What is 'compensation wage type' in SAP PA-BN - Benefits?

compensation wage type - Overview

• Component: PA-BN

• Component Name: Benefits

• Description: A wage type that cumulates and stores information about the earnings and/or working hours of employees for further valuation.

compensation wage type - Details

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  Key Concepts: 
  Compensation wage type is a feature of the SAP Human Capital Management (HCM) module, specifically the PA-BN Benefits component. It is used to define the wage types that are used to calculate the compensation for an employee. This includes wages, bonuses, and other forms of compensation. The wage types are used to determine the amount of compensation an employee will receive for a given period of time.
  
  How to use it: 
  The compensation wage type is set up in the SAP HCM system by entering the wage type code and description in the relevant fields. The wage type code is used to identify the wage type and the description is used to explain what it is used for. Once the wage type has been set up, it can be used to calculate the compensation for an employee. This can be done manually or automatically using a payroll system.
  
  Tips & Tricks: 
  When setting up a compensation wage type, it is important to ensure that all relevant information is entered correctly. This includes the wage type code, description, and any other relevant information such as tax rates or deductions. It is also important to ensure that all wage types are updated regularly to ensure accuracy.
  
  Related Information: 
  The SAP HCM module also includes other features related to compensation such as salary scales, bonus plans, and other benefits.