What is budget type in SAP PA-CM - Compensation Management?

SAP Term: budget type

• Component: PA-CM

• Component Name: Compensation Management

• Description: Business classification of budgets, which indicates their purpose. &EXAMPLE& Bonus budget Salary increase budget Education and training budget

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• Key Concepts: 
  Budget type is a feature of SAP’s Compensation Management (PA-CM) component. It is used to define the budget for a particular compensation plan. The budget type can be used to set the maximum amount of money that can be allocated to a particular compensation plan. It also allows for the tracking of the actual costs associated with the plan. 
  
  How to use it: 
  In order to use the budget type feature, you must first create a budget type in the PA-CM component. This can be done by selecting “Create Budget Type” from the menu. Once created, you can assign a budget type to a particular compensation plan. This will allow you to set the maximum amount of money that can be allocated to that plan. You can also track the actual costs associated with the plan by using the budget type feature. 
  
  Tips & Tricks: 
  When creating a budget type, it is important to consider how much money will be allocated to each compensation plan. This will help ensure that you are not overspending on any particular plan. Additionally, it is important to keep track of the actual costs associated with each plan in order to ensure that you are staying within your budget. 
  
  Related Information: 
  For more information on how to use the budget type feature in SAP’s Compensation Management (PA-CM) component, please refer to SAP’s official documentation. Additionally, there are many online resources available that provide tips and tricks for using this feature effectively.