What is wage element in SAP PA-CM - Compensation Management?

SAP Term: wage element

• Component: PA-CM

• Component Name: Compensation Management

• Description: A means of assigning costs to cost objects, such as organizational units ,positions, jobs, and work centers. You assign the wage elements to cost objects using the Cost Planning infotype 1015 in the Organizational Management component. This cost data is taken into consideration for calculations in Personnel Cost Planning, primarily for planning using projected pay.

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• Key Concepts: 
  A wage element is a component of the SAP Compensation Management (PA-CM) module. It is used to define the various components of an employee's salary, such as base pay, bonuses, and other allowances. Wage elements are used to calculate the total salary for an employee and can be used to track changes in salary over time. 
  
  How to use it: 
  In SAP Compensation Management, wage elements are created and maintained in the Wage Element Master Data (WEMD) table. This table contains all the information related to a wage element, such as its name, type, and calculation method. Once a wage element is created, it can be assigned to an employee's salary structure. This will allow the system to calculate the total salary for that employee based on the wage elements assigned. 
  
  Tips & Tricks: 
  When creating a wage element, it is important to ensure that all relevant information is included in the WEMD table. This will ensure that the system can accurately calculate the total salary for an employee. Additionally, it is important to keep track of any changes made to a wage element over time, as this can affect the total salary calculation. 
  
  Related Information: 
  For more information on SAP Compensation Management and wage elements, please refer to the SAP Help Portal or contact your local SAP support team.