Configuring Wage Type Characteristics

Objectives

After completing this lesson, you will be able to:
  •  Identify the characteristics of wage types
  • Configure wage types to use pay scale data
  • Configure wage types to perform calculations on base amounts
  • Outline the configuration of wage types to calculate percentages
  • Outline the configuration of wage types to use position data
  •  Identify additional attributes of indirect valuations

Wage Type Characteristics

Wage type characteristics determine how the wage types function when entered in infotypes. For example, based on the configuration, wage type characteristics indicate a number or an amount, or default the values based on indirect valuation.

You can define the following wage type characteristics:

  • Validity period
  • Operation indicator
  • Minimum and maximum wage type amount, if applicable
  • Whether or not the wage type amount should be included in the basic pay total
  • Default units of time or measurement, and the minimum and maximum number
  • Input combinations for number and amount
  • Indirect valuation and its characteristics

    Note

    If you intend to implement the HCM Personnel Time Management component, you must also define the wage type as a bonus or a basic hourly pay wage type.

Indirect Valuation of Wage Types

Wage types can be valuated in the following ways:

Direct valuation:
The amount that is used to valuate the wage type, is entered in the infotype manually.
Indirect valuation:
The system automatically calculates the wage type amount and enters it in the infotype. In this case, the system imports and calculates the wage type amount from the table; and you do not have to enter it manually.
If the valuation table changes, the system automatically changes the HR master data record in accordance with the start or end date. This helps avoid mass data changes.

The system can perform indirect valuation for the following infotypes:

  • Basic Pay (0008)
  • Recurring Payments / Deductions (0014)
  • Additional Payments (0015)

Indirect Valuation Using the Rule for Wage Type Characteristics

You can indirectly valuate a wage type by specifying the following details:

Module name:
Specifies the fixed valuation table used for indirect valuation.
Module variant:
Controls the read access to the table.

Indirect valuation means that the system reads the amount from a table; and you do not have to enter it manually in the infotype.

You define the valuation rule centrally, which means that you do not have to change master data records when you change the valuation.

Wage Type Characteristics Module

Different modules read different valuation tables.

You can do the following:

  • Adapt SAP standard modules to meet your enterprise-specific requirements.
  • Create your own modules with specific calculation guidelines.

It is possible to define your own module by using the following tools:

  • Indirect Valuation Modules table (T511IV_M): Customer-specific module (indirect valuation) that you have defined.
  • Business Add-In (BAdI) HR for Indirect Valuation of Wage Types (HR_INDVAL), this BAdI creates or changes the calculation guideline for an indirect valuation module.

You can define your own module in exceptional cases where the standard functionality is not suitable for your requirements.

Note

You can find further information on different modules in the Implementation Guide (IMG) for Personnel Administration under Payroll Data→Indirect Valuation .

TARIF Module

When you enter a wage type in an infotype, the system reads the valuation module and the variant assigned to it in the Wage Type Characteristics table.

The TARIF module uses pay scale data that it takes from the pay scale groups and pay scale levels you entered in the Basic Pay infotype. You can use a conversion procedure to change this amount.

Module variants control the type of table access. In other words, a module variant determines the table fields to be read by the system.

Indirect Valuation Using the TARIF Module

The module TARIF module has four variants (A-D), which have the following meaning:

  • A: This variant indicates that valuation is based on the pay scale group and level.
  • B: This variant indicates that valuation is based on the pay scale group/level and the specific wage type.
  • C: This variant indicates that valuation does not depend on the pay scale level.
  • D: This variant indicates that valuation does not depend on the pay scale group/level.

You can use modules for indirect valuation in other infotypes.

TARIF Module in the Recurring Payments or Deductions Infotype

The example in the figure shows how indirect valuation in the Recurring Payments/Deductions infotype helps determine the vacation allowance that an employee should receive.

How to Configure a TARIF Wage Type

DemoStart Demo
DemoStart Demo

You need to valuate a wage type and configure it using the TARIF module. The wage type amount needs to be directly read from the pay scale table as per indirect valuation. You also need to define the wage type characteristics appropriately for the task.

Steps

  1. Wage type ##10 (## refers to the group number of the participant) should be valuated to ensure that the wage type amount is read from the pay scale table (module TARIF). The system should read the entry that has no entry in the wage type column (variant A). Make the appropriate entries for the wage type characteristics in the system.

    1. In Customizing , choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Wage Types→Check Wage Type Catalog→Check Wage Type Characteristics .

    2. Select the wage type ##10.

    3. Choose Details .

    4. Make the following entries:

      Amount:+
      Number / Unit-
      Indirect valuation moduleTARIF
      Module variantA

    5. Save your entries.

  2. Wage type ##20 should be valuated so that the wage type amount is read from the pay scale table (TARIF module). The entry that is created for this wage type in the pay scale table should read (variant B). Make the appropriate entries in the wage type characteristics in the system.

    1. In Customizing , choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Wage Types→Check Wage Type Catalog→Check Wage Type Characteristics .

    2. Select the wage type ##20.

    3. Choose Details .

    4. Make the following entries:

      Amount:+
      Number / Unit-
      Indirect valuation moduleTARIF
      Module variantB

    5. Save your entries.

  3. In the pay scale table, create entries for your new bonus wage type (##20) for each of your pay scale levels in the pay scale group GR## from 01.01. of this year.

    1. In Customizing , choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Revise Pay Scale Groups and Levels .

    2. In the Determine Work Area: Entry dialog box, enter your country grouping 99 , pay scale type 90 , and pay scale area 70+## .

    3. Select the GR## entries.

    4. Select Copy as .

    5. Add the following table entries with the ##20 wage type:

      GrpgPS GroupLv.Wage TypeStart DateEnd DateAmount
      1GR##01##2001.01.200931.12.9999Your Choice
      1GR##02##2001.01.200931.12.9999Your Choice
      1GR##03##2001.01.200931.12.9999Your Choice
      1GR##04##2001.01.200931.12.9999Your Choice

    6. Save your data and return to Customizing .

    7. Set up your base WT ##10 to be linked to the valuated WT ANSAL from 01.01.2011 to 31.12.9999. The sequence number for your entry should be 10+##. Save your entries.

      Hint

      Maintain the entries for the annual salary only if this is necessary for your country (not for Germany!) .

      In Customizing choose: Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Define annual salary .

      In the Choose Activity dialog box, choose Relevant wage types for annual salary valuation , and select the Choose pushbutton.

      Iin the Determine Work Area: Entry dialog box, enter 99 in the Country Grouping field and choose Continue .

      Enter the following values and Save your entries:
      Valuated WTLong TextNo.Start DateEnd DateBase WTLong TextPercent
      ASAL 10 + ##01.01.201131.12.9999##10 100

Result

PRZNT Module

The PRZNT module is one of the two modules for indirect valuation, the other being SUMME. Both modules are based on how you set up the Base Wage Type Valuation table.

The system calculates certain wage types as a percentage of other wage types.

In the IMG structure, choose: Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Wage Types→Define valuation of base wage types .

In the above example, either one of the following applies:

SUMME:
For this module, the amount for wage type 4 should consist of 20% of wage type 1, 30% of wage type 2, and 20% of wage type 3.
PRZNT:
For this module, the amount for wage type 4 should consist of 20% of wage type 1, 30% of wage type 2, and 20% of wage type 3. In addition, the system should also multiply this amount by a percentage you enter in the Basic Pay infotype, which is 10% in this case.

Defining Valuation of Base Wage Types

The system calculates certain wage types as a percentage of other wage types.

You can link the wage type to be valuated with several base wage types in the Base Wage Type Valuation table.

PRZNT Module - Indirect Valuation

In Define Valuation of Base Wage Types , you must specify the wage types to be used by the system for calculating the percentage bonus (PRZNT).

A distinction is made between direct and indirect variants in the following manner:

Direct variant:
You need to enter the wage types to be used by the system as a valuation basis in the infotype. Otherwise, the system does not consider them. Furthermore, the amount of the wage type to be valuated is dependent on how high the amounts of the base wage type in the Basic Pay infotype are. This is because you can also overwrite the default amounts for indirectly valuated base wage types if you have enabled the overwrite option in the wage type characteristics.
Indirect variant:
The system determines the value internally and uses it as the basis for additional calculations. This means that the base wage types must be valuated indirectly so that the system can read amounts from a table (for example, the pay scale table).

How to Configure a PRZNT Wage Type

DemoStart Demo
DemoStart Demo

You need to valuate a wage type and configure it based on the PRZNT module. The wage type amount is to be read directly from the pay scale table as per indirect valuation. You also need to define wage type characteristics appropriately for the task.

Steps

  1. Wage type ##30 should be valuated so that the amount is calculated as a percentage from base wage types ##10 and ##20. In addition, the amount in this wage type should be multiplied again by a percentage rate when entered in the Basic Pay infotype.

    The wage type amount should be kept separate from the actual base wage type amounts in the Basic Pay infotype. In other words, the system should read the amounts from the Pay Scale table. The wage type amount should also be rounded up or down to the nearest whole figure (EURO). Make the appropriate entries in the wage type characteristics in the system.

    1. In Customizing choose: Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Wage Types→Check Wage Type Catalog→Check Wage Type Characteristics .

    2. Select wage type ##30.

    3. Choose Details.

    4. Make the following entries:

      Amount:-
      Number / Unit+
      Time unit / measPercent
      Indirect valuation modulePRZNT
      Module variantI
      Rounding typeB
      Rounding divisor100

    5. Save your entries.

  2. Define the base wage type valuation for the Performance Bonus (##30) wage type. This valuation should consist of 50% of base wage type ##10 and 100% of base wage type ##20.

    1. In Customizing , choose: Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Wage Types→Define valuation of base wage types

    2. Make the following entries:

      ModuleWage TypeNo.Start DateEnd DateBase Wage TypePercent
      PRZNT##30101.01.200931.12.9999##1050
      PRZNT##30201.01.200931.12.9999##20100

    3. Save your entries

SUMME Module

You can use the SUMME module for indirect valuation in other infotypes. When making indirect valuation using the SUMME module, you must define the wage types to be used by the system to calculate the percentage bonus.

A distinction is also made between direct and indirect variants in the following manner:

Direct variant:
You must enter the wage types that the system will use as a valuation basis in the infotype; otherwise, the system does not consider them.
Indirect variant:

The relevant wage types must also have been evaluated indirectly.

Unlike in a PRZNT module, in a SUMME module, you enter the percentage value in the table as a fixed value. It is, therefore, linked to the wage type.

The SUMME Module in the Recurring Payments or Deductions Infotype can be used.

The example in the figure shows how indirect valuation in the Recurring Payments or Deductions infotype helps determine the vacation allowance that an employee should receive. In this case, you use the SUMME module and the module variant B.

Examples of Indirect Valuation

Note

You must also store the type of calculation in the Basic Wage Type Valuation table.

ARBPL Module

ARBPL is an indirect valuation module in which the object type and the position number entered in infotype 0001 are used to calculate the wage type amount.

If the ARBPL module is used with Variant S (position) for valuation, the system bases its calculations on the position entered in the Organizational Assignment infotype (0001) and the country grouping in the Position table. You can enter a payment for the position in this table.

To access the position catalog, use the following menu path:

From the reference IMG, choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Wage Types→Determine indirect valuation for positions / work centers.

Additional Attributes of Indirect Valuation

In addition to the module name and defining module variants, you can also enter additional attributes of indirect valuation.

Additional Attributes of Indirect Valuation

Following are some of the additional attributes of indirect valuation:

  • Reduction method: For this method, the following values are defined:

    • Blank or 1 : No reduction
    • 2: Reduction using the capacity utilization level (%) stored in infotype 0008.
    • 3: Reduction in accordance with the relationship between the individual weekly working time and the standard weekly working time.
    • 4: Reduction based on the relationship between the individual hours per week taken from infotype 0007 and the standard weekly working time.
    • 5: Reduction in accordance with the relationship between the individual weekly working time minus the standard weekly working time and the standard weekly working time.
    • 6: Reduction based on the relationship between the hours per week taken from infotype 0007 minus the standard weekly working time and the standard weekly working time.

  • Rounding type: For this type, the following values are defined:

    • A = amount is rounded down
    • B = amount is rounded up or down
    • C = amount is rounded up
  • Rounding divisor: For rounding divisor, values from 0 to 999999 can be defined. For example, 100 means that the amount should be rounded up to a whole euro or dollar.
  • Overwrite indicator: This attribute determines whether or not you can overwrite the determined wage type amount in the infotype.

Configure Wage Types

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