What is calculation base in SAP PA-CM - Compensation Management?

SAP Term: calculation base

• Component: PA-CM

• Component Name: Compensation Management

• Description: An amount used by the system as a starting point when calculating the amount of a compensation adjustment in the case of percentage adjustments. The calculation base is a valuated wage type. It can comprise several wage types, and is assigned to an indirect valuation module.

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• Key Concepts: 
  Calculation base is a feature of SAP's Compensation Management (PA-CM) component that allows users to define the basis for calculating compensation. This includes setting up the criteria for how compensation is calculated, such as salary, bonus, and other benefits. It also allows users to define the rules for how compensation is distributed among employees. 
  
  How to use it: 
  To use the calculation base feature, users must first define the criteria for how compensation is calculated. This includes setting up the salary, bonus, and other benefits that will be used in the calculation. Once this is done, users can then define the rules for how compensation is distributed among employees. This includes setting up the criteria for who receives what amount of compensation and when. 
  
  Tips & Tricks: 
  When setting up the calculation base, it is important to consider all of the factors that will affect the distribution of compensation. This includes factors such as job performance, seniority, and other criteria that may be relevant to your organization. Additionally, it is important to ensure that all of the rules are clearly defined so that there is no confusion when distributing compensation. 
  
  Related Information: 
  For more information on using SAP's Compensation Management (PA-CM) component, please refer to SAP's official documentation or contact your local SAP representative. Additionally, there are many online resources available that provide helpful tips and tricks for using this feature.