Name: Managing Processing Units in SAP Incentive Management
Uploaded: 2026-5-12
Duration: 293 s
Description: In this video, you'll learn about the functionality and management of processing units in SAP Incentive Management. We will go over the business use for processing units, show how to enable the functionality, and create a processing unit. We will also show how to assign a processing unit to a business unit and run a calculation.

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<div><div><div>In this video, you'll learn about the functionality and management of processing units in SAP Incentive Management. We will go over the business use for processing units, show how to enable the functionality, and create a processing unit. We will also show how to assign a processing unit to a business unit and run a calculation.</div></div></div>

Managing Processing Units in SAP Incentive Management

Hello and welcome! In this video, I will discuss the functions and features of processing units. I will also demonstrate the steps to create a processing unit and give it meaning by assigning business units to it. Often, businesses require you to run compensation calculations for various sectors belonging to the business. This implies calculations run on multiple schedules and not all as one set. This may also require different compensation cycles. A processing unit is a compensation processing feature. It supports calculation processing for subsets of incentive management data by logically dividing the data in ways that support your business. Once you create processing units, you can give them meaning by assigning business units. On a high level, here are the steps. We first create processing units. Then create business units. And finally, assign business units to the respective processing units. Let's use an example. Bikes in Motion wants to run compensation calculation for their European team on a monthly basis, but they want to run a bi-weekly calculation for their American team. The first step is to create a processing unit for each region. Let's call them PU_Europe and PU_Americas. Each region would also have at least one business unit. PU_Americas, for example, may have one business unit for the United States and one for Canada. Both these business units must be mapped to PU_Americas. If the business units are not mapped to a processing unit, no data in the region would be processed where the calculation is run. Let's take a quick look at the features of processing units. Once you've enabled processing units in your system, you can create as many of them as you need. Multiple business units can be assigned to a single processing unit. You can run each calculation for a single processing unit at a time. Calculation runs are completed separately for each processing unit. When you create processing units, segments are created in database tables. This enhances the performance by speeding up the calculation. Now, let's look at the steps to enable and use processing units in Incentive Management. On the Home page, from the Manage Setup tile, go to the Preferences menu and select System Preferences. On the Calculation tab, scroll down to Advanced Calculation Options. Choose Enable Processing Units, then choose Save. Keep in mind that once you enable processing units, you cannot disable them, so only enable processing units once you are ready. After logging out and logging back in, I see under the Security menu that there is a new processing unit workspace. For this scenario, I am creating two processing units, PU_Europe and PU_Americas. I will choose Create to create the first processing unit. Let's name this one PU_Americas and choose Create again. I'll create a second one called PU_Europe following the same steps. Now, let's assign business units to the Americas Processing Unit. For this demonstration, I have already created business units for the USA, Canada, and France. I'll select USA, then I'll select Edit. In the Processing Unit field, enter a few letters and the suggestions are offered. I'll select PU_Americas and choose Save. Then, I'll repeat the steps to assign the Canada Business Unit to PU_Americas. I'll then configure the Europe Processing Unit. I'll select the France Business Unit, select Edit and add the PU_Europe Processing Unit. Finally, I'll choose Save. Let's see how the Calculation page looks when we add the processing units and business units. From the left expandable menu, go to Run and select Pipeline. Then select Compensate and Pay. Notice that you will now have to select a single processing unit to run a calculation. In this video, we've discussed the functions and features of processing units. We've also created processing units and added them to business units. Thanks for watching.