What is proration in SAP PA-EC - Enterprise Compensation Management?

SAP Term: proration

• Component: PA-EC

• Component Name: Enterprise Compensation Management

• Description: A calculation method used for employees who have fulfilled the eligibility requirements of a particular compensation plan only during part of the evaluation period due to job- related events recent hiring, change in position.

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• Key Concepts: 
  Proration is a feature of SAP's Enterprise Compensation Management (PA-EC) component that allows for the automatic calculation of compensation amounts based on a set of predetermined criteria. This feature allows for the calculation of compensation amounts to be done quickly and accurately, without manual intervention. 
  
  How to use it: 
  Proration can be used to calculate compensation amounts for employees based on their performance, job title, or other criteria. The criteria used for proration can be set up in the system and then applied to all employees in the organization. The system will then automatically calculate the appropriate compensation amount for each employee based on the criteria set up. 
  
  Tips & Tricks: 
  When setting up proration in SAP's Enterprise Compensation Management component, it is important to ensure that all criteria are properly set up and that all employees are included in the calculation. This will ensure that all employees receive the correct compensation amount based on their performance or job title. 
  
  Related Information: 
  For more information on SAP's Enterprise Compensation Management component and how to use proration, please refer to SAP's official documentation. Additionally, there are many online resources available that provide detailed instructions on how to set up and use proration in SAP's Enterprise Compensation Management component.