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  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.


    Annual merit-based or hourly wage increase.

  • Regular bonus

    If selected, infotype Additional Payments ( 0015 ) is generated accordingly.


    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 Additional Off-Cycle Payments ( 0267 ) is generated accordingly.


    Spot bonus for outstanding performance.

  • LTI grant

    If selected, infotype LTI Granting ( 0761 ) is generated.


    1000 granted stock options.