What is 'calculation base date' in SAP PA-BN - Benefits?

calculation base date - Overview

• Component: PA-BN

• Component Name: Benefits

• Description: The default date for which the system calculates the salary, age, or seniority of an employee to determine amounts based on these factors. This date provides the most relevant and current figure, and depends on the validity of the infotype in question: If the record is current, the calculation base date is the system date, If the record is in the future, the calculation base date is the start date of the record. If the record is in the past, the calculation base date is the end date of the record. The calculation base date can be overridden by a cutoff date in Customizing.

calculation base date - Details

• 
  Key Concepts: 
  Calculation base date is a term used in the SAP Benefits (PA-BN) component. It is the date used to determine the amount of benefits that an employee is entitled to. This date is usually the employee's hire date, but can also be a different date depending on the company's policy. 
  
  How to use it: 
  The calculation base date is used to calculate the amount of benefits an employee is entitled to. This date can be set in the SAP Benefits (PA-BN) component by going to the “Benefits” tab and selecting “Calculation Base Date”. The user can then enter the desired date and save it. 
  
  Tips & Tricks: 
  It is important to remember that the calculation base date should be set according to the company's policy. It is also important to keep this date up-to-date in order to ensure that employees are receiving the correct amount of benefits. 
  
  Related Information: 
  For more information on setting up and managing calculation base dates in SAP Benefits (PA-BN), please refer to the SAP Help documentation.