What is 'budget unit' in SAP PA-CM - Compensation Management?

budget unit - Overview

• Component: PA-CM

• Component Name: Compensation Management

• Description: An obejct for entering budgets object type BU. You can link individual budget units to form a hierarchical structure a budget structure with higher-level and lower-level budgets in the same way as an organizational structure.

budget unit - Details

• 
  Key Concepts: 
  A budget unit is a unit of measure used in SAP's Compensation Management (PA-CM) component to define the budget for a particular compensation plan. It is used to determine the total amount of money available for a given compensation plan and can be used to track the progress of the plan. The budget unit can be set up as either a fixed amount or a percentage of total payroll. 
  
  How to use it: 
  The budget unit is set up in the PA-CM component of SAP. It is used to define the total amount of money available for a given compensation plan. The budget unit can be set up as either a fixed amount or a percentage of total payroll. Once the budget unit is set up, it can be used to track the progress of the plan and ensure that it stays within its allocated budget. 
  
  Tips & Tricks: 
  When setting up a budget unit, it is important to consider the size and scope of the compensation plan. If the plan is large and complex, it may be beneficial to set up multiple budget units in order to better track and manage the progress of the plan. Additionally, it is important to ensure that the budget unit is set up correctly in order to accurately track and manage the progress of the plan.