What is effective date in SAP PA-CM - Compensation Management?

SAP Term: effective date

• Component: PA-CM

• Component Name: Compensation Management

• Description: The date on which a consolidated salary adjustment becomes effective, meaning that the salary adjustment is paid out.

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• Key Concepts: 
  Effective date is a term used in SAP's Compensation Management (PA-CM) component. It is the date on which a change to an employee's compensation takes effect. This date is used to determine when the change should be applied and when it should be reflected in the employee's pay. 
  
  How to use it: 
  The effective date is set when a change to an employee's compensation is made. This could be a salary increase, bonus, or other type of compensation change. The effective date should be set to the date on which the change should take effect. This will ensure that the change is applied correctly and that the employee's pay reflects the change on the correct date. 
  
  Tips & Tricks: 
  When setting an effective date for a compensation change, it is important to consider any deadlines or other restrictions that may apply. For example, if a salary increase needs to be applied by a certain date, then the effective date should be set accordingly. Additionally, it is important to ensure that the effective date is not set too far in advance, as this could result in incorrect calculations or other issues. 
  
  Related Information: 
  For more information about SAP's Compensation Management (PA-CM) component and how to use it, please refer to SAP's official documentation or contact your SAP support team. Additionally, there are many online resources available that provide detailed information about how to use SAP's Compensation Management component.