This component provides the basis for Compensation Management because the Compensation Management component uses the budget values created for organizational units. The compensation administrator uses these values to determine compensation awards (pay increases, bonuses, etc.) for the employees whose compensation plans are under review.

Use this component to:

Implementation Considerations

Install this component if you want to perform compensation budget planning and administration.


To perform budgeting over the organizational structure, that is, to assign organizational units to budgets, install the Organizational Management component.

Install the Organizational Management component if you want to use the budget values for administering and planning compensation packages for employees, because you need to know the employees, jobs and positions, and organizational units. You must also install the Compensation Management Planning and Administration component.


Budgeting uses a bottom-up process to submit the budget, and a top-down process to approve the budget.

Budgets are displayed in a hierarchical structure.

The Budgeting component has two display options you can use when changing and displaying budgets:

Displays the budget hierarchy. In this view, you can only work with the budget objects.

Displays the budget hierarchy and the corresponding organizational structure. In this view, you can assign financed objects to the budgets and determine what the budget object finances.