Creating Derived Wage Types

Objective

After completing this lesson, you will be able to create derived wage types to process additional remuneration

Derived Wage Types

Image showing the wage type M110 for overtime hours with valuation bases and % rates. The current wage type has a 100% rate, the 1st derived wage type MQ10 has a 25% rate, and the 2nd derived wage type is not filled.

The first and second derived wage types enable defining bonus wage types for which remuneration is calculated when an employee’s current wage type is valuated in payroll.

In the preceding figure, you can determine whether remuneration is calculated for the current wage type by specifying a valuation basis in the appropriate line.

For example, in the table:

  • Line a) shows the wage type in the input table (IT) after the employee remuneration information was imported.
  • Line b) shows the wage type after valuation using the valuation basis specified in Customizing.

  • Line c) shows the derived wage type assigned to M110 in table V_512W_O. This occurs during the processing of rule X015 and can be viewed in the output step.

The entries are represented in the following manner:

LineEvaluationStatement WTRTENUMAMT
a)Before evaluationM110 5 
b)After evaluationM11014.10570.50
c)After evaluationMQ103.52517.60

Valuate Wage Types in Schemas

  • XT00 - Time data processing INTERNATIONAL
  • PIT X010 P01 - Create valuation bases (addition)
  • PIT X013 P01 - Create valuation bases (division)
  • MOD XMOD GEN - Determine payroll modifiers
  • .
  • P2010 X930 GEN NOAB - Edit employee remuneration information
  • .
  • .
  • PIT X015 GEN - Valuate time wage types
  • .

The subschema XT00 calls the rule X010 (Processing Time Data in Payroll). Personnel calculation rule X010 queries processing class 01 for the basic pay wage types in the internal table IT. The specification in processing class 01 determines whether the wage type is transferred to secondary wage types that are used to create the valuation bases.

The subschema XT00 then calls personnel calculation rule X013. The values for employees not paid by the hour are divided by the flat-rate number of hours in a period. This results in an amount per working hour that is entered as the valuation basis in the rate field ( RTE) for wage types /001 and /002.

Types of Valuation Bases

  • Valuation bases entered in a table as
    • Constants dependent on wage types
    • Constants dependent on a collective agreement
  • Valuation bases calculated for specific persons using the basic pay data.

You can also determine valuation bases using the average values for remuneration elements from previous payroll periods.

Create Derived Wage Types

Business Example

Your company pays various bonuses for overtime that are subject to remuneration. For the first 2 hours overtime in a day, an employee receives a 25% bonus. For each additional hour, the employee receives a 50% bonus. Overtime on Sundays is remunerated by a 75% bonus and overtime on public holidays is remunerated by a 100% bonus. You require time wage types for overtime remuneration.

Create derived wage types for overtime remuneration and assign employee remuneration information to the employee in the payroll period.

ExerciseStart Exercise

Steps

  1. You require time wage types for overtime remuneration. You enter these wage types as employee remuneration information and make an entry only in the fields Number/unit (which represents the number of hours in this instance). You must valuate the wage types with the employee’s hourly rate, which is contained in the valuation basis /001.

    You require the wage types, as shown in the following table, and you want to specify the premium in the statement wage types:

    Current Wage TypeWage Type Long TextDerivedStatement WTPercentage
    3##1Up to 2 hours overtimederived3##525% bonus
    3##2From 3 hours overtimederived3##650% bonus
    3##3Overtime on Sundaysderived3##775% bonus
    3##4Overtime on public holidaysderived3##8100% bonus

    Copy wage type M110 eight times using the wage type copying function to create the wage types specified above.

    1. To copy time wage types for overtime compensation:

      From the SAP Access screen, choose Tools→Customizing→IMG→SPRO - Execute Project→Project S4HR40 (or SAP Reference IMG)→Payroll→Payroll International→Basic Settings→Environment of Wage Type Maintenance→Create Wage Type Catalog.

    2. In the Wage Type Maintenance dialog box, choose Copy and select Continue (Enter).

    3. Enter the SAPmodel wage type M110 in the Original Wage Type field and 3##1 in the Customizing Wage Type field and press Enter. Select this line.

    4. Choose Copy 1 Wage Type.

    5. Enter the following information in the Wage Type Maintenance dialog box:

      Wage Type Starts AtNumber Of Wage TypesIncrease Each Step
      3##181

      Select Continue.

    6. Change the Customizing wage type text using the following table:

      Customizing WTypeWage Type Long TextText
      3##1Up to 3 hoursUp to 2h
      3##2From 3 hours overtimeFrom 3h
      3##3Overtime on SundaySunday
      3##4Overtime public holidayHoliday
      3##525% bonus25% Bon
      3##650% bonus50% Bon
      3##775% bonus75% Bon
      3##8100% bonus100% Bon

      Then, clear the Test run checkbox and select Copy (F8). Review the results of the Copy Wage type screen.

  2. Identify the valuation bases of your wage types 3##1 – 3##4 so that the hourly rate is determined from /001. Enter wage types 3##5 – 3##8 as derived wage types of 3##1 – 3##4.

    1. To identify the valuation bases of your wage types 3##1 – 3##4:

      From the SAP Easy Access screen, choose Tools→Customizing→IMG→SPRO -Execute Project→Project S4HR40 (or SAP Reference IMG)→Payroll→Payroll International→Time Wage Type Valuation→Valuation Bases→Assign Valuation Bases.

      Alternatively, you can call the table v_512w_B directly through transaction SM30.

    2. Mark the line with the wage types 3##1, 3##2, 3##3, 3##4 and select Details. Valuate your wage types with the valuation basis 01 to 100% and make the following entries for the first derived wage type:

      Wage Type3##1
      Current wage typeValuation basisStatemntWT% Rate
       01<empty>100
          
      1st derived wage typeValuation basisStatemntWT% Rate
       013##525

      Select Next (F8).

      Wage Type3##2
      Current wage typeValuation basisStatemntWT% Rate
       01<empty>100
          
      1st derived wage typeValuation basisStatemntWT% Rate
       013##650

      Select Next (F8).

      Wage Type3##3
      Current wage typeValuation basisStatemntWT% Rate
       01<empty>100
          
      1st derived wage typeValuation basisStatemntWT% Rate
       013##775

      Select Next (F8).

      Wage Type3##4
      Current wage typeValuation basisStatemntWT% Rate
       01<empty>100
          
      1st derived wage typeValuation basisStatemntWT% Rate
       013##8100

      Save your entries.

  3. Check your wage types by assigning employee remuneration information (pay attention to the date) to your employee in payroll period 02 and specify hours for each of the wage types 3##1 , 3##2 , 3##3 , and 3##4 .If your wage types have been valuated correctly for period 02, then exit payroll.

    Wage TypeDayNumber/Unit
    3##1Any day in February10 hours
    3##2Any day in February10 hours
    3##3Any Sunday in February10 hours
    3##4Any day in February10 hours

    1. To enter the employee remuneration information and run payroll:

      On the SAP Easy Access screen, choose Human Resources→Payroll→International→Payroll→Corrections.

    2. In the Payroll area dialog box, choose Payroll area ## and select Continue (Enter) and confirm by selecting YES.

    3. Choose Back to go to the SAP Easy Access screen and then choose Human Resources→Personnel Management→Administration→HR Master Data→PA30 - Maintain.

    4. On the Maintain HR Master Data screen, enter the employee’s personnel number.

    5. Choose the infotype menu Working times. Select the Employee Remuneration Info infotype and choose Create (F5).

    6. Create employee remuneration info of 10 hours for each of your wage types 3##1 – 3##4. Make sure that the date lies within the payroll period February.

      Enter the following information:

      DateWage typeNumbers/units
      Any day in February3##110 hours
      Any day in February3##210 hours
      Any Sunday in February3##310 hours
      Any day in February3##410 hours

      Save your entries.

    7. To run payroll for February:

      On the SAP Easy Access screen, choose Human Resources→Payroll→International→Payroll→Release Payroll.

    8. Select Yes in the Release for payroll dialog box to release payroll.

    9. On the SAP Easy Access screen, choose Human Resources→Payroll→International→Payroll→Start Payroll. Use your selection variant to run payroll.

  4. Run payroll by choosing Execute (F8) and check the payroll log to ensure that wage types 3##1 – 3##4 have been processed correctly.

    1. Open the log at Successful Personnel Numbers→400991##→02/Current Year→Processing of time data→PIT X010 P01 and PIT X013 P01.

    2. Review the Input, Processing, and Output of these steps (/001 and /002).

    3. Next, review P2010 X930 GEN NOAB: review the Input and Output of this import function.

    4. Review the Input and Output of the step PIT X015 GEN. At this point in the payroll process, the wage types should have been evaluated and the derived wage types 3##5 – 3##8 should have been created.

    5. If the results are correct, exit payroll for the period 02. Choose Back to go to the SAP Easy Access screen and then choose Human Resources→Payroll→International→Exit Payroll.

Learning

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