In SAP SuccessFactors Variable Pay, variables are fundamental components used in bonus calculations.

A key characteristic is that once a variable is created and its data type (e.g., Number, String, Boolean) is defined, this type cannot be altered. This restriction maintains the integrity of formulas and calculations that reference the variable throughout the compensation cycle.

Furthermore, the system uses a hierarchical approach for data assignment. While a default value for a variable can be set at the plan level, more specific assignments, such as those made at the position or employee level, will always override the more general, plan-level values. This allows for granular and specific adjustments within the bonus plan.

C. Variable values can include currency, boolean, or string data types.

This is incorrect because 'Currency' is not a distinct data type for a variable. Variables can be Number, String, or Boolean. Currency is a format applied to a Number type variable.

D. A Variable can be associated with any type of compensation element.

This is incorrect. Variables are a specific feature of the Variable Pay module and are used in bonus calculation formulas. They are not a universal feature used with all compensation elements, such as merit or promotion fields in a standard Compensation worksheet.

1. SAP SuccessFactors Variable Pay Implementation Guide: In the section "Managing Variables," the guide details the creation process. It specifies that the available variable types are Number, String, and Boolean. It also implicitly supports the immutability of the type post-creation to ensure formula integrity. For example, once a variable is used in a formula expecting a number, changing its type to a string would cause calculation errors. (Document available on SAP Help Portal, specific section on Variable configuration).

2. SAP SuccessFactors Variable Pay Implementation Guide: The section on "Understanding the Calculation of the Bonus Payout" explains the data hierarchy. It clarifies that the system uses the most specific data available. Data imported at the employee or position level will override any default values set at the business goal or plan level. (Document available on SAP Help Portal, specific section on Variable Pay Calculation Engine Logic).