What is allowance in SAP LOD-SF-EC - Employee Central?

SAP Term: allowance

• Component: LOD-SF-EC

• Component Name: Employee Central

• Description: A part of an employee's remuneration that is compensation for special working conditions, such as shift work, high-risk work, unsociable hours, and so on.

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• Key Concepts: 
  Allowance is a type of compensation that is given to an employee in addition to their regular salary. It is typically used to cover expenses related to the employee’s job, such as travel, meals, and other costs. In SAP Employee Central, allowances are managed through the Allowance Management module. 
  
  How to use it: 
  The Allowance Management module allows users to create and manage allowances for employees. This includes setting up allowance types, setting up allowance rules, and assigning allowances to employees. The module also allows users to track and report on allowances. 
  
  Tips & Tricks: 
  When setting up allowance rules, it is important to consider the employee’s job role and the associated expenses they may incur. This will help ensure that the allowance is tailored to the employee’s needs. Additionally, it is important to review and update allowance rules regularly to ensure they remain relevant. 
  
  Related Information: 
  For more information on SAP Employee Central’s Allowance Management module, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_EMPLOYEE_CENTRAL/1711/en-US