Setting up the Valuation of Absences

Objective

After completing this lesson, you will be able to set up an absence valuation grouping

Adjustment Rules

Images showing a hospital patient with an IV line, wearing a gown, and sitting on a bed thinks about sales discussions. A person in the HR department, wearing headphones, contemplates payroll remuneration and average values.

If an employee is sick or is on leave, certain remuneration elements such as commission, bonuses for piecework, and overtime are reduced for that employee. As a result, the employer often pays the average values of variable remuneration.

You can also use the average calculation procedure in HR Payroll for different purposes. For example, you can calculate average values for fixed payments.

Time Wage Type Valuation

Flowchart showing the processing of data from the input table to the output table. Specifies valuation basis, and depending on the response (yes or no), follows different paths for valuation.

In personnel calculation rule X015, the system checks if the internal table Input Table (IT) contains time wage types that have not yet been valuated. To do so, the system checks the contents of the value fields AMT (amount), NUM (number), and RTE (rate).

This results in one of the following situations:

If the RTE or AMT field contains an amount, the wage type is transferred to the internal table Output Table (OT).
If the AMT field is empty, the NUM field contains a number, and the RTE field contains a rate, then the NUM field is multiplied by the RTE field. The result is stored in the AMT field, and the wage type is transferred to table OT.
If only the NUM field contains an entry because only a number (for example, hours) was entered, and if the AMT and the RTE fields are both empty, the system queries whether a valuation basis has been specified for the wage type. If this is the case, the wage type is valuated using the specified valuation basis.
If no valuation basis is specified, valuation takes place according to the principle of averages if an average valuation is assigned to the wage type. If this is not the case, the wage type is not valuated using a monetary value.

Valuation Using Constants and Averages

Image showing a screen titled Absence Valuation: Averages/Constants with parameters for paid leave including AbsValGrp, Valuation rule, WType, Time unit, BP split, and Day rule. Time unit AT is highlighted.

Consider the following scenarios to understand the difference between valuating absences by constants and valuating absences by averages:

Your employees are to receive a fixed vacation bonus for each day’s leave. In this case, the system valuates the relevant wage type using a constant amount.
For each absence day of leave, your employees are to receive a vacation bonus based on the average amount of overtime they have worked over the last 3 months. In this case, the relevant wage type must be valuated using average bases.

If you want to pay vacation bonus for each leave day of an employee, you can use the following ways to remunerate leave per day:

Calendar days
Absence days, that is, each day that counts as a workday on the work schedule
Accounting days, that is, leave days processed according to the entries specified in the table, Attendance and Absence Counting

If you flag the field Basic Pay Split, changes made to an employee’s basic pay for a payroll period are taken into account.

Time Absence Valuation

Image showing absence period from January 20 to February 5 and payroll periods from January 1, 2010 to February 1 and from February 1, 2010 to March 1, with highlighted Time B, E, I, and Z for storing data per day.

If an employee’s absence spans over several payroll periods, valuation can occur in one of the following ways:

In the payroll period in which the absence begins
In the payroll period in which the absence ends
On a pro rata basis in each payroll period affected

In the preceding figure, Time Z writes the wage type to the internal time wage type table ZL.

Absence Valuation Groupings

Flowchart depicting employee grouping for payroll in XMOD using ES grouping 3 wage/time type. Personnel areas are OUTWPPLANT labeled 1000 with MODIF values 01 and 1100 with MODIF values 02 for various tables.

You group together employees whose absences are to be valuated identically in absence valuation. In this manner, you determine which table entries the system references for various employee categories during absence valuation.

Decision operation OUTWP uses work center elements to determine the modifiers. Operation MODIF set to parameter A determines the employee grouping for accessing the Absence Valuation table during payroll.

Set Up an Absence Valuation Grouping

Business Example

Your company pays a vacation bonus for each day of leave that varies depending on the employee’s organizational assignment. You need to include the vacation bonus in the payroll run using the absence leave. For this reason, you need to set up an absence valuation grouping.

ExerciseStart Exercise

Steps

Determine the absence valuation grouping for your employee by setting the modifier MODIF A to value yy (yy = ##+60 ) for employee subgrouping 3 in personnel calculation rule ZM## (## = group number) for the Valuation of Absences table.
1. To set up the absence valuation grouping in personnel calculation rule ZM##:
  In Customizing, choose Payroll → Payroll International → Absences → Define Grouping for Absence Valuation.
2. Choose the activity Define Grouping for Absences Valuation.
  Note
  The IMG automatically calls personnel calculation rule XMOD. Since you have already copied personnel calculation rule ZM## from XMOD and included it in schema Z0## (## = group number), you now want to edit rule ZM##.
3. In the field Rule overwrite the value XMOD with the personnel calculation rule ZM## and select Change.
4. In Graphical Editor, open the following path: 3 → **** → MODIF A=01. Position the cursor on the MODIF A operation and select the Change Entry icon.
5. Overwrite the value 01 with your modifier yy (yy = ##+60, for example, group 06 has the MODIF A value = 66). Press Enter and choose Save.

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