All the things that make up ECM on the SAP R/3
In this chapter, we will cover all the infotype and objects that are relevant to ECM. This will give us an understanding of what are the elements to look for in case of troubleshooting or just learning how the system works.
9 The Compensation Infotypes
There are many compensation infotypes. It is important to remember that they are new and don’t use any of the old compensation infotypes. The ECM infotypes are:
The employee infotypes specific to ECM are:
Employee Infotype | Description |
0758 | Compensation Program |
0759 | Compensation Process |
0760 | Compensation Eligibility Override |
0761 | LTI Granting |
0762 | LTI Exercising |
0763 | LTI Participant Data |
The object types that are used for budgeting are:
Object types | Description |
BU | Budget units |
O | Organizational units |
The relationships that are used for budgeting are:
Relationships | Description |
A300 | O is financed by BU |
B300 | BU Finances O |
A003 | BU belongs to BU |
B003 |
The transactions that are used for ECM are:
Transaction | Description |
Budget | |
PECM_START_BDG_BSP | Start budget administration |
PECM_GENERATE_BUDGET | Generate budget from organizational hierarchy |
PECM_INIT_BUDGET | Upload budget values from Personnel cost planning |
PECM_DISPLAY_BUDGETS | Display budget |
PECM_CHK_BUDGET | Check and release budget |
PECM_CONV_BDG_STKUN | Convert budget stock unit |
Compensation Administration | |
PECM_CHANGE_STATUS | Change compensation process status |
PECM_CREATE_COMP_PRO | Create compensation process records |
PECM_UPD_0008_1005 | Update basic pay from planned compensation |
PECM_PRINT_CRS | Print compensation review statement |
PECM_CREATE_0758 | Create compensation program records |
Long Term Incentives | |
PECM_EVALUATE_GRANT | Evaluate LTI grants |
PECM_PROCESS_EVENT | Process event for LTI grants |
PECM_CONV_LTI_STKUN | Convert LTI grant stock unit |
PECM_PARTICIP_IDOC | Export LTI participant data |
PECM_GRANT_IDOC | Export LTI grant data |
PECM_EXERCISE_IDOC | Import LTI exercising data |
Job pricing | |
PECM_START_JPR_BSP | Start job pricing |
PECM_QUERY_SURVEY | Extract data for survey participation |
We will start reviewing them in details in subsequent sections.
9.1 Infotypes
9.1.1 Infotype 0758- Compensation Program
Infotype 0758- Compensation program is a required infotype for any employee to be a part of the compensation process. If this infotype is not present then the employee will not be a part of any compensation plans.
Figure 9.1 Compensation program
The infotype has a validity period. It has the compensation area, first program grouping and second program grouping.
An employee can have more than one compensation program infotype. This can make them eligible for multiple compensation programs.
This concept is similar to how SAP Benefits is setup. This is new in ECM and is not a part of the old compensation management.
The compensation specialist will run the transaction PECM_CREATE_0758 when it’s time to start the compensation cycle. This program will create the primary compensation program record only. If there are other compensation programs that the employee is eligible for, then they would need to be created manually.
Figure 9.2 Creating compensation program records
9.1.2 Infotype 0759- Compensation Process
This is a very important infotype. This infotype is created when either the manager saves the record when they select the eligible employees or the compensation specialist runs a report that creates the records en masse.
This record doesn’t show the validity period but has the effective date, it also has the status that starts with planned and is Active at the last stage. It also has the salary adjustment or bonus amounts.
Figure 9.3 Compensation process(Monetary awards)
For non-monetary awards like the LTI, the same infotype captures the number and the unit.
Figure 9.4 Compensation process infotype (Non-monetary awards)
The compensation process record can be created by the manager via the MSS for every employee. It can also be created in advance by the compensation specialists. They can also apply the guidelines so that the manager doesn’t have to do that step too. The manager just needs to make some discretionary adjustments to what has been proposed. The compensaiton specialist executes the transaction PECM_CREATE_COMP_PRO for the relevant population and relevant compensation plan.
Figure 9.5 Mass creation of compensation process records
There is an option to ‘Bring salary to minimum’. This might be useful in case there might be people who might to in a higher pay level but their salary is lesser than the minimum. To fix this inconsistency, selecting this option will at least get the employee’s salary within the range.
9.1.3 Infotype 0760- Compensation Eligibility Override
The eligibility configuration takes care of most of scenarios but then there are exceptions. The exception can be when an employee transfers from another organization and has been promised that they would be in that plan. There can be instances where there is a M&A and there is a need to provide some overrides rather than change the configuration for the first year. There needs to be a close monitoring of every overrides since overrides are always something that the auditors would like more information on and the due diligence done before the override was created.
The screen Figure 9.6 shows the validity period of the infotype, the compensation area and plan for which the override has been made for and whether the override is to make someone eligible or to make someone ineligible. If the eligible date is left blank, then the employee is eligible for the entire validity period of the infotype.
This infotype will be used by the compensation specialists and the manager doesn’t need to have access to it.
9.1.4 Infotype 0761- LTI Granting
In case of the monetary awards, when the award is activated, it creates either a record in IT 0008 or IT 0015 or IT 0267. But in case of LTI or non-monetary award that is not the case. The corresponding infotype that is created when the award is activated is infotype 0761 LTI Granting. The end date of the validity period defines the expiration date of the LTI award. The screen Figure 9.7 shows all the information that will be captured when the LTI award is activated. If there is any need to override the configured exercise price, vesting rule or exercise window rule, then it can be done manually on this infotype.
9.1.5 Infotype 0762- LTI Exercising
This infotype can be maintained either manually or via an interface from the broker. The tax calculation function is available for US and Germany
Figure 9.8 LTI exercising data
The LTI functionality is more robust than the previous versions and continuously being improved.
9.1.6 Infotype 0763- LTI Participant Data
This infotype stores the participant data. It is sent to the brokers too to let them know if that employee is an insider, director and if the employee has a substantial percentage of ownership. This information is needed for statutory reporting reasons in the US
Figure 9.9 LTI Participant data
9.2 Objects & Relationships
The Budget structure unit (BU) is specific to ECM. The standard infotypes like 1000 Object and 1001 Relationship are used along with infotypes 1500 BS element management and 1520 Original budget. Both this infotypes can’t be managed using the R/3 transactions and are for display. They have to be managed by budget transactions.
Each budget unit has another infotype 1500 that stores more information in the background as shown in the screen Figure 9.10
Though it’s not directly used, the infotype 1520 is also created.
Figure 9.11 Infotype 1520- Original budget information
The budget relationship is really the only relationship that used within ECM. The first relationship A/B003 helps in creating the budget structure hierarchy.
Figure 9.12 Budget structure hierarchy
The other relationship is between the budget units and organizational units. The budget unit finances the organizational unit for the amount or numbers. The financed numbers are store on the additional data pad.
Figure 9.13 Financing infotype
Figure 9.14 Additional infotype is stored for each relationship
9.3 Transactions
9.3.1 PECM_UPD_0008_1005- Update basic pay from planned compensation
The planned compensation holds the salary structure. When you execute the transaction PECM_UPD_0008_1005 for the given population, it will change the pay structure component of pay grade area, pay grade type, pay grade and pay grade level. It will NOT change the salary. This can happen after a job or a position has been re-evaluated and requires the grading to be changed. If the pay has to be changed, then pay change actions as defined in the system need to be executed as a subsequent task.
Figure 9.15 Basic Pay to Planned compensation
9.3.2 PECM_GENERATE_BUDGET- Create budget using the program
This transaction helps in creating the budget similar to the way it can be done by using the Portal. You can specify the budget type, budget period, organizational hierarchy and levels. In case of LTI, you can specify the stock units.
Figure 9.16 Generate budget
9.3.3 PECM_INIT_BUDGET- Upload Budget amounts using PCP
If you have also implemented Personnel cost planning module, then you can provide the budget values based on the scenario you have created in PCP.
Figure 9.17 Upload budget amounts using PCP
9.3.4 PECM_CHK_BUDGET - Check and release budget
You can check and release the budget if the structure and amounts look correct. You can always run it in the test mode first before releasing it. If you have release the budget but not yet used it, then there is also a chance to reset it to planning and make changes. Once it’s released and there are awards that have made against that budget, it is not really possible to reset it or make any changes.
Figure 9.18 Check and Release budget
9.3.5 PECM_CONV_BDG_STKUN- Convert LTI grant stock unit
There might be a scenario where you have awarded stocks to your employees. Before they are exercised, the company announces a split. This split would also mean that the budget should be adjusted for the split and going forward new stock units should be awarded. This can be done using this transaction.
Figure 9.19 Convert budget stock units
9.3.6 PECM_CHANGE_STATUS- Change compensation process status
This transaction is very useful when compensation specialist wants to change the status of infotype 0759. Normally the manager is expected to do this on an individual basis. But if the manager is not available for any reason, the compensation specialist can use this transaction and move it to the next status. It might also be that at a key date, if there are no rejects then all the submitted awards are approved en masse.
There is one status change that has to happen using this and that is changing the status from Approved to Active. This is the most significant change since it finally creates records that impact the payroll and employee recieving the award.
Figure 9.20 Compensation process status change
9.3.7 PECM_PROCESS_EVENT- Process Events for LTI plan grants
The manager can handle the LTI grants for the compensation related processes. But there are other events that can impact the LTI grants. There are instances where the grants have to be cancelled or vesting rules have to be overridden, etc... The compensation specialist needs access to this transaction so that they can make a mass change or a change on an individual.
Figure 9.21 LTI grants
9.3.8 PECM_CONV_LTI_STKUN- Convert infotype 0761 after stock split
The employee might have already been awarded the stock. Then the stock split is announced. This means that employee’s award in terms of number of units and type of units can change. This change will be affected by using the transaction for the relevant LTI plan.
Figure 9.22 Convert infotype 761 after stock split
9.3.9 PECM_PARTICIP_IDOC- Export LTI participant data
LTI process will include brokers who can actually sell the awards. The brokers would need the participant data. You would need to provide the receivers information, the LTI plans and employee population that needs to be sent.
Figure 9.23 Export LTI data
9.3.10 PECM_GRANT_IDOC- Export LTI grant data
Once the employee population has been established at the broker, the employee’s grant data is sent across. This will ensure that the broker has all the required grant information. This will also allow the employee to exercise their awards.
Figure 9.24 Export LTI grant data
9.3.11 PECM_EXERCISE_IDOC- Import LTI exercise data
The broker sends an inbound feed to ECM with the details related to the awards the employee has exercised. This information is needed by the company for tax purposes. This information will update the infotype 0762 where all the exercising data is stored.
Figure 9.25 Import LTI exercise data
9.3.12 PECM_QUERY_SURVEY- Salary survey participation
Companies take part in survey and need to provide data to the provider. This can become a very easy task if all the job mapping part has been done as a part of job pricing work. It’s just a matter of running this report and providing the output file to the vendor.
Figure 9.26 Send salary survey particiaption report
9.4 Summary
This chapter provides a quick reference to all the different objects in R/3 including the ECM infotypes, objects, relationships, transactions etc… We have covered the R/3 transactions related to budgeting, compensation administration and job pricing. We have also reviewed all the important infotypes where the data is stored when the transactions are executed on the portal.
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