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Author's profile photo Sandeep Dinesh Janardan

Decoupling Compensation and Payroll in ByD 1911 release

Hello everyone,

Prior to the 1911 release of Business ByDesign, the payroll and compensation scoping options were tightly coupled. The compensation functionality could be scoped for use only by selecting the Payroll option. This meant that a customer could use the compensation functionality only for those countries where the payroll was supported, which was limited to 8 countries.

With the 1911 release, this tight coupling has been removed. Customers can scope in Compensation functionality without having to select Payroll.

This leads to two outcomes :

  1. Customers can now use compensation functionality for employees who are hired to employees where ByD Payroll was not supported. For example – Employees hired to Spain, Denmark, Italy etc for which there is no payroll support, can how have their compensation data managed in Business ByDesign.
    Compensation functionality is available for pre-localized , tax-basic as well as non-localized countries.

    – For payroll supported countries, there are pre-delivered compensation components that are available out-of-the-box for use.
    For all other counties, the administrator has to create relevant compensation components from the Compensation Components work center view.
  2. Customers can now unscope Payroll if they don’t want to maintain the payroll information for their employees in ByDesign. This is helpful as they would no longer get the payroll hire tasks that come up in the Personnel Administration -> Work work center view, when you hire an employee to a payroll supported country.

    – if there are existing Payroll tasks that have not been completed yet by the user, and Payroll is unscoped, you’ll find that these payroll tasks are still visible, but cannot be worked on by the administrator. This is a known gap – and will be addressed soon.

One question that would come up – If the system was already running with Personnel Administration and Time Administration scoped in, what would the side effects be if Compensation is now scoped ? 

Once compensation is scoped, all the employees that were already hired would now have Compensation Agreements created for them, that match the Work agreement validity period (hire date to termination date). These compensation agreements are visible in the Compensation -> Employees work-center view.

In the Compensation -> Work work-center view, you will also see the tasks corresponding to each of the compensation agreements that were created for the existing employees.

Clicking on these tasks would open up the guided activity floorplan, that allows you to add the compensation structure, grade and Earnings compensation components for the employee.

Please post your questions and feedback in the comments section below.

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      Author's profile photo Saldanha Salvadore
      Saldanha Salvadore

      HI Sandeep.

      Your insight stood our team in good stead. Thank you very much for sharing.

      By the way,I need people in Bombay and Bangalore,India, who can give demo on SAP ByDE.

      Please redirect them to,if you come across any.

      Thanks in advance though!


      Author's profile photo P. van Oosten
      P. van Oosten

      Hi Sandeep,

      I am looking forward checking the Compensation module without Payroll. I noticed that the May 2020 help files still mention the mandatory link with Payroll:  

      In the Scoping step of the project, ensure that Payroll Processing is selected within Human Resources. The Compensation work center is then activated automatically. You cannot activate Compensation without Payroll Processing.

      I guess this information is outdated.

      Thanks for your blog,


      Author's profile photo Sandeep Dinesh Janardan
      Sandeep Dinesh Janardan
      Blog Post Author

      Hello Peter

      Thank you very much for pointing this out. Yes, the document is outdated, and will be corrected.


      Author's profile photo Ahmed Ismail
      Ahmed Ismail

      Hi Sandeep,


      I tried to use the above mentioned features and components , yet after i have created Compensation components and maintained the master data for the employees,

      the recorded times are multiplied to the main Compensation component rates , not the employee compensation component rates

      Note : i am testing this for a Prelocalized Country

      Kindly advice