What is bonus cap percentage in SAP LOD-SF-CMP - Compensation Management?

SAP Term: bonus cap percentage

• Component: LOD-SF-CMP

• Component Name: Compensation Management

• Description: A percentage that represents the maximum bonus allowed for a bonus plan assignment.

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• Key Concepts: 
  Bonus cap percentage is a feature of SAP’s Compensation Management component. It is used to limit the amount of bonus that can be paid out to an employee. The bonus cap percentage is set by the employer and is applied to the total bonus amount that can be paid out to an employee. 
  
  How to use it: 
  The bonus cap percentage is set by the employer in the Compensation Management component of SAP. The employer can set a maximum bonus percentage for each employee, which will be applied to the total bonus amount that can be paid out. This ensures that employees are not overpaid in bonuses. 
  
  Tips & Tricks: 
  When setting the bonus cap percentage, it is important to consider the employee’s performance and the company’s budget. It is also important to ensure that the bonus cap percentage is fair and equitable for all employees. 
  
  Related Information: 
  The bonus cap percentage feature is part of SAP’s Compensation Management component, which also includes features such as salary planning, performance management, and compensation planning. It is important to understand how these features work together in order to effectively manage employee compensation.