What is evaluation period in SAP PA-EC - Enterprise Compensation Management?

SAP Term: evaluation period

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: A period used by the system to determine whether a compensation plan belongs to an employee's compensation program. All records of the Compensation Program infotype that are valid during the evaluation period are taken into account. An employee is macro eligible for a plan if it is part of his/her program at least one day during the evaluation period. If the plan is not part of the compensation program during the whole evaluation period, the compensation guideline may be prorated.

Smart SAP Assistant

• Key Concepts: 
  Evaluation period is a feature of the SAP Enterprise Compensation Management (PA-EC) component. It is used to define the time frame in which an employee’s performance is evaluated. This evaluation period can be used to determine the employee’s eligibility for bonuses, salary increases, and other forms of compensation.
  
  How to use it: 
  The evaluation period can be set up in the SAP system by entering the start and end dates of the period. The system will then use this information to calculate the employee’s performance during that time frame. The evaluation period can also be used to set up bonus or salary increase plans for employees based on their performance during that period.
  
  Tips & Tricks: 
  It is important to ensure that the evaluation period is set up correctly in order to accurately assess an employee’s performance. It is also important to ensure that the evaluation period is long enough to capture all relevant performance data.
  
  Related Information: 
  The evaluation period feature of SAP Enterprise Compensation Management (PA-EC) is closely related to other features such as bonus plans, salary increases, and other forms of compensation. It is important to understand how these features work together in order to effectively manage employee compensation.