-Service (MSS)..
After you have imported data from several salary survey providers, you may notice discrepancies between the survey results that are in your system. By creating
a composite result, you can discern an average salary for a specific job, according to a variety of sources
You can create a market composite for:
One internal job, or
Several internal jobs
Prerequisites
You must have imported data from more than one salary survey provider and have matched your internal jobs to those of the surveys.
Procedure
1. Select the jobs you want to use to create a composite.
2. On the Select Market Criteria tab, choose the market data of each provider used for the composite result. For example, use only market data from one country
and industry to compile a specific market composite. Select Age Date to select aged market data from the aging process.
3. You can now age the market data, if you have not already done this in the Aging workset. To do so, select an annual market movement rate and an age date.
The age factor is not offered in this step, since job data from different survey providers have different validity dates. As a result, it would not be practical to apply
the same factor to all surveys.
4. Go to Build Composite Result and review the market data, then select the desired market data and choose Build Composite.
5. Review the compiled market composite result, save and name the results, and, if appropriate, select the country for which these results apply.
6. Go to Compare Market vs. Internal Data to compare the results of the composite you have just saved to your internal data by selecting:
Employee (i.e. the employees who currently hold this job in your enterprise).
Job, or
Position
7. Select the currency, percentile, frequency of payment (annual, monthly etc.) and pay category.
8. Select Compare Values.
You can use the Show Graphic option to display a graphical representation of this comparison. You can show the absolute values, the differences and the
percentage differences.

Creating a Mass Composite Result
Purpose
In this section, you can create a mass composite result.
This workset is a convenient way to create market composites for more than one job at a time.
Prerequisites
You must have imported data from more than one salary survey provider
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You must have matched your internal jobs to those of the surveys.
Procedure
1. Select the search criterion for which you want to build a market composite, for example, you can build a mass composite for all jobs within the job group
Finance.
2. In the subsequent results list, select the jobs you want to use to build a composite. You can select specific jobs or Select All.
3. Select Get Market Selection Criteria from Job Selection to access the table that allows you to select the market criteria you want to use.
4. Select your market criteria and choose Get Market Data.
5. If you have not already aged the market data in the application Aging, you can do so here by selecting an annual market movement rate and an age date.
6. Select Build Composite.
7. In the section of the screen Composite Results, you can review and adjust the selected market data.
8. If desired, save and name the results, and, if appropriate, select the country for which these results apply.
Salary Structure Adjustment
Purpose
In this workset, you can compare your internal salary structure to the market salary structure, based on a market composite result that you have created.
You can also create a plan structure with changes to adapt to the market.
Prerequisites
You must have:
Created a composite result
Maintained the Planned Compensation infotype for the internal jobs in your structure.
Process Flow
There are three tab sections within this workset:
Current Salary Structure: The system displays the current salary structure, for review purposes.
Market Data: Select the market data you wish to compare to the internal salary structure. To make the comparison, select a composite result you created in the
previous workset (along with other variables currency, percentile, etc.).
Planned Salary Structure: In this tab you can either select an existing plan structure from the corresponding dropdown box or you can get the result created
in the Market Data tab by selecting Create from Market Data. You can overwrite the values of this plan structure. You can either change the values directly
or change the Difference % columns and select Recalculate.
Result
Once you have saved this updated salary structure, it has the status Planned. While all other worksets within the Job Pricing component run in your productive
system, changes to the salary structures are generally dependent upon upper management/board approval. For this reason, the follow-up processes for this
workset must be run in a customizing system. Once the approval has been granted for this updated salary structure, you must run the report Update of Pay
Grade Amounts from Market Data to activate the new structure. To access this report, go to your SAP R/3 IMG and select the following path: Enterprise
Compensation Management Job Pricing Pay Grades and Levels Update Pay Grade Amounts from Market Data.
The report selects planned values from the productive system and transfers them to the salary structure of the customizing system and creates a transport. After
releasing the transport, the values are updated in the productive system.
You can check the salary structure you have created as a graphic. To do so, choose Display Graphic.

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