Topic 61: Compensation Management (And 6000 Real-time Screen shots

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Define Job Evaluation Methods

In this step, you define the different job evaluation methods that you use in your organization.

These job evaluation methods represent subtypes of the Job Evaluation Results infotype (1050).

Example
To establish the relative value of the jobs/positions in your organization in relation to other jobs/positions, you use an internal and an external job evaluation system.

Subtype Subtype text
EV01 Internal system
EV02 External system

Standard settings
The SAP R/3 System contains sample subtypes that you can use or modify to meet your requirements.

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Activities

1. Create a subtype for all the job evaluation methods which you require in your organization by copying the model entry:
2. Choose the model entry EV01
3. Choose Edit -> Copy as...
4. Leave the entry 1050 in the infotype field Infotype field.
5. In the Subtype field, enter a four-character key, enter a name in the Subtype text field.
6. Save your entries

Note
The correct time constraint is automatically determined when you copy the entry.

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Define Job Evaluation Groups

In this step, you define groups/classifications for your job evaluation methods.

You can use the Job Evaluation Results infotype (1050) to assign these groups to the jobs/positions in your organization.

Requirements
You must have defined your evaluation methods in the previous IMG step.

Standard settings
The SAP R/3 System contains sample evaluation groups that you can use or modify to meet your requirements.

Activities
1. Determine which groups you need per evaluation method
2. Choose New entries
3. For each evaluation method, enter the following:
a) An evaluation group identifer (up to eight characters)
b) A description
4. Repeat step 3 until all the evaluation groups have been entered for each of your job evaluation methods
5. Save your entries

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Specify default values

In this step, you determine default values for Job pricing.

Standard settings

The SAP standard settings include the required default values.
Recommendation

We recommend that you do not change the standard settings.

Activities
If you want to use settings other than the standard settings, change the parameters to meet your requirements.

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Budgeting

In this section of the Implementation Guide (IMG), you set up your system to enable you to run the Budgeting component. This includes the following

Activities:
Defining the reference currency
Defining texts for non-monetary budget units, for example, shares.
Defining budget types, such as salary budgets, bonus budgets
Defining budget periods

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Define Reference Currency For Budgeting

In this step, you determine which currency you want to use as your reference currency for budgeting.

Note
You should not change the reference currency for a budgeting period once you have defined it as this could cause problems for budgets that have been created.

Example

The headquarters of your organization is in the United States, but you have subsidiaries in Germany and Great Britain. Headquarters controls the budget planning and therefore, the reference currency is USD. The budgets for the subsidiaries are, however, created in DM and pound sterling respectively. When you run a consistency check, the system converts all budget amounts into USD and displays how much has been distributed and how much is still available in USD. The budget amounts for the subsidiaries are displayed in the chosen national currencies.

Activities
1. Determine which budget periods you require in your organization and in which currency they should be calculated in.
2. Enter a validity period
3. Enter a currency
4. Repeat steps 2 to 4 until you have defined all necessary budget periods and their respective currencies

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Define Texts For Budget Type Units

In this step, you define a short text and a long text (description) for your budget type units.

Standard settings

The SAP R/3 System contains sample entries that you can either use or modify to meet your requirements.

Activities

1. You can either use the existing texts or overwrite the text to meet your requirements.
2. To enter your own text, choose Change/Display
3. Enter a short text and a long text
4. Save your entries

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Define Budget Types

In this step, you define your budget types and whether the budget type deals with a currency, an amount or a quantity. The budget type determines what sort of budget you are planning.

Examples of budget types would be:

Budget for salary increases
Budget for bonuses
Budget for distributing stocks/shares

Standard settings

The SAP R/3 System contains sample budget types that you can copy or use as a basis for creating your own.