What is locality adjustment in SAP PSM-FG - Functions for U.S. Federal Government?

SAP Term: locality adjustment

• Component: PSM-FG

• Component Name: Functions for U.S. Federal Government

• Description: The amount when you subtract the employee's basic pay from the adjusted basic pay.

Smart SAP Assistant

• Key Concepts: 
  Locality adjustment is a feature of the PSM-FG Functions for U.S. Federal Government component of SAP. It allows users to adjust the cost of goods and services based on the geographic location of the customer or supplier. This feature helps to ensure that customers and suppliers are charged the same amount regardless of their location. 
  
  How to use it: 
  To use locality adjustment, users must first set up a locality table in SAP. This table contains information about the different locations and their associated costs. Once the table is set up, users can then adjust the cost of goods and services based on the customer or supplier's location. 
  
  Tips & Tricks: 
  When setting up a locality table, it is important to make sure that all locations are included and that the associated costs are accurate. This will ensure that customers and suppliers are charged the correct amount for goods and services. 
  
  Related Information: 
  For more information about locality adjustment, please refer to SAP's documentation on PSM-FG Functions for U.S. Federal Government.