1. SAP Glossary
  2. Compensation Management
  3. financed unit


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


financed unit - Overview

  • Component: PA-CM

  • Component Name: Compensation Management

  • Description: Organizational unit that is assigned to a budget unit in the context of budgeting, and is financed by that budget unit.


financed unit - Details


  • Key Concepts: Financed unit is a term used in SAP's Compensation Management (PA-CM) component. It is a unit of measurement used to calculate the cost of a particular compensation plan. The financed unit is determined by the total cost of the plan divided by the number of employees in the plan.
    How to use it: The financed unit is used to calculate the cost of a compensation plan. It is calculated by dividing the total cost of the plan by the number of employees in the plan. This allows for an accurate calculation of the cost per employee.
    Tips & Tricks: When calculating the financed unit, it is important to consider any additional costs associated with the plan such as taxes, administrative costs, and other fees. These should be taken into account when calculating the total cost of the plan.
    Related Information: The financed unit is an important concept in SAP's Compensation Management component. It is used to accurately calculate the cost of a compensation plan and ensure that it is fair and equitable for all employees involved. Additionally, it can be used to compare different plans and determine which one is most cost-effective.

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financed unit - Related SAP Terms

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