What is 'compensation category' in SAP PA-CM - Compensation Management?

compensation category - Overview

• Component: PA-CM

• Component Name: Compensation Management

• Description: Salary adjustment, regular bonus, off-cycle payment or Long Term Incentive LTI grant.

compensation category - Details

• 
  Key Concepts: 
  Compensation category is a feature of the SAP PA-CM (Compensation Management) component. It is used to define the different types of compensation that can be assigned to employees. This includes base salary, bonuses, and other forms of compensation. It also allows for the creation of custom categories for specific types of compensation. 
  
  How to use it: 
  The compensation category feature can be accessed through the SAP PA-CM component. Once in the component, users can create new categories or edit existing ones. They can also assign different types of compensation to each category. This allows for more flexibility when setting up employee compensation plans. 
  
  Tips & Tricks: 
  When creating new categories, it is important to consider how they will be used in the future. For example, if a company wants to offer bonuses to certain employees, they should create a separate category for this type of compensation. This will make it easier to track and manage these bonuses in the future. 
  
  Related Information: 
  The SAP PA-CM component also includes features such as salary planning and budgeting. These features can be used in conjunction with the compensation category feature to ensure that employee compensation plans are properly managed and tracked.