What is reference scenario in SAP PA-CM - Compensation Management?

SAP Term: reference scenario

• Component: PA-CM

• Component Name: Compensation Management

• Description: A Second Cost Planning scenario that you can display for comparison.

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• Key Concepts: 
  Reference scenarios are pre-defined, best practice models for SAP software components. They provide a starting point for configuring the software to meet the specific needs of an organization. The PA-CM Compensation Management reference scenario is a model for configuring the software to manage employee compensation. 
  
  How to use it: 
  The PA-CM Compensation Management reference scenario can be used as a template for setting up the software. It provides guidance on how to configure the software to manage employee compensation, including setting up pay grades, salary structures, and bonus plans. It also provides guidance on how to set up reporting and analytics tools to track and analyze compensation data. 
  
  Tips & Tricks: 
  When using the PA-CM Compensation Management reference scenario, it is important to customize it to meet the specific needs of your organization. This includes taking into account local laws and regulations, as well as any unique compensation policies or practices that your organization has in place. 
  
  Related Information: 
  For more information on the PA-CM Compensation Management reference scenario, please refer to the SAP Help Portal or contact your SAP representative.