Performing a Pay Scale Reclassification

Objective

After completing this lesson, you will be able to execute the update of pay scale reclassifications

Pay Scale Reclassification

Pay scale reclassification refers to the transfer of an employee from one pay scale group or pay scale level to another. The employee is then paid according to the new group or level.

Pay scale reclassification allows you to update the information on the pay scale groups and levels in the Basic Pay infotype (0008) for each employee. The system updates this information automatically when a situation meriting reclassification arises.

You can define limit values for the Next Increase field in the Basic Pay infotype (0008) and the Key Date field on the Report Selection screen.

In addition, you can define limit values for reclassification criteria in the SAP system for the following:

  • The age of the employee when the system is to perform a pay scale reclassification.
  • The pay scale group or level: when an employee reaches this group or level, and he or she is due for reclassification.
  • The limit value for the time worked by the employee (in hours).

    You can use the following report to perform pay scale reclassification:

    Report RPIPSR00:

    • Pay scale reclassification based on master data: Pay scale can be classified based on master data according to the age or pay scale membership period.
    • Pay scale reclassification based on hours worked: Pay scale can also be reclassified based on number of hours worked by an employee.

Pay Scale Reclassification on the Basis of Master Data

Automatic pay scale reclassification depends on the employee’s age and the time spent in a pay scale group or level.

If you want to transfer an employee to a different pay scale group or level before the set date, you can enter the new date in the Next increase field of the Basic Pay infotype (0008).

Performing a Pay Scale Reclassification Based on Master Data

If you want to transfer an employee to a different group or level on the basis of age, you can enter a natural or technical date of birth to vary the time of reclassification.

The report RPIPSR00 (Time Spent in Each Pay Scale Area or Type or Group or Level) generates a list of employees, including their pay scale structure and additional information. You must perform pay scale reclassifications before a standard pay increase.

Note

You usually perform pay scale reclassifications before the payroll run for each payroll period.

Pay Scale Reclassification Based on Working Time

You can only use the Pay Scale Reclassification Basedon Working Time function if you use the Time Evaluation component.

Before you can use this function, you must define limit values for the hours worked by your employees, as well as the next pay scale group and level in the Pay Scale Reclassification table.

The pay scale reclassification report, RPIPSR00, compares the limit values for hours worked with the working time that has already been cumulated (RPTIME00). If the limit values are exceeded, this report creates a new Basic Pay record (0008).

The PRVAR feature uses additional organizational and employee-related criteria to define a three-character alphanumeric return code as a variable key. The system uses this key to read the pay scale reclassification table.

How To Perform a Pay Scale Reclassification

DemoStart Demo
DemoStart Demo
DemoStart Demo

Perform a pay scale reclassification according to the remuneration reports. Select a suitable criterion to differentiate the pay scale on the basis master data or working time.

Perform a pay scale reclassification:

Steps

  1. Use the IMG activity Specify Pay Scale Reclassification to define the general rules for reclassification in your company. After one year in the same level, employees in your pay scale level GR## should be moved to the next level.

  2. In certain circumstances, you may only find this activity in the SAP Reference IMG.

    1. In the Project IMG, choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Pay Scale Changes→Pay Scale Reclassification→Specify Pay Scale Reclassification .

    2. Choose New entries , and create the following entries:

      Pay Scale TypePay Scale AreaESG for CAPPay Scale GroupPay Scale LevelStartEndGroup Member Dur.Next Pay Scale GroupNext Pay Scale Level
      9070+##1GR##01Beginning of current month31.12.9999 (high date)12GR##02
      9070+##1GR##02Beginning of current month31.12.9999 (high date)12GR##03
      9070+##1GR##03Beginning of current month31.12.9999 (high date)12GR##04

  3. A year has now passed, and your production worker (personnel number 305992## ) is to be assigned to the next pay scale level. Use the report RPIPSR00 to automatically generate this change. Set the indicator for the batch input session, and then process the session.

    1. From the menu, choose System→Services→Reporting .

    2. Enter report RPIPSR00, and choose Execute . Select Other period , and enter the first and last day of the current month next year, as well as your personnel number ( 305992## ). On the Generation Type tab page, select the Batch Input Session option.

    3. Choose Execute.

    4. To run the session, choose System→Services→Batch Input→Sessions .

    5. On the General Overview tab page, select the batch input session next to your logon ID (HR305-##), and choose Process . On the next screen, choose Process online , and deselect the indicator for Standard screen size . Confirm each individual step with Enter.

    6. Return to the SAP Easy Access menu.

  4. Check the Basic Pay infotype (0008) to ensure that the pay scale reclassification was carried out successfully.

    1. On the SAP Easy Access screen, choose: Human Resources→Personnel Management→Administration→HR Master Data .

    2. Select Display.

    3. Enter the personnel number 305992## .

    4. Enter infotype 0008.

    5. Select Overview.

    6. Check the pay scale group and level.

Perform a Pay Scale Reclassification

ExerciseStart Exercise
ExerciseStart Exercise

Business Example

In your organization, certain employees have been in a pay scale level for a year, and are eligible for a reclassification to the next level. You need to perform a pay scale reclassification through an analysis of different factors involved.

Perform a pay scale reclassification according to the remuneration reports. Select a suitable criterion to differentiate the pay scale on the basis master data or working time.

Perform a pay scale reclassification:

Steps

  1. Use the IMG activity Specify Pay Scale Reclassification to define the general rules for reclassification in your company. After one year in the same level, employees in your pay scale level GR## should be moved to the next level.

  2. In certain circumstances, you may only find this activity in the SAP Reference IMG, because your project IMG does not contain this IMG Activity.

    1. In the Project IMG, choose Personnel Management→Personnel Administration→Payroll Data→Basic Pay→Pay Scale Changes→Pay Scale Reclassification→Specify Pay Scale Reclassification .

    2. Choose New Entries, and create the following entries:

      Pay Scale TypePay Scale AreaESG for CAPPay Scale GroupPay Scale LevelStartEndGroup Member Dur.Next Pay Scale GroupNext Pay Scale Level
      9070+##1GR##01Beginning of current month31.12.9999 (high date)12GR##02
      9070+##1GR##02Beginning of current month31.12.9999 (high date)12GR##03
      9070+##1GR##03eginning of current month31.12.9999 (high date)12GR##04

  3. A year has now passed, and your production worker (personnel number 305992## ) is to be assigned to the next pay scale level. Use the report RPIPSR00 to automatically generate this change. Set the indicator for the batch input session, and then process the session.

    1. From the menu, choose System→Services→Reporting .

    2. Enter report RPIPSR00, and choose Execute . Select Other period , and enter the first and last day of the current month next year into Data Selection Period, as well as your personnel number ( 305992## ). On the Generation Type tab page, select the Batch Input Session option.

    3. Choose Execute.

    4. To run the session, choose System→Services→Batch Input→Sessions .

    5. On the General Overview tab page, select the batch input session next to your logon ID (S4HR35-##), and choose Process . On the next screen, choose Process/foreground , and deselect the indicator for Standard screen size. Confirm each individual step with Enter.

    6. Return to the SAP Easy Access menu.

  4. Check the Basic Pay infotype (0008) to ensure that the pay scale reclassification was carried out successfully.

    1. On the SAP Easy Access screen, choose: Human Resources→Personnel Management→Administration→HR Master Data.

    2. Select Display.

    3. Enter the personnel number 305992##.

    4. Enter infotype 0008.

    5. Select Overview.

    6. Check the pay scale group and level.

Learning

SAP FacebookSAP YoutubeSAP LinkedIn