Compensation Adjustment Types
Definition
Compensation adjustment types represent the methods used to determine the amount or quantity by which the Compensation Components are changed.
Use
You use compensation adjustment types to determine what the compensation components are made up of and to reflect the different calculation methods used.
Example
In your organization, the employees' base pay component consists of a salary increase and a special adjustment. The bonus component can also consist of an incentive bonus and a year end bonus.
Structure
A compensation adjustment type includes the following attributes:
Attribute |
Definition |
Compensation area |
Specifies the area for which the adjustment applies |
Compensation component |
Determines what type of adjustment is being awarded and which infotype is updated |
Validity Period |
Determines the period for which the adjustment is valid |
Effective date |
Determines when the adjustment becomes effective |
Calculation data |
Determines how the adjustment is calculated, which wage types are created |
eligibility rule |
Determines who will qualify for the adjustment (optional) |
Integration
Adjustment types are assigned to an adjustment reason and are distributed in the compensation administration process.
See also: