Adjustment Reason

Definition

The adjustment reason provides an automated process for updating the following infotype records:

  • Basic Pay (0008)

  • Additional Payments (0015)

  • Long-Term Incentives (Distributed) (0382)

The adjustment reason defines the:

  • Time unit to display compensation amounts

  • Compensation adjustment types to apply and which budgets they reduce

Use

The adjustment reasons determines why compensation adjustments are being planned and administered. You can use adjustment reasons to distributes adjustments in accordance with your company’s compensation policies.

Structure

The adjustment reason includes the following elements:

Element

Definition

Adjustment types

Determine which employee records are updated

Time unit

Determines which unit of time is used to calculate and display amounts or quantities in compensation administration

Budget type

Determines what type of budget is used

Reason

Determines why compensation is being adjusted

Message type

Determines system's reaction if budget available is exceeded

See also:

The Compensation Administration Process

Compensation Adjustments