Compensation is the process of reversing or providing an alternative for a successfully completed activity, especially when a fault occurs. Compensation restores data to what it was before the activity work was done.
Correlation is a construct for keeping track of a group of messages that belong together in one particular business partner interaction. Correlation matches messages and interactions with the business process instances they are intended for.
The loan approval tutorial does not require correlation or compensation.
For more information, see "Compensation and Correlation" elsewhere in this help.