What is budgeting in SAP PA-CM - Compensation Management?

SAP Term: budgeting

• Component: PA-CM

• Component Name: Compensation Management

• Description: Function with which you can create budget structures in the same way as organizational structures, so that you can manage superior and subordinate budgets for various purposes. The budgets can be of a financial or non-financial for example shares nature. &EXAMPLE& Budgets for employee compensation Training and education budgets for organizational units

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• Key Concepts: 
  Budgeting in SAP PA-CM Compensation Management is the process of setting a financial plan for a given period of time. It involves allocating resources to different areas of the organization and setting limits on spending. The budgeting process helps organizations to plan for future expenses and ensure that they are able to meet their financial goals. 
  
  How to use it: 
  In SAP PA-CM Compensation Management, budgeting is done by creating a budget plan. This plan includes the budgeted amount for each expense category, as well as the expected revenue from each source. Once the budget plan is created, it can be used to track actual expenses and revenues against the budgeted amounts. This helps organizations to identify areas where they are overspending or under-spending, and make adjustments accordingly. 
  
  Tips & Tricks: 
  When creating a budget plan in SAP PA-CM Compensation Management, it is important to consider both short-term and long-term goals. Short-term goals should focus on immediate needs, while long-term goals should focus on future growth and sustainability. Additionally, it is important to review the budget plan regularly to ensure that it is still relevant and up-to-date with current market conditions. 
  
  Related Information: 
  For more information about budgeting in SAP PA-CM Compensation Management, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/PA_CM/7.5/en-US