Objective
Personnel calculation rules for wage types are usually configured to perform various processes. For example, wage types for hourly wage earners are processed differently as compared to wage types for monthly wage earners or salaried employees.
To facilitate differential processing, assign each employee subgroup to a grouping for a personnel calculation rule. SAP defines each grouping. In this case, each grouping can have its own area depending on the personnel calculation rule.
The hourly rate for overtime is subject to different methods of calculation (valuation basis). It depends on whether the employee is a period wage earner, a salaried employee, or an hourly wage earner.
For employees with periodic remuneration, to calculate the hourly rate, the remuneration elements are divided by the number of working hours per period specified in the Basic Pay infotype.
Reduction factors are stored in diverse wage types. These factors are used in payroll to calculate the reduction in pay for absences.
A personnel calculation rule can contain several calculation formulas depending on the definition and use of the rule. Each formula is accessed for the relevant wage type.
The factors stored in the wage types are used to reduce periodic remuneration for unpaid absences.