Name: Understanding Business Units in SAP SuccessFactors Incentive Management
Uploaded: 2025-6-27
Duration: 305 s
Description: In this video, we introduce Business Units in SAP SuccessFactors Incentive Management. We show how to create a Business Unit and assign it to a user, cover the key points of Business Units, and discuss best practices for their use.

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<div><div><div>In this video, we introduce Business Units in SAP SuccessFactors Incentive Management. We show how to create a Business Unit and assign it to a user, cover the key points of Business Units, and discuss best practices for their use.</div></div></div>

Understanding Business Units in SAP SuccessFactors Incentive Management

Hello and welcome. In this video, you will learn about business units in SAP SuccessFactors Incentive Management. Business units add an extra layer of data security by segregating data for different parts of the organization. Use business units when users in one part of an organization should not have visibility to data in other sectors. Let's look at an example. SmartLogic is a global organization that plans to implement Incentive Management in three regions, Europe, North America, and Asia Pacific. Each region will be managed by a separate compensation team, each with their own plans and rules. Keep in mind, business units don't have to be based on geography. Other examples include lines of business or parent and subsidiary organizations. You'll want to set up your business units before any data is imported or added to the system and before creating compensation elements, plans, and rules. Let's create a business unit for SmartLogic. To create a business unit, select Security from the Manage Setup tile, then select Business Units. Select Create to add a new business unit. Enter the business unit name and select Create. Be aware that business units can't be deleted once they are created. Now we can give Incentive Management users access to the business unit. From the Security menu, select Users. Let's edit this user record. The user record has two Business Unit fields, one for read-only and one for full access. Each field allows you to grant access to a single business unit,  multiple business units, or any business unit. Let's give this user read-only access and full access to the SmartLogic business unit. Once you have granted access to this business unit, the user will be allowed to set the business unit as a default. This means every time he creates a new object, it will automatically be assigned to the business unit. Business units don't just segregate data for users. They also segregate data from other related data. For example, let's say you create a fixed value called  North America Quarterly Bonus and assign it to the new business unit. A compensation plan in the Europe business unit won't allow the assignment of this fixed value. Here are a few other things to keep in mind about how different types of objects manage business units. First, any object that doesn't have a business unit assigned can be seen by all users and referenced by all other objects. Second, positions can be assigned to only a single business unit. If you need to assign a payee to two or more business units, the best solution is to create two positions, both assigned to the same participant. Third, security data and global values, such as data types and event types, do not have associated business units. It's also important to mention that calculations are not segregated by business unit. If you want to process payments for separate business units, you can assign positions to different position groups, then process payments by position group. Let's take a look at a few recommended best practices regarding business units. While business units are an optional feature, SAP recommends you create at least one business unit even if your organization doesn't need data segregation. It's also recommended that business units are created and assigned to users before you add data and objects such as transactions, classification data, plans, and rules.  Finally, users are encouraged to set up a default business unit in User Preferences. This will ensure that objects they create manually are automatically assigned the correct business unit. In this video, we introduced business units. We gave an overview of business units, showed how to create a new business unit, assigned the business unit to a user, and discussed key points and best practices. Thanks for watching!