Component: PA-EC
Component Name: Enterprise Compensation Management
Description: A period during which insiders are not allowed to exercise their awards, usually when important company information is announced, for example, annual or quarterly figures. &EXAMPLE& Prior to the announcement of your company's first quarter result you could define a blackout period of a month for all executives and executive assistants.
Term: blackout period
Component: PA-EC Enterprise Compensation Management
Definition: A blackout period in SAP Enterprise Compensation Management is a predefined timeframe during which changes to compensation data, such as salary adjustments or bonus payments, are restricted or completely blocked. This ensures data integrity and prevents unauthorized or accidental modifications during critical payroll or compensation processing phases.
How It’s Used: In real SAP projects, blackout periods are used to lock compensation data around key business events, such as the closing of a fiscal period, payroll runs, or during the finalization of annual salary reviews. For example, once the compensation cycle for a fiscal year is closed, the blackout period prevents HR or payroll users from making further changes to salary or bonus data until the next cycle begins.
Important Configuration: