HCM, Enterprise Compensation Management 01

Technical Data
Technical Name of Business Function	HCM_ECM_CI_1
Type of Business Function	Enterprise Business Function
Available As Of	SAP enhancement package 4 for SAP ERP 6.0
Technical Usage	HCM Self Services
Application Component	Enterprise Compensation Management (PA-EC)
Directly Dependent Business Function Requiring Activation in Addition	Not relevant

You can use this business function to simplify and accelerate the compensation planning and approval process, to facilitate the administration of compensation data, to benefit from added reporting capabilities, and to perform mass changes to employee records. In addition, you may leverage this business function to apply new rounding formulas and complete mass adjustments to compensation matrices.

The business function has the following advantages:

It delivers a new multilevel approval process to simplify the administration and execution of the compensation planning cycle. Using this process, managers can approve or reject the compensation planning of subordinates at any level, document and record the corresponding reasons, and perform other novel administrative functions.
It provides managers administrative support, based on workflow, to notify them that compensation planning has commenced, or that budgeted amounts have been submitted, approved or rejected by others.
It introduces new and enhanced reports that help users prepare, monitor and complete the compensation planning cycle with greater ease.
It enables administrators to define and use new rounding formulas that consider the currency and payroll frequency of the employees at hand, and therefore result in amounts that are easier for employees to grasp. Because these formulas can be implemented en masse, administrative effort is reduced.
It also provides administrators flexibility in assigning employee currencies. By implementing a corresponding Business Add-In (BAdI), administrators can override the currency that is derived from the country that is implicit in the employee's organizational assignment with another currency of their choice.
Furthermore, administrators can use this business function to enhance existing compensation matrices by adjusting their guideline values in relation to specified percentages. Administrators can therefore perform mass modifications of compensation amounts with increased convenience.
It provides additional Customizing settings that, among others, enable administrators to determine eligibility and guideline groupings in relation to compensation plans.

Integration

This business function also serves to enhance the Plan Compensation iView with a new column, in which textual appraisal results can be displayed, as well as links to employee appraisal documents. In order to use this enhancement, you are required to activate the Business Function HCM, Performance Management 01 (HCM_OSA_CI_1).

Prerequisites

You have installed the following components as of the version mentioned:

Type of Component	Component	Is Needed Only for the Following Features
Software Component	EA-HR 604
SAP NetWeaver	SAP NetWeaver — Enterprise Portal 7.01
Portal Content	Business Package for Manager Self-Service 1.41	Multilevel Approval Process

Features

Multilevel Approval Process

Using new Portal Content delivered with Business Package for Manager Self-Service 1.41, this business function introduces a multilevel approval process that simplifies the administration and execution of the compensation planning cycle.

Using this process, higher-level managers can approve and reject the planning not only of their direct subordinates, but also implicitly of the organizational units further below them.
Because higher-level managers are empowered to approve or change compensation at multiple levels below them, the approval process is both simplified and accelerated. Timely completion of the process cannot be endangered by individual managers who, due to illness or other factors, have failed to approve their compensation within established timelines.

By enabling managers to record brief notes that document the reason a particular approval or rejection occurred, managers can communicate with their subordinates and superiors more easily.

The process equally provides compensation managers an overview of compensation planning at any point in the cycle from its inception until today's date.

Managers can determine the current status of the cycle at any time, along with the current consumption of budgets.
Alternatively, managers can review past changes - by user, date and time - to determine the exact status of the cycle on any earlier date they wish to specify.

Workflow-Based Administrative Support

Workflow support is provided to notify compensation managers that the compensation planning cycle has commenced. Throughout the cycle, managers can also rely upon Workflow support to notify them, where appropriate, that budgeted amounts have been submitted, approved or rejected by others.

New and Enhanced Reporting Capabilities

A variety of new and enhanced reports are delivered to assist users in preparing, monitoring and completing the compensation planning cycle. For each report delivered, the corresponding title (and purpose) is listed below.

Prepare Organizational Units for Compensation Planning

Notify Managers

Display Compensation Planning Progress

Display Compensation Planning Changes

Summarize Compensation Planning Changes

Adjust Compensation Process Records

Change Compensation Process Status

Delete Compensation Planning History Data

A detailed description of the use of each report is provided in the corresponding report documentation.

New Rounding Formulas

New rounding formulas can be used to round compensation amounts in the corresponding employee currency and payroll frequency. Wherever specified, these rounding formulas override any rounding rule that has been defined for the compensation plan at hand. These formulas enable users to suggest appropriate round amounts in local currencies or pay frequencies. Moreover, they enable users to round amounts for employees en masse.

Enhanced Employee Currency Assignment

Administrators can use this business function to assign to employees a currency that differs from the default currency that is derived from their organizational assignment. By implementing a corresponding Business Add-In, administrators can assign to employees the currency that is derived from the Basic Pay infotype (0008), for example, and thereby override the default currency that otherwise would be derived from the Organizational Assignment infotype (0001). This enhancement serves to reduce effort in the administration of currencies for applicable employees.

Enhanced Compensation Matrices

Existing compensation matrices can be enhanced by adjusting their guideline values en masse as of a specified key date. Where applicable, you may adjust, by a percentage of your choosing, any of the following guideline values.

The default, minimum or maximum guideline amount.
The default, minimum or maximum guideline percent.
The default, minimum or maximum guideline number.