Compensation Budget

[ashfak02278]

Hi Team,

We have budget based on business unit for compensation review, which is allocated in amount. Below is the example.

For example, we have 3 business units called A, B and C.

Total Budget for business unit A = $ 2500
Total Budget for business unit B = $ 3250
Total Budget for business unit C = $ 1750
Total Budget (A+B+C) = $ 7500

What would be the best option to create budget in compensation template as we are not getting proper solution for this. Kindly provide the recommendation.

Regards

[xavierlegarrec]

Hi ashfak

Budgeting in Compensation module is only done either at the employee level (leading practice) or at the planner level through a feature called Budget Cascading (directAmount type of budget).

In order to do what you want to do you would need to calculate the number of eligible employees in each business unit then divide the amount you want to allocate by this number and finally assign the flat amount to each employee through a lookup table used in your budget definition.

Usually Comp Administrators get a percentage for each business unit or legal entity provided by Finance prior to the annual review cycle and this % then gets multiplied against each employee's Annualized Salary to make up the individual budget amount. See Custom Field section in the great blog below: https://blogs.sap.com/2022/03/24/choosing-the-right-budget-configuration-for-your-organization/

All the best,

Xavier

[Summaiya120]

Hi Ashfak,

Please check below link for more details on budget

https://learning.sap.com/learning-journey/configure-sap-successfactors-compensation/developing-budge...

Thanks,

Summaiya