What is deduction in SAP SRD-HR-CMS - HCM-Compensation?

SAP Term: deduction

• Component: SRD-HR-CMS

• Component Name: HCM-Compensation

• Description: An amount subtracted from an employee's total remuneration.

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• Key Concepts: 
  Deduction is a term used in SAP HCM-Compensation to refer to the amount of money that is taken out of an employee's salary or wages. This can be done for a variety of reasons, such as taxes, insurance premiums, or other deductions required by law. 
  
  How to use it: 
  In SAP HCM-Compensation, deductions are set up in the system and can be applied to an employee's salary or wages. The deductions can be set up as a fixed amount or as a percentage of the employee's salary or wages. The deductions can also be set up to be taken out on a regular basis, such as monthly or annually. 
  
  Tips & Tricks: 
  When setting up deductions in SAP HCM-Compensation, it is important to make sure that the deductions are set up correctly and that they are in compliance with any applicable laws or regulations. It is also important to make sure that the deductions are being taken out of the correct salary or wages. 
  
  Related Information: 
  In addition to deductions, SAP HCM-Compensation also allows for other types of compensation, such as bonuses and allowances. It is important to understand how these different types of compensation work together in order to ensure that employees are receiving the correct amount of compensation.