How to Effectively Use Planned Compensation Infotypes to Build Compensation Strategies

  • by Debanjan Chattopadhyay, Senior SAP HR Manager and Solution Architect, Citrix Systems, Inc.
  • March 5, 2012
Learn how to leverage the planned compensation infotype by maintaining compensation data at the job or position level using different planned compensation types.
Key Concept

Personnel Development (PD) infotype 1005 (planned compensation) can be used to define the planned compensation at the job or position level. The information can be stored according to a company’s pay scale structure or pay grade structure. If integration with master data is active, the information stored in this infotype suggests default values on infotype 0008 (basic pay) records. There may be multiple planned compensation records created for a job or position for different countries. Infotype 1005 is also used as a benchmark to compare planned compensation data with real compensation data. If any information in this infotype is changed, there are ways to automatically or manually update infotype 0008 (basic pay) with the changed information.

An efficient compensation model design is not complete without proper remuneration planning, which, in turn, dictates the pay strategies of your organization. The proper design also provides a baseline to help decision-makers control costs and gives them the flexibility to establish pay grades according to company policy. Pay structure and the associated salary ranges are the most powerful components of compensation design. The planned compensation infotype (1005) is used primarily to keep person-dependent compensation data in line with your company’s unique pay structure. This infotype also can be used for personnel cost planning.

There are three ways you can maintain planned compensation data in infotype 1005 for a job or a position:

  1. Pay scale structure
  2. Pay grade (salary) structure
  3. Direct input of salary range

Each option has a tab in infotype 1005. You can maintain only one tab at one point in time. The system displays pop-up messages that data will be lost when navigating from one tab to another after maintaining data in the earlier tab. Changing tabs also changes the remuneration type.

Debanjan Chattopadhyay

Debanjan Chattopadhyay specializes in SAP HCM (Personnel Administration, Organizational Management, Compensation, Payroll, ESS, and MSS). He has worked on multiple SAP HR/Payroll projects comprising full-cycle implementations, upgrades, post-implementation support, and outsourcing engagements since 1997. He currently works as a senior SAP HR manager and solution architect for Citrix Systems.

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