How to Budget for SAP Compensation
Forty years ago, IBM engineers developed a software package known as Systems, Applications and Products in Data Processing to manage a company's diverse business functions under one application. Still used, the system includes financial systems, warehousing, production planning, plant maintenance and other key business components. With SAP you can control and strategize your budget to meet your small business' bottom-line expenses.
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Instructions
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Select "Enterprise Compensation Management," "Budgeting" and "Define Budget Types" in the SAP program to determine your budget type. Define the reference currency by selecting "Enterprise Compensation Management," "Budgeting" and "Define Reference Currency for Budgeting." Define your budget periods by selecting "Enterprise Compensation Management," "Budgeting" and "Define Budget Periods."
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Select "Create" to create a new budget structure. Call it "Personnel Expenditure," "Compensation" or a similar name. Select the number of months and organizational unit. Save your entries.
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Select "Overall Budget" and "Defining Budget Structure Element Types" to specify the classification of the various levels of compensation in the budget. Define the default values for the various pay scale groups and special pay scale groups by selecting "Overall Budget," "Pay Scales" and "Pay Scale Classifications." Select the status of the budget as "Proposed" or "Under Revision."
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Display the funds available from the "Funds Management" section of the top-down menu. Use your payroll budget to allocate funds from Funds Management to the compensation budget structure. Enter the monetary amount or use the FTE budget to enter the original budget for full-time equivalents and let the system convert the FTE value to a monetary value.
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Display the overall budget for information and monitoring of the funds assigned using the menu. Continue to change, copy or delete the budgeted compensation structure elements as required.
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Tips & Warnings
To budget for SAP compensation requires three phases: preparing the budget program; monitoring and controlling the budget program; and reviewing and assessing the budget program.
To save time, conduct a needs analysis and assessment of your compensation requirements. It might include developing a database with instant access to employee information, training costs, benefits and reducing duplication. The clearer your objectives, the more focused your projected outcome.
References
Resources
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