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Learn the differences between two common SAP HCM compensation statements

by The Tip Doctor

February 24, 2011

Tip Doctor, Insider Learning Network.

This SAP ERP HCM tip comes from an article written by Jeremy Masters, who is a speaker at HR2011 and an SAP HCM consultant with Worklogix. The advice was posted in August 2010 to HR Expert, the leading independent online knowledgebase for professionals who manage and support SAP HCM activities.

Enterprise Compensation Management (ECM) is SAP’s latest compensation management solution within the SAP ERP HCM platform. Using the tools available within this module, SAP users can implement compensation solutions for compensation planning, bonus proces sing, and job pricing.

One suggestion to consider when implementing SAP ECM (or fine-tuning an existing set-up) concerns compensation statements, which come in two categories within ECM:

  • Compensation review statement (CRS), which is the document for employees after their focal review process
  • Total compensation statement (TCS), which is typically a year-round document showing the employee’s net worth with the company

Both statements are produced in Adobe and are frequently made available on SAP NetWeaver Portal for employees, managers, and the HR/compensation team.

The CRS typically links pay to performance. This is the document that managers use for their annual pay discussions with employees. The statement is usually personalized and many times contains relevant information for employees to describe their payments (e.g., merit components, bonus segment calculations, or LTI breakdowns). In the SAP system, the form is rendered using SmartForm technology. The standard SmartForm name is HR_ECM_CRS. You should copy this form into your user namespace and enhance it accordingly.

Standard transaction PECM_PRINT_CRS provides the ability to print compensation review statements on the back end (Figure 1). Be sure to create an entry in TVARV and use a program variant to call the custom name of your SmartForm. By doing this, the program knows which enhanced SmartForm template to render in lieu of the standard.

Figure 1 Standard transactio n PECM_PRINT_CRS for printing compensation review statements

The TCS provides a holistic view of an employee’s total compensation value with the company. Frequently, users include all types of pay and benefits information, such as base pay, short-term incentives, long-term incentives, health and welfare programs, and even non-monetary perquisites (e.g., access to an onsite day care and fitness club). In the SAP system, this form is rendered using SmartForm technology, as well.

The standard SmartForm name is HR_CMP_TCS. As with the CRS, copy this form into your customer namespace and enhance it as needed. Many users confuse CRS and TCS. The TCS is typically document used any time, whereas the CRS is given immediately before focal review payout.

Several companies have moved away from presenting an employee’s total compensation on an Adobe document and instead present it as an interactive Web site with graphs and what-if analysis. SAP does not yet have this type of interactive total compensation view. The CRS, however, is typically being administered in an Adobe document. This allows the manager and the employee to view and print their pay-for-performance on one page.

More HR information, tips and advice, including articles from HR Expert, are available on Insider Learning Network's HR Group.

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