Topic 61: Compensation Management

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Define Variable Compensation Components

In this step, you further define the compensation components that are categorized as variable by compensation area.
Wage types for variable compensation components are stored on either the Additional Payments infotype (0015), or the Basic Pay infotype (0008) or a user-defined infotype depending on your selections.

Example
Your organization is based in the USA but has a subsidiary in France. Because the variable compensation components you defined in the Define Compensation Components step do not all apply both countries, you want to assign them as follows:

Compensation area Component
10 USA BONS (Bonus)
10 USA PROF (Profit sharing)
06 France BONS (Bonus)

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Activities

1. Enter the compensation area
2. Choose New entries
3. Enter a validity period
4. Enter one of the variable compensation components that you defined in the Define general compensation components step
5. Decide whether you want to update an SAP infotype or a user-defined infotype when you run compensation administration, by selecting either Standard or User-defined.

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